Kernel Agro Holding, one of the largest in Ukraine, processed 744 thousand tons of sunflower seeds in the third quarter of FY2023 (January-March), an increase of 32% compared to the same period last FY, operating six oilseeds processing plants.
“Vegetable oil sales in Q3 FY2023 increased only 1% from the same period last year to 273,000 tons, including 20,000 tons of bottled sunflower oil,” the company said on the Warsaw Stock Exchange.
According to it, two oil extraction plants belonging to the group remain inaccessible in the high-risk zone of Kharkiv region with regular shelling by Russian occupiers.
“The group managed to increase the utilization of its plants in January-March 2023 compared to the previous quarter, given the stabilization of electricity supplies in Ukraine and the expansion of the grain corridor,” Kernel pointed out.
Overall, in the first nine months of FY 2023 sunflower processing volume decreased by 8% – to 1 million 858.08 million tons, and oil sales – by 10%, to 819.96 thousand tons.
According to Kernel, due to the postponed 2022 harvest campaign, which was postponed until the winter of 2022/2023, elevator loading in the third quarter of FY 2023 reached an unusually high level of 687,000 tons. However, volumes for the first nine months of the season were down 34% from the same period last year to 2.7 million tons, reflecting a lower 2022 crop compared to the 2021 season.
It is pointed out that the volume of transshipment of export terminals in Ukraine in Q3 FY2023 almost halved compared to the same period last year to 1.1 million tons of grain, sunflower oil and meal, compared to 1.7 million tons of transshipment in the previous quarter.
“The Group’s export volumes are highly dependent on the operation of the “grain corridor” in the Black Sea. Although the grain corridor deal was extended in March 2023, it remains unclear for how long. “Moreover, in the last few days, ship inspections were completely stopped as the Russians refused to perform their duties to interrupt the initiative,” Kernel noted.
The company added that, in addition, stiff competition between Ukrainian terminals for quotas for agricultural exports through the “grain corridor” and the existing quota distribution mechanism are unfavorable for market leaders like Kernel, as historically smaller operators handling relatively smaller volumes have received disproportionately high quotas, making it impossible to maximize exported products.
“Recent import and transit restrictions imposed by neighboring EU countries further reduce agricultural exports from Ukraine,” the company pointed out, specifying that since the launch of the “grain initiative,” 87% of its export volumes have been shipped to foreign markets through Black Sea ports, 6% through Danube ports and 7% through domestic routes.
Continued difficulties with grain logistics in the Black Sea region led to a 61% year-over-year decline in grain exports from Ukraine in Q3 FY2023 to 0.8 million tons, Kernel added.
“To maximize operational efficiency, the Group gives preference to sunflower oil and meal ships rather than bulk grain ships (given the more attractive margins in the Group’s oilseed processing business), although this approach reduces grain export volumes, as logistics capabilities remain a key bottleneck,” the statement said.
According to him, the volume of transshipment of export terminals in Ukraine decreased by 52% to 3 million 504.59 thousand tons and grain exports – by 61% to 3 million 77.7 thousand tons in 9 months of FY2023.
“Kernel” also reported that at the time of the report and since the beginning of a full-scale invasion of Ukraine by the aggressor, 1405 employees of the Group were mobilized in the Armed Forces of Ukraine or joined the territorial defense units. Of these, 558 were demobilized and returned to work, 22 employees were killed, and more than 70 employees were wounded.
“Before the war Kernel was the world’s number one producer and exporter of sunflower oil (about 7% of world production) and the largest producer and marketer of bottled sunflower oil in Ukraine. The company was also engaged in cultivation of other agricultural products and their sale.
In FY2022 (July-2021 – June-2022), the holding posted a net loss of $41 mln versus $506 mln net profit in the previous FY, while its revenue decreased by 5% to $5.332 bln and EBITDA decreased by 3.7 times to $220 mln.
The U.S. dollar is advancing against major world currencies.
Including the yen fell against the U.S. national currency to its lowest in six weeks on expectations of further interest rate hikes by the Federal Reserve, Trading Economics said.
Meanwhile, the new head of the Bank of Japan Kazuo Ueda said on Monday that the soft monetary policy will remain in force for the time being. Meanwhile, he expects the growth rate of consumer prices to start slowing down soon.
Ueda’s first meeting as the head of the Japanese Central Bank will take place at the end of this week. Following its results the bank will publish an updated economic forecast.
The Euro is trading in the morning at $1.0977 against $1.0992 at the end of the last session.
The value of the single European currency is now around 147.42 yen compared to 147.44 yen on Friday. The dollar exchange rate is 134.30 yen against 134.14 yen at the end of the previous trading day.
The DXY index, which shows the value of the U.S. dollar against six major world currencies, is up 0.04% in trading. The WSJ Dollar, which tracks the movement of the dollar against 16 currencies, rose 0.13%.
The pound is trading at $1.2426 compared to $1.2440 on the previous trading day. The euro is at 0.8836 against 0.8834 a day earlier.
Ukraine exported 2.082 thousand tons of cheese in January-March 2023, which is 2.04 times more than during the same period of 2022. According to customs statistics, in monetary terms, exports were $10.212 million, which is 2.3 times more than a year earlier.
At the same time, the volume of cheese imports was 24.9% less – 7.084 thousand tons in January-March this year. In monetary terms, imports decreased by 8.5% to $43.520 million compared to the same period in 2022.
In this case, the main export of cheese was carried out in Kazakhstan (54.17% of supplies in monetary terms), Moldova (23.86%) and Jordan (5.39%), imports – from Poland (42.39%), Germany (21.23%) and the Netherlands (8.96%).
Ukraine imported 33.818 thousand tons of cheese in 2022 (a decrease of 38.7% compared to 2021), while exporting 8.989 thousand tons (an increase of 29.8%). Exports of butter rose by 29.9% to 14.104 thousand tons last year, while imports fell by 8.21 times to 1.128 thousand tons. Exports of milk and cream (condensed) amounted to 26.696 thousand tons (+19%), while imports – 1.214 thousand tons (a 6.4-fold decrease).
Ukraine imported 98.735 thousand tons of citrus fruits, which is 18.6% less compared to the same period of the previous year. In monetary terms, imports decreased by 0.5% – to $95.418 million.
Imports came mainly from Turkey (54.61%), Egypt (21.24%) and Greece (9.33%).
According to STS, Ukraine also imported 1.759 thousand tons of apples, pears and quinces in the first three months of the year, which is 43.8% less than in the first quarter of 2022. In monetary terms, imports were down 3.7% to $2.433 million.
At the same time, 19.615 thousand tons of similar products were exported, which is 14.5% less than in January-March 2022. In monetary terms, exports decreased by 25% to $7.877 million.
In addition, 6.428 tons of apples, pears and quinces were imported, which is 3.9 times less than in 2021. 46.429 tons of similar products (55.7% more) were exported.
Ukraine in January-March of this year reduced banana imports by 10.9% compared to the same period last year – up to 53.128 thousand tons.
According to customs statistics, in monetary terms imports of these products increased by 49% – to $56.303 million.
At the same time, imports were carried out mainly from Ecuador (60.50% of supplies in monetary terms), Costa Rica (20.29%) and Colombia (9.27%).
In 2022, Ukraine reduced imports of bananas by 40.6% year-on-year to 194,969 thousand tons and citrus fruits by 24.9% to 275,034 thousand tons.
From Monday, April 24, Romania will start sealing vehicles carrying Ukrainian agricultural products in transit, Ukrtransbesecurity reported in a telegram on Sunday following a meeting between Ukrainian Agrarian Policy Minister Mykola Solskyi and his Romanian counterpart Petru Dea.
“The Romanian customs authorities will install seals on trucks with Ukrainian agricultural transit goods,” the release said.
According to it, it is important for carriers transiting through Romania to prepare a truck for sealing and to arrive at the border only after fulfilling the relevant conditions.
Earlier this week, similar requirements for the sealing of transit Ukrainian agricultural road freight were introduced by Poland
