Business news from Ukraine

19% of all food in world is wasted – UN

Approximately 1.05 billion tons, or 19% of all food produced in the world, was wasted in 2022, while more than 780 million people continued to struggle with hunger, the UN says.

“In 2022, households on all continents wasted more than 1 billion meals a day, while 783 million people suffered from hunger and a third of the world’s population faced food insecurity,” the report, published on the website of the United Nations Environment Programme (UNEP), says.

According to the report, in 2022, the world produced 1.05 billion tons of food waste, which is 132 kg per capita or almost a fifth of all food available to consumers. Households accounted for 60% of food waste, catering companies for 28%, and retailers for another 12%.

“Food waste is a global tragedy. Today, millions of people are starving while food is simply thrown away,” said UNEP Executive Director Inger Andersen.

“Such waste causes significant damage to the climate and nature,” she added.

According to the UNEP, food waste is responsible for 8-10% of annual global greenhouse gas emissions and significant biodiversity losses.

“The damage to the global economy from food losses and food waste is estimated at about $1 trillion,” UNEP said.

The report emphasizes that as of 2022, only 21 countries have included reducing food loss and food waste in their national climate agenda.


Ukraine has increased supplies of food and agricultural products to Norway by 31%

Trade statistics in the first half of 2023 compared to the same period last year showed an increase in trade in goods between Norway and Ukraine by 26%, the Norwegian-Ukrainian Chamber of Commerce (NUCC) reported.

“An important and notable trend is the significant 31% increase in Norwegian imports from Ukraine. This increase was primarily driven by growing demand for food and agricultural products used in feed production,” the NUTP said.

According to the report, in other sectors such as manufacturing, engineering, furniture and clothing, the level of trade remained stable.

A similar revival in Norwegian-Ukrainian trade relations was seen in the supply of goods from Norway to Ukraine, which grew by 25% in the first half of the year compared to last year’s figures.

Growth in seafood trade, according to the NUTP, was “particularly impressive” – up 18% compared to previous years of cooperation. Export revenue for this product category rose by 25% in monetary terms, driven by higher prices.

In addition, Norway increased its exports of electric cars in the reporting period – more than 800 units were delivered to Ukraine in June alone. “These exports account for about one-third of all imports of electric cars to Ukraine, which made Ukraine the most important export market for used Norwegian electric cars,” NUTP summarized.

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World food prices continued to decline – FAO

Global food prices in June continued to decline, according to the latest review of the FAO (Food and Agriculture Organization of the United Nations).

The food price index averaged 122.3 points last month, down 1.4 percent from May and 23.4 percent from its peak in March 2022.

The Cereal Price Index was down 2.1 percent in June compared with May and 23.9 percent year-over-year. The decrease was due to a drop in world prices for all major grains. Feed grain fell in price most of all – by 3.4%.

The vegetable oil price index fell 2.4% from May to its lowest level since November 2020. “The continuing decline in the value of this index is due to a drop in world prices for palm and sunflower oils amid a slight increase in soybean and rapeseed oil prices,” the survey explains.

The index of prices for dairy products for the month decreased by 0.8%, in annual terms – by 22.2%. “The decrease registered in June is connected with decrease of the international prices for cheese, conditioned by availability of considerable export supply, first of all, in Western Europe against the background of seasonal increase of milk production and some reduction of retail sales,” is said in the review.

The meat price index remained virtually unchanged in June, while in annual terms it decreased by 6.4%. “The growth of international quotations for poultry and pork in June was almost completely leveled out by a decrease in quotations for beef and mutton, – explained the experts. – International prices for poultry continued to rise, which is explained by high import demand from East Asia. In turn, growth of pork prices is connected with remaining limited supply in leading producing regions, primarily in the European Union.

The June sugar price index was 3.2% lower than in May and was its first decline since an uninterrupted four-month rise. On an annualized basis, international quotations are still 29.7% higher. “The decline in international sugar prices recorded in June is mainly due to a good sugarcane crop in Brazil and reduced import demand globally, especially from China, the world’s second largest sugar importer,” the survey said.

The FAO Food Price Index is a weighted average of international prices of five major food commodity groups.

Ukrainian company Kormotech invests EUR14 mln to expand production of cat and dog food

Ukrainian cat and dog food manufacturer Kormotech is investing EUR14 million to expand its production in Ukraine and Lithuania during 2022-2023, the company’s press service told Interfax-Ukraine.
Reportedly, some of the projects are already being implemented and some are planned to be implemented by the end of 2023. Investments in the Lithuanian plant in 2022-2023 will total EUR 5.4 million, and in Ukrainian plants for wet and dry feed by the end of this year will be about EUR 8.5 million.
The wet fodder production capacity at the Kedainiai Kormotech plant in Lithuania is expected to increase by 25%, and at the Ukrainian plant by 65%. At the Lithuanian plant, the company has integrated new technology for the production of wet feed in the premium and super-premium segments.
In Ukraine, the company is expanding the capacity of its wet feed factory, modernizing 50% of its existing equipment and automating manual processes, the company said. In addition, it plans to modernize its dry feed plant in 2023.
According to the press release, Kormotech continues to improve the efficiency of existing production and business processes.
According to the press release, last year it began working on a “zero losses” program to reduce all irreversible losses at the plant to zero or to recycle them. A complete energy audit of the production in the areas of heat recovery, thermal insulation and the system of monitoring of energy consumers in the processes was carried out. Kormotech began implementing the SAP ERP system in the cloud, which will help focus on innovation, reduce operating costs and improve process efficiency.
Kormotech’s 2022 results show a 12 percent increase in turnover to $124 million from $110 million in 2021. The goal in 2023 is to reach a turnover figure of $150 million and increase the export/Ukraine ratio to 30%/70% from 24%/76% previously through synchronous growth of markets, the report said.
LLC “Kormotech” is the leading Ukrainian manufacturer of food for cats and dogs, occupies the 51st position in the world ranking of petfood producers and the seventh in the ranking of the most dynamic petfood brands. Kormotech sells its own brands and partner brands in 40 countries.
The company has two dry and wet food plants in the Lviv region and a plant in Lithuania. The company produces products for cats and dogs under its own brands Optimeal, CLUB 4 PAWS (TM “Meow!” and “Woof!”) and in private label direction. The assortment has more than 650 items.
The ultimate beneficiaries of Kormotech are Elena and Rostislav Vovk.

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Romania to Limit Payments for Housing and Food for Ukrainian Refugees

Romanian authorities are introducing new rules for housing and food subsidies for Ukrainian refugees starting from May: now the money will be received only by those who have found a job, the EFE news agency reported.
In addition, those citizens of Ukraine whose children go to school in Romania will be able to count on the subsidies.
Under the new rules, the state will no longer pay housing costs to landlords who house refugees, and tenants will receive subsidies directly. Refugee camps will receive subsidies from the state as before. Details of these rules will be made public at a later date, the agency notes.
EFE explains that Bucharest has taken such measures against the background of a significant labor shortage in Romania. More than 3.8 million Ukrainians arrived in the country since February 2022, but the vast majority went to other European countries. According to Romanian authorities, about 110,000 Ukrainian refugees currently remain in the country, but less than 10 percent of them have a work contract.

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Four dry cargo ships will deliver Ukrainian food to China, Turkey, Spain and Belgium

Four dry-cargo ships with more than 250,000 tons of food left Ukrainian ports on Wednesday, the Joint Coordination Center (JCC) reports.
According to JCC the Laskaro S vessel will deliver 62 088 tons of corn to Belgium, the Astra Perseus dry-cargo carrier will carry 55 thousand tons of corn to Spain. Vessel Geneve is going to Turkey with 32 thousand tons of wheat and 33 thousand tons of barley. Andonis dry-cargo carrier set a course for China, carrying 48 502 tons of corn and 18.7 thousand tons of sunflower meal.
It is noted that four more dry-cargo ships are heading for the ports of Ukraine.
“The total tonnage of grain and other agricultural products exported from the three Ukrainian ports is 22,747,287 tons. The total number of agreed ship movements is 1,543,” the report said.
SKC reported that “100 applications for participation in the initiative have been submitted.”

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