In the next video YouTube-channel of the analytical center “Club of experts” the prospects of trade and economic relations between Ukraine and Egypt were considered.
As the founder of the Club of Experts Maxim Urakin emphasized, before the war Egypt was the most favorable trade partner for Ukraine, the trade surplus with which amounted to almost 2 billion U.S. dollars. Grain and metallurgical products were the main Ukrainian goods at the Egyptian market.
At the same time, in the first months of the war, the Russian blockade of maritime communications in the Black Sea limited Ukrainian exports to Africa and, above all, to Egypt. The grain agreement improved the situation, but only with regard to agricultural exports. In order not to lose the Egyptian market, the Ukrainian companies have to adapt to the current situation now in order not to make additional efforts after the war.
According to the President of the Ukrainian Exporters Club Eugenia Litvinova, the Ukrainian producers should pay attention to the Egyptian market of dairy products in the first place. In this case, it is necessary to take into account the separation of Egyptian groups of goods for wholesale and retail trade while creating favorable conditions for imports. Also, according to her, the demand in Egypt is for canned and dried fruits, confectionery, chocolate, oils, fats, mineral water, as well as crockery, various cutlery, baths, showers, sinks, building materials and other goods for the retail trade.
“I want to draw attention to the fact that all Ukrainian exporters who want to trade with Egypt, must be registered in the general administration to control exports and imports. After that it is possible to establish logistics through rail and road ways, taking into account the temporary inaccessibility of the port of Odessa”, – she explained.
Besides, Yevgeniya Litvinova noticed that since March of the last year, Egypt obliged Ukraine to use the letter of credit for many groups of goods that leads to rise in price of transactions from 0,2 to 0,5%. This factor, according to the expert, will also directly affect trade and its final results.
“If we talk about advice to our small and medium-sized businesses when entering the Egyptian market, first you need to understand what exports are, if you have not previously been involved in this process. Then you should analyze in which cases it is profitable to open a Ukrainian enterprise in Egypt to work, and in which cases you do not always need to do it and not always profitable. Finally, the third tip – go through the registration. At least look at how to pass authorization, registration through a single window in Egypt. I draw your attention to the fact that your brand should be registered at least in Ukraine before you start to pass this registration in Egypt, “- summed up Eugenia.
In turn, the head of the Egyptian diaspora in Ukraine, Dr. Atia Walid noticed that in recent years Egyptian-Ukrainian trade relations have been intensively developed and our country has been invited to participate in major infrastructure projects, which are now being implemented by the Egyptian authorities.
“Back in 2021 Egypt discussed with the Ukrainian government investment in the special economic zone of the Suez Canal. That is, the Egyptian economic policy is primarily aimed at encouraging investment in the country’s economy. Egypt, of course, is interested in cooperation with Ukrainian companies from the point of view of opening joint ventures on its territory, which can well be realized today, despite the war. I think it is quite realistic for Ukrainian companies to open branches there, if they are interested in the sales market. Egypt is ready to facilitate this,” stressed the representative of Egypt.
In his opinion, our suppliers should work more actively both with the Egyptian embassy in Kiev and the Ukrainian embassy in Cairo. This will facilitate the passage of bureaucratic procedures and reduce the likelihood of becoming victims of fraud.
“Ukrainian businessmen should check with the Egyptian embassy or the Chamber of Commerce the authenticity of the documents of those organizations with which they cooperate. And only after that, conclude a contract according to all international rules. You should not believe the promises and pretty eyes, and do not forget the basics of doing business in the field of export-import. I wish all businessmen in Egypt and in Ukraine only success,” said Dr. Atia Walid.
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The State Service of Ukraine for Food Safety and Consumer Protection and Ministry of Foreign Affairs of Ukraine in 2022 agreed 22 forms of international veterinary certificates for exporting animal products to 12 countries.
As follows from the agency’s press release issued on Monday, last year the market was opened to Albania for semi-finished meat from Ukraine; to Georgia for snails; to Dominica for milk and dairy products; to Israel for ornamental freshwater fish, live rabbits, chewed pet items, fresh and treated skins and hides; to Canada for poultry meat and products; to Kenya for milk and dairy products.
In addition, export of Ukrainian chewed pet items, raw and canned pet food to Northern Macedonia, pet food to Singapore; hatching eggs, canned and processed pet food to Serbia; processed animal protein products (not for human consumption) and fish products to Turkey, table eggs to Pakistan, and meat products and semi-finished products to Montenegro is permitted.
Gosprodpotrebtsluzhba also stressed that in 2022 to 432 increased the number of enterprises-producers of animal products with the right to export their products to the EU, which is 53 more than it was at the beginning of 2022. By comparison, for 2021, 23 businesses received such a right.
“This positive dynamics in increasing the number of Ukrainian exporters to the European market is extremely important in the context of Ukraine’s status as a candidate country for accession to the European Union. The work in this direction will continue permanently and if the requirements of the Association Agreement with the EU are fulfilled as part of our obligations to join the European Union, this number will increase daily”, – the agency summarized in a press release.
Agroholding Agrotrade exported about 500 thousand tons of grain in 2022, including 343.8 thousand tons of its own harvest, 147 thousand tons of agricultural products from third parties and 5.4 tons of organic products.
According to the Facebook page of the agrarian group, it exported most of all wheat and corn, while rye, sorghum, soybeans, rape and barley were also shipped abroad.
“Agrotrade noted that last year, due to Russian aggression, it was forced to look for new export routes, shipping grain by rail to Europe bypassing blocked Ukrainian seaports. However, in the second half of 2022, most of the agricultural products were shipped through the ports of Greater Odessa under “grain agreements.”
“Exports continue, although the grain corridor works very slowly. Up to nine ships per day are served. Exports are slow due to insufficient number of inspections. That is, grain exports could be more intensive if steamships could call at the terminals more often. Taking into account all the difficulties that exporters faced this year, we are satisfied with the results of our work,” Agrotrade quotes its director of foreign economic activity Andrei Booth.
Agrotrade Group is a vertically integrated holding of a complete agricultural cycle (production, processing, storage and trade of agricultural products). It cultivates over 70 thousand hectares of land in Chernigov, Sumy, Poltava and Kharkov regions. Profile crops – sunflower, corn, winter wheat, soybeans and rapeseed. It has its own network of elevators with a single storage capacity of 570,000 tonnes.
The Group also produces hybrids of corn and sunflower seeds, barley and winter wheat. A seed plant with an annual capacity of 20,000 tons of seeds was built in 2014 on the basis of the Kolos seed farm (Kharkiv region). In 2018, Agrotrade launched its own brand Agroseeds on the market.
The founder and CEO of Agrotrade is Vsevolod Kozhemyako.
Ukraine from the beginning of 2022/2023 marketing year (July-June) to January 27, 2012 and January 27, 2012 exported 25.99 million tons of cereals, including 14.69 million tons of corn (56.5% of total shipments), 9.4 million tons of wheat (36.2%) and 1.8 million tons of barley (6.9%).
According to the website of the Ministry of Agrarian Policy and Food on Friday, the rate of grain exports since the beginning of the current MY is 30.86% lower than the same period of the previous MY, as 37.6 million tons were delivered abroad from July 1, 2021 to January 27, 2022. At the same time, the previous maximum rate of exports was achieved on January 9, 2023, when the lag from last year’s values was the lowest for the entire MY, 29.61%.
According to the agency, this week corn exports began to lag behind last MY for the first time since the start of the 2022/2023 MY, with 14.69 million tons delivered to foreign markets by January 27, 2023, compared to 14.95 million tons on January 27, 2022. In addition, Ukraine exported 9.4 million tons of wheat (1.78 times less than the same period last year), 1.8 million tons of barley (3.02 times less), 12.5 thousand tons of rye (12.2 times less) and 80.8 tons of flour (+28%) from the beginning of 2022/2023 MY.
It is specified that Ukraine exported 3.24 million tons of cereals, including 2.07 million tons of corn, 990 tons of wheat, 173 tons of barley and 11.8 thousand tons of flour since early January.
As follows from the Ministry data, during the period of January 20-27, 121.1 thousand tons of cereals per day were supplied to the foreign markets, whereas during the preceding period of January 9-20 – 140 thousand tons/day, January 2-9 – 121.7 thousand tons/day, December 21 – January 2 – 196.4 thousand tons/day on average, and December 14-21 – 134.3 thousand tons/day. Thus, the average daily rate of exports during the reporting period January 20-27, decreased by 13.5% compared to the previous period January 9-20.
As reported, Ukraine exported 48.51 million tons of grain and leguminous crops in 2021/2022 MY, which is 8.4% higher than in the previous MY, despite the full-scale invasion of Russia and the difficulties with the export of agricultural products due to the blockade of Ukrainian sea ports. 18.74 million tons of wheat (12.6% more than in 2020/2021MY), 23.54 million tons of corn (+1.9%), 5.75 million tons of barley (+35.9%), 70.9 thousand tons of flour (-44.1%) were supplied to foreign markets.
Ukraine in 2020/2021 MY exported 44.72 million tons of grain and leguminous crops: 16.64 million tons of wheat, 23.08 million tons of corn, 4.23 million tons of barley, 126.9 thousand tons of flour and 18.4 thousand tons of rye.
In 2019/2020, Ukraine exported 56.72 million tons of grain and leguminous crops.
Dynamics of export of goods in 2021-2022
Source: Open4Business.com.ua and experts.news
Export of Ukraine by countries in Jan-Oct 2022
Source: Open4Business.com.ua and experts.news
