Business news from Ukraine

Business news from Ukraine

INKERMAN WINE MAKER STARTS SUPPLIES TO CHINA

Inkerman Ukraine LLC plans to increase wine production to 7-8 million bottles per year in 2019 compared to 7 million bottles in 2018, director general of the company Hanna Horkun has said.
According to her, the company intends to open several export markets in 2019, in particular, China, Japan, the Baltic countries, Nigeria, and Poland.
“In the Ukrainian market, we rank third following Villa Krim and Koblevo, and our export share is still scanty. In 2018, we had a goal to stand on our feet in our domestic market. At the same time, we have been exporting goods to Canada for a long time, exported sparkling wine to Switzerland,” the expert said.
She noted that the first shipment to China will be in June 2019.
At the same time, this year Inkerman plans to increase its share in the domestic market by redesigning the classic collection, penetrating the regions and launching the new Prima Maria line.

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OVOSTAR UNION SEES 2% FALL IN EGG SALES

Ovostar Union, one of the leading egg and egg products producer in Ukraine, in January-March 2019 cut shell eggs sales by 2% year-over-year, to 335 million.
According to a company report on the Warsaw Stock Exchange (WSE) last week, export sales of shell eggs grew by 35% year-over-year and reached 186 million, which represents 56% of total number of eggs sold in Q1 2019 (40% in Q1 2018).
Average price of eggs in Q1 2019 decreased 8% year-over-year in U.S. dollar terms, to $0.069 per egg.
The volume of eggs produced in Q1 2019 was 384 million, a slight decline year-over-year. The volume of eggs processed in Q1 2019 grew by 3% year-over-year and reached 142 million.
The volume of dry egg products sold amounted to 532 tonnes, out of which 373 tonnes, or 70%, were exported.
The volume of liquid egg products sold was 3,498 tonnes, out of which export sales equaled 1,636 tonnes or 47%.
Average price of dry egg products decreased year-over-year by 8% to $4.63 per kg; average price of liquid egg products fell by 2%, to $1.46 per kg.
As of March 31, 2019 the company’s total flock equaled 7.86 million hens, including 6.67 laying hens.
“In the first quarter of 2019 unfavorable price dynamics was observed on the local market. However, the company managed to balance the situation by increasing its exports. In general, we are satisfied with the results achieved in the reporting period,” Ovostar CEO Borys Bielikov said.

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GLOVO PLANS TO OPEN COOK-ROOM IN KYIV

The Glovo international service plans to open a cook-room in Kyiv in August 2019, Glovo Senior Manager in Ukraine Dmytro Rasnovsky has said.
“Today, restaurants in the center of Kyiv are not coping with orders. We need kitchens from which restaurants could take orders. Glovo has such a project, the Glovo cook-room, when we find a room, lease it and prepare it. Then we offer that they be occupied by certain partners, which, for example, have exclusive contracts or good accessibly. I admit that in August we will open the first cook-room and put three or four non-competing partners there,” he told Interfax-Ukraine on the sidelines of the Sup Day Forum 2019.
In this case, Glovo considers different locations.
“On the one hand, we see a need for the center of Kyiv, on the other – in Troyeschyna district, where there are few places [restaurants] from where you can order food. We will carry out the analysis and make a decision,” Rasnovsky said.
In this case, according to him, restaurants often do not cope with the number of online orders. This trend is becoming a “bottleneck” in the food delivery market.
“Kitchens are not ready for such a number of orders, they do not have the capacity to provide such a flow. Restaurants were planned for a certain number of orders, and Internet delivery expands the demand for their services. Startups that provide infrastructure for so-called dark kitchens appear in the world,” Rasnovsky said.
According to him, cook-rooms are a profitable option of “expansion” for those areas of Kyiv, where it is unprofitable to open a restaurant.
“And the ability to open a cook-room under a familiar brand changes everything,” the manager of Glovo said.

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UKRAINE EXPORTS 40.2 MLN TONNES OF GRAIN SINCE START OF 2018/2019 AGRI-YEAR

Ukraine since the beginning of the 2018/2019 agricultural year (July-June) and as of April 17, 2019 had exported 40.217 million tonnes of grain and leguminous plants, which is 24.5% more than on the same date of the previous agri-year.
According to the Ministry of Agrarian Policy and Food, farmers exported 22.2 million tonnes of corn, 13.96 million tonnes of wheat, and 3.36 million tonnes of barley.
On the specified date, some 224,500 tonnes of flour had been also exported.
As reported, with reference to the ministry, Ukraine exported 39.4 million tonnes of grain in the 2017/2018 agri-year.
According to the ministry, grain exports in the 2018/2019 agri-year are projected at 49 million tonnes.

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HENKEL TO INVEST IN MODERNIZATION OF DRY MORTAR MIXES PLANTS IN UKRAINE

Henkel Bautechnik (Ukraine) plans to invest around EUR 400,000 in the modernization of plants in Vyshgorod (Kyiv region) and Balakliya (Kharkiv region).
“The automatic line will be modernized at the plants in Vyshgorod and Balakliya from May of the current year, resulting in increased effectiveness and safety. The quality of product packaging will also improve. The amount of investment is about EUR 400,000,” Director General of Henkel Bautechnik (Ukraine) Olha Stupina told Interfax-Ukraine.
According to her, the company’s turnover in 2018 amounted to UAH 2 billion, forecasts for 2019 are positive, growth is expected. The company has significantly increased its financial performance compared to 2014, despite the loss of a quarter of the sales market.
“We estimate the results of last year as good. For the second time, Ukraine became the best company in the world in the Henkel adhesive division by consolidated financial indicators. I believe that in the conditions in which Ukraine is located relative to other countries of Europe and the world, this is a very big achievement,” Stupina said.
The total production capacity of the four factories of Henkel Bautechnik (Ukraine) is about 600,000 tonnes of products per year.
In the market of water-dispersion paints with a volume of about 150,000 tonnes, the share of Henkel Bautechnik (Ukraine) is about 17%, the press service of the company said.

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TRANSPORT ENTERPRISES OF UKRAINE INCREASE FREIGHT TRANSPORTATION BY 9% IN JAN-MARCH

Transport enterprises of Ukraine in January-March 2019 increased cargo transportation by 8.9% compared to January-March 2018, to 163.3 million tonnes.
The State Statistics Service said freight turnover for this period increased by 2.2%, to 81 billion tonne-kilometers.
According to statistical data, in January-March 2019 some 64 million tonnes of cargo were transported by rail within the country and for exports, which is 0.2% less than in January-March 2018.
Transportation of scrap ferrous metals decreased by 27.9%, timber by 58.5%, construction materials by 26.1%, coke by 10.4%, ferrous metals by 5.6%, and coal by 2.6%. At the same time, transportation of iron and manganese ore grew by 4.1%, chemical and mineral fertilizers by 5.5%, grain and cereals by 19.8%, oil and petroleum products by 11.5%, and cement by 14.6%.
In the total volume of cargo transportation by sea overseas accounted for 61.4%. The volume of overseas cargo transportation in the reporting period decreased by 2.7% compared with January-March 2018.
In January-March 2019 compared with the same period last year, the volume of cargo transported by pipelines increased. Thus, gas pumping grew by 4.6%, oil – by 5.5%, gas transit fell by 2.7%, and oil grew by 4.9%. Pumping and transit of ammonia increased 24.7% and 21.3%, respectively.

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