Business news from Ukraine

President of Ukraine: Grain initiative for export of Ukrainian grain reduced severity of food crisis

President of Ukraine Volodymyr Zelensky said that the implementation of the grain initiative to export Ukrainian grain made it possible to reduce the severity of the food crisis.
“It is very important that the grain export initiative yields results. Since the beginning of its implementation, 16 vessels with grain for seven countries on three continents have already left Ukrainian ports. This is Europe, Asia, Africa,” he said in a traditional video message on Saturday.
According to him, “almost half a million tons of agricultural products are on board: corn, wheat, sunflower oil, soybeans and other goods that are absolutely necessary on the world market.”
“This has already made it possible to reduce the acuteness of the food crisis, gave some hope for peace to the countries that consume our agricultural products. And in the future, it can help to completely remove the food crisis from the global agenda,” he said.
Of course, the president noted, “if the partners ensure the implementation of the safe part of the initiative and prevent Russian provocations and terror at sea or against our ports.”
Zelensky noted that “the first ship has already arrived for loading under the UN World Food Program – this is the supply of grain, in particular, for Ethiopia, where the situation with hunger is especially severe. Now the vessel is being prepared for departure from the Yuzhny port.
According to him, “in less than two weeks, our three ports – Odessa, Chornomorsk and Yuzhny – managed to export such a volume that is equal to all agricultural exports by road in July and more than two-thirds of exports by rail over the past month” .
“These are jobs for our people, these are the funds that are needed for our sowing next year, and this is our state budget revenues. Increasing economic activity is an indispensable element on the path to victory,” the president said.

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International research company Corteva Agriscience to raise export of corn seeds from Ukraine to EU by 16 times

The international research company Corteva Agriscience has established export supply chains for corn seeds from Ukraine to the EU, and in the context of the Russian military invasion plans to increase its exports to European countries by 16 times by the end of the year compared to last year.
According to a press release from the company, as of early August, it has already shipped 3,000 tonnes of corn seeds grown at its seed complex in Poltava region to the European Union.
The company clarified that, for security reasons, it suspended the operation of the seed plant immediately after the start of the Russian invasion of Ukraine, but at the initiative of the employees themselves, after some time, resumed the operation of the enterprise. The launch of its work made it possible to provide Ukrainian farmers with seed material that is critical for the sowing campaign.
Corteva, in the context of Russian aggression, also for security reasons, refused to supply seeds of Ukrainian production by land to the countries of the Caucasus and Central Asia, but expanded logistics to the EU as much as possible.
“On the production lines of the Corteva plant in Ukraine, high standards of seed production have been introduced, which allow us to produce goods that meet all the quality criteria adopted in the EU. Seeds are controlled by many indicators at all stages of production – from field to bag, and meet the maximum requirements of both Ukrainian, and foreign farmers choosing Corteva genetics,” the company said.
Earlier, in April, the company decided to leave the Russian market due to the military aggression of the Russian Federation against Ukraine.
Corteva Agriscience is a global agricultural company. It offers farmers comprehensive solutions to maximize yields and profitability. It has more than 150 research facilities and more than 65 active ingredients in the portfolio.

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Foreign trade turnover by the most important positions in Jan-May 2022 (export)

Foreign trade turnover by the most important positions in Jan-May 2022 (export)

SSC of Ukraine

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Export of sunflower seeds from Ukraine in 2022/23 to be reduced by 41.2%

Production of sunflower seeds in the 2022/2023 marketing year (MY, September-August) is projected at 9.4 million tonnes, which is 42.6% less than the previous MY (16.4 million tonnes), while their exports will decrease by approximately 41.2%, to 1 million tonnes from 1.7 million tonnes.
Such data were announced by Stepan Kapshuk, Director General of the Ukroliyaprom Association, during the online conference “Ukrainian oilseed market: optimistic or pessimistic forecast” on Thursday.
Thus, this MY is expected to reduce production of sunflower seeds to the lowest value in ten years, which is even lower than in 2013/2014 MY with 11.5 million tonnes. This decrease is caused by the Russian military invasion into Ukraine, the temporary occupation of part of its territory, and logistical problems associated with Russian aggression.
The head of the association stressed that in 2022/2023 MY, oilseed exports are expected to decrease by 10.6%, to 5.1 million tonnes from 5.71 million tonnes in 2021/2022 MY, including sunflower seeds 41.2%, to 1 million tonnes, and rapeseed by 4%, to 2.6 million tonnes from 2.71 million tonnes. However, soybean exports are expected to grow by 15.3%, to 1.5 million tonnes from 1.3 million tonnes in 2021/2022 MY.
According to Kapshuk, in general, in 2022/2023 MY, production of oilseeds in Ukraine is projected at the level of 14.86 million tonnes, of which, in addition to indicated 9.4 million tonnes of sunflower seeds, 2.87 million tonnes account for rapeseed, and 2.59 million tonnes for soybeans.
At the same time, it is expected that in Ukraine 95.7% of produced sunflower seeds – 9.0 million tonnes, 38% of soybeans – 1 million tonnes, and 7% of rapeseed – 200,000 tonnes will be processed in 2022/2023 MY.
According to the Director General of Ukroliyaprom, in 2022/2023 MY, Ukraine will produce 4.0 million tonnes of sunflower oil, while 4.2 million tonnes will be exported, of which part will be sent from transitional stocks left over from the previous period. These figures are lower than those of MY 2021/2022 with 5.2 million tonnes of oil produced and 4.3 million tonnes of exports, and are comparable to the indicators of MY 2013/2014 (production – 4.6 million tonnes, export – 4.19 million tonnnes).

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Ukraine in July 2022 increased export of agricultural products by 12%

In July of this year, Ukraine managed to export 3.0 million tons of agricultural products, bypassing its seaports, the key export infrastructure of the country, now blocked by Russian troops.
Export growth last month was 12% compared to June 2022, according to the Facebook page of the Ukrainian Club of Agrarian Business Association (UCAB) on Monday.
In terms of crops in July, grain exports amounted to 1.7 million tons (corn – 69%, wheat – 22%, barley – 9%), having increased by 21% compared to June.
According to the UCAB, in July Ukraine exported 597.2 thousand tons of oilseeds (sunflower seeds – 61%, rapeseed – 19%, soybeans – 9%), which is 7% more than the previous month. At the same time, the same amount of vegetable oil was exported as in June – 297.1 thousand tons, of which 94% is sunflower oil and 6% is soybean.
Export of sunflower and soybean cake and meal in July amounted to 185.9 thousand tons (sunflower – 85%, soybean – 15%), which corresponds to an increase of 34% compared to June.
Thus, last month, grain crops showed the largest growth volumes, the export of which increased by almost 300 thousand tons over the month. There was also a partial change in the structure of grain exports – an increase in the share of wheat and barley compared to previous periods, which is associated with the harvesting of these crops by Ukraine and, accordingly, an increase in supply.
“Although there is a positive trend in exports, prices for grain crops in the domestic market continue to decline. They are being pressured by an excess supply of both the last year’s crop and the arrival of a new crop at a significantly lower export growth rate,” the UCAB said in a statement.
As reported, before the start of the full-scale military invasion of the Russian Federation, Ukraine monthly exported 5-6 million tons of agricultural products through its key seaports in Odessa and Nikolaev.

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Export of wheat from Ukraine in new season may be reduced by more than third – opinion

The export potential of Ukrainian wheat in the 2022/2023 marketing year (MY, July-June) may be about 12 million tons, which is 36% lower than in the previous 2021/2022 MY (18.7 million tons) and by 28% less than the year before last 2020/2021 MY (16.6 million tons).

As reported on the APK-Inform agency website on Friday, the decline in wheat exports is due to a 39% decrease in the expected gross grain harvest in Ukraine in 2022/23 MY compared to the previous season – to 52.3 million tons from 86 million tons, as well as the limited capacity of the country’s export infrastructure.

According to him, Egypt and Indonesia have been the key importers of Ukrainian grain products for several seasons: at the end of 2021/2022 MY, their shares in total exports amounted to 16% and 14%, respectively (2.9 million tons and 2.5 million tons in natural expression). It is specified that in 2021/2022 MY, Egypt increased purchases of Ukrainian wheat in relation to the season 2020/2021 MY by 19%, and Indonesia – by 2%.

Turkey became the third largest importer of Ukrainian wheat in the past MY – its imports more than doubled compared to the previous season – from 794 thousand tons to 1.9 million tons, and its share in total exports increased from 5% to 10%.

As reported, the US Department of Agriculture (USDA) in the July report predicts the harvest of Ukrainian wheat in the 2022/2023 marketing year (MY, July-June) at the level of 19.5 million tons, its export – 10 million tons, domestic consumption within the country – 10, 2 million tons. The corn harvest is estimated at 25 million tons, export – 9 million tons, domestic consumption – 10.7 million tons.

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