AgroFoodCluster Kharkiv, uniting small and medium-sized agricultural producers in Kharkiv region, plans to develop a direct export scheme for small farmers in 2019, Cluster Chairman Yuriy Mykhailov has said. “Next year we want to build an export scheme for our farmers, according to which they will be able to receive currency into their account. This is the main motive for the region, so that the currency comes to the manufacturer, and does not remain partially abroad, which most traders abuse,” Mykhailov told Interfax-Ukraine at the third Ukrainian-German forum “BEA: Bioenergy, Energy Efficiency and Agribusiness” in Kharkiv.
According to him, the cluster in 2019 also intends to increase the number of participants.
Among the projects of AgroFoodCluster in 2017-2018 is the participation in the ANUGA food fair (Cologne, Germany). According to Honorary Consul of the Federal Republic of Germany in Kharkiv and managing partner of ILF Tetiana Havrysh, this allowed the cluster members to get new contracts in the European, Asian and African markets.
Mykhailov said that the cluster also carries out joint projects with the ILF law firm, aimed at raising the legal awareness of cluster members on taxes and protecting businesses from illegal seizures.
“The last initiative that we have to implement is to become representatives of the Ukrainian Agricultural Council, which actively protects the interests of producers, and cooperate with them on the protection of the property of our participants,” Mykhailov said.
According to him, in October 2018, the cluster included 19 companies.
“If there are about 400-500 agricultural producers in Kharkiv, the share of cluster members is very small. We had a goal to reach 100 participants, but this is quite difficult,” he said.
According to Havrysh, the priorities of the cluster are also cooperation with educational institutions, which are part of the cluster, to improve the quality of staff, as well as the development of communities.
“Now the cluster is looking for strategies for introducing green tourism. It is launching cultural programs. This is an evolution, although it may not be fast, because the Ukrainian government does not have a specific strategy regarding clusters,” she said.
Havrysh said that the cluster is also interested in creating a branded regional product to increase competitiveness in the domestic market.
“This can seriously influence domestic exports between regions in Ukraine. We often see products from Western Ukraine in Kharkiv, but it is unlikely that products from Kharkiv are seen in Western Ukraine,” she said.
As reported, the AgroFoodCluster Kharkiv was created in July 2017 intending to bring the region’s products to new markets.
From mid-September, USPA FRUIT started shipping Ukrainian Royal Gala and Golden apples of the 2018 harvest to the countries of the Persian Gulf, including Saudi Arabia, Qatar, the United Arab Emirates and Kuwait.
Considering the first large-scale campaign of exporting apples from Ukraine by sea, USPA FRUIT paid special attention to the quality of exported apples. So, all the apples passed control during harvesting, post-harvest application and applying special regyme of cooling for long term storage. The firmness of all the apples that are exported is at least 7 kg / cm2, which is sufficient for successful transportation and subsequent sale to the final consumer.
USPA FRUIT quality auditors checked each unit of apple packaging, which is especially important for deliveries to the countries of the Persian Gulf and Asia, in order to ensure the weight of each package according to the standard of 18 kg per box, net weight.
Ukrainian apples are valued by new consumers for the special taste and aroma that is provided by the special climate and black soil of Ukraine, which makes it possible to grow an apple using considerably less chemical treatments. Significant differences during twenty-four hours temperatures, which depends on the region but often excceed 20 ° C between day and night, make it possible to obtain an intensive red color in a natural way, which is in most cases 70% +, and thanks to long day and total amount of temperatures also to make an apple very sweet without the use of special chemicals. Such apples are selected by USPA FRUIT for the most demanding of their customers.
The main export of apples from Ukraine, traditionally, was carried out by road, so the USPA FRUIT company was especially attentive to meeting the schedule for delivering ships to the port and building a port logistics system, since the company exports all apples under CIF conditions in order to provide maximum service to its customers, guaranteeing the quality of apples at the port of destination and delivery in time.
Starting from October 10, Ukrainian apples began to arrive to the ports of the Persian Gulf and to the shelves of the largest retail chains. Quality control of apples, ensuring their quality packaging and the conditions of their delivery during transportation, made it possible to completely avoid customer complaints about the quality and packaging of apples, and the demanding Arab consumer fully appreciate the unique taste and aroma of Ukrainian apples, that means the export must go on.
Verkhovna Rada of Ukraine deputy and Opposition Party Co-chairman Borys Kolesnykov has said Ukraine should export more highly processed products, remove the energy and food blockade of Donbas and create a comfortable business climate for investors. “Ukraine simply needs to export more and import less, and within three years we must export highly processed products. We must act solely in our own economic interests,” he said on his Facebook page on Thursday. Kolesnykov said government should “promptly remove the energy and food blockade of Donbas and create a real investment climate in the country for both domestic investors and foreign investors.” “Ukraine simply has to become an Eastern European Singapore,” he said.
Ukraine in January-August 2018 increased steel pipe exports by 7.3% compared to the same period in 2017, to 434,600 tonnes, of which 70.2% accounted for seamless, 29.8% for welded pipes, according to a Monday press release of the state-owned Enterprise Derzhzovnishinform. At the same time, foreign exchange earnings from pipe exports increased by 39.6% to $484.6 million (82.2% – seamless and 17.8% – welded pipes).
According to the results of the eight months ending August 2018, the export of semi-finished products was 4.512 million tonnes, which is 16.5% more compared to the same period last year. In monetary terms, the growth in exports of semi-finished products amounted to 47.3%, to $2.167 billion.
The volume of export of finished rolled products decreased by 2.8% to 5.498 million tonnes, however, due to the general increase in prices in the global market in the segment of finished rolled products, revenues from its exports increased by 18.6%, to $3.248 billion.
The volume of exports of raw materials for metallurgy (goods from group 72) increased by 31%, to 3.04 million tonnes in January-August 2018, while foreign exchange earnings increased by 25.2%, to $ 1.534 billion.
A significant upward dynamics is demonstrated by the export of pig iron, which increased by 45.8%, to 2.113 million tonnes. The main sales markets for Ukrainian iron are the United States, Italy and Turkey.
Exports of ferroalloys in January-August increased by 2.5% to 622,700 tonnes, scrap metal exports increased by 17% to 300,300 tonnes. Proceeds from the export of ferroalloys for the period fell 2.9%, to $696.9 million, but increased from scrap exports by 69.8%, to $98.2 million.
Import of rolled metal to Ukraine in the first eight months of this year in kind increased 11.7%, to 883,500 tonnes, and in monetary terms – by 22.2%, to $711.7 million.
Imports of flat steel increased 0.6% to 192,500 0 tonnes, but imports of flat rolled products with coating decreased by 7.8%, to 311,100 tonnes. At the same time, the foreign exchange costs for the import of rolled products amounted to $711.7 million.
Ukraine exported 5,390 tonnes of cheese in January-August 2018, which is 4.1% less than in the same period in 2017. According to customs statistics released by the State Fiscal Service, in monetary terms exports amounted to $20.04 million, and this is 2.6% more than a year ago.
At the same time, cheese imports in January-August 2018 amounted to 7,810 tonnes, which is 30% more than in the same period in 2017. In terms of money, this indicator increased by 41.2%, to $38.31 million.
Exports of butter from Ukraine in January-August this year rose by 19.2%, to 21,410 tonnes. In monetary terms, this figure grew by 32.2% and amounted to $92.43 million. According to the State Fiscal Service, imports of this product increased 2.4 times, to 710 tonnes ($4.84 million).
Exports of milk and cream (condensed) in January-August decreased 19.8%, to 26,640 tonnes. Ukraine supplied condensed milk and cream for a total of $43.77 million against $57.07 million in January-August 2017. Imports of this group of goods increased by 1.7 times, to 1,430 tonnes ($3.51 million).
Ukraine in the 2018/2019 marketing year (MY, September through August) could reduce sugar output by 5.5% and boost its exports by 13%, according to the National Sugar Producers Association Ukrtsukor. “In the 2018/2019 season, Ukraine and Russia will see a decrease in sugar production – by 5.5% and 11%, respectively, but Belarus is expected to see growth by 13%. At the same time, sugar exports from Ukraine and Russia will increase by 13% and 7%, respectively, while Belarus will see a slight decrease – by 5%. In addition, tough competition for the sales markets will continue,” head of the analytical service of the Sucden Group of Companies (CIS) Marina Sidak was quoted as saying.
According to her, due to the negative demographic situation in Ukraine, there will be a decrease in domestic consumption. At the same time, there is a risk of a reduction in Ukrainian rail transportation of sugar due to a shortage of covered wagons.
As reported with reference to Ukrtsukor, Ukraine in the current MY will reduce sugar exports by at least 25% compared to the previous MY.
Production of sugar in the 2017/2018 MY increased by 6.5%, to 2.14 million tonnes.
