Business news from Ukraine

Business news from Ukraine

Bulgaria and Romania demand to impose taxes on honey imports from Ukraine

Bulgaria’s Minister of Agriculture and Food Georgi Takhov asked the European Commission to take safeguard measures against honey imports from Ukraine at a meeting of the EU Agriculture and Fisheries Council, and his request was supported by a representative of Romania, the Bulgarian Ministry of Agriculture reported.
According to Takhov, imports of Ukrainian honey make it difficult to sell local products. The fact is that significant volumes of Ukrainian honey entering the European market at very low prices put a lot of pressure on Bulgarian honey prices.
“In addition to the many challenges facing the industry, over the past three years it has also faced competition from imports from Ukraine. The volume of honey imported from Ukraine to our country from January to October 2024 increased by more than 30% compared to the same period last year,” Takhov emphasized and added that the high level of imports from Ukraine puts Bulgarian producers in a difficult situation.
At a press conference following the meeting of EU agriculture ministers, Hungarian Agriculture Minister Istvan Nagy explained that Bulgaria and Romania demanded safeguard measures for imports of honey from Ukraine to the European Union, as the duty-free quota set in the autonomous trade liberalization has been exhausted, and “the duty creates problems in domestic markets burdened by imports.”
“The measure – the so-called ATM regulation – has been exhausted, but the amount of honey coming from Ukraine is still subject to duty, which also creates problems in domestic markets that are burdened by imports,” the Hungarian Ministry of Agriculture quoted him as saying.
Nagy emphasized that effective measures should be taken to prevent counterfeit honey from entering the EU market, for example, by labeling and separating natural and non-natural honey. He also believes that it is necessary to compensate for the “emerging competitive disadvantages” and to further support the beekeeping sector.
As reported, on August 20, the European Commission imposed tariff quotas on Ukrainian honey due to the excess of quota-free volumes of its supplies to the European market. Imports of honey from Ukraine from the beginning of 2024 to August exceeded the quota of 44.418 thousand tons. Additional imports are subject to most favored nation (MFN) duties. In particular, a new tariff quota will be introduced from January 1, 2025, until June 5, 2025, which corresponds to 5/12 of the threshold set for the emergency braking. For honey, the new quota will amount to 18,507 tons.
From June 2, 2024 to June 5, 2025, the European Commission introduced quotas for the supply of eggs and sugar to the European Union. For eggs, the new quota is set at 9,662 thousand tons, and for sugar – at 109,44 thousand tons.
On May 13, 2024, the Council of the European Union approved the extension of temporary trade liberalization measures for Ukraine for another year, until June 5, 2025. At the same time, it was envisaged to apply an emergency braking mechanism for particularly sensitive agricultural products, including sugar, eggs, poultry, oats, corn, honey, and cereals, in case imports of these products in 2024 exceed the average volumes recorded in the second half of 2021 and during 2022 and 2023. Similar emergency braking measures may be applied in 2025 if, in the period from January 1 to June 5, 2025, the volume of Ukrainian exports exceeds 5/12 of the quota set for 2024.
According to Art. 4(7) of the Regulation on autonomous trade measures applicable to Ukrainian products, Ukraine will be able to supply to the EU from June 6, 2024 to June 5, 2025 without paying any duty 57,101 thousand tons of poultry meat, 9,662 thousand tons of eggs, 109,439 thousand tons of sugar, 18,507 thousand tons of honey, 4.648 million tons of corn, 1,017 thousand tons of oats, 8,603 thousand tons of cereals.

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Exports of honey from Ukraine to EU amounted to 45.8 thousand tons in 2023

In 2023, Ukraine exported 45.8 thousand tons of honey to the European Union, with 28% of imports of this product from Ukraine, said Olena Dadus, Deputy Director of the Agrarian Development Department of the Ministry of Agrarian Policy and Food.
“The markets of the European Union are key for honey exports, as Ukraine is the second largest exporter of honey to the EU, accounting for 28% of all imports of this product by the bloc. According to the Register of Export Capacities, about 72 Ukrainian enterprises are engaged in the supply of honey abroad,” the press service of the Ministry of Agrarian Policy and Food quoted her as saying at the Honey Forum ”European Integration of the Ukrainian Honey Industry: Challenges and Opportunities.”
According to the State Customs Service and the State Statistics Committee, honey exports in 2023 amounted to 55.4 thousand tons worth $121.4 million, including 45.8 thousand tons (93.6% of total exports) worth $94.9 million. At the same time, in the first half of 2024, honey exports to the EU amounted to 40.6 thousand tons worth $70.7 million.
The Ministry of Agrarian Policy recalled that the main countries of honey export in 2023 were the European Union (Germany, Poland, Spain, France, Belgium, Romania, Italy, Hungary, Greece) and the United States.
As reported, as part of Ukraine’s association with the European Union, Ukrainian companies were entitled to supply 18.507 thousand tons of honey to the EU market free of duty starting June 5, 2024. After this volume was exhausted, the EU resumed quotas on August 21. From January 1, 2025, and until June 5, 2025, a new tariff quota will be introduced, which corresponds to 5/12 of the threshold set for the emergency braking.

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Germany became largest importer of Ukrainian honey in 2024

In January-September 2024, Ukraine exported 64.913 thousand tons of honey for $124.817 million, which is 1.7 times and 44.3% more than in the same period of 2023, respectively.
According to statistics released by the State Customs Service (SCS), Germany became the largest buyer of Ukrainian honey, purchasing 22.13% of total exports worth $27.627 million in January-September 2024.
The United States and France accounted for 16.1% and 11.7% of supplies, for which these countries paid $20.139 million and $14.63 million, respectively.
A year earlier, the top three buyers of Ukrainian honey were Germany with a share of 24.9%, Poland and France with 16.0% and 7.32%, respectively. Ukraine earned $21.5 million, $13.88 million, and $6.332 million from the sale of honey to them, respectively.
In January-September 2024, Ukraine increased honey imports by 36.1% to 200 tons, for which it paid $105 thousand. Its suppliers were Poland and Bosnia and Herzegovina, which supplied 75 tons (37.5%) each, as well as Romania, which accounted for 22% of supplies with 44 tons.
A year earlier, Ukraine imported 122 tons of honey exclusively from Poland.
As reported, Ukraine has been among the world’s top five honey exporters for several years. In 2023, Ukraine ranked fourth among the traditional world leaders in honey exports with 55.4 thousand tons. In this ranking, it is ahead of China with 152.6 thousand tons, India with 98.7 thousand tons, Argentina with 68.9 thousand tons, and Brazil with 28.5 thousand tons of honey.

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EU re-imposes quotas on Ukrainian honey

The European Commission on Tuesday re-introduced tariff quotas on Ukrainian honey due to the excess of quota-free volumes of its supplies to the European market, according to a press release from the EC.

“From August 21 to June 5, 2025, imports of Ukrainian honey to the EU will be carried out under the tariff quota of the Deep and Comprehensive Free Trade Area (DCFTA), which has been in force since 2016 between the two parties. The automatic re-introduction of this tariff quota is the result of the revised Autonomous Trade Measures (ATM), which are effective from June 6, 2024,” the statement said.

The EC recalled that the revision of these ATMs includes an emergency brake for seven agricultural products, which will be automatically triggered if imports reach the average annual imports recorded between July 1, 2021 and December 31, 2023. For honey, this average is 44.418 thousand tons.

The European Commission pointed out that, according to Article 4 of Regulation 2024/1392, after reaching these volumes, the EC has 14 days to reintroduce the relevant tariff quota from the DCFTA between the EU and Ukraine. Since the imports of honey from Ukraine have already exceeded the volumes established by this quota since the beginning of 2024, additional imports will be subject to most-favored-nation (MFN) duties. In particular, a new tariff quota will be introduced from January 1, 2025, until June 5, 2025, which will correspond to 5/12 of the threshold set for the emergency braking. For honey, the new quota will amount to 18,507 tons.

At the same time, the European Commission notes that imports of Ukrainian honey to the EU have been fairly stable over the past five years, averaging about 49 thousand tons per year.

As reported, the European Commission introduced quotas for the supply of eggs and sugar to the European Union from June 2, 2024 to June 5, 2025. For eggs, the new quota is set at 9,662 thousand tons, and for sugar – at 109,44 thousand tons.

According to Article 4(7) of the Regulation on autonomous trade measures applicable to Ukrainian products, Ukraine will be able to supply to the EU from June 6, 2024 to June 5, 2025 without paying any duty 57,101 thousand tons of poultry meat, 9,662 thousand tons of eggs, 109,439 thousand tons of sugar, 18,507 thousand tons of honey, 4.648 million tons of corn, 1,017 thousand tons of oats, and 8,603 thousand tons of cereals.

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Ukraine, along with China, India, Argentina, Brazil entered the top 5 world exporters of honey

Ukrainian honey producers have strengthened their positions in the global honey market over the past 10 years and increased export volumes in the period from 2012 to 2023 by more than five times, the press service of the Ukrainian Club of Agrarian Business (UCAB) said.

“In 2024, Ukrainian honey, despite the difficulties of a full-scale war, continues to demonstrate a steady positive dynamics in the world market. For the first three months of this year, honey exports amounted to more than 23 thousand tons, which in money equivalent is $44 million. The greatest demand is constantly observed in the countries of the European Union, in particular in Germany, Poland and France, which account for almost half of foreign currency earnings,” – said analysts.

According to their information, Ukraine has been in the top 5 world exporters of honey for several years. Thus, according to the results of 2023 Ukraine in honey exports takes the fourth place among the traditional world leaders with 55.4 thousand tons. In this rating it is ahead of China with 152.6 thousand tons, India – 98.7 thousand tons, Argentina – 68.9 thousand tons, and on the fifth position is Brazil with 28.5 thousand tons of honey.

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Ukraine exhausts quotas for honey, corn and chicken supplies to EU

Ukraine is exhausting its tariff-free quotas for honey, corn and chicken supplies to the European Union, European Commissioner for Agriculture Janusz Wojciechowski said at a conference after the Council of Agricultural Ministers meeting in Brussels on Monday.
“I am pleased that today, during the discussion on Ukraine, member states generally expressed positive views on the new autonomous trade measures and on the safeguard measures introduced. It was the initiative of the European Commissioner for Agriculture to introduce these import limits, and they are working. They were activated for three products – sugar, eggs and oats. We are observing the situation with other sensitive products. Honey, whose exports have already reached 89% of the limits, corn – 67%, and chicken – 59%,” he said.
Wojciechowski emphasized that European politicians’ accusations against the EU’s Common Agricultural Policy that it is aimed at reducing domestic production and further increasing dependence on imported products are unfounded. The EU has been and will remain the largest exporter of agricultural products in the world, he assured.
According to the European Commissioner, the EU’s agricultural trade surplus in 2023 reached a record EUR 70 billion. This year, this record may be broken, as in the first quarter alone, the EU’s trade surplus with third countries already amounted to EUR 18 billion.

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