Business news from Ukraine

Business news from Ukraine

Bloomi LLC increased production by 3.7%

Blumi LLC (Odesa), a manufacturer of sanitary and hygienic paper products under the Snow Panda brand, produced UAH 369 million worth of products in January-November 2024, up 3.7% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company slowed the growth rate of this indicator in 10 months of 2024 compared to the same period in 2023, which was 10.3% in the first 10 months of the year.
In physical terms, the production of toilet paper increased by 5.5% to 43.8 million rolls.
As reported, over 11 months, the main Ukrainian producers of sanitary paper products produced 584.84 million rolls of toilet paper, up 4.5% year-on-year.
Bloomi, which was registered in 2014, produces pulp-based sanitary products (toilet paper, napkins, towels) from imported raw paper. The products are manufactured at the facilities of Omega Brokers PE, one of the leading Ukrainian manufacturers of detergents, disinfectants and sanitary products.
In 2023, the company almost doubled its production volume by 2022 to UAH 367.3 million.
The company is co-owned equally (25% each) by four Odesa-based entrepreneurs.

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Ruta TM increased production by 7.7%

In January-November 2024, Ruta, a major Ukrainian manufacturer of sanitary and hygienic paper products, whose management company is VGP JSC (Lutsk), produced products worth UAH 1 billion 588 million, up 7.7% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company has thus slightly accelerated the positive dynamics of production volumes over the first 11 months of the year compared to the same period last year, which it reached in the first nine months.
In physical terms, the company’s production of toilet paper in rolls slightly exceeded the previous year’s figure and amounted to 121.68 million units, which remains the third best result in the industry after Kyiv Cardboard and Paper Mill (248 million units) and Kokhava Paper Mill (125 million units).
The company produces pulp-based sanitary and hygienic products from imported base paper.
VGP’s portfolio includes dry and wet wipes, toilet paper, paper handkerchiefs, and kitchen towels. The assortment includes more than 180 items.
As reported, in 2023, VGP JSC produced products worth UAH 1 billion 611 million, which is 64.8% more than in 2022.

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“Slavic Wallpapers” increased production by 2.2%

Slavic Wallpaper-KFTP JSC (Koryukivka, Chernihiv region), a leading Ukrainian wallpaper producer, produced 15.37 million conventional pieces of wallpaper in January-November 2024, up 2.2% compared to the same period in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, the company’s output growth rate for the first 11 months of the year was almost the same as in the same period last year: it was 2.3% in the first 10 months.
In monetary terms, the factory’s production increased by 1% to UAH 1 billion 168 million in January-November.
In November, the company produced 1.32 million units of wallpaper, up 1.2% compared to November 2023, but down 9.3% compared to October this year.
The Association does not have data on wallpaper production in Ukraine in general for 11 months of 2024, as the State Statistics Service has stopped providing it.
JSC Slavic Wallpaper-KFTP produces more than 10 types of wallpaper from the economy segment (paper, duplex, acrylic) to premium wallpaper (vinyl, non-woven, hot stamped), as well as its own latex, water-dispersion paint under the Latex brand.
As reported, in 2023, Slavic Wallpapers-KFTP increased its wallpaper production by 19% compared to 2022, to 16.2 million units, production volume increased by 38.2% to UAH 1 billion 249 million, and net profit increased almost eightfold to UAH 47.7 million.
Earlier, the company noted that as a result of Russian aggression, sales volumes have significantly decreased, especially through retail channels.

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Beer production in Ukraine increased by almost 5%

Beer production in Ukraine in January-November 2024 reached 129.8 million dal, up 4.9% compared to the same period in 2023, according to the website of the industry organization of brewers Ukrpyvo.
“The expert estimate of beer production in Ukraine (except for non-alcoholic beer with an alcohol content of up to 0.5 vol%) for 11 months of the year is 129.8 million dal, which is 104.9% compared to the same period in 2023. At the same time, this figure is only 82.5% of the production volumes for 11 months of 2021,” the statement said.
As reported, beer production in Ukraine in 2023 increased by 7.8% compared to 2022. At the same time, in 2022, it fell by 27.9% compared to 2021 – to 122.8 million dal.

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World grain production in 2024 will decrease, while rice production will increase – forecast

Global cereal production in 2024 will decline by about 0.6% from the previous year to 2,841 million tons, a downward revision since October, but still the second largest production on record, according to the monthly review of the UN Food and Agriculture Organization (FAO).

According to the report, world wheat production in 2024 will be at the level of 2023 and will amount to 789 million tons, while corn production will decline by 1.9% from the previous year to 1,271 million tons due to lower than expected yields in the European Union and the United States.

FAO’s forecast for global rice production in 2024-2025 increased by 0.8% to a record high of 538.8 million tons.

Softer wheat prices in 2025 may prevent the expansion of the area under winter wheat during the sowing campaign, which is being conducted in the Northern hemisphere. Below-normal precipitation in key wheat-growing regions in Russia resulted in low soil moisture levels, which affected planting. In contrast, favorable soil moisture and government support policies, as well as favorable prices, should encourage planting expansion in China and India.

Early signs point to a reduction in corn plantings in Argentina due to dry conditions and the risk of dwarfing disease transmitted by cicadas. In Brazil, the area under corn in 2025 will remain at last year’s level. In South Africa, white corn acreage is expected to increase. This is due to record prices and will compensate for the reduction in the area under yellow corn.

Global grain consumption is projected to increase by 0.6% to 2,859 million tons in the 2024/25 marketing year (MY, July-2024-June-2025), driven by projected growth in rice and wheat consumption as food.

According to FAO’s November forecast, global grain stocks will decrease by 0.7% from their initial level, resulting in a global grain stocks-to-consumption ratio of 30.1% in 2024/25 MY, which is lower than 30.8% in the previous year, but still indicates a “comfortable supply level” on a global scale.

International grain trade for 2024/25 MY is forecast at 484 mln tonnes, which is 4.6% less than in the previous year.

“Global wheat and corn trade volumes are expected to decline, while rice trade is expected to increase,” the report says.

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“Biosphere” to open production in Uzbekistan and expand exports to Central Asia

Biosphere Corporation, one of the market leaders in the production and distribution of household goods, plans to open a production facility in Uzbekistan next year to produce recycled garbage bags rather than virgin polymers and actively promote its products in this and neighboring Central Asian markets, according to Andriy Zdesenko, the corporation’s founder and CEO.

“This will load our Polygreen plant in Fastiv, which currently has a 20% capacity reserve. And it will allow us to build another plant in Ukraine that will produce pellets and send them to Uzbekistan to produce garbage bags, which we will then supply to neighboring countries,” he said in an interview with Interfax-Ukraine.

“And then sponge sponges, foil-film, slider bags – the whole range that is necessary for development,” Zdesenko added.

He clarified that Uzbekistan has protected its market by banning the export of garbage bags of a certain thickness and thus stimulated the launch of domestic production. In addition, the cost of logistics to the region, for example, to Kazakhstan, has tripled due to the war, and delivery times have increased from three weeks to two months.

“Therefore, if we want to be in the market of Uzbekistan, where I think there will be 40 million people in five years, we need to produce there,” said the Biosphere CEO.

He also emphasized that there are about 100 million people around Uzbekistan, including Afghanistan, whose market is actively developing, and there are many trade hubs in the region where business is very active.

Biosphere Corporation has been operating in Ukraine for over 25 years. The product portfolio includes more than 1 thousand items under 16 own brands (Freken BOK, Faynyi Bonus, Vortex, Likit, Smile, Smile Baby, Superfresh, Bambik, Novita, Lady Cotton, Alufix, PRO service, GoWipes, Chysta Peremoha, Pany Blisk and PoketMon). The corporation is the official distributor of such international brands as TORK, Selpak and Fantom.

The corporation’s capacities in Ukraine are represented by three plants with a total production area of 35 thousand square meters in Dnipropetrovska, Kyivska and Khmelnytska regions, as well as logistics complexes with an area of 30 thousand square meters. Together with the French Groupe Lemoine, Biosphere also owns a plant in Estonia for the production of cotton products with an area of 8.5 thousand square meters.

At the end of 2023, the company opened a new FOOD business line with its own Cupsoul production, represented by such tea brands as Graff, Ritz Barton, and others.

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