Business news from Ukraine

Ukrainian cheese producers losing import market – opinion

Sales of Ukrainian cheese have stopped growing in Ukraine amid rising imports, and the prospects for domestic cheese sales in foreign markets are not good, according to Infagro, an industry analytical agency.

“In the short term, cheeses will not become cheaper, but promotions with big discounts will become widespread. And even price discounts will not save all producers, as cheese imports have increased significantly,” the analysts said.

According to their information, European cheese is very cheap and it is becoming increasingly difficult for domestic producers to compete with it in the Ukrainian domestic market. In the first quarter, imports of hard, semi-hard and white cheese increased by 12%. This included a significant amount of hard/semi-hard cheeses, which are the most competitive for domestic cheese producers. Imports of processed cheese increased by a quarter.

At the same time, there is no certainty that imports will increase significantly in the future. The devaluation of the hryvnia scares importers away a bit, experts suggest.

They pointed out that due to the worsening problems with sales in the domestic market, Ukrainian cheese producers are trying to increase exports, but they do not always succeed.

“Export sales of semi-hard cheeses fell by 11% in the first quarter compared to the same period last year. The dynamics of exports of semi-hard cheese products looks even worse. Their sales in the first quarter fell by almost a quarter. In the future, exports of this product will fall even more significantly,” Infagro predicts.

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Poland bans import of large batch of Ukrainian ice cream

The Polish Agricultural and Food Products Quality Inspectorate (IJHARS) in Poznan has issued a decision to ban the circulation of a batch of ice cream in cones weighing 7.13 tons imported from Ukraine.

The decision was made due to incorrect labeling, the inspectorate reported on social media platform X on Monday.

The decision was immediately enforced.

As reported, on April 12, the IJHARS banned access to the Polish market for two batches of sponge cakes weighing 10.55 thousand tons imported from Ukraine, and on April 9, three batches of Ukrainian bagels weighing 5.34 tons. Earlier, three batches of Ukrainian ice cream weighing 8.48 tons were seized in Lublin because it was defrosted.

In early April, the Polish Trade Inspectorate announced the largest fine in its history of 1.5 million zlotys (about $380 thousand) imposed on an importing company for importing 11.5 thousand tons of technical rapeseed and feed wheat from Ukraine as counterfeit goods for further use as food. In addition, a decision was made to ban the import of 57.66 tons of tomato paste from Ukraine due to the presence of mold.

In March, IJHARS Chief Inspector Przemysław Rzodkiewicz said that over the past year, 1.4% of the batches of products from Ukraine inspected by the commission at the border were rejected.

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Ukraine increased copper imports by 47%, reduced exports by 17%

In January-March this year, Ukrainian companies increased imports of copper and copper products by 47.4% in value terms compared to the same period last year, to $42.018 million.
According to customs statistics released by the State Customs Service of Ukraine, exports of copper and copper products decreased by 16.9% to $18.138 million over the period.
In March, the country imported copper worth $12.893 million and exported it worth $7.242 million.
In addition, in January-March 2024, Ukraine increased imports of nickel and nickel products by 2.4 times compared to the same period in 2023, to $7.697 million (in March – $2.267 million), aluminum and aluminum products by 20%, to $98.535 million (in March – $38.102 million). At the same time, the country increased imports of lead and lead products by 30.1% to $281 thousand (in March – $140 thousand), imports of tin and tin products decreased by 4.3% to $620 thousand (in March – $113 thousand), and increased imports of zinc and zinc products by 55.6% to $11,860 (in March – $5,454 million).
Exports of aluminum and aluminum products in the first three months of 2024 increased by 1.2% compared to the same period a year earlier to $23.387 million (in March – $7.769 million), lead and lead products decreased by 36.1% to $2.834 million (in March – $1.076 million), nickel and nickel products amounted to $94 thousand (in March – $45 thousand), while in January-March 2023 it was $92 thousand.
Zinc exports for the first three months of this year amounted to $44 thousand (in March – $24 thousand), while in January-March 2023 it amounted to $46 thousand. Exports of tin and products amounted to $81 thousand (in March – $47 thousand) against $48 thousand in the same period a year earlier.
As reported, in 2023, Ukraine increased imports of copper and copper products by 2.2 times compared to 2022 – up to $140.795 million, while exports decreased by 20.1% to $72.078 million.
In addition, in 2023, Ukraine reduced imports of nickel and products by 74.2% compared to 2022, to $15.391 million, and increased imports of aluminum and aluminum products by 7.7%, to $366.463 million.
At the same time, it reduced imports of lead and lead products by 65.2% to $989 thousand, imports of tin and tin products by 23% to $2.728 million, but increased imports of zinc and zinc products by 18.8% to $45.966 million.
Exports of aluminum and aluminum products last year increased by 0.7% compared to 2022 to $97.616 million, lead and lead products increased by 23.5% to $14.778 million, and nickel and nickel products amounted to $532 thousand, while in 2022 it was $1.268 million.
In 2023, the company exported $130 thousand worth of zinc, compared to $1.331 million in 2022. Exports of tin and tin products amounted to $159 thousand against $424 thousand in 2022.
In 2022, Ukrainian enterprises reduced imports of copper and copper products in value terms by 64.3% compared to the previous year to $65.370 million, while their exports decreased by 56.3% to $90.245 million.
In addition, in 2022, Ukraine reduced imports of nickel and nickel products by 49.9% compared to 2021, to $59.754 million, and aluminum and aluminum products by 33.4%, to $340.398 million. At the same time, it reduced imports of lead and lead products by 66.6%, to $2.839 million.
Imports of tin and tin products fell by 33.5% to $3.312 million, and imports of zinc and zinc products decreased by 58.7% to $38.690 million.
In 2022, exports of aluminum and aluminum products decreased by 42.7% compared to 2021, to $96.972 million, lead and lead products – by 68.7%, to $11.970 million, and nickel and nickel products – by 73.9%, to $1.268 million.
Zinc exports in 2022 amounted to $1.331 million, while in 2021 they amounted to $550 thousand. Exports of tin and products in 2022 amounted to $424 thousand, compared to $346 thousand in the previous year.

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Cabinet of Ministers of Ukraine has simplified electricity imports

On Saturday, the Cabinet of Ministers of Ukraine invalidated Resolution No. 775 of July 7, 2022 “On Imposing Special Obligations on Electricity Market Participants Engaged in Electricity Export Operations to Ensure Public Interests in the Functioning of the Electricity Market During Martial Law.”
According to the government’s representative in parliament, Taras Melnychuk, this was done “in order to create preconditions for increasing electricity exports to the unified energy system of Ukraine.”

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In Moldova, sunflower oil producer has shut down 2 plants and demands to resume imports of Ukrainian sunflower seeds

Moldovan Agriculture and Food Minister Vladimir Bola will meet on Monday with sunflower seed producers and processors due to the difficult situation in his country with sunflower oil production. According to the Moldovan news agency Infotag, the decision to discuss the problem was made after Floarea Soarelui, the largest oil producer, shut down two plants. The producers said they had no raw materials, as farmers refused to sell their seeds at the current market price, and sunflower imports are strictly licensed.

“Today, Moldova’s sunflower seed stocks are about 350 thsd tonnes, so any statements about lack of stocks are speculation. At the same time, the pricing policy should be objective, fair and responsible towards the end consumer,” Bola wrote on Facebook.

He emphasized that “by abandoning political statements and relying solely on the economic component,” the Ministry of Agriculture of Moldova will provide a platform for dialogue between seed producers and processors.

“Each party will provide real figures so that we can make decisions and find viable solutions for the new sunflower harvest,” Bola said.

As reported, Moldova has extended the licensing of sunflower seed imports from Ukraine for three months.

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Ukrnafta increases imported fuel supplies

In 2024, PJSC Ukrnafta increased the volume and expanded the geography of imported fuel supplies from global producers to the country, the company’s press service reported on Facebook.

According to the press service, while last year the company imported fuel from the United States, Sweden, Poland, and Greece, in 2024 it also began importing large wholesale consignments from Denmark, Slovakia, and Turkey.

“All fuels produced by such powerful companies as Orlen, HELLENiQ ENERGY, Marathon Petroleum Company and others have the appropriate certificates and, due to their optimal characteristics, are guaranteed to preserve engine life. We invite you to visit Ukrnafta filling stations and guarantee that your car will be satisfied with our quality,” the statement says.

“Ukrnafta is the largest oil company in Ukraine and operates a national network of 537 filling stations, of which 456 are in operation. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.

Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense.

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