Business news from Ukraine

Ukraine increased butter imports by 62% in October

In October 2023, Ukraine increased imports of cheese by 70% and butter by 14% in monetary terms, the press service of the Union of Dairy Enterprises of Ukraine reported.

According to the report, in October of this year, 27 thousand tons of cheese were imported compared to 28.6 thousand tons in the same period last year, but more money was spent on its import – $160 million against $150 million.

“Imports of butter increased significantly, by 62% by weight, and the share of expenditures on it increased 10 times compared to last year,” analysts stated.

They noted that in the dynamics of cheese imports in the last three months there has been a moderate increase, which indicates increased competition in the domestic cheese market. The 14-fold increase in butter imports over the same three months led to a negative balance in international trade.

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Ukraine has reduced imports of coke by third

Ukraine in January-September this year reduced imports of coke and semi-coke in physical terms by 33.2% compared to the same period last year – to 221.599 thousand tons.

According to statistics released by the State Customs Service (SCS), coke imports in monetary terms for this period decreased by 45.9% to $88.978m.

Ukraine exported 2,750,000 tons of coke in the first nine months of 2023, down 25.6% from the same period last year. In monetary terms, it decreased by 34.4% – to $647 thousand.

Exports were made to Moldova (100% of shipments in monetary terms), while imports were mainly from Poland (86.81%), Colombia (10.23%) and the Czech Republic (2.01%).

As reported, Ukraine in 2022 reduced exports of coke and semi-coke in physical terms by 98% year-on-year to 3.856 thousand tons, in monetary terms by 97.6% to $1.011 million. The main exports were to Hungary (42.63% of shipments in monetary terms), Georgia (37.69%) and Turkey (17.41%).

Ukraine imported 359.192 thousand tons of coke and semi-coke in 2022, which is 54.5% less compared to 2021. In monetary terms, imports decreased by 50.3% to $174.499 million. Imports were mainly from Russia (43.43% of supplies in monetary terms, before the war), Poland (30.07%) and the Czech Republic (13.15%).

As a result of the war, a number of mines and coke plants are located in territories temporarily outside of Ukraine’s control.

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Albania allows import of Ukrainian dairy products

The Ministry of Agriculture and Development of Albania has approved the form of international veterinary certificate, which the State Service of Ukraine for Food Safety and Consumer Protection prepared in cooperation with the Ministry of Foreign Affairs for the export of heat-treated dairy products, the press service of the State Service of Ukraine for Food Safety and Consumer Protection reported.

According to the report, currently it is possible to export three types of products to Albania: poultry, meat semi-finished products and heat-treated dairy products for nutrition.

On the official web portal of Gosprodpotrebsluzhba published the form of international certificate for the export of Ukrainian dairy products.

In addition, the agency reminded that in order to export food products, the market operator must submit a request for unscheduled veterinary control, which is carried out according to the requirements of the country of destination, to the main departments of the State Food and Consumer Service in the regions and Kiev, as well as its interregional branches at the state border, through which the products will be exported.

To the application of the market operator it is necessary to attach copies of the foreign economic agreement/contract; documents certifying the existence of special requirements established by the competent authority of the country of destination of the cargo (if any); documents certifying the characteristics of the cargo of food products and the vehicle (if any – invoice, CMR, commodity-transport specification of the food product).

The relevant territorial authority shall issue the international certificate on the working day after receipt of the market operator’s application.

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Ukraine bans import of meat from Thailand

The Eastern Interregional Main Directorate of the State Service of Ukraine for Food Safety and Consumer Protection has imposed restrictions on the import of meat products from Thailand to Ukraine due to the registration of African swine fever (ASF) in that country, the agency’s press service reports.

According to an order of the Chief State Veterinary Inspector of Ukraine dated October 13, 2023, the ban applies to the import of animals belonging to the families of pigs, tayas and tapirs, as well as genetic material and products from animals of the listed families.

At the same time, the ban does not apply to products that have been processed by a method that guarantees the destruction of the causative agent of this disease in accordance with the requirements for the import (shipment) into the customs territory of Ukraine of food products of animal origin, feed, hay, straw, as well as by-products of animal origin and products of their processing, processing, approved by Order of the Ministry of Agrarian Policy and Food No. 553 of November 16, 2018.

African swine fever (Montgomery’s disease) is a contagious viral disease of domestic and wild pigs, first recorded in 1903 in South Africa. It cannot be treated or vaccinated. The spread of the virus can only be stopped by quarantine measures.

ASF is not dangerous for humans, but it causes economic losses, as all animals in the infected area must be destroyed.

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Imports to Ukraine increased by 18.9% in 9 months

The volume of imports to Ukraine in January-September 2023 amounted to $46.6 billion, up 18.9% or $7.4 billion compared to the same period a year earlier, the State Customs Service reported on its website on Friday.

At the same time, the volume of Ukrainian exports decreased by 18.1% or $6 billion to $27.1 billion, according to the published information.

The negative balance for the first 9 months of this year amounted to $19.5 billion, which is 3.2 times more than in the same period last year.

According to the State Customs Service, exports of goods fell by 15% to $24.5 billion over the first eight months, while imports grew by 19% to $41.1 billion, and the negative balance of trade in goods almost tripled to $16.6 billion.

“At the same time, taxable imports amounted to $38.3 billion, which is 82% of the total volume of imported goods. The tax burden per 1 kg of taxable imports in January-September 2023 amounted to $0.48 per kg, which is 47% more than in the same period in 2022,” the agency said on Friday.

It is specified that most of the imported goods during the reporting period came to Ukraine from China – $7.4 billion ($5.8 billion for 9 months of 2022), Poland – $4.9 billion ($3.8 billion) and Turkey – $3.7 billion (last year the top three included Germany with $3.3 billion).

Most of Ukraine’s goods were exported to Poland – $3.7 billion ($5.1 billion), Romania – $3 billion ($2.6 billion), and Turkey – $1.9 billion ($2.2 billion).

According to the State Customs Service, in January-September 2023, 65% of total imports of goods were machinery, equipment and transport – $14.1 billion (UAH 100.6 billion, or 31% of customs revenues, was paid to the budget during customs clearance), chemical products – $8.4 billion (UAH 57.2 billion, or 17% of customs revenues) and fuel and energy products – $7.9 billion (UAH 68.0 billion, or 21% of customs revenues).

The top three most exported goods from Ukraine are food products – $16.1 billion, metals and metal products – $3 billion, and machinery, equipment and transport – $2.3 billion.

The agency added that UAH 472.9 million was paid to the budget during customs clearance of exports of goods subject to export duties.

Hungary lifts ban on imports of Ukrainian sugar

The Hungarian government has removed cane and beet sugar from the list of banned Ukrainian products for import after September 15, 2023, Agroinform.hu reported.

According to the report, the Hungarian government’s resolution on measures related to the transportation of certain agricultural products from Ukraine, which restricted the import of 24 Ukrainian agricultural products after September 15, removed the line referring to cane and beet sugar, as well as hard sucrose.

The decision came into force on October 10.

As reported, the European Commission announced on September 15 that it would not extend restrictions on imports of agricultural products from Ukraine to five neighboring EU countries (Poland, Bulgaria, Hungary, Romania and Slovakia) with some conditions to avoid a new surge in supplies.

The restrictions were imposed on May 2, 2023 and concerned imports of wheat, rapeseed, sunflower and corn. These five Eastern European member states argued that Ukrainian agricultural products, when imported duty-free into the EU, were settling with them and harming the local agribusiness sector.

After the restrictions were lifted, Poland, Hungary and Slovakia introduced unilateral bans. Poland expanded the list of products banned for import with rapeseed cake and meal, as well as corn bran, wheat flour and derivatives. Hungary brought the list to 24 commodity items.

Ukraine has filed a lawsuit with the WTO, accusing Poland, Hungary and Slovakia of discriminating against its agro-products.

Ukraine is currently negotiating the introduction of a licensing mechanism for exports of Ukrainian agro-commodities with mandatory verification in each of the five countries.

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