Business news from Ukraine

UKRAINIAN USPA FRUIT AND USAID LAUNCHES PROGRAM FRUIT EXPANSION TO AFRICA AND MIDDLE EAST

First Ukrainian Apples Producers aggregation platform (USPA FRUIT) jointly with USAID Competitive Economy Program in Ukraine start a joint initiative entitled “the Fruits Expansion to the Countries of the Middle East and Africa,” under which Ukrainian fresh fruit producers will receive help to enter new markets. According to a press release of the USPA FRUIT platform, under the initiative trade and economic missions for companies-members of the platform to the Middle East and Africa will be organized. Ukrainian producers will also have access to market analytics, which in the future will help them conclude deals for the supply of fresh fruits (apples, cherries, blueberries), increase export sales and create new jobs.
“Establishing stable supplies will be preceded by a detailed study of the Middle East and Africa markets, which will help USPA FRUIT identify priority exports, develop and implement pricing and marketing policies for each country in the region, which in turn will create competitive entry and consolidation in these markets. Within the project, USPA FRUIT aggregation platform organizes trade and economic missions to Egypt, Qatar and the Kingdom of Saudi Arabia, what will help to establish program supplies of fresh fruits from Ukraine,” USPA FRUIT said.
Fresh fruits from the USPA FRUIT aggregation platform have been presented in the UAE market for three years already, but there are still many opportunities for development within the markets of the Middle East and Africa.

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T.B.FRUIT OCCUPIES 10% OF WORLD JUICE MARKET IN 2019

The T.B.Fruit group of companies, the largest fruit and berry processor in Ukraine, in 2019 occupied 10% of the world juice market, increasing its share, founder of T.B.Fruit Taras Barschovsky has said.
“It was 8-9% [the share in the world juice market in 2018], depending on the season and consumption. In August, we launch a new plant in Poland, the share will increase significantly,” he told Interfax-Ukraine.
According to Barschovsky, after the launch of the plant in Poland, the group’s share in the world juice market will increase to 12-14%.
According to him, in 2019 T.B.Fruit increased juice production compared to 2018 by 10%.
As reported, T.B.Fruit on May 30, 2019 announced the start of construction of the eighth plant of the fruit and berry processing group in Brzostowiec (Poland), investments in which will amount to EUR45 million.
According to the group, its capacity for processing apples will amount to 300,000 tonnes, strawberry 10,000 tonnes, cherry some 6,000 tonnes, raspberry some 12,000 tonnes, and currant some 7,000 tonnes per year.
T.B.Fruit is a vertically integrated international group of companies with a closed production cycle (growing raw materials, processing, transportation).
The group of companies was created in July 2011 after combining all the assets of businessman Taras Barschovsky.

PARLIAMENT CUTS EXCISE DUTIES ON FRUIT, BERRY WINES – UKRSADVYNPROM’S HEAD

Ukraine’s Verkhovna Rada has passed an amendment to the Tax Code, according to which the excise duty on fruit and berry wines is reduced to UAH 0.01 per liter, Head of the Ukrsadvynprom association Volodymyr Pechko has said. “The Verkhovna Rada reduced the excise duty on fruit and berry wines and equated it to the excise duty on grape wines. Previously, it was equated with liquor and vodka products. This industry was dilapidated when there was ‘draconian’ legislation. And now the conditions are optimal to resume production of fruit and berry wines,” he told Interfax-Ukraine. According to a comparative table, the tax rate on non-sparkling wines with 1.2-15% ABV will be UAH 0.01 per liter.
According to the head of Ukrsadvynprom, the parliament also agreed on changes, according to which, new producers of wine products will be considered the fourth group of taxpayers using the simplified taxation system.
As reported, the Cabinet of Ministers has increased government support for hop growing, laying of young gardens, vineyards and berries, from UAH 300 million in 2018 to UAH 400 million in 2019.
According to Pechko, this increase in state support is advisable, since in 2018 the industry will use all the allocated funds. “At the summer meeting the budget allocation committee of the Ministry of Agrarian Policy and Food allocated compensation only for planting material, and at a meeting in autumn refrigerators, shock freezing and sorting lines (except seedlings) will also be reimbursed for. Virtually all funds for gardening will be used,” he explained.
At the same time, the head of Ukrsadvynprom noted that to develop the industry, it is necessary to spend more funds on product processing. “We need to finance not only planting, but also processing, sorting and storing fruits and berries. In particular, funds should be allocated for processing – refrigerators, blast chilling chambers for berries, processing into new products – apple chips, dried goods, grape and fruit wine,” Pechko said.
He added that an increase in processing volumes in future will help fruit and berry producers in the years with large harvests. “This year the price of products of further processing – raspberries, currants, apples – has fallen. Purchase prices for apples, for example, at the plants were UAH 0.52/kg, raspberries some UAH 10-12/kg. This is a very low price, considering harvesting costs. The reduction in excise tax on fruit and berry wine will enable enterprises to process their products themselves,” the expert said.
As reported, the Verkhovna Rada redirected UAH 1 billion from the programs of state support for the agro-industrial complex to the Regional Development Fund. The total amount of state support for agriculture will be about UAH 6 billion. According to information on the website of the Ministry of Agrarian Policy and Food, as of November 16 some 35.8% of state support for the agro-industrial complex had been used. Out of UAH 300 million provided for hop growing and gardening, some UAH 101 million has been used.

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PARLIAMENT CUTS EXCISE DUTIES ON FRUIT, BERRY WINES TO UAH 0.01 PER LITER – UKRSADVYNPROM’S HEAD

Ukraine’s Verkhovna Rada has passed an amendment to the Tax Code, according to which the excise duty on fruit and berry wines is reduced to UAH 0.01 per liter, Head of the Ukrsadvynprom association Volodymyr Pechko has said. “The Verkhovna Rada reduced the excise duty on fruit and berry wines and equated it to the excise duty on grape wines. Previously, it was equated with liquor and vodka products. This industry was dilapidated when there was ‘draconian’ legislation. And now the conditions are optimal to resume production of fruit and berry wines,” he told Interfax-Ukraine.
According to a comparative table, the tax rate on non-sparkling wines with 1.2-15% ABV will be UAH 0.01 per liter.
According to the head of Ukrsadvynprom, the parliament also agreed on changes, according to which, new producers of wine products will be considered the fourth group of taxpayers using the simplified taxation system.
As reported, the Cabinet of Ministers has increased government support for hop growing, laying of young gardens, vineyards and berries, from UAH 300 million in 2018 to UAH 400 million in 2019.

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UKRAINE INCREASES FRUIT AND BERRY EXPORTS BY 40%, MAIN SALES MARKET REMAINES EU

Ukraine in January-September 2018 exported fruits and berries in the amount of $157 million, which is 40% more compared to the same period last year. According to the Ukrsadprom association, the main products in this group were walnuts, which were delivered for $69 million, frozen fruits and berries worth $61 million, apples and pears for $10 million.
“The growth in exports of walnuts (from 13,000 tonnes in the first nine months of 2017 to 20,000 tonnes in the same period of the current year), apples and pears (from 9,000 tonnes to 29,000 tonnes respectively) was the most notable in natural terms,” according to the website of the association.
The main sales market remained the European Union, supplies to which bring about two-thirds of all foreign exchange earnings. In January-September 2018 the largest purchases of fruits were made by Poland ($32.3 million), France ($11.7 million), Belarus ($10.9 million), Turkey ($10.6 million), the Netherlands ($8.8 million), Germany ($7.4 million), and Italy ($7.2 million).
“If not to take into account imports of exotic fruits to Ukraine (mainly citrus fruits and bananas), for the three quarters of 2018 the surplus of foreign trade in fruits and berries reached $75 million,” the association said.
Ukrainian apples are exported to more than 50 countries, while they are mainly purchased by Belarus (43%), Moldova (20%), and Sweden (10%).

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MAIN BUYERS OF UKRAINIAN FRUIT AND BERRY – POLAND, FRANCE, TURKEY, BELARUS, GERMANY, EXPORT EQUALS TO $100 MLN IN H1

Ukraine in the first half of 2018 exported fruit and berries worth $100 million, which is 59% more than in the same period of 2017. According to the Ukrsadprom association, the main products in the structure of exports remain walnuts worth $64 million, frozen berries for $23 million, apples and pears for $8 million. “Compared with last year, the volume of walnut exports increased from 12,000 to 19,000 tonnes, apples and pears from 6,000 to 24,000 tonnes, while the deliveries of frozen berries decreased slightly from 17,000 to 14,000 tonnes,” the report says.
The main buyers of Ukrainian gardening products, according to the association, are the countries of the European Union, which account for more than 60% of the value of exports.
“In the six months, the largest fruit supplies in monetary terms from Ukraine were made to Poland for $11.2 million, France for $9.9 million, Turkey for $9.3 million, Belarus for $8 million, Germany for $5.1 million, Greece for $5 million and the Netherlands for $4.7 million,” the report says.
As noted, Ukrainian apples are mostly delivered to Belarus (46% of the value of supplies), Moldova (21%), and Sweden (10%).

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