Business news from Ukraine

PRIVATBANK WILL LEND FOR PURCHASE OF AGRICULTURAL, COMMERCIAL EQUIPMENT FOR UAH 500 MLN

State-controlled PrivatBank (Kyiv) on May 9 began accepting applications for financing the purchase of fixed assets for a total amount of UAH 500 million, which include agricultural machinery, commercial vehicles and special equipment.
The launch of the corresponding program was announced in a press release from the financial institution.
The bank also announced the completion on May 13 of the Agroseason lending program for agricultural producers, carried out to finance the 2022 sowing campaign under the state program 5-7-9% with interest compensation.
It is specified that over 2,400 Ukrainian agricultural enterprises and farmers have already received loans for UAH 6 billion.
PrivatBank clarified that the Cabinet of Ministers of Ukraine by resolution No. 28 set the deadline for issuing loans for the sowing campaign until May 31, 2022. Since the bank is currently processing more than 2,000 loan applications, it will limit the acceptance of applications on May 13 in order to have time to process those already received before the deadline set by the government.
The financial institution recalled that under the terms of the state program, lending was available to Ukrainian agricultural producers for a period of six months with compensation from the state up to 0% per annum in the amount of up to UAH 60 million.
As reported, Ukrainian banking institutions for the period from mid-March to May 5 provided loans to farmers under the state program to support the sowing campaign in 2022 for a total of UAH 19.82 billion, including loans and portfolio guarantees for the week of April 28-May 5 for UAH 4.87 billion.

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MINISTER OF EDUCATION OF UKRAINE: ALL CONSTRUCTION, AGRICULTURAL, HIGH-TECH AND PEDAGOGICAL SPECIALTIES WILL BE PRIORITY IN STATE ORDER

Minister of Education and Science Serhiy Shkarlet says that when forming the state order for 2022, all construction, agricultural, high-tech and pedagogical specialties will be a priority.
“Today we are already working with the Ministry of Economy, the Ministry of Digital Transformation regarding the formation of a budget order for 2022. The focus will be on high-tech and post-war economic recovery,” Shkarlet said in an interview on Thursday morning’s national telethon.
According to the minister, the humanitarian block, highly competitive specialties: economics, social sciences, management, public administration, lawyers will not have a large share of state funds covered in the state budget.
At the same time, Shkarlet noted that builders, all agricultural, high-tech, pedagogical specialties will be a priority, including when applying to universities.
The Minister also stressed that the emphasis is on professional higher education.

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AGRICULTURAL HOLDING CONTINENTAL LAUNCHES POTATO STORAGE FACILITY IN LVIV REGION

Agricultural holding Continental Farmers Group has put into operation a new warehouse for storing seed potatoes with a capacity of 3,000 tonnes of simultaneous storage in Batiatychi village (Lviv region), the project cost UAH 3.2 million, according to the company’s website.

“We got a yield of seed potatoes higher than the planned indicators – 36.2 tonnes per ha. Over the season, the gross yield of seed varieties exceeded 15,600 tonnes, so we needed additional storage capacity. We plan to further increase the volume of seed potatoes, respectively, there is a need to increase storage capacity,” Continental said, citing Head of Continental Potatoes Cluster Orest Kravchuk.

According to the agricultural holding, growing potatoes is a strategic direction of its activities.

Continental Farmers Group cultivates chips, seed and food varieties of potatoes in Lviv and Ternopil regions. The total area under potatoes amounted to 1,600 hectares in 2020, in the current year – 1,800 hectares, with the total land bank being 195,000 hectares.

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9% OF AGRICULTURAL LAND IN UKRAINE CULTIVATED BY 25 LARGEST AGRICULTURAL HOLDINGS – ANALYSIS

The share of land plots cultivated by the 25 largest agricultural holdings is 9% (3.88 million hectares) of the total area of ​​agricultural land in Ukraine, the investment company Concorde Capital (Kyiv) said during the presentation of the agricultural online platform KupiPai.
According to it, the land bank of Kernel agricultural holding (the main beneficiary is Andriy Verevsky) is 510,000 hectares, Ukrlandfarming (Oleh Bakhmatiuk) 475,000 hectares, MHP (Yuriy Kosiuk) 370,000 hectares, Agroprosperis (George Rohr and Maurice Tabasinik) 300,000 hectares, Astarta (Viktor Ivanchik) 243,000 hectares.
Continental Farmers cultivates 195,000 hectares, Epicentr Agro 160,000 hectares, Harveast 127,000 hectares, Ukrprominvest-Agro 120,000 hectares, Agroton and Agrain 110,000 hectares, Vitagro and Privat-agro 85,000 hectares.
Concorde Capital said the land bank TAS-Agro and Nibulon are 83,000 hectares each, Agrovisty, Svitanka and LNZ ​​80,000 hectares each, Agrotrade 71,000 hectares, Ristone Holdings 67,000 hectares, Grain Alliance 57,000 hectares, AgroGeneration 56,000 hectares.
The investment company said the total area of ​​Ukraine is 60.3 million hectares, including 42,700 hectares are suitable for agriculture (of which 31.1 million hectares are privately owned, 10.4 million hectares are state-owned, 1.2 million hectares of another form of ownership). At the same time, 89% of the 31.1 million hectares of land plots in private ownership are private shares of citizens.
Concorde Capital said that according to data for 2019, 56% of land plots were cultivated by individual tenants, 29% were individual owners, 8% of the land was leased from the state, and 7% were not cultivated at all.

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71% OF UKRAINIANS SUPPORT BAN ON FARMLAND SALE

The majority (71.7%) of Ukrainians support the holding of a referendum banning the sale of agricultural land, 65.2% would support a ban on the sale of agricultural land, and 84.1% oppose the sale of Ukrainian agricultural land to foreigners, according to the results of a sociological research conducted by the Kyiv International Institute of Sociology (KIIS) on June 22-29.
At the same time, 21% of respondents were against holding the corresponding referendum. Some 21.8% of respondents are against the ban on the sale of agricultural land, and 12.1% – the ban on the sale of agricultural land to foreigners.
The majority of respondents – 64% – believe that things in the country are going in the wrong direction. Some 20% of the respondents are optimistic about the direction of the movement of affairs, and another 16% found it difficult or refused to answer the question.
In the course of the study, 2,031 respondents from 107 settlements in all government-controlled regions of Ukraine were interviewed by the method of personal (“face-to-face”) interviews on a three-stage stochastic sample, representative of the population of Ukraine over 18 years old. The statistical error (with a probability of 0.95 and with a design effect of 1.5) does not exceed 3.3% for indicators close to 50%, and 1.5% for indicators close to 5%.

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DANISH AGRICULTURAL COMPANY AGROMINO SEES NET PROFIT FALL BY 61.5% IN 2020

The Danish agricultural company Agromino with assets in Ukraine, the Russian Federation and Estonia reduced its net profit by 61.5% in 2020 compared to 2019, to EUR 1 million.
According to the annual report on the company’s website, its total revenue increased by 52.6% to EUR 56.6 million over 2020.
“On 15 July 2020, Agromino announced its plan to apply for delisting of Agromino’s shares. On 19 October 2020, Nasdaq Stockholm has approved such application. The last day of trading of Agromino’s shares was 30 October 2020,” according to the company’s press release.
The consolidated assets of the agricultural company as of December 31, 2020 were estimated at EUR 81 million (EUR 113.57 million in 2019).
“The Group’s strategy is to secure sufficient elevator capacity to enable the Group to dry the in-house produced grain after it has been harvested. Generally, the Group sells the maximum amount of wheat, corn, rapeseed, and soya to exports and sunflower on the local market,” the company said.
The total capacity of Agromino’s storage facilities increased from 121,000 tonnes in 2019 to 135,000 tonnes in 2020. The company cultivated 55,500 hectares in Ukraine in 2020, having harvested a total of 208,840 tonnes of crops, including 90,998 tonnes of wheat, 34,410 tonnes of sunflower, 64,392 tonnes of corn, 6,695 tonnes of rapeseed and 2,182 tonnes of soybeans.
According to the agricultural company, the financial results of 2020 include losses from exchange rate differences in the amount of EUR 3.3 million (in 2019 – EUR 1.8 million) associated with the depreciation of the Ukrainian hryvnia and the Russian ruble.
Agromino (formerly Trigon Agri) was established in 2006. It specializes in grain and dairy production, agricultural trade.
Its land bank in Ukraine is about 55,500 hectares. It cultivates land in Kharkiv, Mykolaiv, Kirovohrad, Kyiv, Zhytomyr, Khmelnytsky and Lviv regions.

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