Agroholding KSG Agro in 2023, the sunflower area will be reduced by 15% compared to last year – down to 7.3 thousand hectares, the press service of the agricultural holding.
“We are fully satisfied with the weather conditions in which the sowing campaign takes place. Stock of moisture in the soil is quite sufficient. Warm weather since the beginning of May contributes to efficient seeding to get quality sunflower crops”, – noted in KSG Agroo.
During the sowing campaign there are three John Deere DB 55 sowing complexes involved, 700 hectares have already been sown with seeds from Syngenta, Limagrain and Euralis.
A year earlier, the agricultural holding sowed sunflowers on 8.4 thousand hectares. The average yield was 18 cwt/ha.
Vertically integrated holding KSG Agro is engaged in pig breeding, as well as the production, storage, processing and sale of grain and oilseeds. Its land bank is about 21 thousand hectares, which are located in Dnipropetrovsk, Kharkiv, Khmelnitsky and Kherson regions.
According to Agroholding, it is one of the top 5 pork producers in Ukraine.
In 2021, the holding increased its net profit by 16 times compared with 2020 – up to $20.27 million, its earnings – by 44%, to $30.75 million, and it increased EBITDA by half – to $12.28 million. The data for 2022 has not yet been published.
The owner and chairman of the board of directors of KSG Agro is Sergey Kasyanov.
Ukraine will temporarily refrain from exporting grain and sunflower to Poland until the new season in order to solve the problem of overstocking the Polish market and protests of Polish farmers, the Polish Ministry of Agriculture and Rural Development reported, citing Ukrainian Minister of Agricultural Policy and Food Nicholas Solski.
“We all understand who is to blame for this situation, but we must solve the problem. Therefore, Ukraine will refrain from exporting wheat, corn, rapeseed and sunflowers to Poland (until the new season),” the Polish agency quoted Solsky from a joint press conference on Friday with his Polish colleague Robert Telus at the border with Ukraine in Dorohusk.
“The Ukrainian side made a proposal to very much limit for some time, and at the moment even stop the flow of grain to Poland,” Telus said, in turn.
As reported, April 5, Ukrainian President Vladimir Zelensky at a meeting with Polish Prime Minister Mateusz Morawiecki in Warsaw said that the parties have found a way out of the problem of Ukrainian grain exports to Poland.
“We discussed the issues of our farmers – Polish and Ukrainian. We have found a way out. I believe that in the coming days, weeks we will finally solve all the issues, because there cannot be any difficulties between such close partners and real friends as Poland and Ukraine,” Zelenski said.
Earlier, the governments of Poland and Romania announced their intention to ask the European Commission to develop mechanisms that would help avoid price dumping to the detriment of local farmers.
Polish farmers threatened to disrupt the events during Zelenski’s visit to Warsaw, and Polish Minister of Agricultural Policy Henryk Kowalczyk resigned.
If the international community had been able to “push” Russia to increase ship inspections in the Bosporus, Ukraine would have been able to reduce the flow of grain traffic through European countries, Solsky said then, in turn.
Ukraine processed about 4.48 million tons of sunflower seeds in the four months of the 2022/2023 marketing year (MY, September-August), the lowest since 2015/2016 MY.
According to the APK-Inform agency’s website on Monday, oilseed processing was slowed by the crisis in the country’s energy sector, limits on electricity use and deliberate delays by the Russian side in inspecting vessels passing through the “grain corridor.”
According to the agency, a total of 10.4 million tons of sunflower may be processed in Ukraine in 2022/2023 MY, which is 10% less than the previous season, while the export of sunflower oil may decrease by 8% compared to the previous season and amount to 4.15 million tons, the lowest since 2015/2016 MY.
At the same time, a separate factor affecting oilseeds processing and sunflower oil exports in the current season was the growth of exports of sunflower seeds without processing – for September-December 2022, almost 1.2 million tons of them were exported from Ukraine, which was half of the analysts’ forecast for the entire MY.
“This figure is atypically high for the industry, it contributes to a significant increase in competition for raw materials, higher prices for them, even when the price of demand for sunflower oil decreases, and as a result – a more rapid reduction of sunflower supply in the market,” – the agency quotes its analyst Svetlana Kirichok.
She also stressed that one should not expect a substantial increase in processing, at least in February-March 2023, as the situation in the energy sector of Ukraine remains unchanged and the limits on electricity consumption are still in force. In addition, in March the “grain agreement” expires, which will require a new prolongation.
As reported, Ukraine from January 1-15, 2023 exported 93 thousand tons of sunflower seeds, which is 2.5 times less compared to the same period last year, while the export of sunflower oil halved to 148 thousand tons.
Three dry cargo vessels with corn and sunflower meal departed from Ukrainian ports on Wednesday, the Joint Coordinating Centre (JCC) has reported.
“On January 4, three ships left Ukrainian ports, carrying a total of 197,851 tonnes of grain and other food under the Black Sea Grain Initiative,” the JCC said.
Three bulk carriers – Presinge (70,514 tonnes of corn), Shen Yu 79 (64,667 tonnes of corn) and Mona KH (44,670 tonnes of corn and 18,000 sunflower meal) – are heading to China.
Seventy applications to join the Black Sea Grain Initiative have been submitted, the center said.
In addition, six ships are awaiting permission to enter the Ukrainian ports, 26 loaded dry cargo ships are waiting to sail to their destinations.
“As of January 4, the total tonnage of grain and other foodstuffs exported from the three Ukrainian ports is 16,630,516 tonnes. A total of 1,239 voyages (616 inbound and 616 outbound) have been enabled so far,” the JCC said.
Three dry cargo ships carrying corn and sunflower seeds left Ukrainian ports on Friday, the Joint Coordination Center (JCC) reported.
“Three ships left Ukrainian ports on December 2, carrying a total of 106,500 tons of grain and other agricultural products under the Black Sea Grain Initiative,” the report said.
Vessel Aspasia Luck is transporting 63 thousand tons of corn to China, Sea Inspiration is delivering 26.5 thousand tons of corn to Italy. Lady Perla dry-cargo carrier will carry 17 thousand tons of sunflower seeds to Bulgaria.
Three vessels, which passed through the sea humanitarian corridor on December 2, are also on their way to Ukrainian ports.
“As of December 2, the total tonnage of grain and other agricultural products exported from the three Ukrainian ports is 12,713,836 tons. A total of 1,031 vessels have been allowed to move so far: 515 to arrive at Ukrainian ports and 516 to leave them,” the report said.
Representatives of the oil and fat industry of Ukraine are asking the Ministry of Economy of Ukraine to increase the duty on the export of sunflower seeds to 10% from 3.5%, this will allow them to be processed domestically into higher-margin sunflower oil, especially in the face of a reduction in the oilseed crop in 2022 from – for the aggression of the Russian Federation.
The proposal to create a working group between the ministry and the specialized association “Ukroliyaprom” to resolve the relevant issue was made by its representative Stanislav Tarshin, the beneficiary of the GradOlia company.
“We understand that the gross harvest of sunflower this year will be 30% less than last year, not 16 million tons, but 9-10 million tons. You can assume that since the beginning of the war, 1.7 million tons have already been exported, and no less will be taken out in the future. We will again be left without jobs, without receiving foreign currency and other things,” he stressed during a panel discussion with Economy Minister Yulia Sviridenko at the business forum “Dialogue between civil society, business and government: wartime challenges” in Kyiv on Friday.
He emphasized that the oil and fat industry of the country may face a shortage of raw materials for the production of sunflower oil due to a smaller sunflower crop in Ukraine in 2022 due to Russian invasion and temporary occupation of part of its territory. This can lead to underloading of enterprises in the industry, a reduction in foreign exchange from oil sales abroad, as well as the closure of enterprises and an increase in unemployment in the country.
To prevent such a development of events, Tarshin proposed to establish a duty on the export of sunflower seeds from the country at a rate of 10% instead of the current 3.5%.
In addition, the representative of Ukroliyaprom called on the Minister of Economy to stimulate deep processing of sunflower oil in Ukraine, including its purification and packaging before selling it abroad.
“We should have reduced the export of crude sunflower oil (in favor of processed – IF-U). Many people think that if we export not sunflower, but crude oil, then this is the final product. This is a big mistake – such oil is a raw material that is subsequently processed many countries of the world. We export 6-6.5 million tons annually, while we only eat 0.5 million tons in the country,” Tarshin specified.
According to him, in order to increase the deep processing of sunflower oil by 50% of the current level, it will be necessary to build about 20 enterprises of this profile in Ukraine, which will additionally create tens of thousands of jobs in the country.
