Business news from Ukraine

Antonov State Enterprise has announced tender for civil aviation and liability insurance with budget of EUR 5.6 mln

State Enterprise Antonov (Kyiv) announced a tender for mandatory aviation insurance services for civil aviation on May 31.

Namely for civil aviation risk insurance services (under insurance classes 1, 5, 11): aircraft insurance, aviation carrier’s liability insurance for damage caused to passengers, baggage, cargo and mail; liability insurance of commercial civil aircraft operator for damage caused to third parties.

As well as insurance of the liability of developers, manufacturers of civil aviation equipment, maintenance organizations authorized to conduct test flights for damage caused to third parties; insurance of the liability of an educational institution in the performance of training flights for damage caused to third parties. Insurance of aircraft crew members and other aviation personnel; insurance of persons who have the right to be on board an aircraft on legal grounds without purchasing tickets; insurance of employees of the customer of aviation works, employees of other organizations involved in the performance of aviation works, and persons ensuring the technological process during the performance of aviation works.

According to the message on the website of the Ukrainian Universal Exchange, the expected cost of the purchase of insurance services is UAH 5.607 million, the cost of submitting a bid is UAH 4.08 thousand.

Documents are accepted until 17:00 on June 7.

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Ukraine exported 590 tons of organic honey

In January-May 2024, Ukraine exported 589.86 tons of organic honey, which exceeds last year’s figures, the OrganikInfo portal reported, citing data from the Organic Standard certification body.

According to the report, in recent years, the dynamics of growth in organic honey exports has been observed. Thus, in 2021, 269.33 tons of honey were exported abroad, in 2022 – 698.05 tons, and in 2023 – 702.9 tons.

“Organic honey is not among the top 10 products exported from Ukraine, but Ukraine remains one of the leading exporters of honey, including organic honey, and demand in the world is only growing,” said organic market analysts.

According to the data, in 2022, honey ranks 4th in terms of the volume of products imported to the EU and has a share of 9.2% of all organic imports.

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Average monthly salary in Ukraine increased by 22.5% – State Statistics Service

The average monthly salary of full-time employees in the first quarter of 2024 increased by 22.5% compared to the first quarter of 2023 and amounted to UAH 18,903, the State Statistics Service (Ukrstat) reported.

According to the State Statistics Service, the average monthly salary grew the most in the temporary accommodation and catering sector – by 44.1% to UAH 15,057, in construction – by 44% to UAH 14,561, in information and telecommunications – by 35.6% to UAH 49473, in transport, postal and courier services – by 30.7% to UAH 18,997, in wholesale and retail trade – by 27.9% to UAH 22,809, in real estate operations – by 27.6% to UAH 17,512, in professional, scientific and technical activities – by 26.3% to UAH 26,316.

In industry, wages grew by 23.3% to UAH 20,435, in public administration and defense by 22.5% to UAH 23,376, in agriculture by 21.7% to UAH 15,004, and in financial and insurance activities by 18.2% to UAH 39,116.

According to the State Statistics Service, salaries in administrative services increased by 17.2% to UAH 15,857, in arts, sports and entertainment by 15.9% to UAH 13,663, in education by 14.4% to UAH 12,649, and in healthcare by 12.3% to UAH 15,432.

The data excludes the temporarily occupied territories of the Russian Federation and parts of the territories where military operations are (were) conducted.

UZ increased volume of cargo transportation by 30%

In January-May 2024, Ukrzaliznytsia (UZ) transported 75.4 million tons of cargo, up 30% from the same period in 2023, the UZ press service said on Monday.

About half of all cargo (38 million tons) was transported for export, which is 57% more than in January-May 2023, the report said.

“We ensure stable operation and transport commercial cargo in full. According to the results of five months, we have quite significant indicators both in total transportation volumes and in the strategic export traffic for the country. In particular, we increased grain exports by 39% compared to last year. We are ready to continue to fully meet the country’s economy and business transportation needs,” the statement quotes Yevhen Liashchenko, Chairman of the Board of UZ, as saying.

In January-May 2024, the volume of transportation in domestic traffic increased by 6.7% compared to January-May 2023 to 32.9 million tons. Cargo imports increased by 68.5% to 4.3 million tons, while exports increased by 57% to 38 million tons.

As noted, iron and manganese ore led the way in the transportation volumes for the period under review – 19.3 million tons; grain cargo – 18.8 million tons; coal – 11.5 million tons; and building materials – 10.8 million tons.

Earlier it was reported that in January-April 2024, UZ increased the volume of cargo transportation by 28.7% compared to the same period in 2023 to 59.9 million tons, while in the export direction this figure increased by 48.8% to 30.4 million tons.

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Number of applicants per vacancy (comparison) as of 01.07.2023

Number of applicants per vacancy (comparison) as of 01.07.2023

Source: Open4Business.com.ua and experts.news

Pig breeding has every chance to return to record production figures

Ukraine has great prospects for increasing the number of pigs up to the levels of 1991, after which they decreased four times.

Mykola Babenko, head of the Meat Industry Association and the Center for Livestock Efficiency, announced this data at a press conference at Interfax-Ukraine on Monday.

“The situation (in the pig industry – IF-U) changed dramatically in 2022 in the world, as well as with grain exports in Ukraine. In fact, Ukraine has lost added value on exported grain. At the same time, value-added industries that can export large volumes with 10 times less logistics requirements remain at the development stage. We are talking primarily about the meat industry,” he said.

According to the head of the industry association, Ukraine currently produces about 600 thousand tons of pork and meets domestic consumption. It is noteworthy that until 2022, the domestic market was not supplied by domestic producers, so Ukraine had to import 10-30% of pork annually to meet consumption.

In 2022, global pork prices doubled, making it economically unfeasible to import pork into the country. At the same time, meat consumption in the country declined. The blocking of grain exports and the loss of economic profitability of grain production, the reorientation of farmers to the production and export of pork are becoming evident, Babenko explained.

He drew attention to the fact that global pork consumption is growing annually by 2 million tons and by 2030, according to the OECD (Organization for Economic Cooperation), its consumption will grow by 16.5 million tons. Ukraine, which produces 600 thousand tons, can and should pay attention to this segment, which is growing dynamically in terms of quantity and value.

Ihor Liakhovsky, Head of the Export Group of the Meat Industry Association and founder of Agro-Invest LLC, reminded that with the outbreak of hostilities in Ukraine, a significant number of consumers who had been driving demand for pork had left. However, farmers were able to increase pig production to pre-war levels.

“Imports of meat products to Ukraine are declining. This is the first bell that indicates the filling of the domestic market. (…) Every week on Friday, representatives of the processing industry and farmers meet to discuss prices and purchasing volumes. (…) We have an outflow of population, and therefore fewer consumers. The main consumer of the domestic market is the Ministry of Defense, which buys 30-35% of the pork produced by industrial producers. If it has made its purchase, it does not enter the market for the next few weeks, and prices fall. Even with a shortage of raw materials, the cost of purchases from processors during this period is reduced,” said the processor.

He is confident that the only way out of the situation to maintain positive dynamics and maintain profitability is to enter foreign markets where Ukrainian quality products can find their place without much effort.

Mr. Lyakhovsky is also convinced that most processing companies are ready to export. According to him, processing companies are not standing still. He emphasized the importance of government support for Ukrainian processors to export and pointed out that the lack of attention to the industry in the current situation threatens to quickly turn the domestic market into a surplus one. After that, farmers’ interest in pig production is likely to decline, and state support and lending to the industry, as well as existing investment programs, will be devalued.

“As of May 1, there are 5.1 million pigs in all categories of farms in Ukraine. Of these, 66.5% are directly accounted for by organized production in industrial enterprises. The number of pigs in the population is constantly decreasing. However, over the past year, there has been a good increase in business enterprises, which has changed the situation in the domestic market,” said Ihor Vyshtak, Director of the Agrarian Development Department of the Ministry of Agrarian Policy and Food.

According to him, in 2023, sales of meat of all types of farm animals amounted to more than 3 million tons, which is 1.3% more than a year earlier. Poultry accounted for 56% of this total, pork for 28%, and beef for only 14%. Vyshtak confirmed that the Ministry of Agrarian Policy understands the prospects of pig production, where it is possible to increase the number of animals in a short time. The ministry also notes a decrease in imports and an increase in domestic production in the domestic market.

Taras Mykolayenko, Executive Director of Ukrbioethanol, who attended the press conference, emphasized the importance of livestock development, which is a related business that affects the development of bioethanol. As an example, he cited the experience of China, which has implemented a program to use 5 percent bioethanol in transport not because of the environment, but for the sake of pig production.

“Before the war, China used to buy 8-12 million tons of corn to produce bioethanol and, consequently, cheap protein. It is used to increase meat production (…) China has borrowed this experience from the Americans and Europeans and is already ranked third in the world in bioethanol production,” he said.

Speaking about America’s experience, Mykolayenko reminded that in this country, 40% of all corn, or 120 million tons, is processed into bioethanol, which is four times more than the total amount of this crop grown in Ukraine. It is bioethanol that has become a companion product that has turned the United States into a world leader in poultry exports.

“Ukraine can get 6 billion euros of added value from the development of dry-fed pig production, and with cheap proteins – bioethanol waste, it can be 12 billion euros, we need to provide Ukraine with cheap proteins. If this is not done, we will always lose competition to the Americans or Europeans who have implemented bioethanol programs,” stated the head of Ukrbioethanol.

He noted that in times of war, it is imperative to develop energy independence, and increasing domestic production of bioethanol will allow Ukraine to reduce imports of petroleum products, which are purchased for more than $400 thousand every hour.

Mr. Mykolayenko also reminded of the importance of adopting the draft law No. 3356-d in the second reading, which will be fundamental for the bioethanol industry.

Oleksandr Melnychenko, Acting Executive Director of UkraineInvest, in turn, emphasized that Ukraine has developed and implemented a system of investment policies and practices in the face of war.

“Ukraine has created modern pro-European investment legislation. Two months ago, the formation of this legislation was completed, and it became fully operational. This legislation includes, in particular, such a concept as attracting significant investments. The Law on State Support for Investors with Significant Investments stipulates that an investor whose investment amounts to EUR 12 million plus ten jobs receives a whole list of preferences from the state,” Melnichenko said.

He mentioned the following preferences: exemption of the investor from VAT, land fees, customs duties, support in obtaining a land plot and others, which allow the investor to receive 30% reimbursement of investment costs, in particular, in the form of reimbursement of costs for transport infrastructure engineering, and a number of other preferences after concluding a special investment agreement.

Melnychenko was reminded that UkraineInvest is already working on and studying a number of investment projects that will be presented to the Ministry of Economy. Particular attention is paid to the processing industry. And not only foreign investors but also national producers can take advantage of this law.

Ihor Vyshtak, Director of the Agrarian Development Department of the Ministry of Agrarian Policy, emphasized that Ukraine has begun the process of screening legislation for its compliance with the European one. By the end of the year, the government expects comments and recommendations on it. After that, export prospects will open up for the pig industry. The government believes that Ukrainian producers will be able to get their products to Africa and North Asia and hopefully to the European Union as well.

The Meat Industry Association invited all those interested in the development of the industry to join the Grain. Pigs. Meat” Forum to be held on June 12 in Kyiv.

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