Kernel, one of the largest Ukrainian agro-industrial groups, in the third quarter of the 2022 financial year (FY, January-March 2022), reduced sales of vegetable oil (sunflower and rapeseed) by 28% compared to the same period of the last FY – from 371, 9 thousand tons to 269.1 thousand tons, the total processing of oilseeds – by 38%, from 901.6 thousand tons to 562.8 thousand tons.
According to a report published on the company’s website on Friday night, the decline in production and sales of oilseeds and vegetable oil was caused by the blockade of Ukrainian seaports by warships of the aggressor country of the Russian Federation, as a result of which the active harvesting, processing and export of grain and sunflower oil was stopped.
Similarly, in the nine months of FY2022 (July-2021 – March-2022), Kernel sold 906.3 thousand tons of sunflower and rapeseed oil (-17% compared to 9 months of FY2021) and processed 2.0 million tons of oilseeds ( -21%).
In the third quarter of FY2022, the group of companies reduced the volume of agricultural products supplied to its elevators by 53% compared to the third quarter of FY2021 – to 50.9 thousand tons, while in 9 months. 4.1 million tons of agricultural raw materials were delivered to elevators in FY 2022, which is 10% more than in 9 months. FY2021.
Kernel also noted with regret that due to the unprovoked military aggression of the Russian Federation in Ukraine, five of its employees were killed.
“Since the beginning of the war with Russia, more than 1,100 of our employees have been mobilized into the Armed Forces of Ukraine or joined the terrorist defense units. Of these, 180 have been demobilized and returned to work. No significant damage has been caused to any of the most important objects or infrastructure of the group. Two oil extraction plants of the group are located in the temporarily occupied territory, and access to such facilities is limited,” the agricultural holding stated the results of the Russian military invasion.
The total export of agricultural crops by Kernel in the third quarter of FY2022 increased by 17% compared to the same period of the last fiscal year, to 2.1 million tons, while exports were carried out mainly in January and February and were almost completely absent in March. Over the reporting period, 77% of export deliveries were received from external suppliers, and the rest of the agricultural crop was grown by the Kernel agricultural holding.
Agropromgroup also clarified that in the third quarter of FY2022, the share of its exports in the total volume of grain crops exported from Ukraine amounted to 17%, and for 9 months of FY2022 – 24%.
According to Kernel, in the third quarter of FY2022, it transshipped 2.08 million tons (+1% compared to the same period in FY2021) of agricultural products through its own grain terminal Transbulkterminal (Chernomorsk, Odessa region) – and in nine months of FY2021 – 7.27 million tons (+15%). It is noted that in the third quarter of FY2022, the grain terminal worked exclusively in January and February, before the start of the war unleashed by Russia on February 24.
“The group is working on creating alternative export routes. Rail logistics to the EU countries is very difficult, with numerous bottlenecks that make it impossible to achieve any significant export volumes until supplies are resumed through the Ukrainian Black Sea ports,” – summed up the agrarian group in the message. Before the war, Kernel ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was also the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agricultural products and their sale.
The largest co-owner of Kernel through Namsen Ltd. is Ukrainian businessman Andrey Verevsky with a share of 39.28%.
The agricultural holding in the financial year 2021 (FY, July 2020 – June 2021), increased its net profit by 4.3 times compared to FY 2020 – up to $513 million, its EBITDA increased 2.1 times – up to $929 million, revenue – by 38%, to $5.65 billion.
The number of internally displaced persons (IDPs) in Ukraine due to the war unleashed by Russia has reached 7.7 million compared to 854 thousand before the start of the war, as of April 21 this estimate was given by the Office of the United Nations High Commissioner for Refugees (UNHCR ), which as of April 6 estimated this figure at 7.1 million.
“The Russian Federation launched a military offensive against Ukraine on February 24, 2022. To date, more than 5 million refugees have left Ukraine, making this the fastest growing refugee crisis since World War II. Another 7.7 million people have been displaced inside Ukraine,” it says in a report on his website.
UNHCR estimates that some 13 million people are stuck in affected areas or unable to leave due to heightened security risks, destruction of bridges and roads, and a lack of resources or information on where to find safety and shelter.
The organization notes that the delivery of vital aid remains challenging due to the lack of safe humanitarian access.
Citing UNICEF and WASH partners, UNHCR reports that 1.4 million people are currently without access to water in eastern Ukraine and that another 4.6 million people across Ukraine are at risk of losing such access. The organization also points to the persistence of the difficult situation in Kherson.
“UNHCR continues to call for the protection of civilians and civilian infrastructure, respect for international humanitarian law, and neighboring countries to continue to keep their borders open to refugees,” the report emphasizes.
As Prime Minister Denys Shmygal said on April 13, 1 million people have already registered as new IDPs as a result of the Russian invasion. The state announced that it would make monthly payments for registered IDPs in the amount of UAH 2,000 per adult and UAH 3,000 per child.
According to UNHCR data, as of 13:00 on April 22, a total of 5.16 million people left Ukraine since the beginning of the war (excluding the flow to enter), of which 2.88 million went to Poland, 838.86 thousand to Romania and Moldova. , Russia – 578.26 thousand, Hungary – 485.62 thousand, Slovakia – 352.29 thousand, Belarus – 23.9 thousand.
The UNHCR, referring to data from the State Border Service of April 22, also indicated that since February 28, the flow to enter Ukraine amounted to 1.12 million people, thus the total number of refugees is about 4 million.
Dynamics of changes in population of Ukraine from 1991-2022
Prime Minister of Ukraine Denys Shmygal invited the International Finance Corporation (IFC) from the World Bank Group to join the reconstruction of Ukrainian cities.
“The head of the Ukrainian government spoke about the scale of destruction as a result of Russia’s criminal actions and expressed hope for the support of the International Finance Corporation in the issue of restoring the housing stock and social infrastructure,” the press service of the government said after a meeting between Shmyhal and the managing director and executive vice IFC President Makhtar Diop.
According to him, Ukraine plans to carry out the restoration on the principles of a green economy.
The prime minister also noted that he was counting on IFC assistance in financing the restoration of the transport infrastructure of Ukrainian cities, especially those most affected by the actions of the occupiers.
“We are interested in creating a financial platform for the IFC, which will finance more Ukrainian cities. Today, attracting foreign investment in the restoration of critical and social infrastructure is one of the most important issues on the agenda of Ukraine,” the head of government added.
In addition, Shmyhal focused on the need to extend public-private partnership projects after Ukraine’s victory. In particular, this concerns the implementation of concession projects at airports, railway stations, seaports, as well as public-private partnership projects in the road industry.
“The resilience of the people of Ukraine is outstanding. Consider IFC as a strong and strategic partner that will play its part in supporting the private sector,” Diop tweeted after the meeting.
During the sowing season-2022, Ukraine sowed 3.02 million hectares of land with the main agricultural crops, which is 20.1% of the 14.4 million hectares planned for the current season, the data on which were adjusted upward by 7.1% the day before (from 13.44 million hectares previously announced), the Ministry of Agrarian Policy and Food said on Friday.
According to data published on its website, over the past week from April 15 to April 21, the area under crops increased by 56%, from 1.94 million hectares to 3.02 million hectares.
It is clarified that by now the total area sown with spring barley is 802.2 thousand hectares (+59 thousand hectares per week), sunflower – 896 thousand hectares (+462.3 thousand hectares), spring wheat – 164.4 thousand hectares (+18 thousand hectares), peas – 107.2 thousand hectares (+6.7 thousand hectares), oats – 127 thousand hectares (+15.4 thousand hectares).
In addition, the sown area under potatoes is 366.2 thousand hectares (+236.9 thousand hectares), sugar beet – 155.6 thousand hectares (+45.3 thousand hectares), soybeans – 62 thousand hectares ( +41.1 thousand hectares), spring rapeseed – 16.4 thousand hectares (+4.8 thousand hectares), millet – 4.8 thousand hectares (+2 thousand hectares), buckwheat – 1 thousand hectares (+0.4 thousand ha).
According to the Ministry of Agrarian Policy, Vinnitsa, Volyn, Transcarpathian, Kirovograd, Odessa, Poltava, Rivne, Ternopil and Khmelnytsky regions have completely completed the sowing of spring crops of the early group: wheat, barley and oats. Almost 70% of the projected areas have already been sown with these crops.
Also in 2021, winter crops were sown for the 2022 harvest on a total area of 7.7 million hectares, including 6.5 million hectares of winter wheat, 1 million hectares of barley and 0.16 million hectares of rye.
At the moment, agricultural enterprises have completed the first feeding of winter crops with nitrogen mineral fertilizers.
As reported, due to the military aggression of the Russian Federation in Ukraine this season, a reduction in the acreage of high-margin crops (sunflower and corn) is expected while increasing the acreage of crops that are easier to produce, but important in terms of food security – peas, barley and oats.
Prime Minister of Ukraine Denys Shmyhal said on April 20 that Ukraine will sow approximately 14.2 million hectares of agricultural land this season, which is 80% of last year’s figure of 16.9 million hectares.
Earlier, the Ministry of Agrarian Policy estimated the sown area under spring crops in 2022 at 13.44 million hectares compared to 16.92 million hectares in 2021.
Rostislav Shurma, Deputy Head of the President’s Office, called Ukraine’s goal in 2022 to harvest at least 70% of last year’s volumes.
Indonesia will ban the export of palm oil from April 28 amid a shortage of this product in the country, the Nikkei newspaper reports.
Indonesian President Joko Widodo said on Friday that the ban is in place indefinitely.
Such a decision, according to him, was made in order to “ensure a sufficient and affordable supply of edible vegetable oil in the country.”
Indonesia is the world’s largest producer and exporter of palm oil. The previous ban on the export of this product from the country was introduced at the end of January and lifted in March. The imposition of the ban sent palm oil prices skyrocketing to record highs.
A significant rise in prices was noted at the end of last year, and already this year the situation was aggravated by the Russian-Ukrainian conflict, which, according to experts, could limit the supply of vegetable oils on the world market.
Despite the fact that the supply of palm oil in Indonesia, which fell sharply at the beginning of the year, has now increased, prices remain high, which pushes up inflation in the country.
July palm oil futures on the Malaysian derivatives exchange rose 1.1% on Friday to 6,384 ringgits ($1,483.62) per ton.
