Ukraine’s Agricultural Policy and Food Ministry has revised upwards its forecast for exports of grain from Ukraine for 2018/19 agricultural year (July-June) from 47.2 million tonnes to 49 million tonnes, the press service of the ministry has reported. “This agricultural year we expect that grain exports from Ukraine would reach 49 million tonnes,” Deputy Minister Olha Kovaleva said.
As reported, Ukraine since the beginning of the 2018/2019 agri-year as of February 20, 2019 had exported 31.31 million tonnes of grain and leguminous plants, which is 21.5% more than on the same date of the previous agri-year. On the specified date, 164,000 tonnes of flour had been also exported.
The gross grain harvest in Ukraine in 2018 amounted to about 70.1 million tonnes compared to 62 million tonnes in 2017.
The National Bank of Ukraine (NBU) has stated the requirement for the mandatory sale of export earnings could be cancelled, governor of the central bank Yakiv Smolii has said.
“As market conditions develop, we think we’ll cancel this rule,” he said at a conference of the American Chamber of Commerce in Kyiv.
As reported, the National Bank of Ukraine in early February 2019 announced the decision to reduce the norm for the mandatory sale of export earnings from 50% to 30% from March 1.
Ukraine in 2018 exported grain for $7.2 billion, hitting the record, the press service of the Institute of Agrarian Economics national research center has reported.
According to the Institute of Agrarian Economics, grain exports in kind fell by 0.4% in 2018 compared with 2018, to 41.7 million tonnes, and the record revenue is linked to growth of grain prices.
The volume of wheat and barley exports in 2018 fell compared with 2017 to 16.4 million tonnes and 3.6 million tonnes respectively.
At the same time, according to the institute, in 2018, corn exports exceeded the figure for 2017 by 10%, amounting to 21.4 million tonnes. Export of rye also increased fourfold, but its volumes still remain insignificant – about 100,000 tonnes.
According to the Institute of Agrarian Economics, the countries of Asia, Europe and Africa remain the largest buyers of Ukrainian grain. Egypt is the leader with a share of 9.2%, but in 2018 it reduced purchases of Ukrainian grain to $666 million (a fall of 20%).
Spain ranked second for the second year in a row (8.9%), which in 2018 increased the volume of grain purchases to $643 million (a rise of 35%). The top buyers of Ukrainian grain are the following: the Netherlands ($556 million), China ($552 million), Indonesia ($487 million), Saudi Arabia ($449 million), Italy ($336 million), Philippines ($316 million), Tunisia ($290 million), Morocco ($263 million), and Libya ($248 million). In total, these 11 countries formed two thirds of the value of all purchases of grain products, the Institute of Agrarian Economics reported.
Ferrexpo Plc (the U.K.), which in Ukraine controls Poltava and Yeristovo mining enterprises, in 2018 exported 10.287 million tonnes of pellets to European countries, as well as to Japan, Taiwan, South Korea and China, remaining the leader in exports of pellets among similar companies from the CIS. The company said in a press release on Wednesday that the information was published by state-owned enterprise Ukrainian Industry Expertise.
Poltava Mining exported 7.61 million tonnes of iron ore pellets and Yeristovo Mining – 2.677 million tonnes.
According to the document, the Metinvest group exported 5.374 million tonnes of pellets (including Pivnichny Mining – 3.136 million tonnes, Central Mining – 2.239 million tonnes).
The Severstal Group, in particular, the Karelsky Okatysh (Russia) exported 5.293 million tonnes of iron ore pellets for the reporting period. The Metalloinvest group exported 4.205 million tonnes of pellets (including Mikhailovsky GOK – 2.817 million tonnes, Lebedinsky GOK – 1.389 million tonnes, all of them based in Russia). The Evraz group, in particular EVRAZ KGOK, exported 558,900 tonnes of pellets.
“Ferrexpo has traditionally become the leader in the export of iron ore pellets among the enterprises of the former USSR countries, according to the results of 12 months of 2018,” the company said in the press release referring to the data of Ukrainian Industry Expertise.
In addition, it is reported that during this period, Poltava Mining produced 10.607 million tonnes of iron ore pellets. The production of Mikhailovsky GOK totaled 14.887 million tonnes of iron ore pellets, Karelsky Okatysh – 11.225 million tonnes, and Pivnichny Mining – 8.45 million tonnes.
Ukraine in the 2018 calendar year exported 586,500 tonnes of sugar (2% less from 2017) for $217.09 million, the Ukrtsukor National Association of Sugar Producers has reported. “If to compare with the previous year, the export volume has not changed much, but its geography has changed. If last year the largest buyer of Ukrainian sugar was Sri Lanka (69,030 tonnes), then in 2018 it was Uzbekistan (285,300 tonnes.) They are followed by Azerbaijan and Libya with 44,700 tonnes and 43,800 tonnes respectively,” Ruslana Butylo, the deputy chairperson of the board of Ukrtsukor, said.
At the same time, according to the association, sugar exports for the four months of the current marketing year (September 2018 – August 2019) grew by 14.3%, to 198,900 tonnes. “Taking into account the market situation and still a surplus year, even despite the decrease in forecasts for sugar production in India, Ukrainian producers will have to work to improve product quality and establish long-term contracts,” she said.
In the 2017 calendar year, Ukraine exported 598,700 tonnes of sugar for $279.9 million.
Foreign trade flow of agricultural products and food in 2018 totaled $24.3 billion, including over $18.84 billion of exported goods, and it grew by 5% compared with 2017, Ukraine’s Agricultural Policy and Food Ministry has reported.
“According to the results of 2018, Ukrainian agricultural exports grew by more than $880 million compared to 2017 and hit a new record of $18.8 billion. During this period, exports of agricultural products to the markets of Asia and the European Union increased significantly. Ukrainian agricultural exports to Asia exceeded $8 billion, and in 2018 we exported more than $6.3 billion worth of agricultural and food products to the EU countries,” Deputy Minister of Agrarian Policy for European Integration Olha Trofimtseva said.
According to her, last year, the lion’s share of Ukrainian agricultural exports was traditionally formed by grain crops, with a share of 38.4%, vegetable oils – 23.3% and oilseeds – 10.2%.
“I also want to point out the goods, thanks to which there was an increase in exports. This is corn, wheat, rapeseed, cake, meat and poultry by-products, various oils, tobacco and products from it, eggs, confectionery, and other food,” Trofimtseva said.
The deputy minister said that exports of crop products increased by $762.3 million compared to 2017 and amounted to $17.4 billion. The value of exports of livestock products also increased by $118.1 million and reached $1.4 billion.
Trofimtseva said that the largest buyers of Ukrainian agricultural and food products in 2018 were: India, where agricultural products were exported for more than $1.8 billion, China – $1.2 billion, the Netherlands – $1.2 billion, Spain – $1.04 billion and Egypt – $888.7 million
“During this period, imports of agricultural and food products also increased noticeably and amounted to almost $5.5 billion. Ukraine most actively bought the following food products: fish, crustaceans and mollusks, fruits, nuts, tobacco and products from it, cocoa beans, chocolate, butter , tea, coffee and other food,” the deputy minister said.
