Wine production in the European Union will decline by about 3% this year due to unfavorable weather conditions and rising costs, agricultural lobbying group Copa-Cogeca predicts.
Wine production in the EU this year will amount to about 144 million hectoliters (hl), the group said in a press release.
Italy is expected to become the largest wine producer in Europe with 41 million hectoliters (up 7%), Spain will take second place (38.1 million hectoliters, up 18% year-on-year), and wine production in France will fall by 22%, which will cause the country to fall back to third place with 37.4 million hectoliters.
The outgoing year was marked by unpredictable weather and the effects of recent droughts in Europe, the report says. Meanwhile, vineyard diseases have become less of a problem than in 2023, experts say. In addition, rising prices for glass, gasoline, transportation services and fertilizers have significantly increased producers’ costs, and high interest rates have made it difficult to access the loans needed to grow the business.
“The European wine market is going through a difficult time, affected by high production costs and the situation on international markets,” said Luca Rigotti, head of the Wine Working Group at Copa-Cogeca. – “However, I am confident in the resilience and entrepreneurship of our farmers.
As of November 8, farmers in all regions of Ukraine have harvested 71.4 million tons of new crops from 19.2 million hectares, compared to 68.9 million tons and 18.9 million hectares a week earlier. As reported by the Ministry of Agrarian Policy and Food on Friday, 52.1 million tons (49.9 million tons) of grains and 19.3 million tons (19 million tons) of oilseeds have already been harvested. The Ministry specified that the harvest of wheat has been completed, with 22.3 million tons harvested from 4.9 million hectares at a yield of 42.4 c/ha, barley – 5.6 million tons from 1.4 million hectares at a yield of 39.2 c/ha, peas – 470.4 million tons from 212.2 thousand hectares at a yield of 21.9 c/ha, and rapeseed – 3.5 million tons from 1.3 million hectares at a yield of 27.3 c/ha. Corn harvesting continues, with 22.4 million tons harvested (20.2 million tons a week earlier) from 3.5 million hectares (88% of the plan), buckwheat – 127.2 thousand tons (126.9 thousand tons) from 87.8 thousand hectares (99%), millet – 161 thousand tons (160.3 thousand tons) from 88.1 thousand hectares (95%). Agrarians in 16 regions are harvesting sugar beets, which have been dug up on an area of 238.1 thousand hectares (92%), with 11.4 million tons of sweet roots. Grain harvesting is led by farmers in Odesa region, who have threshed 4.6 million hectares, Chernihiv region – 4.2 million tons, and Poltava region – 4.1 million tons. In terms of yields, farmers in Khmelnytsky region are ahead with 76.9 c/ha, Chernihiv region – 69.1 c/ha, and Ternopil region – 66.8 c/ha.
In January-October 2024, Ukrzaliznytsia (UZ) increased its cargo transportation by 21.9% compared to the same period in 2023, to 146.94 million tons.
“In January-October 2024, Ukrainian rail transport transported 146.94 million tons, which is 26.4 million tons, or 21.9%, more than in the same period last year. In October, the volume of cargo transportation amounted to 15.06 million tons, which is 8.8% more than in September,” UZ said in an analytical note prepared for the meeting of the Exporters’ Office on Thursday.
The volume of transportation in export traffic for 10 months of 2024 increased by 64.2% to 71.07 million tons. At the same time, exports accounted for 48% of total transportation, while in the same period in 2023 it was 36%.
In the first 10 months of the year, grain cargo took the first place in total exports – 28.85 million tons (40.6%). Transportation volumes of iron and manganese ore amounted to 27.67 million tons (38.9%), ferrous metals – 4.33 million tons (6.1%), and construction materials – 3.49 million tons (4.9%).
“In the current environment, the steel and agricultural sectors retain the status of the mainstay of Ukrainian exports. The sea routes remain the main channel for increasing the supply of Ukrainian goods to foreign markets,” UZ analytical note says.
It is noted that the dynamics of cargo transportation volumes is affected by massive shelling and the state of the energy sector.
Earlier it was reported that since the beginning of the year, UZ has increased the volume of cargo transportation by almost a quarter, reducing it in September compared to August.
In January-October 2024, Ukraine exported 2.5 thousand tons of chilled and frozen pig meat, and imported 2.1 thousand tons, imports are likely to fall to a record low, the Pig Producers of Ukraine (PUA) industry association reported, citing data from the State Customs Service.
“Given the minimal presence of imported pork on the market (less than 1% of the total capacity), this year the meat industry is most focused on domestic products. At the same time, the low activity of external pork supplies “hints” that this year may set a new record low in terms of imports, breaking the previous one – 5.2 thousand tons, which was recorded in 2018,” analysts said.
The USBA highly appreciated the growth of pork supplies to foreign markets, which in January-October exceeded 2.5 thousand tons and brought $ 6 million, which is higher than the cost of importing pork by $ 780 thousand.
Analysts predict that Ukraine will be able to finish 2024 as a net exporter, albeit by a small margin.
According to the USBA, the limited geography of foreign trade prevents more tangible export achievements. For example, 75% of Ukrainian pork is exported to the UAE, while the rest in small volumes is exported to Bahrain, Malaysia, Liberia, Hong Kong, and Angola.
As reported, the State Service of Ukraine for Food Safety and Consumer Protection is negotiating bilateral veterinary certificates required for foreign trade with a number of countries, including South Korea, Malaysia, Singapore, Vietnam, etc.
Ukrainian Graphite (Ukrgraphit, Zaporizhzhya) ended January-September this year with a net loss of UAH 118.074 million, while in the same period last year it posted a net profit of UAH 128.230 million.
According to the company’s interim report, net income for the period decreased by 18.4% to UAH 1 billion 79.194 million.
The company’s retained earnings as of the end of September amounted to UAH 3 billion 755.517 million.
As reported, in 2023, Ukrgraphite increased its net profit by 2.34 times compared to 2022 to UAH 122.941 million, and net income by 1.2% to UAH 1 billion 564.656 million.
“Ukrgraphite is Ukraine’s leading producer of graphitized electrodes for electric steel-making, ore-thermal and other types of electric furnaces, commercial carbon masses for Soderberg electrodes, and carbon-based lining materials for metallurgical, machine-building, chemical and other industries.
According to the National Depository of Ukraine (NDU) as of the second quarter of 2024, Intergraphite Holdings Company Limited (Bermuda) owns 23.9841% of the company, and C6 Safe Group Limited (Cyprus) owns 72.0394%.
The authorized capital of the company is UAH 233.959 million, with a par value of UAH 3.35 per share.
Revenues from exports of grains, oilseeds, meal and oil in the first quarter of the 2024/2025 season (July-October this year) amounted to $6.1 billion, up $1.6 billion, or 35.6%, compared to the previous season, the Ukrainian Grain Association (UGA) reported on Facebook.
“Over 4 months, Ukraine has received significantly more export revenue from the sale of wheat, barley, rapeseed and soybeans compared to last season,” the industry association stated.
According to the chart below, in July-October 2024, sales of wheat on foreign markets brought Ukraine $1.456 billion, which is 1.9 times more than a year earlier, while revenue from rapeseed exports increased by 50.6% to $1.119 billion, corn by 32% to $849 million, soybeans by 2.1 times to $477 million, and barley by 3 times to $286 million.
At the same time, the revenues from sunflower oil exports in July-October 2024 decreased by 0.7% to $1.356 bln, and sunflower meal by 9.2% to $344 mln compared to the same period last year.
