Business news from Ukraine

UKRAINIAN MANUFACTURER STARTS PET FEED EXPORTS TO NORWAY

Kormotech LLC (Lviv region), a large Ukrainian manufacturer of cat and dog feed, has signed a three-year contract with the Norwegian online store Dyrekassen on the supply of a pet ration. According to a press release of Kormotech, through the Dyrekassen online store, an exclusive distributor, the company plans to sell 18 tonnes of feed by the end of 2020. It is planned to sell another 100 tonnes of products over the next two years.
Together with a new partner, Kormotech is also working to ensure that after lockdown Optimeal rations are sold in garden centers in Norway and Sweden. This is about 220 stores.
The company said that these are dry and wet rations for cats and dogs under the Optimeal brand in the super premium segment. They are made according to the Swiss fresh meat technology.
Kormotech said that Norway has become the 29th pet export country.
“We are actively working to enter export markets throughout Scandinavia. These are countries with very high quality requirements for products. We have overcome similar complexity procedures to enter the U.S. and UK markets. Kormotech is on the way to getting into the top five world manufacturers of pet feed,” the company said, citing CEO of Kormotech Rostyslav Vovk.
Kormotech LLC is the leading Ukrainian producer of feed for cats and dogs. The company exports products to 29 countries, including the United States, Great Britain, Germany, France, Finland, Sweden, the Netherlands, Spain, Italy, Poland, Turkey, Iran and Chile.
The ultimate beneficiaries of Kormotech are Olena and Rostyslav Vovk.

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UKRAINE INCREASES POWER EXPORTS BY 33% IN Q1

Ukraine in January-March 2020 increased its electricity exports by 33% or 548.9 million kWh year-over-year, to 2.211 billion kWh, the Energy and Environmental Protection Ministry of Ukraine has told Interfax-Ukraine.
Electricity supplies from the Burshtyn TPP energy island to Hungary, Slovakia, and Romania rose by 57.9%, to 1.622 billion kWh.
Exports to Poland grew by 11.9%, to 459.2 million kWh.
Exports to Moldova fell by 42.1%, to 130.3 million kWh.
Ukrainian electricity was not exported to Belarus or Russia in 2018 or 2019.
Ukraine imported 1.554 billion kWh of electricity in January-March 2020, including 909 million kWh from Slovakia, 371.8 million kWh from Hungary, 149.6 million kWh from Belarus, 70.2 million kWh from Romania, and 53.4 million kWh from the Russian Federation.
Due to crossflows related to the parallel work of the Integrated Power System (IPS) in Ukraine and systems in bordering countries (accounted for under contracts signed by Energomarket), Ukraine imported 14.5 million kWh of energy from Russia and 200,000 kWh from Belarus.

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UKRAINE EXPORTS 17.9 MLN TONNES OF WHEAT WITHIN MEMO SINCE START OF MY

The dynamics of wheat exports is within the “safe” corridor agreed in the memorandum, in particular, as of April 6 wheat exports amounted to 17.9 million tonnes, the Ministry of Economic Development, Trade and Agriculture of Ukraine has reported.
According to the annex to the memorandum between the Economy Ministry and the market participants signed on March 30, the maximum volume of wheat exports in the current marketing season (MY, July-June) was set at 20.2 million tonnes.
“Thus, during April-June 2020 some 2.3 million tonnes remain available for export,” the ministry said on its website.
The ministry noted that the pace of wheat supplies in April slowed down. The average daily shipment of wheat supplies in April was 14,000 tonnes, while in March it was 44,000 tonnes.
According to the ministry, in the 2018/2019 MY some 28.3 million tonnes were produced, domestic consumption was 8.2 million tonnes, ending stock stood at 1.7 million tonnes.

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UKRAINE’S GRAIN HARVEST FORECAST INCREASES TO 94 MLN TONNES, EXPORTS TO 57.2 MLN TONNES

The Ukrainian Grain Association (UGA) in the April report updated its forecast for the harvest of grain and oilseeds in the 2020/2021 marketing year (MY) compared to March, to 94 million tonnes from 92.6 million tonnes.
According to the association’s Thursday press release, the forecast for grain and oilseeds exports for next season is also increased from 55.6 million tonnes to 57.2 million tonnes.
According to the association, in the current marketing year, Ukraine produced 98 million tonnes of grain and oilseeds, exports can reach 60 million tonnes.
The association said that a slightly decrease in the forecast for the harvest of grain and oilseeds in 2020 does not change the upward trend of the last three years, when Ukraine harvested more than 90 million tonnes. In the medium term, gross harvest in the country will approach 100 million tonnes and will continue growing.
The forecast for the harvest and export of wheat in the next marketing year has not changed compared to the March report and will reach 25.8 million tonnes and 18 million tonnes, respectively.
The association said that in 2019, Ukraine had a record-hitting wheat harvest of 28.2 million tonnes, and exports, according to its estimates, will reach 20.2 million tonnes in the 2019/2020 marketing year.
The forecast for corn harvest in the April report of the association increased from 34.3 million tonnes to 36.8 million tonnes, and export for the next season from 27.5 million tonnes to 30 million tonnes. Thus, Ukraine in the 2020/2021 marketing year may break its own record for the current marketing year, when 35.2 million tonnes were harvested with an expected export of about 28.5 million tonnes, the association said.
At the same time, the association decreased the forecast for barley harvest compared to the previous month forecast from 7.96 million tonnes to 6.8 million tonnes, and export for the next season from 4.5 million tonnes to 3.5 million tonnes.
According to its estimates, in the current marketing year in Ukraine, some 9 million tonnes of barley were grown with the planned export of about 4.6 million tonnes.
The Ukrainian Grain Association is an association of producers, processors and large exporters of grain, which annually export about 90% of Ukrainian grain products.

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UKRAINE EXPORTS 44.2 MLN TONNES OF GRAIN SINCE START OF MARKETING YEAR

Ukraine since the beginning of the marketing year 2019/2020 (MY, July-June) and as of March 23, 2020 had exported 44.19 million tonnes of grain and legumes, which is 7.92 million tonnes more than on the same date of the last MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, the country has exported 17.42 million tonnes of wheat, 22.03 million tonnes of corn, and 4.22 million tonnes of barley.
As of March 23 this year, some 267,800 tonnes of flour had been also exported.
As reported, Ukraine in the 2018/2019 MY exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY.
The U.S. Department of Agriculture (USDA) in March raised its forecast for grain exports in Ukraine for the 2019/2020 MY by 680,000 tonnes compared with the February forecast, to 57.34 million tonnes due to indicators for corn.

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UKRAINE EXPORTS 43 MLN TONNES OF GRAIN SINCE START OF AGRI-YEAR

Ukraine since the beginning of the agricultural year 2019/2020 (July-June) and as of March 13, 2020 had exported 42.94 million tonnes of grain and legumes, which is 8.66 million tonnes more than on the same date of the previous agri-year.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, the country has exported 16.99 million tonnes of wheat, 21.38 million tonnes of corn, and 4.07 million tonnes of barley.
As of March 13 of this year, 263,700 tonnes of flour had been also exported.
As reported, Ukraine in the 2018/2019 agri-year exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous agri-year.
The U.S. Department of Agriculture (USDA) in March raised its forecast for grain exports in Ukraine for the 2019/2020 agri-year by 680,000 tonnes compared with the February forecast, to 57.34 million tonnes due to corn.

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