Ukraine in the season-2023 can export more than a third of the produced sugar, as about 1 million tons is enough to meet the needs of the domestic market, while the production forecast is 1.6-1.7 million tons, CEO of Astarta agroholding Viktor Ivanchik said.
“The opening of the sugar market by the European Union (in 2022 – IF-U) has significantly helped Ukraine. We can export a third, if not more, of this year’s crop. We have enough in Ukraine about 1 million tons. This year’s production forecast is 1.6-1.7 million tons. This potential should be unambiguously used. We need to gain a foothold in the markets. Both for the near and distant future – this is a serious factor of Ukraine’s entry into the European Union with its goods, services and labor force,” he said during the Business Breakfast with Forbes Ukraina on Wednesday.
Commenting on the investigation by the Antimonopoly Committee of Ukraine (AMCU) regarding possible cartel collusion between sugar producers, Ivanchyk noted that the AMCU “constantly observes, conducts this or that research.”
“Today we do not see such a problem. It was not there before. We have convincingly proved to AMCU, with whom we have been in communication for the last five years, that there are no violations of antimonopoly legislation. It makes no sense for us to agree on prices and volumes. We compete hard on the Ukrainian market, as it is surplus,” Ivanchyk explained and added that sugar producers are in contact with each other on the basis of the industry association “Ukrtsukor”, but do not discuss the issues of prices or sales volumes.
The CEO of Astarta also noted that with the opening of the market to the European Union, sugar producers and exporters fall under the European regulatory policy. This forces the management of the country’s largest sugar producer to “look even more meticulously at our and all our employees’ compliance with these requirements.”
“I don’t see any risks of coming under investigation,” he stated.
Asked about pressure, particularly from law enforcement agencies on business, Ivanchik declined to voice specific cases, but confirmed that Astarta also has to face such problems.
“To be in society and be free from problems in the business community is unrealistic. “Astarta tries to build relationships on a legislative basis. We are as law-abiding as possible. There is absolutely no reason to suspect us of anything,” he assured and confirmed that his colleagues have to face more complicated problems.
According to the head of the agricultural holding, there is an initiative to create a public association on the basis of the Federation of Employers of Ukraine (FEU), which is called “Manifesto-42” (from Art. 42 of the Constitution of Ukraine on the right of every citizen of Ukraine to conduct entrepreneurial activity – IF-U) to protect Ukrainian business from unjustified encroachments by law enforcement and controlling bodies.
Ivanchyk reminded that business has the right to publicly and legally defend its interests. “Especially since Ukrainian business has now shown very good examples of patriotic attitude, help, selflessness. This should be respected by the state in a partner-like manner,” he emphasized.
The CEO of Astarta noted that business received understanding from the state leadership, in particular, a month ago at a meeting with the President of Ukraine Volodymyr Zelensky, Prime Minister Denis Shmygal, teams of the Office of the President and the Cabinet of Ministers.
“We (representatives of business – IF-U) were assured that the state controlling bodies will pursue a legitimate policy on this matter, communicating with us through the business ombudsman and through our joint structures, such as the Federation of Employers of Ukraine, Ukrainian Club of Agrarian Business, European Business Association, CEO Club Ukraine. We will be able to build such relations absolutely openly, honestly and transparently”, – the head of Astarta is convinced.
“Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes six sugar factories, agricultural farms with a land bank of 220 thousand hectares and dairy farms with 22 thousand cattle, oil extraction plant in Globino (Poltava region), seven elevators and biogas complex.
In the first half of 2023, Astarta’s revenue from sales of key products increased by 64.8% year-on-year to UAH 10.72 bln. The main contribution was made by sales of sugar – UAH 3.27 bln, which increased by 75.5%, corn – UAH 2.66 bln (+53.2%) and soybean meal – UAH 1.96 bln (+84.5%).
Ukraine within the framework of the meeting Ukraine – USA – European Commission – Romania – Moldova in Romanian Galati identified among the priority areas of work to increase Ukrainian exports the realization of the potential of the Danube and checkpoints on the border with Romania, said Deputy Prime Minister – Minister of Development of Communities, Territories and Infrastructure of Ukraine Oleksandr Kubrakov.
“Today in Romanian Galati within the framework of the meeting Ukraine – USA – European Commission – Romania – Moldova worked on ways to increase Ukrainian exports. The Romanian part of the Danube in conditions of limited navigation is important for the reorientation of exports,” he wrote in Facebook.
According to him, the key areas of work are the acceleration of the passage of ships through the channels, increasing the capacity of the Sulina channel and the organization of additional places for the raid transshipment of ships near the Romanian port of Constanta.
Deputy Prime Minister noted that for the realization of these plans investments are needed. To attract them, work with European partners is underway, in particular, on the inclusion of the Ukrainian part of the Danube in the maps of the Trans-European Network of Inland Navigation Routes (TEN-T).
“This is one of the important conditions for the full-fledged operation of business on the Ukrainian Danube transportation market,” he stressed.
Kubrakov added that work is also underway with the Romanian side on the full-fledged launch of freight transportation at the road checkpoints on the border with Romania “Krasnoyilsk – Vicovu de Sus” and “Diakivtsi – Rakovets”. There are plans to increase the capacity of “Porubnoye – Siret” by at least 20% and to open two more new checkpoints, the report said.
In the railway transportation direction, active work is being carried out both in the Romanian and Moldovan directions, the deputy prime minister said. He recalled the resumption of the passenger trains’ movement on the border with Romania on the Rakhiv-Delovoye-Valia-Visheului section, as well as the works on the resumption of the passenger traffic at the Teresva border crossing point.
As it was reported at the meeting of the Exporters’ Office at UZ, a number of measures are also planned to increase the volume of cargo transshipment in the direction of the port “Izmail”. In particular, the reconstruction of dead-end tracks No. 8 and No. 9 at the station “Izmail” is planned by the end of the year. It is envisaged that UZ will perform the works at the expense of the investor. In 2024 it is planned to build an additional extraction track parallel to the existing No. 13 in the park “Izmail-Portovyi”. In addition, it is planned to build two marshalling tracks between tracks #11 and #15. There are plans to electrify the Artsiz-Izmail line with a length of 202 km.
“All our actions are aimed at achieving one goal – to provide as many opportunities as possible for Ukrainian exporters,” Kubrakov emphasized.
Deputy Prime Minister expressed gratitude to US sanctions coordinator Jim O’Brien, US Ambassador to Ukraine Brigitte Brink, European Commission Director General for Transport Magda Kopczynska, Romanian Minister of Transport and Infrastructure Sorin Grindian and Moldovan Minister of Agro-politics Vladimir Balea for their support.
He also recalled that recent Russian attacks on Ukraine’s port infrastructure destroyed more than 200,000 tons of grain.
Ukraine in January-July this year increased exports of ferroalloys in physical terms by 23.2% compared to the same period last year – up to 299.458 thousand tons.
According to statistics released by the State Customs Service (SCS), in monetary terms, ferroalloys exports decreased by 40.5% to $260.870 mln.
The main exports were to Poland (57.24% of shipments in monetary terms), Turkey (11.36%) and the Netherlands (6.76%).
In addition, during this period Ukraine imported 4.379 thousand tons of these products, which is 72.9% less compared to January-July-2022. In monetary terms, imports decreased by 69% – to $18.561 mln.
Imports were mainly from Armenia (18.37%), India (17.86%) and China (15.15%).
As reported, Ukraine in 2022 reduced exports of ferroalloys in physical terms by 47.7% compared to the previous year – to 349.560 thousand tons, in monetary terms by 46% – to $ 564.136 million. At the same time, the main supplies were made to Poland (53.25% of exports in monetary terms), the Netherlands (13.13%) and Romania (5.66%).
In addition, last year Ukraine imported 20.546 thousand tons of these products, which is 65.5% less compared to 2021. In monetary terms, imports decreased by 59.1% to $72.705 million. Imports were mainly from Norway (22.67%), China (15.60%) and Kazakhstan (14.10%).
The business of Stakhanov and Zaporizhzhya Ferroalloy Plants (NWF and ZZF) was organized by PrivatBank (Kiev) before the nationalization of the financial institution. Nikopol Ferroalloy Plant is controlled by EastOne Group, established in the fall of 2007 as a result of restructuring of Interpipe Group, as well as by Privat Group.
Metallurgical enterprises of Ukraine in January-July this year reduced revenues from ferrous metal exports by 53.6% compared to the same period last year – to $1 billion 621.038 million.
According to statistics released by the State Customs Service (SCS) on Tuesday evening, ferrous metals accounted for 7.44% of total receipts from exports of goods during this period, while for 7M-2022 – 13.61%.
In July, revenues from ferrous metals exports amounted to $206.685 million, while in the previous month – $277.888 million.
At the same time, Ukraine has increased imports of similar products by 51.8% – up to $718.782 million in seven months of this year. In July, $112.462 million worth of products were imported.
In addition, in January-July Ukraine reduced exports of metal products by 11.3% compared to the seven months of the previous year – to $561.009 million. In July they were exported for $59.195 million.
At the same time, imports of metal products for the first seven months of the year increased by 23.3% to $432.906 million. In July, Ukraine received $73.702 million worth of these products.
As reported, the country’s metal enterprises in the first half of the year-2023 reduced revenues from exports of ferrous metals by 56.1% compared to the same period last year – to $1 billion 414.354 million. For 5 months-2023 the lag was 60.7%, for 4 months-2023 the decrease was 3.2 times.
Ukraine’s metal enterprises in 2022 decreased revenues from ferrous metal exports by 67.5% compared to 2021, to $4 bln 533.088 mln. Ferrous metals for this period accounted for 10.26% of total revenues from exports of goods against 20.49% for 2021. At the same time, Ukraine last year reduced imports of similar products by 38.3% to $954.387 million.
In addition, in 2022, Ukraine reduced exports of metal products by 18.6% to $1 billion 52.512 million. Imports of metal products for the year fell by 42.9% to $643.162 million.
Ukraine in the 2022-2023 marketing year (MY) harvested 70 million tons of grain and managed to export two-thirds of the harvest planned for export even taking into account the record high transitional residues, Minister of Agrarian Policy and Food Mykola Solskiy said on air of the marathon “United News”.
“Last year we harvested only about 70 million tons. All that we planned to take out, we took out. This is about two-thirds. We have transitional residues by the beginning of July – several million tons. If we compare it with the transitional residues last year, it is several times less – it was 22 million tons then. This is due to the fact that we were not traveling for a couple of months and had a huge harvest in 2021,” he explained.
Solsky recalled that in May in the Ministry of Agrarian Policy predicted that this year’s grain harvest will be 10% lower than last year. However, now the expectations have changed and the Ministry expects that the grain harvest will be less by about 6% due to favorable weather conditions.
“Agrarians have decided to sow corn not in the same volume (as before – IF-U), but to sow more sunflower and soybeans. It can be the same income in money, but the logistics costs are less and it is necessary to deal with it less, because conditionally the yield of corn per hectare is two to three times higher than that of soybeans and sunflowers,” the minister explained.
Solsky noted that farmers are not accustomed to difficulties and expressed confidence that Ukrainian farmers will cope with the challenges that constantly arise before them.
The minister called the main problem of Ukrainian farmers not difficulties with the realization of the produced products, but with the price for them.
“In the coming months, the work of everyone related to the state authorities will be related to the fact that they (agrarians – IF-U) will be able to sell expensively. This has to do with reducing logistics costs, with expanding opportunities, where it can go, to which countries to sell,” he summarized.
Transit of Ukrainian grain through Poland is steadily growing: if in February it was 114 thousand tons, in June it exceeded 260 thousand tons, Polish Minister of Agriculture and Rural Development Robert Telusz said after online talks on Wednesday with Ukrainian Minister of Agrarian Policy Mykola Solskiy.
“This is very good news for agrarians, because grain from Ukraine does not enter the Polish market,” the Polish minister was quoted as saying in a tweet and on the ministry’s website.
At the same time, he said he saw a chance for the European Commission to extend the decision to ban Ukrainian grain exports to Poland after September 15, blaming both those in power in the EU and the Polish opposition for trying to destabilize Poland.
“It is in our interest to protect the Polish farmer. That is why a clear statement was made by Prime Minister Morawiecki that Ukrainian grain will not enter Poland after September 15,” Telusz reiterated.
According to him, the Polish side wants the so-called “solidarity corridors” to work effectively, which would allow for efficient transportation of Ukrainian goods without harming the Polish agricultural sector.
A press release from the Polish ministry indicates that to this end Telusz proposed measures to facilitate the transit of Ukrainian grain to seaports in various EU countries, in which Solsky was interested, but no other details are available and the Ukrainian ministry has not officially commented on the talks.
The Polish Ministry of Agriculture said that the Ukrainian side will also present a draft of detailed solutions in the near future. “He (Solsky – IF-U) explained that Russian missile strikes on Ukraine’s port infrastructure have put Ukrainian exporters in a very difficult situation. Now they will have to organize grain exports via other routes,” the release said.
Telush informed about ongoing negotiations with Lithuania and Latvia on the use of their ports for grain exports from Ukraine. “These negotiations are going in the right direction,” the minister added.
According to him, Poland has managed to significantly increase grain exports through its four main ports this year. In particular, if in January it amounted to 299 thousand tons, in February – 539 thousand tons, in March – 628 thousand tons, in April – 704 thousand tons, in May – 882 thousand tons, and in June – almost 940 thousand tons.
Poland exported more than 4.5 million tons of crops in 4 months of this year, stated Telusz.
It is noted that the ministers also raised the issue of access of Polish poultry products and eggs to the Ukrainian market, and currently the veterinary services of both countries are working intensively to resolve this issue.
The Polish Ministry of Agriculture pointed out that Ukraine is an important partner of Poland in agri-food trade. In 2022, an increase in agricultural exports to the Ukrainian market by 16% to $945.3 million was recorded. The main export items were: cheese and cottage cheese, products used for animal feed, and coffee. In April 2023, exports of agricultural products to the Ukrainian market increased by more than 35% compared to the same period in 2022, the release added.
