Business news from Ukraine

Minister of Agrarian Policy of Ukraine estimates this season’s harvest as record one

The Ministry of Agrarian Policy and Food estimates the harvest of the 2023 season at 79 million tons, which is at least 7 million tons more than last season, Minister of Agrarian Policy Mykola Solsky said on the air of the United News marathon.

“In May, at the beginning of the sowing season, we thought we would have about 63-64 million tons. Then we raised the forecast to 67-68 million, then more – 70 million. Last year we had a result of 7 million tons, then 75 million tons. In the last two weeks, we have been talking about the harvest, which will probably be around 79 million, which is at least 7 million more than last year,” he said.

Mr. Solsky reminded that farmers are no longer concerned about yields and gross output, but rather about the price at which they can sell their crops.

“It is very important that we have the opportunity to sell at a higher price. It is important how much we can export. After all, we need to be able to export 5 million tons of grain every month,” the minister explained, adding that logistics are very expensive and grain is not cheap.

Mr. Solsky emphasized that the demand for logistics is now significantly higher than the supply, and pointed out the importance of balancing these indicators.

“We are trying to do our best to bring this balance closer to what is needed (by the farmer – IF-U), so that the price (of grain – IF-U) will rise,” the minister emphasized.

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MINISTER OF AGRARIAN POLICY: NO FOOD PROBLEMS ARE EXPECTED IN UKRAINE

Ukraine has been provided with basic food products for several years, as well as raw materials for the production of animal feed, so no food problems are expected in the country in the near future, Minister of Agrarian Policy and Food of Ukraine Mykola Solsky told the Ekonomicheskaya Pravda publication.
“We have stocks of basic products for several years. Vegetable oil – at least for 10 years. Separately, we need to add, since we have a lot of grains, and some of them are animal feed, we definitely have meat and dairy products. And special There is no reason to worry here,” he said.
According to him, Ukraine annually consumes 5-7 million tons of grain crops, while 20 million tons of grain have already been placed in the country’s granaries since last season and 30 million tons of this season’s harvest are expected. Taking into account the elevator capacities available in the country, the main problem will be the export of crops to foreign markets in the conditions of the blockade of Ukrainian seaports by Russian warships, the head of the Ministry of Agrarian Policy stressed.
“We don’t see any problems with food in Ukraine now. They exist where it cannot be delivered, but this is different. Everyone sees that goods, their range in stores has decreased, but it exists. I have a feeling that the situation has begun to gradually recover “, – summed up Solsky.
As reported, before the Russian military invasion, Ukraine monthly exported up to 5 million tons of agricultural products through the ports of Odessa and Nikolaev, but now, due to their naval blockade by Russia, the country can transport about 500 thousand tons of grain monthly. This leads to a monthly shortfall of about $1.5 billion in export earnings.
Earlier, on April 13, UN Secretary General António Guterres said that the war in Ukraine could doom more than 1/5 of humanity to poverty, want and hunger unprecedented for decades.

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SAUDI ARABIA AGREE TO COOPERATE WITH UKRAINE IN AGRICULTURE

The Ministry of Agrarian Policy and Food of Ukraine held a number of meetings with representatives of the government and business of the Kingdom of Saudi Arabia, the parties agreed to develop a number of interstate agreements in the field of the agro-industrial complex, and also discussed investments in the Ukrainian agro-industrial complex, Minister of Agrarian Policy Roman Leschenko said on Facebook.According to him, Ukraine and Saudi Arabia agreed to develop a comprehensive framework agreement between the countries in the field of agriculture, to diversify sources of supplies of phosphate fertilizers to Ukraine, to increase support from Saudi Arabia for processing Ukrainian agricultural products and implement investment projects for processing and logistics of agricultural products.The agency also discussed with the Arabian company Ajlan & Bros Holding Group the possibility of investing in the production of agricultural products in Ukraine, with Almarai – growing alfalfa for its supply to v Saudi Arabia, with the Saudi Fund for Development – the issues of financial support for irrigation projects, with ARASCO – increasing the volume of grain purchases in Ukraine, with Saudi EXIM Bank – financing the agricultural sector of Ukraine.“One of the key tasks in the near future is to bring the negotiation process to a successful conclusion. We are continuing the dialogue, strengthening trade and investment cooperation with Ukraine’s strategic partner in the agricultural sector,” the minister summed up.As reported, the Ministry of Agrarian Policy and the Arabian manufacturer of irrigation equipment Alkhorayef Group on November 27 signed a memorandum allowing the possibility of starting its production in Ukraine . According to the ministry, Alkhorayef Industries is the third largest manufacturer of irrigation machines in the world and the first in the Arabian Peninsula. Its activities are spread in 40 countries of the world, they produce industrial, agricultural and irrigation equipment.

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UKRAINE SINCE BEGINNING OF MARKETING YEAR EXPORTS 44 MLN TONNES OF GRAIN

Ukraine since the beginning of the 2020/2021 marketing year (July-June) and as of June 25, 2021 exported 43.94 million tonnes of grain and leguminous crops, which is 21.8% less than on the same date of the previous year.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 16.41 million tonnes of wheat, 22.59 million tonnes of corn, and 4.21 million tonnes of barley have been exported.
As of the indicated date, 123,700 tonnes of flour were also exported.
According to the Ministry of Agrarian Policy, Ukraine exported 56.72 million tonnes of grain and legumes in 2019/20.

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UKRAINIAN MINISTER: LAND REFORM TO BE IMPLEMENTED

Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko called the adoption of bill No. 2194 on amendments to the Land Code of Ukraine fateful, and the implementation of land reform will become a real indicator of changes for the better in the country. “Now the right to dispose land has been transferred to local communities finally and irrevocably. From now on, the State Service of Ukraine for Geodesy, Cartography and Cadastre is only a service organization, the most deregulated, with the elimination of corruption powers in land management,” he wrote on Facebook.
The minister said that bill No. 2194 provides for the reform of the management system in the field of land relations and the removal of artificial restrictions on economic activity to simplify access to land resources for the population and business; cancellation of unnecessary permits and duplication of checks of land management documentation; as well as introduction of independent control over land management documentation through public expertise or peer review.
According to him, other key points of the document are the provision of the status of public, open and public data to the information contained in the documentation on land management; integration and unification of land management, topographic, geodetic and cartographic activities; introduction of professional liability insurance for land management workers as an alternative to state control; reducing the cost of work and the length of time spent on the implementation of procedures related to land management; and reducing the risk of bribery and corruption.
“This is a historically fateful event, one of the most important laws in my life, which confirms the inevitability of land reform, for which I am responsible in our state,” the minister said.
As reported, the Verkhovna Rada approved amendments to the Land Code and other laws to improve the management and deregulation system in land relations.

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UKRAINE URGES MINISTRY TO START RESTORING IRRIGATION SYSTEM IN SOUTHERN LANDS IN 2021

The Ministry of Agrarian Policy and Food of Ukraine is obliged to begin restoring the irrigation system of agricultural lands in the south of the country by the end of this year, Prime Minister Denys Shmyhal said during a meeting devoted to irrigation held on Thursday.
According to the press service of the Cabinet, in addition to Shmyhal, Minister of Agrarian Policy and Food Roman Leshchenko, representatives of the Ministry of Ecology and Natural Resources, the Ministry of Finance, Head of the Mykolaiv Regional State Administration Vitaliy Kim, Head of the Odesa Regional State Administration Serhiy Hrynevetsky and acting Head of the Kherson Regional State Administration Serhiy Kozyr attended the meeting.
As the Prime Minister said, the President of Ukraine set the Cabinet of Ministers the task to begin the restoration of irrigation systems this year, which means that the government must ensure the prompt transfer of the property complexes of the Ministry of Ecology to the Ministry of Agrarian Policy.
“Today, most of the land reclamation and irrigation infrastructure is managed by the State Water Resources Agency. Accordingly, the Ministry of Agrarian Policy and Food, which is responsible for the restoration of irrigation systems, cannot yet begin practical work in this direction. A quick solution to this issue will allow the Ministry of Agrarian Policy to begin implementation of pilot projects to restore irrigation systems this year, and will help farmers to significantly increase their harvest,” Shmyhal said.
As Leshchenko said, irrigation reform is among the main priorities of the ministry.
“This year is defining for us. We understand how to form an institutional and legislative framework, and according to this plan we are ready to move,” the minister said.
Deputy Minister of Ecology and Natural Resources Mykhailo Khorev reported that on behalf of the Prime Minister, a meeting had been held, following which a roadmap for transferring property to the Ministry of Agrarian Policy was drawn up.

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