Business news from Ukraine

UKRAINIAN GRAIN ASSOCIATION PREDICTS GROWTH IN GRAIN, OILSEEDS PRODUCTION IN UKRAINE TO 95.2 MLN TONNES

The Ukrainian Grain Association (UGA) in its August forecast predicts growth in grain and oilseeds production in the country in the 2019/20 agricultural year to 95.2 million tonnes (the previous forecast had 94.7 million tonnes), and exports – to 58.2 million tonnes (56.9 million tonnes).
According to the information on the association’s website, in the context of crops, changes relate to: wheat production is projected at 27.7 million tonnes (against 28.9 million tonnes in the previous forecast), exports – 21 million tonnes (20 million tonnes); barley production – 8.6 million tonnes (8.4 million tonnes), exports – 4.7 million tonnes (4.9 million tonnes); corn production – 34.5 million tonnes (32.2 million tonnes), export – 27 million tonnes (26 million tonnes).
As reported, the Ministry of Agricultural Policy and Food of Ukraine predicts an increase in the grain harvest in 2019 under favorable conditions up to 70.8 million tonnes compared with 70.1 million tonnes in 2018.
The U.S. Department of Agriculture (USDA) predicts a grain harvest in Ukraine this year at 72.6 million tonnes, exports – 51.4 million tonnes.

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UKRAINIAN VIOIL MORE THAN DOUBLES SOYBEANS PRODUCTION

Vinnytsia oil and fat mill of ViOil Industrial Group in 2018/2019 season has produced more nearly 89,000 tonnes of soybeans, which is 2.4 times more than last year.
According to the company’s press release, the combine processed over 17,000 tonnes of unrefined soybean oil and about 65,000 tonnes of soya oilseed meal.
The mill exports all processed soya products.
As reported, Kernel, one of the largest Ukrainian agrarian groups, in February-2019 acquired 5.85% of ViOil shares.
ViOil Industrial Group was created by Viktor Ponomarchuk in 2006 on the basis of agricultural assets of KMT industrial group.
Currently ViOil owns 13 granaries with a total capacity of 360,000 tonnes. The group exports products to more than 60 countries.

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NEW REQUIREMENTS FOR ORGANIC PRODUCTION CIRCULATION TAKE EFFECT IN UKRAINE

A law “On basic principles and requirements for organic production, circulation and labeling of organic products” came into force on August 2.
The law, in particular, meant to improve the legal regulation of organic production in Ukraine and bring it into line with the EU legislation, Agrarian Policy and Food Ministry of Ukraine reported on its website.
“Ukrainian domestic organic products are becoming more popular in the foreign markets: over the past few years our state has become an important supplier of the organic products to the western markets, being ranked the fourth among the exporters of the organic products to the EU countries,” the ministry said adding that all necessary regulatory legal enactments have been already drafted.
Besides, the lawmakers envisaged a mechanism for certification of the organic production. If the organic goods put up for sale without a respective certificate, sellers of such production will have to pay fines in amount of five to eight of minimum wages, reads a report on the ministry’s website.
According to new law, the State Service of Ukraine on Food Safety and Consumer Protection will be a supervisor of organic production in Ukraine.
On July 10 the Verkhovna Rada at second reading and as a whole adopted bill No. 5448-d on basic principles and requirements for organic production, circulation and labeling of organic products, and President of Ukraine Petro Poroshenko signed it at the end of July. The law, in particular, establishes the basis for the legal regulation of organic production and the functioning of the market of such products.

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AIS WILL START PRODUCTION OF TRACTORS IN UKRAINE

AIS group of companies plans to start producing tractors under the KrASZ brand from the components of the leading Asian companies at the Avto-Holding plant (Kremenchuk, Poltava region), AIS has said in a press release.
At the first stage, it is planned to establish the production of agricultural machinery with a capacity of up to 30 hp, which is most in demand among small and medium-sized farms.
“The segment of this equipment has a rather large capacity, according to our estimates, it is more than 17,000 tractors per year, and it is developing steadily. We expect in the medium term to occupy from 5% to 10% in it,” the press service said citing AIS Marketing Director Serhiy Borovik.
The group has not yet disclosed the remaining details of the project, noting that detailed information about the model range planned for production, prices and the start of accepting orders will be announced in August-September of this year.
AIS group of companies, established in 1992, is the national network of auto centers and service stations, spares stores, a manufacturing enterprise, regional automobile warehouses and a logistics center for storage and distribution of spare parts, a customs and licensed warehouse, and a motor transport company.

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DNIPROVSKY PLANT OF MINERAL FERTILIZERS TO START PRODUCTION OF NPK FERTILIZERS

The Dniprovsky Plant of Mineral Fertilizers has launched production of the compound fertilizers (NPK) with perspective to produce 75,000 tonnes of NPK by the end of 2019, Vice President of the Union of Chemists of Ukraine Serhiy Liskovsky said.
“A long-term agreement to supply the main raw materials was signed. Every month we’ll produce 15,000-18,000 of the compound fertilizers,” he said.
Liskovsky said that the production program foresees production of liquid nitrogen-phosphate NP fertilizers (8:22), pelleted fertilizers (10:32), and production of the NPK-compound fertilizers (16:16:16) is scheduled for the second half of August.
Liskovsky reminded that for the last five years the plant has been working with the interrupts, by 20-25% of its capacities, in terms of absence of the raw materials inside the country and expensive import.
“For this period a share of Ukrainian enterprises on the domestic market of compound fertilizers dropped by 10% and by 2-3% on some positions,” he added.
According to Liskovsky, state-owned enterprise Sumykhimprom with a capacity of 40,000 tonnes per month also will produce compound fertilizers. By the end of the year, two enterprises aspired to produce 275,000-280,000 tonnes of products.
According to the Chemists Union of Ukraine, Ukraine needs 1.2 million tonnes of compound fertilizers annually, 1.3 million tonnes meant for import.

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UKRAINIAN ASCANIA GROUP INVESTS UAH 17 MLN IN PRODUCTION OF CIDER AND NON-ALCOHOLIC BEVERAGES

Ascania group of companies, a diversified Ukrainian holding, in 2018-2019 invested UAH 17 million in the launch of production of cider and non-alcoholic beverages in PET bottles at the Kvass Beverages plant (Zaporizhia).
“This year we’ve presented a large number of new products in the Ukrainian market. For the first time, we bottled cider in PET under the GardenZ brand, produced the Yarylko Karamelny kvass for children, launched the Yarylo Bily Imbyrny (Yarylo White Ginger) brand. In August 2018, we started producing lemonade in PET at the Kvass Beverages plant. Investments in the enterprise to launch output of cider and new products in PET accounted for a total of about UAH 17 million,” Inna Syrchenko, the head of the marketing department at Ascania FMCG, told Interfax-Ukraine.
According to her, the products of the plant are represented in the stores ATB, Silpo, Novus, Billa and other retail outlets.
Ascania group of companies unites 12 companies. Their activities include import, production and distribution of food, honey processing and exports, logistics services, electricity supply, production of small arms, security services and training for the security personnel of private and state structures, agriculture (growing roses).

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