Business news from Ukraine

UKRAINE INCREASES FURNITURE EXPORT BY 50% IN Q1 2021

Ukrainian furniture manufacturers in January-March of this year increased their furniture exports by 50% compared to the same period in 2019, to $247.4 million, while in the past five years (2015-2020) there was an annual increase of 13.5%, a member of the Ukrainian Association of Furniture Manufacturers (UAFM) Oksana Donska has said. “Due to COVID-19, the global supply chains have changed a lot. Ukrainian furniture is becoming more and more interesting for the international community of professional buyers,” she said at a press conference on the problems of timber market legislation organized by the RivneInvest agency in Kyiv.
According to her, today a transparent timber market is very necessary for Ukrainian furniture manufacturers.
“The furniture and woodworking industries of Ukraine create a product with high added value. Each hryvnia of wood value turns into UAH 30-50 of the cost of furniture supplied both to the domestic market and for export,” she said.
Donska said that today more than 100,000 people work in the furniture industry for more than 9,000 enterprises, and the export of Ukrainian furniture for the past five years has been growing by 13.5% annually. Furniture is exported to 119 countries, including Poland (more than 35% export), Germany (16%), Denmark, Austria, Romania, and France. Poland and Germany use Ukrainian furniture for further sale in the world.
“But compared to the same Poland, which has approximately the same forest resources, we export 20 times less – if Poland in 2020 exported furniture worth $14.8 billion (the third largest exporter in the world), then Ukraine for only $750 million (39th place),” Donska said.
She said that on June 15 through June 17 2021, Ukraine expects about 2,000 guests from 53 countries who will come to visit the Furniture of Ukraine Business Expo (FUBE-2021) organized by the UAFM with the support of the Ministry of Foreign Affairs and the Ministry for Development of Economy, trade and Agriculture.
“However, today the Association receives appeals from our members who complain about serious problems in their work due to the stagnation of the timber market. As a result, furniture makers do not receive furniture components on time, and contracts for the supply of finished furniture with retailers from Ukraine are broken. Ukraine’s reputation is on the line if it fails to implement contracts for the supply of furniture to the countries of Europe, Asia and America. If this situation continues for several more months, then Ukrainian enterprises will have to think not about development, but about survival,” Donska said.

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UKRAINE SINCE START OF MARKETING YEAR EXPORTS 34 MLN TONNES OF GRAIN

Ukraine since the beginning of the 2020/2021 marketing year (MY, July-June) and as of March 26, 2021 had exported 34.45 million tonnes of grains and legumes, which is 22.6% less than on the same date of the previous MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 14.16 million tonnes of wheat, 15.64 million tonnes of corn, 4.06 million tonnes of barley have been exported.
As of the indicated date, 96,200 tonnes of flour were also exported.
As reported, the Ministry for Development of Economy, Trade and Agriculture of Ukraine in February predicted a decline in exports of grains and legumes in the 2020/2021 MY by 20.5% compared to the previous MY, to 45.4 million tonnes.
According to the Ministry of Agrarian Policy and Food, Ukraine exported 56.72 million tonnes of grain and leguminous crops in the 2019/2020 MY.

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MAIN TRADE PARTNERS OF UKRAINE IN % FROM TOTAL VOLUME (EXPORT FROM UKRAINE TO OTHER COUNTRIES) IN 2020

Main trade partners of Ukraine in % from total volume (export from Ukraine to other countries) in 2020.

SSC of Ukraine

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STRUCTURE OF EXPORT OF SERVICES FOR 9 MONTHS OF 2020 (GRAPHICALLY)

Structure of export of services for 9 months of 2020 (graphically).

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UKRAINE AGREES EXPORT OF MILK WITH JAPAN

The State Service of Ukraine for Food Safety and Consumer Protection of Ukraine and the authorized body of Japan have agreed on the form of the veterinary certificate for exporting raw milk and dairy products to Japan, the service said on its website on Tuesday.
“We continue work towards expanding cooperation with international partners. This is very good news for Ukrainian producers interested in the export of raw milk and dairy products: the market of one of the largest strategic partners for Ukrainian food exports – Japan – has been opened,” the head of the authority, Vladyslava Mahaletska, said.
The State Food and Consumer Service said that the website has the example of a veterinary certificate for export to Japan.

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IN FEB UKRAINE INCREASES IMPORT TO $4.87 BLN AND EXPORT TO $4.55 BLN

The deficit of Ukraine’s foreign trade in goods in February 2021 fell by 47.5%, to $0.32 billion, while the deficit of foreign trade in January-February 2021 slightly grew – by 5.9%, to $0.6 billion
According to the State Customs Service, imports in the first two months of this year showed an increase over the same period last year by 4.5% and amounted to $9.09 billion, and exports – by 4.4%, to $8.49 billion.
At the same time, in February, imports rose to $4.87 billion, which is 6.5% higher than the same period last year and 15.4% higher than in January.
As for exports, last month it also showed an increase of 14.8% compared to February 2020 and 15.8% compared to January, reaching $4.55 billion.
In general, the trade turnover in January-February this year totaled $17.57 billion, which is 4.44% higher compared to the same period last year.
As Deputy Minister of Development of Economy, Trade and Agriculture, Trade Representative of Ukraine Taras Kachka said, in February Ukraine increased the export of confectionery products by $50 million, or 15% compared to February 2020.
“The largest export markets [for confectionery products] were Romania, Poland, Belarus and Azerbaijan,” he wrote on Facebook on Tuesday.
Kachka also pointed to an increase in the export of industrial goods to $398 million in February, which is 9.6% more than the same period last year and 21.6% more than in January. The trade representative said that $294 million of export of these goods falls on the EU (Hungary, Germany, Poland).
“Metallurgy began to feel better. Exports of ferrous metals (group 72) in February amounted to $764 million (a rise of 12%),” the trade representative said.
Exports of metal products last month showed an increase of 22% versus February 2020, to $77.2 million. The largest supply markets for them were Poland, Romania, Germany, the trade representative said.
He also noted an increase in the export of sunflower oil in February by 12% versus February last year and by 14% versus January, to $587 million. “India and the Netherlands are increasing supplies, China is cutting back a little,” he said.
“Meal (group 2) grew by 25.7% and amounted to $169 million. France and China began to buy more,” Kachka wrote.
As indicated by the State Customs Service, the largest trading partners in February were China (negative balance of $1.8 billion), Russia ($1.1 billion), Germany ($1.3 billion).
At the same time, the trade representative said that exports to the EU in February increased compared to last year by almost 28%, to $1.97 billion, and to Asia – by 17.4%, reaching $1.48 billion. At the same time, exports to the CIS countries decreased in February 12.3% compared to February 2020, to $461 million.
“We should note the revival with Britain – in the first two months of this year we exported products worth $145.2 million, which is 35% more compared to January-February 2020,” Kachka wrote.
According to customs statistics, in February this year, trade between Ukraine and the U.K. amounted to $503 million: exports were $209.5 million, and imports were $294 million.

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