One of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), has signed an agreement with German agricultural machinery manufacturer HORSCH to purchase 13 seeders for sowing corn, rapeseed and sunflower at the AGRITECHNICA-2023 exhibition in Hannover.
“HORSCH Maestro seed drills are among the best and most technologically advanced on the sowing equipment market. They are convenient and productive, and their high sowing accuracy will allow us to perform operations efficiently and quickly at operating speeds of up to 15 km/h,” the company wrote on Facebook.
Nibulon explained its choice by the constant improvement of the machines by the manufacturer, testing on a production scale, including in Ukraine. In addition, HORSCH has a well-developed service base in Ukraine, which allows it to operate and maintain equipment with minimal downtime.
“We are striving to optimize our production processes and improve the quality and productivity of sowing to a new level,” Nibulon summarized and thanked HORSCH for its cooperation.
As reported, Nibulon also signed an agreement to purchase 29 agricultural machines with German agricultural machinery manufacturer CLAAS at AGRITECHNICA-2023. It is planned that 10 combines, 15 tractors and 4 telescopic loaders will be used for crop production in the 2024 season.
Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale military invasion reached $400 million. The grain trader is currently operating at 30% of capacity and has set up a special unit to clear agricultural land of mines.
“Kernel, one of the largest Ukrainian agro-industrial groups, processed 610 thousand tons of sunflower and rapeseed at its oil extraction plants in the first quarter of the 2023/24 fiscal year (FY, July 2023 – June 2024), down 5% year-on-year.
“Due to the seasonal shortage of sunflower seeds at the end of the processing season (the new harvest will be in September-October 2023), the Group switched to rapeseed processing at two of its plants, processing 112 thousand tons for the three months ended September 30, 2023,” the company said in its financial report posted on its website over the weekend.
According to the report, the volume of edible oil sales in the first quarter of 2023/24 FY increased by 16% compared to the previous quarter and amounted to 369 thsd tonnes, including 20 thsd tonnes of bottled sunflower oil and 19 thsd tonnes of rapeseed oil.
In addition, the increase in yields and the increase in acreage under wheat, sunflower and soybeans harvested by Kernel’s agricultural enterprises, according to the data for the 1st quarter of 2023/24 fiscal year, led to an increase in the volumes received for storage at the group’s elevators to 1.208 million tons, which is 2.3 times more than a year earlier.
The agroholding noted that due to the termination of the Black Sea Grain Initiative on July 18, 2023, the throughput capacity of Kernel’s export terminals in Ukraine decreased significantly to 162 thsd tonnes in the first quarter of 2023/24, which is 83% less than in the previous quarter. Half of the exported agri-goods were shipped through Kernel’s infrastructure facilities in the port of Reni on the Danube.
Ukraine exported 203 thsd tonnes of grain in the first quarter of 2023/24, down 68% quarter-on-quarter. Most of the grain was exported via Ukrainian ports on the Danube and by rail to the Romanian port of Constanta, as Kernel’s usual export routes – Ukrainian Black Sea ports – were unavailable for export operations due to Russia’s unilateral termination of the Black Sea Grain Initiative in July 2023, the financial report says.
According to the agroholding, alternative export channels for Ukrainian agricultural products lead to high logistics costs, which, against the backdrop of low global grain prices, lead to a reduction in exports.
In this regard, Kernel has made significant changes to the structure of crops grown to minimize the area under the most energy-intensive and logistically complex crops (grains and corn) in favor of less energy-intensive soybeans and wheat.
As of September 30, the agronomic division completed the harvest of wheat, sunflower and soybeans on 61 thou hectares, 119.8 thou hectares and 65 thou hectares, respectively. The yields of all crops were better than expected due to favorable weather conditions and amounted to 6.7 t/ha of wheat, 2.9 t/ha of sunflower, and 2.9 t/ha of soybeans.
Corn harvesting from 84.4 thou hectares is still ongoing. Approximately half of the area has not yet been harvested. As a result of the harvesting campaign, Kernel expects to achieve a corn yield of 9.5 tons per hectare.
Prior to the war, Kernel was the world’s largest producer of sunflower oil (about 7% of global production) and a major exporter (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. It is also engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the previous year it ended with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
Agrarians in all regions except Transcarpathia have sown 1155 thousand hectares of winter crops, of which 905.9 thousand hectares are allocated for winter rape and 249 thousand hectares for winter grains, the press service of the Ministry of Agrarian Policy and Food reports.
According to the report, 228.6 thou hectares are already under winter wheat, 10.8 thou hectares under winter barley, and 9.5 thou hectares under winter rye.
Over the previous week, 251 thou hectares were planted with winter rape, and 204 thou hectares with winter grain.
In addition, it is reported that farmers of Volyn, Poltava, Rivne, Sumy, Ternopil, Chernivtsi regions have completed sowing of winter rape.
Most of the winter grains were sown in Sumy region – 25.9 thousand hectares, which is 50% of the forecast, winter rapeseed – in Dnipropetrovs’k region, 93.4 thousand hectares (74.4% of the forecast).
As reported with reference to the survey conducted by the Ministry of Agrarian Policy, the vast majority of farmers do not plan to significantly change the area under winter crops in 2024 compared to the previous season.
Agrarians of all regions of Ukraine have started sowing winter crops for grain, as well as actively sowing rape. As of early September, 699.7 thousand hectares of winter crops have already been sown, including 654.9 thousand hectares of rape and 44.8 thousand hectares of grain, the press service of the Ministry of Agrarian Policy and Food reported.
According to the report, winter wheat has already been sown on 42.5 thousand hectares, winter barley on 1.2 thousand hectares, winter rye – 1.1 thousand hectares.
According to the ministry, due to favorable weather conditions sowing of rape has already been completed in Volyn, Poltava, Sumy and Ternopil regions. The largest areas under winter rape are now in Ternopil (72.5 thousand hectares), Vinnitsa (67.2 thousand hectares) and Kirovograd (59.4 thousand hectares) regions.
As reported, according to a survey conducted by the Ministry of Agrarian Policy, the vast majority of agrarians do not plan to significantly change the sowing areas under winter crops in 2024 compared to last season.
The current forecast of rapeseed harvest in Ukraine will be a record and will reach a maximum of 4.2 million tons due to expanded sown areas and high yields, the export potential of the market and its processed products will also reach a maximum, according to the analytical agency Ukragroconsult.
“The key to achieving such results is not only a large harvest and the launch of new processing facilities, but also the solution of logistical issues,” the report says.
According to analysts, in July, the export statistics showed a rather active start of the season, which is important in the absence of a grain corridor. Logistics has shifted to the Danube ports and land routes through the western borders.
Due to the constant attacks on the port infrastructure, the September contracts are focused on the road and rail logistics of rapeseed, experts said, citing information from market participants.
The analytical agency pointed to the change in the geography of exports of rapeseed and its products. Now the sales of Ukrainian rapeseed are focused not so much on the European Union, but on the UK, Switzerland and Bangladesh. The situation is similar with rapeseed oil, which is exported mainly to China and Malaysia instead of the EU market. At the same time, 95% of rapeseed meal goes to the EU market, while the remaining 5% goes to Vietnam.
As of August 22, 2023, Ukraine exported about 500 thsd tonnes of rapeseed and more than 58 thsd tonnes of rapeseed oil, analysts say, adding that current export figures allow us to consider optimistic scenarios.
The production of rapeseed in Ukraine in the season-2023 may reach the new historical maximum and amount to 4.2 mln tonnes, up 5% from the previous estimate and 17% from the previous year, APK-Inform news agency reported.
“The increase in the potential of oilseed harvest was made possible due to the expansion of the planted area under this winter crop to about 1.5 mln ha (+3% by 2022), which, in turn, was due to the attractive price situation on the rapeseed market last fall, amid the general decline in prices for agricultural crops in Ukraine and, in particular, for grains,” the agency said in a statement.
The analysts noted that weather conditions during the growing season and ripening had a positive impact on the rapeseed yield and estimated it at 28.8 centners per hectare, up 5% from the previous forecast and 3% higher than in the season-2022.
According to the updated forecast of APK-Inform, in 2023/24 MY the exports of rapeseed will amount to about 3.8 mln tonnes, up 4% from the previous forecast and 10% from the last year’s figures.
“The shipment of the oilseed in the current season remains complicated due to the suspension of the “grain corridor”, missile attacks on the Danube ports and a significant load on the western crossings, and is likely to be more extended in time compared to the traditional timing of oilseeds sales on foreign markets in previous seasons,” the analysts said.
Export of Ukrainian rapeseed remains banned to Poland, Romania, Bulgaria, Slovakia and Hungary, APK-Inform reminded and suggested that the ban will be extended after September 15.
