Business news from Ukraine

UKRAINE MAY BOOST SUGAR EXPORT IN 2018/2019 MARKETING YEAR

Ukraine in the 2018/2019 marketing year (MY, September through August) could reduce sugar output by 5.5% and boost its exports by 13%, according to the National Sugar Producers Association Ukrtsukor. “In the 2018/2019 season, Ukraine and Russia will see a decrease in sugar production – by 5.5% and 11%, respectively, but Belarus is expected to see growth by 13%. At the same time, sugar exports from Ukraine and Russia will increase by 13% and 7%, respectively, while Belarus will see a slight decrease – by 5%. In addition, tough competition for the sales markets will continue,” head of the analytical service of the Sucden Group of Companies (CIS) Marina Sidak was quoted as saying.
According to her, due to the negative demographic situation in Ukraine, there will be a decrease in domestic consumption. At the same time, there is a risk of a reduction in Ukrainian rail transportation of sugar due to a shortage of covered wagons.
As reported with reference to Ukrtsukor, Ukraine in the current MY will reduce sugar exports by at least 25% compared to the previous MY.
Production of sugar in the 2017/2018 MY increased by 6.5%, to 2.14 million tonnes.

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UKRAINE RAISES CAST IRON EXPORTS BY 59.3%, MORE THAN HALF OF SHIPMENTS TO U.S. IN SEVEN MONTHS

Ukraine in January-July 2018 increased exports of pig iron in natural terms by 59.3% compared to the same period in 2017, to 1.768 million tonnes.
According to customs statistics released by the State Fiscal Service, during this period exports of cast iron in monetary terms rose by 78.6%, to $608.696 million.
At the same time, exports were mainly made to the United States (57.41% of deliveries in monetary terms), Italy (14.21%), and Turkey (8.35%).
In January-July 2018 Ukraine imported 836 tonnes of similar products for $493,000, while in January-July 2017 some 1,352 tonnes worth $683,000. Imports were carried out from Russia (79.31% of deliveries in monetary terms), and Germany (20.69%).
As reported, Ukraine in 2017 reduced exports of cast iron in natural terms by 7.8% compared to the previous year, to 2.342 million tonnes, but increased in monetary terms by 33.9%, to $738.130 million. At the same time, exports were mainly made to the U.S. (55.05% of deliveries in monetary terms), Italy (24.69%), and Turkey (7.95%).

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MHP TO EXPAND SHARE OF EXPORT EARNINGS TO 70% IN THREE YEARS

Myronivsky Hliboproduct (MHP) plans to increase the share of export revenues in total sales to 70% in future from 55% in the first half of 2018.
“We intend to increase exports … After the launch of all capacities, exports could reach 70%. This is the prospect for the next three years,” Viktoria Kapeliushna, the company’s finance director, told Interfax-Ukraine, noting that MHP exports not only chicken, but also grain and vegetable oil.
In addition, she confirmed the interest of MHP in purchasing new assets in other countries and reported the agricultural holding is considering several proposals.
Commenting on the impact of the external situation on the company’s plans, she noted the risk of expanding trade wars between the countries.
“The situation with the Turkish lira has not affected Ukraine so far. But we cannot say there won’t be influence at all, it depends on what will happen to other emerging markets. At present, it’s worth being more afraid of trade wars between the countries. This factor can indeed significantly affect the markets,” Kapeliushna believes.
Speaking about expectations for the near future, the financial director of MHP reported that the agroholding maintains its forecast for the growth of EBITDA in 2018 compared to 2017 by 5%, to $490 million.

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EXPORT OF FRUITS AND BERRIES FROM UKRAINE CONSTRAINED BY NON-COORDINATION OF BIOSECURITY MEASURES WITH IMPORTERS

The inconsistency of Ukraine’s biosecurity measures with those of the importing countries hinders exports of fruits and berries from Ukraine, the Ukrsadprom association has stated.
According to a press release of the association, today, unlike the main exporting countries, Ukraine demonstrates sharp fluctuations in the volume of exports and instability of supplies.
“For comparison, in recent years exports of fruits and berries from Poland exceed $1 billion, while for Ukraine this volume reaches $150-200 million, so Ukraine exports six times less fruit and berry products than its European neighbor,” the report says.
The association is convinced that the coordination of mutual recognition of biosecurity measures will allow establishing trade, ensuring the social and economic development of Ukraine, stimulating the development of the horticulture and berry-growing sector in Ukraine and help attract investments in long-term agricultural and infrastructure projects.
To solve the problem of biosecurity measures inconsistency, Ukrsadprom appealed to First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv with the request to instruct his ministry, the Ministry of Foreign Affairs, the State Service of Ukraine for Food Safety and Consumers’ Rights Protection to coordinate the mutual recognition of biosecurity measures with the potential importing countries for exports of fruits, berries, as wells as planting stock.

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UKRAINE RAISES EXPORT OF ELECTRICITY, TOP BUYERS ARE HUNGARY, SLOVAKIA, ROMANIA, POLAND, MOLDOVA

Ukraine in January-July 2018 increased electricity exports by 3.1% compared to the same period in 2017, to 3.626 billion kWh, the Ministry of Energy and Coal Industry has told Interfax-Ukraine. The supply of electricity from the Burshtyn TPP energy island towards Hungary, Slovakia and Romania rose by 14.2%, to 2.296 billion kWh.
Electricity deliveries to Poland were up by 15.6%, to 831.9 million kWh.
Electricity deliveries to Moldova totaled 498.9 million kWh, which is 36.7% less than in January-July 2017.
Ukrainian electricity was not exported to Belarus and Russia in January-July 2017 and 2018.
At the same time, in July 2018 exports of Ukrainian electricity amounted to 491.248 million kWh, which is 38.4% more than in July 2017.
In addition, Ukraine for the first seven months of this year imported 20.436 million kWh of electricity.

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UKRAINE EXPORTS AGRARIAN PRODUCTS WORTH $8.6 BLN IN H1, 2018

Exports of Ukrainian agrarian products in January-June 2018 amounted to $8.6 billion compared to $8.7 billion in the same period last year.
According to a press release of the Ministry of Agrarian Policy and Food, for the first half of the year the leaders of Ukrainian agrarian exports were grain crops with a share of 36.8%, vegetable oils with 26.2%, and oilseeds with 7.5%.
“Over the six months of this year, the following commodity groups showed the highest growth rates of exports: poultry eggs by 2.1 times (by $27.7 million), apples, pears and quince by 5.3 times ($6.7 million), legume vegetables by 58.3 times (by $11 million), butter and other fats made from milk by 65.2% ($29.2 million) and others,” Deputy Minister of Agrarian Policy and Food on the issues of European integration Olha Trofimtseva said.
According to her, the regional structure of Ukrainian agrarian exports has not changed: Asia countries rank first with a share of 43.2%, the European Union ranks second with 30.4%, and Africa ranks third with 14.6%.
“The top five of our largest customers in 2018 are headed by India, where agricultural and food products were exported for more than $1 billion. Egypt followed with $575.9 million, China with $526.6 million, the Netherlands with $525.3 million, Spain with $470.3 million,” the deputy minister noted.

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