Ukraine increased export of beef in January-May 2023 by 3.6 times, to 9.6 thousand tons and increased revenues from export operations by 2.6 times, to $38.1 million, according to the press service of the Ukrainian Club of Agrarian Business (UCAB).
The press-release notes that May was the most effective in this period: Ukrainian producers sold abroad 2.5 thousand tons of beef, which is 42% more than in the previous month.
“With the start of a full-scale war, opportunities to export meat and meat products from Ukraine became very difficult. Before the war, the share of beef transported by road was only 22.4% (77.6% was exported by sea). However, even under such difficult conditions, the geography of supplies has not changed. If Ukrainian exporters keep the deliveries at the same level till the end of the year, we will be able to approach the volumes of 2021”, – forecasts Maxim Gopka, analyst of UCAB.
The largest importers of Ukrainian beef in January-May this year were China – 5.8 thousand tons, Uzbekistan – 1.04 thousand tons, Azerbaijan – 1.06 thousand tons and Kazakhstan – 590 tons.
At the same time, UCAB notes that access to European markets is important for the Ukrainian beef market, because of the closed ports logistics is very expensive, which does not allow the industry to operate efficiently.
The report indicates that beef prices in the EU countries are at a high level, although the consumption of this type of meat by the population is gradually decreasing. This trend is expected to continue in the coming years. According to forecasts by the European Commission, cited by analysts, beef production in the EU may decrease by 1.6% in 2023, which will keep prices steadily high even further.
The UCAB believes that if Ukrainian products are allowed to enter the EU market in the near future, it will, on the one hand, support domestic consumption in the EU and, on the other hand, stabilize the domestic industry. In particular, Ukrainian producers will be able to recover by working more efficiently in compliance with all phytosanitary norms and implementing a policy of decarbonization, the business association believes.
At the same time, due to small export volumes of Ukrainian beef compared to other countries, it will not hurt local players in the EU market. In addition, it will help European producers to steadily export their own products to global markets, the UCAB believes, as the supply of beef in the world remains low against high demand.
Ukrainian companies in January-May this year increased the export of scrap ferrous metals in 3.1 times compared to the same period last year – up to 77.452 thousand tons.
According to statistics released by the State Customs Service (SCS), the export of scrap metal for the period amounted to $23.028 million in monetary terms.
However, in March, April and May, there was an increase in exports of scrap metal: if about 8.28 thousand tons of scrap metal was exported in January and 16.5 thousand tons – in February, then in March – 15.45 thousand tons, April – about 16.19 thousand tons and May – 21.003 tons.
Exports of scrap metal in January-May 2023 was carried out in Poland (89.55%), Greece (7.51%) and the Netherlands (0.99%).
In the first two months of the year, the country did not import scrap metal, and in March-May imported 344 tons of scrap metal worth $138 thousand (41.30% from Slovakia, 18.12% from Poland and 13.77% from Estonia).
Earlier, the president of Ukrmetallurgprom Oleksandr Kalenkov wrote in his column on Interfax-Ukraine website that scrap metal is exported via the European Union, where a preferential export duty of EUR3 per ton operates, and from there the raw material is redirected to actual customers. To export scrap metal straight to customers would cost EUR 180 export duties and the Ukrainian budget has already lost 350 million hryvnias on it.
According to him, the State Bureau of Investigation has already taken interest in such export schemes.
The head of “Ukrmetallurgprom” urged to temporarily ban the export of scrap ferrous metals to provide the strategically important raw materials in the ongoing war.
“If scrap metal will remain in the country – more than 500 thousand people will have jobs, and the country will have millions of foreign exchange earnings from the export of steel. At the same time, the military also benefits, because metallurgists help the fighters a lot by buying equipment and cars for them, and even producing body armor. Nobody benefits from the export of scrap metal. That is why now the authorities should be proactive and temporarily ban the export until the situation stabilizes and stops threatening the national economic security,” says Kalenkov.
He noted that a ton of scrap metal, processed into steel, provides 10 times more to the budget than the export duty in the EU – about $300 per ton.
As reported, Ukraine in 2022, reduced exports of scrap ferrous metals in 11.5 times compared to the previous year – up to 53.557 tons, in monetary terms down to 12.4 times – to $ 19.271 million. At the same time last year, the country reduced the import of scrap metal in kind by 12.6 times – to 1.824 tons. Imports of scrap metal in 2022 was carried out mainly from Turkey (78.92% of supplies in monetary terms), Russia (13.25%) and Cyprus (5.08%), while exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).
Ukraine in January-May of this year increased the export of pig iron in physical terms by 23.8% compared to the same period last year – up to 630.349 thousand tons.
According to statistics released by the State Customs Service (SCS), exports of pig iron in monetary terms amounted to $243.888 million for the period.
At that, exports were carried out mainly to Poland (63.76% of deliveries in money terms), Spain (13.39%) and Czech Republic (10.3%).
During these five months, Ukraine imported 37 tons of cast iron worth $52 thousand from Germany (61.54%) and Brazil (38.46%).
As reported, Ukraine in 2022, Ukraine reduced the export of pig iron in volume terms by 59% compared to the previous year – to 1 million 325.275 thousand tons, in monetary terms by 61.1% – to $638.774 million.
In 2022, Ukraine imported 40 tons of cast iron worth $23 thousand, while in 2021 – 185 tons of cast iron worth $226 thousand.
Exports were mainly to the United States (38.47% of supplies in monetary terms), Poland (32.91%) and Turkey (8.12%), and imports were from Germany (100%).
The ban on the export of wheat, barley, rapeseed and sunflower seeds from Ukraine to Poland, Hungary, Slovakia, Romania and Bulgaria, imposed on May 2 for the period until June 5, will be extended until September 15, the Polish Minister of Agriculture and Rural Development Robert Telusz said.
“It (the relevant regulation) has not yet been approved or published, but we have information that the European Commission has extended the ban on imports of wheat, corn, rapeseed and sunflower from Ukraine until mid-September 2023,” the minister was quoted by the press service of the Polish agency on Monday evening.
According to Telusz, if the information about the ban on imports is confirmed, as of tomorrow, Poland will not be able to receive grain on contracts concluded before May 2, 2023.
Polish minister also said that negotiations with the so-called Eastern European border countries and the European Commission will continue. They will discuss the prospect of further extending the ban on the import of Ukrainian grain to these countries after September 15, 2023.
The Polish Agriculture Ministry said that the ban can be made more flexible taking into account the specifics of individual countries.
Speaking about grain exports, Telusz said 1.054 million tons of grain were exported from Poland in March, 1.152 million tons in April and the same amount was exported in May.
“That brings the total to more than 3 million tons of grains exported from Poland. At the same time, imports are falling. In February it was 270 thousand tons, in March 260 thousand tons, and in April only 49 thousand tons,” summarized the minister.
As reported, on Monday morning Telush reported receiving from the EU a new draft regulation to extend the ban on imports of four types of grains and oilseeds from Ukraine to five countries until September 15, 2023 and expressed hope that it will be introduced as early as June 6.
The European Commission’s speaker for agriculture and trade, Miriam Garcia Ferrer, clarified at a briefing at noon that no decision has been made at this stage, discussions are ongoing.
The EU ban on imports of wheat, corn, rapeseed and sunflower from Ukraine came into force on May 2 and replaced unilateral import bans imposed by countries bordering Ukraine, particularly Poland, Bulgaria, Hungary and Slovakia, in violation of the Association Agreement and EU internal regulations as of April 28.
As noted by the EU, Bulgaria, Hungary, Poland and Slovakia undertook to cancel unilateral measures on these and all other goods originating from Ukraine and to allow free transit.
The European Union has extended by another year the cancellation of import duties on Ukrainian exports. This decision will become effective from 6 June 2023 and will be effective until 5 June 2024, inclusive.
The regulation of the European Parliament and the European Council of May 31 on extending for another year the abolition of import duties on Ukrainian exports was published in the EU official Journal on Monday.
The moratorium on duties imposed in 2022 will expire on June 5, 2023.
In order to prevent fraud in the preferential mechanisms established by the regulation, Ukraine must comply with a number of rules, including refraining from introducing new duties or charges and new quantitative restrictions or measures with equivalent effect, from increasing existing duties and charges, and from imposing any other restrictions in trade with the EU, unless clearly justified, the document says.
According to the regulation, if Ukraine fails to comply with any of these conditions, the EU may suspend the preferential mechanisms.
Ukrainian exporters have already used almost 100% of the sugar export potential that was built into the forecast balance for the 2022/2023 marketing year, so to avoid a shortage of this product in the summer and autumn period, the government has limited its exports for the period from June 5 to September 15, the press service of the Economy Ministry said.
“Consumption of sugar grows in Ukraine in summer, so to avoid a shortage and price rises on the domestic market during this period, the government temporarily stops export quotas for this product,” the ministry said on its website on Thursday.
According to the State Customs Service, at the end of last week Ukraine exported more than 350 thousand tons of sugar and sugar products, which amounts to 95% of the forecast exports for 2022/2023 marketing year (MY).
As noted in the Ministry of Economy, the supply of the domestic market in 2022/2023 MY, taking into account the production of 1285 thousand tons of sugar and transitional residues, according to expert estimates, is 1776 thousand tons. To meet the needs of the domestic market in 2022/2023 yr Ukraine needs 1010 thousand tons. Export of sugar during the same period is expected at the level of 370 thousand tons.
As reported, the Cabinet of Ministers at its meeting on May 30 adopted a decree banning the export of sugar for the period from June 5 to September 15 this year.
