Business news from Ukraine


The U.S. Department of Agriculture (USDA) in December reviewed upwards the forecast for export of corn from Ukraine in 2018/19 agricultural year (July-June) by 1 million tonnes compared with the September forecast, to 28 million tonnes.
According to a posting on the website of the USDA, the forecast for corn harvest for 2018 is increased by 1.5 million tonnes, to 35 million tonnes.
Corn production in in Ukraine increased thanks to larger crops harvested, and if the forecast volumes are harvested the harvest forecast this month would exceed the previous record hit in 2016/17 agri-year by almost 20%, the department said.
USDA retained its forecast for export of wheat from Ukraine in 2018/19 agri-year at 16.5 million tonnes and the harvest forecast – at 25 million tonnes.
In general, USDA revised upwards the forecast for grain harvest in Ukraine by 1.5 million tonnes, to 68.7 million tonnes and grain exports – by 1 million tonnes, to 49.2 million tonnes.

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Ukraine in January-November 2018 increased exports of poultry by 22.2%, to 303,890 tonnes, the State Fiscal Service reported on its website.
At the same time, according to the service, in monetary terms exports of these products increased by 32.8%, to $471.98 million.
Imports of poultry meat and offal for the 11 months of 2018 grew by 13.8%, to 121,670 tonnes, in monetary terms by 10.7%, to $48.42 million.
According to the service, export of pork in January-November 2018 decreased by 2.8 times compared with the corresponding period of 2017, to 1,650 tonnes. This product was delivered in the amount worth $3.55 million against $9.99 million in the 11 months of 2017.
During this period, imports of pork to Ukraine increased by 5.1 times, to 26,340 tonnes. Pork was imported to the country for $48.22 million against $9.15 million in January-November 2017.



Ukraine as of November 26, 2018 fully used 10 quotas for duty free exports of food under a Free Trade Area (FTA) agreement with the European Union (EU), particular, quotas for honey, cereals, malt and wheat gluten, preserved tomatoes, grape and apple juices, wheat and corn, butter and poultry.
According to a posting on the website of the Ukrainian Agribusiness Club (UCAB), Ukraine also almost fully used quotas for starch (95%) and garlic (96%).
The UCAB reminded that from October 1, 2018 the second year of additional quotas for five groups of goods began, and two groups have been already closed (honey and preserved tomatoes).
“Before the end of the year, additional quotas for grain will be in effect, of which the volume for wheat and corn has already been used, and only 23% is used for barley,” the UCAB said.
As reported, in January-October 2018, exports of agricultural products from Ukraine amounted to $14.8 billion, which is $165 million more than a year earlier.
In addition to quotas for Ukraine, quotas on duty free import of goods from EU countries to Ukraine are still in effect. These include quotas for the following groups of goods – sugar, poultry meat (primary and secondary quotas) and pork (primary and secondary quotas).

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Danone in Ukraine has begun exporting yoghurt to Poland with the weekly deliveries of 20 tonnes, the company’s press service has reported. According to the report, Danone exports products for children under the Danonki brand (in Ukraine the Rastishka brand), as well as Activia bifidus yoghurt. The export volume of each product category is 10 tonnes per week.
“In 2018, the company received a request from partners from Poland for the supply of products for children under the Danonki brand. The request has been successfully implemented, therefore Poland became the first country in the European Union to which Ukrainian yoghurt was delivered,” the manufacturer said.
The company also reported on the request for an increase in export volumes. In addition, Danone intends to organize the supply of dairy products to other EU countries.
According to the company, Danone is now also exporting Prostokvashino sour cream and Activia drinking bifidus yoghurt to the United Arab Emirates. According to Danone, the exported products are manufactured at Danone Dnipro plant (Kherson). Danone Group is represented in 120 countries. It owns more than 190 factories, which employ about 102,000 people.

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AgroFoodCluster Kharkiv, uniting small and medium-sized agricultural producers in Kharkiv region, plans to develop a direct export scheme for small farmers in 2019, Cluster Chairman Yuriy Mykhailov has said. “Next year we want to build an export scheme for our farmers, according to which they will be able to receive currency into their account. This is the main motive for the region, so that the currency comes to the manufacturer, and does not remain partially abroad, which most traders abuse,” Mykhailov told Interfax-Ukraine at the third Ukrainian-German forum “BEA: Bioenergy, Energy Efficiency and Agribusiness” in Kharkiv.
According to him, the cluster in 2019 also intends to increase the number of participants.
Among the projects of AgroFoodCluster in 2017-2018 is the participation in the ANUGA food fair (Cologne, Germany). According to Honorary Consul of the Federal Republic of Germany in Kharkiv and managing partner of ILF Tetiana Havrysh, this allowed the cluster members to get new contracts in the European, Asian and African markets.
Mykhailov said that the cluster also carries out joint projects with the ILF law firm, aimed at raising the legal awareness of cluster members on taxes and protecting businesses from illegal seizures.
“The last initiative that we have to implement is to become representatives of the Ukrainian Agricultural Council, which actively protects the interests of producers, and cooperate with them on the protection of the property of our participants,” Mykhailov said.
According to him, in October 2018, the cluster included 19 companies.
“If there are about 400-500 agricultural producers in Kharkiv, the share of cluster members is very small. We had a goal to reach 100 participants, but this is quite difficult,” he said.
According to Havrysh, the priorities of the cluster are also cooperation with educational institutions, which are part of the cluster, to improve the quality of staff, as well as the development of communities.
“Now the cluster is looking for strategies for introducing green tourism. It is launching cultural programs. This is an evolution, although it may not be fast, because the Ukrainian government does not have a specific strategy regarding clusters,” she said.
Havrysh said that the cluster is also interested in creating a branded regional product to increase competitiveness in the domestic market.
“This can seriously influence domestic exports between regions in Ukraine. We often see products from Western Ukraine in Kharkiv, but it is unlikely that products from Kharkiv are seen in Western Ukraine,” she said.
As reported, the AgroFoodCluster Kharkiv was created in July 2017 intending to bring the region’s products to new markets.

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