Business news from Ukraine

Business news from Ukraine

Ukraine exported 57.5 mln tonnes of grains and oilseeds in 2023/24 MY – UGA

Ukraine exported 57.5 mln tonnes of grains and oilseeds in 2023-2024 marketing year, which ended on June 30, 2024, out of the harvest of 82.8 mln tonnes, while the carry-over stocks amounted to about 7 mln tonnes, the Ukrainian Grain Association (UGA) reported.
“Last season, the most important factor for the export of Ukrainian grain was the opening of the Ukrainian Humanitarian Corridor, which allowed exports by sea from the deep-water ports of Odesa region. The second most important factor was the introduction by Ukraine, together with international partners, of a working mechanism for insuring ships entering Ukrainian ports, which reduced the costs of exporters and, accordingly, Ukrainian agricultural producers for export logistics,” the association noted.
According to the UGA analysts, referring to the information of the State Customs Service, in monetary terms, the exports of grains and oilseeds in 2023/2024 MY amounted to $10.76 bln, and exports including products from them, including sunflower oil and other oils, cake and meal – $17.86 bln.
Wheat exports amounted to 18.4 million tons worth $3 billion, with production of about 22 million tons. The top 3 importing countries of Ukrainian wheat were Spain, which purchased 5.899 mln tons, Egypt – 1.721 mln tons, and Indonesia – 1.515 mln tons.
Ukraine exported almost 2.5 mln tons of barley for $376 mln, against the production of 5.8 mln tons. The most active buyers were China – 702 thousand tons, Indonesia – 460 thousand tons, and Cyprus – 221 thousand tons.
Last season, Ukraine exported 29.3 mln tons of corn worth $4.7 bln, compared to last year’s production of 29.6 mln tons. Its main buyers were Spain – 6.011 million tons, China – 4.832 million tons, and Egypt – 3.874 million tons.
Almost 3 mln tons of soybeans were sold to other countries for $1.1 bln, with a harvest of 4.9 mln tons. The top 3 buyers were Egypt – 956 thsd tonnes, Turkey – 674 thsd tonnes, and Germany – 235 thsd tonnes.
Ukraine exported 3.7 mln tons of rapeseed worth $1.4 bln, compared to last year’s production of 4.5 mln tons. The most active buyers were Germany – 1.226 mln tons, Romania – 609 thsd tonnes, and the Netherlands – 420 thsd tonnes.

, , ,

Ukraine will be able to export 60 mln tons of grain and oilseeds – forecast

Ukraine in 2024-2025 marketing year (July-June) can export more than 60 million tons of grain and oilseed crops and products of their processing, which will allow it to remain among the world leaders of agricultural exports, Acting Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyy said.

According to the Ministry of Agrarian Policy and Food, Ukraine can collect grain crops of the new harvest at the level of about 56 million tons, of which wheat – 21 million tons, barley – about 5 million tons, corn – 28.5 million tons.

Total exports of cereals are forecast at 43 million tons, in particular wheat – 15 million tons, barley – 2.5 million tons, corn – about 25 million tons.

The ministry expects oilseeds production at the level of 22 million tons, in particular rapeseed – 4 million tons, sunflower – about 13 million tons. Ukraine may harvest 5 million tons of soybeans, which will be a record in the history of Ukraine.

Exports of oilseeds and oilseed products are expected to exceed 17 million tons.

“After two years of full-scale war, Ukraine managed to equalize the market balance of production and export of major crops. (…) The current marketing year 2023/2024 Ukraine will end with the final balances of agricultural products at the average level, as it was until 2022. In the next marketing year, agro-exports will be over 60 million tons. And this shows that Ukraine remains a guarantor of world food security”, – summarized Acting Minister of Agro-Politics.

, ,

“Agrotrade” harvested over 255 thsd tonnes of grains and oilseeds

In 2023, Agrotrade harvested more than 255 thsd tonnes of grains and oilseeds, some of which showed record yields, the company’s press service reported on its Facebook page on Thursday.

“For the company, 2023 was one of the best years in terms of yields over the past five years. The harvest of corn, winter rapeseed and soybeans was particularly high. In addition, last year we switched to conventional mustard cultivation for the first time and immediately exceeded our threshing plans,” said Oleksandr Ovsyanyk, Director of the Agricultural Department, as quoted by the group’s press service.

He added that the company’s successful results were achieved, in particular, thanks to effective fertilizer and plant protection technologies, a high level of selection of varieties and hybrids, and favorable weather conditions.

According to the report, in 2023, the agricultural holding grew and harvested 84.8 thousand tons of corn, almost 70 thousand tons of wheat, 52.5 thousand tons of winter rape, 29.5 thousand tons of sunflower, 15.7 thousand tons of soybeans, 2.5 thousand tons of mustard and other crops.

As reported, in 2023, Agrotrade supplied about 350 thsd tonnes of grain to the global market. The share of own agricultural products amounted to 35% or 116 thsd tonnes, and third-party producers – 65% or 230 thsd tonnes.

The Agrotrade Group is a vertically integrated holding company with a full agro-industrial cycle (production, processing, storage and trade of agricultural products). The company cultivates over 70 thousand hectares of land in Chernihiv, Sumy, Poltava and Kharkiv regions. Its main crops are sunflower, corn, winter wheat, soybeans and rapeseed. It has its own network of elevators with a simultaneous storage capacity of 570 thousand tons.

The group also produces hybrid seeds of corn and sunflower, barley, and winter wheat. In 2014, a seed plant with a capacity of 20 thousand tons of seeds per year was built on the basis of Kolos seed farm (Kharkiv region). In 2018, Agrotrade launched its own brand Agroseeds on the market.

Vsevolod Kozhemiako is the founder and CEO of Agrotrade.

, , ,

Ministry of Agrarian Policy and Food forecasts gross production of grain and oilseeds at level of 74 million tons

The Ministry of Agrarian Policy and Food forecasts in 2024 gross production of grain and oilseeds at the level of 74 million tons, of which about 52.4 million tons of cereals and 21.7 million tons of oilseeds.

As noted on the agency’s website, at the beginning of last year, the total gross harvest of grains and oilseeds for 2023 was also forecast to be almost 13% lower than the previous period, at 63.5 million tons, but weather conditions led to an increase in the harvest. Therefore, gross production in 2023 is about 82 million tons, of which cereals more than 60 million tons and oilseeds about 22 million tons.

“Forecasts for gross harvest figures are preliminary and will be adjusted during the year depending on circumstances, primarily weather conditions,” the Ministry of Agrarian Policy emphasized.

According to the forecast, in 2024, farmers will be able to harvest cereals in the following volumes: wheat – 19.2 million tons (22.2 million tons were harvested last year), barley – 4.9 million tons (5.7 million tons in 2023) and corn – 26.7 million tons (30.5 million tons).

Among oilseeds, soybeans are projected to increase. This crop is expected to produce 5.2 million tons, a year earlier 4.7 million tons were harvested. Sunflower production is forecast at 12.4 million tons versus 12.9 million tons, respectively. Rapeseed is planned to be harvested at 4.1 million tons, while last year’s crop was 4.7 million tons.

Sown areas of grain and leguminous crops are forecast at 10.6 million hectares, which is 395 thousand hectares less than in 2023. Of these, winter wheat is sown on 4.3 mln ha (-0.3 mln ha), spring wheat – 0.2 mln ha. (+0.2 thousand ha), winter barley – 0.47 million ha (-0.15 million ha).

The area of spring barley is forecasted at 0.94 million hectares (+0.06 million hectares), corn – 3.9 million hectares (-62 thousand hectares).

Among oilseeds, the area sown with soybeans is increasing. It is forecasted that it will be sown on the area of 2.2 million hectares. This is almost 400 thousand hectares more than last year. Sunflower will be sown almost as much as last year – 5.3 million hectares, rape – 1.5 million hectares, which is 0.1 million hectares less than last year.

The Ministry of Agrarian Policy, based on the results of a survey conducted in the State Agrarian Register on the preparation of agricultural producers for the sowing campaign of spring crops for the harvest-2024, reported that 70% of respondents plan to increase the area under soybean by an average of 21% compared to 2023.

The survey also showed that during the spring sowing season Ukrainian agrarians will prioritize grain legumes, the sown areas under which will increase by 11%, and spring barley – by 7%. It is expected that sown areas under spring rape will increase by 24%, sugar beet – by 17%, and under corn will decrease by 9%. Sunflower areas may potentially decrease.

Earlier, the Ministry of Agrarian Policy allowed a reduction in 2024 sown areas under spring crops by 0.5 million hectares or 3.7% compared to last season.

, ,

Ukraine will be able to export 50 mln tons of grains and oilseeds to world markets in this harvest

Ukraine will be able to export 50 million tons of grains and oilseeds from the 2023 harvest, as well as about 10 million tons of vegetable oils and meals to global markets, said Mykola Gorbachev, president of the Ukrainian Grain Association.

“We planned to export about 5 million tons per month. However, in the first four months (the grain marketing year starts in July – IF-U) this did not happen. We were unable to increase shipments through the Danube ports, which accounted for 3.5-3.7 million tons per month. With the launch of the grain corridor, the ports of Greater Odesa have a lot of potential. It is possible to ship 3-4 million tons (of grains and oilseeds – IF-U) per month through the ports of Greater Odesa alone,” he said at the Business Breakfast with Forbes Ukraine on Wednesday.

In total, Ukraine will be able to export about 6 million tons of grain a month through the sea corridor and across its western borders, according to the UGA president’s estimates, which was already done in November.

“We will be able to work harder, increase (exports – IF-U) a little bit more, and I think it will be technically feasible to supply 50 million tons of grains and oilseeds to foreign markets,” Gorbachev said.

He added that Ukraine will produce another 10 million tons of agro-processed products, including vegetable oils and meals.

“We will sell most of the grain and manufactured products. For us, this is more than 50% of the country’s foreign exchange earnings, which stabilizes the hryvnia. I think the state has little choice: either the harvest will rot or it is better to sell it. Of course, it’s better to sell,” said the UGA president and expressed confidence that traders will cope with this task if the military ensures the safety of shipping at the current level.

Gorbachev emphasized that in 2023 Ukraine managed to maintain its status as the world’s breadbasket, as farmers grew 81 million tons of grains and oilseeds against domestic consumption of 23-24 million tons. He emphasized that Ukraine produces three to four times more crops and processed products than it consumes, so the agricultural sector is clearly export-oriented.

, , , ,

Ukrainian agrarians threshed 39.2 mln tons of grains, 18.45 mln tons of oilseeds

Agrarians of all regions of Ukraine have threshed 57.6 million tons of grain and oilseeds, including 39.228 million tons of cereals and 18.457 million tons of oilseeds, the press service of the Ministry of Agrarian Policy and Food reported. According to the message, harvesting of grain and leguminous crops was carried out on the area of 8275.3 thousand hectares with a yield of 47.4 c/ha.

To date, Ukraine has completed collection and threshing of barley from 1505 thousand hectares (101% of the plan), which received 5.863 million tons, wheat – from 4695 thousand hectares (101%) collected 22.210 million tons, peas – from 154.4 thousand hectares (103%) received 396.8 thousand tons, as well as rape – from 1396 thousand hectares (98%) received 4.005 million tons of seeds.

Harvesting of millet, which from 77.4 thousand hectares (93%) received 162.4 thousand tons, and buckwheat – from 136.6 thousand hectares (97%) threshed 203.6 thousand tons. Corn from 1376.7 thousand hectares (34%) was threshed 9.282 million tons

In addition, 961.6 thousand tons of other cereals and leguminous crops were threshed from 331.2 thousand hectares.

Ukraine continues harvesting oilseeds, in particular, sunflower – 10.211 million tons (9.042 million tons a week earlier) from the area of 4.358 million hectares (86%), soybeans – 4.2411 million tons (3.776 million tons) from 1.641 million hectares (91%).

Sugar beet was dug from the area of 125.3 thousand hectares (96.4 thousand hectares a week earlier), which amounted to 50% of the planned area. It was received 5.912 million tons.

In connection with the revision of the forecast, the Ministry of Agrarian Policy monitors information on yields of all crops. Thus, wheat yield amounted to 47.6 c/ha, barley – 39 c/ha, peas – 25.7 c/ha, millet – 21 c/ha, buckwheat – 14.9 c/ha. Corn yield – 67.4 c/ha, rapeseed – 28.7 c/ha, soybean – 25.8 c/ha, sunflower – 23.4 c/ha. Yield of sugar beet – 471.9 c/ha.

As reported, winter wheat sowing this season amounted to 4166 thousand hectares (-834 thousand hectares to the previous season), winter barley – 536 thousand hectares (-255 thousand hectares), rape – 1374 thousand hectares (+110 thousand hectares).

The Ministry of Agrarian Policy noted that agrarians of Kyiv, Kirovograd, Mykolayiv, Poltava, Sumy, Cherkasy and Khmelnytskyi regions threshed more than 2 million tons of grain in each region. In Odessa, Vinnitsa and Dnipropetrovsk regions – more than 3 million tons each. Zaporizhzhya region has completed harvesting of grain crops.

According to the adjusted forecast of the Ministry of Agrarian Policy, in 2023 agrarians will be able to harvest 79.1 million tons of grain and oilseeds, of which grain crops will be produced in the following volumes: wheat – 21.7 million tons, barley – 5.7 million tons and corn – 28.5 million tons. Gross production of oilseeds will reach 21.6 million tons, in particular, sunflower – 13 million tons, rapeseed – 4 million tons, soybeans – 4.6 million tons. The sugar beet harvest is forecasted at 13.7 million tons.

As reported, at the beginning of spring 2023, the total gross harvest for the current year was forecast at 63.5 million tons, or 13% less than in 2022. In June, after harvest began, the forecast was raised to 68 million tons, (7% less). In early September, due to favorable weather conditions, the forecast was revised upward to 76.7 million tons.

, ,