Business news from Ukraine

GERMANY’S BAYER LAUNCHES SEED PLANT IN UKRAINE FOR $200 MLN

Germany’s Bayer chemical concern has launched a seed plant in the village of Pochuiky (Zhytomyr region) for $200 million, Ukrainian President Petro Poroshenko has written on his Facebook page.
“Today on September 5 in Zhytomyr region, a new modern plant for the production of seeds of agricultural products of Bayer company was opened. These are 85 permanent and 220 seasonal jobs for Ukrainians. It is important that Bayer helps to solve social issues of the local community – supports the school and library, financed the construction of a new road and an outpatient clinic,” he wrote.
Poroshenko said that $200 million of investment funds were attracted for the construction of the plant.
“This is more evidence that Ukraine is an attractive country for international investment,” the president said.
Bayer is an international company specializing in life sciences, namely, health and agriculture. The company has been operating in Ukraine since 1992 in the form of Bayer LLC, is a major supplier of crop protection agents (pesticides, herbicides and fungicides) and seeds in Ukraine.

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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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TWELVE COMPANIES FROM GERMANY, POLAND, FRANCE, GREECE, AUSTRIA, ISRAEL AND OTHER COUNTRIES BID FOR CONSTRUCTION OF WASTE RECYCLING PLANT IN LVIV

Twelve companies from eleven countries have submitted bids for the construction of a waste recycling plant in Lviv, the press service of Lviv City Council said with reference to Lviv Mayor Andriy Sadovy. “These companies have the most extensive experience in the construction of waste recycling facilities in Europe and around the world. The commission will study each company’s background and the next stage is to select one of the companies,” the press service quoted Sadovy as saying.
According to the report, the examination of documents for the compliance with the qualification requirements will take 30 days after which a list of the companies admitted to the next stage of the tender will be made public.
The following companies submitted bids for the tender: Eggersmann Anlagenbau GmbH (Germany), Control Process S.A. (Poland), СМЕС (China Machinery Engineering Corporation, PRC); Ceres Group SAS (France), ECONOVA (JSC ECONOVA, Poland), HELECTOR S. A (Greece), M-U-T (Austria), JV EFACEC-TAHAL (Israel), Atzwanger AG (Italy), Axis-Waste Treatment Technologies (the Netherlands), RIKO, industrijski, gradbeni inženiring in leasing, d.o.o. (Slovenia), and 3B Hungaria (Hungary).
According to the tender requirements, the construction of the waste recycling plant with the capacity of 240,000 tonnes of garbage per year should take 24 months. After the launch, the winner of the tender will service the facility and train local specialists for a year.
On June 1, 2018, Lviv City Council and the European Bank for Reconstruction and Development (EBRD) signed an agreement on the issue EUR 35 million for the construction of the waste recycling plant and the rehabilitation of the Hrybovychi solid household waste landfill.

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GREAT BRITAIN, GERMANY, MIDDLE EAST REMAIN MOST POPULAR MARKETS FOR UKRAINIAN FRUIT AND BERRY, HARVEST TO GROW BY 10-30% THIS YEAR

The fruit and berry harvest in 2018 could exceed the last year figure by 10-30%, Chairman of the Ukrsadprom association Dmytro Kroshka has said. “With favorable weather conditions, gross harvest of pomaceous, drupaceous fruit, berries and nuts in industrial farms could reach the average figure of the past years – 400,000-500,000 tonnes. The 2018 harvest could exceed the last year figure by 10-30%,” he said at a press conference at Interfax-Ukraine on Tuesday. Weather is the main risk factor. Kroshka said that this year blooming this year is quick due to high temperatures and some fruit and berries are ripening quickly. In addition, simultaneous expansion of depredators, the high likelihood of hail and not enough moisture in soil (twice less) would also affect the volume of the harvest.
Director of the Berry Nursery Brusviana Liliana Dmytriyeva said that the Ukrainian market is specific. In particular, the share of berries planted at farms is from one third to one fifth, while the rest is planted in households.
“At present, the leader in planted areas in Ukraine is black currant – around 50% of all areas of agricultural companies. Strawberry occupies 20-24% of the market and raspberry – 13-14%. Areas with blackberry occupy 13% of total areas, according to the State Statistics Service, while other sources said that it is 24%,” Dmytriyeva said.She also said that areas with sea-buckthorn, honeysuckle and alpine strawberry are swelling. Leaders in production of berries of all types are Dnipropetrovsk and Donetsk regions, in production by agricultural companies – Vinnytsia, Volyn, Zhytomyr and Khmelnytsky regions. She said that the largest number of companies planting berries was created in these regions.
The new type of business is being developed in Ukraine: planting of berries “in tunnels.” “This allows preventing the influence of some cold factors and having early harvest. Berries “from tunnels” are more expensive than those planted in fields, but it allows placing Ukrainian products to the shelves of retail stores for a longer period of time,” the director of the Berry Nursery Brusviana said. The experts do not expect a significant reduction in prices in the market and among the main factors that may affect them, are: a significant increase in the area under berries, a rise in the price of crop protection products and fertilizers by almost 30% compared to 2017, as well as exports.
“The presence of competition, on one hand, should reduce the price, but on the other hand: there are natural negative factors that will affect the harvest. Most enterprises were not oriented to “fresh” or to domestic markets, so a significant increase in areas would not entail increased competition in the domestic market,”, Dmytriyeva said.
As for the supply of Ukrainian products abroad, Europe remains the most popular market.
“The most expensive and popular market is Europe, in particular, Great Britain, Germany, but to get to this market you need to incur certain costs for both fresh berries and frozen ones. Many enterprises plan to do this, but not everyone is ready,” she said.
In addition, Ukraine is also interested in the market of the Middle East. The market of neighboring countries, in particular, Belarus, is traditional.
In turn, the chairman of Ukrsadprom said that this marketing year, Ukraine exported apples to one of the new markets – the UAE.

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IFC, EU AND GERMANY TO FINANCE EUR 53 MLN FUND TO IMPROVE ENERGY EFFICIENCY IN UKRAINE

Ukraine, the International Finance Corporation (IFC), the European Union and Germany have signed an agreement on the establishment of a fund to improve energy efficiency in Ukraine, the Ukrainian Finance Ministry has reported on its website. “In accordance with the agreement, up to EUR 53 million of financing provided by the EU and Germany will be under the management of IFC at the initial stage,” the Finance Ministry said. The multi-donor fund with the Ukrainian Energy Efficiency Fund will jointly finance energy efficiency projects in apartment buildings in Ukraine and provide expert support for the development of the market, the Finance Ministry said.
According to Finance Minister Oleksandr Danyliuk, the project will contribute to the creation of about 75,000 new jobs for engineers, builders and workers in the energy sector.

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UKRAINE AND GERMANY PLAN TO HOLD BUSINESS FORUM

Ukraine and Germany have reached an agreement on holding a bilateral business forum in Ukraine in the near future, Ukrainian President Petro Poroshenko has said. “We’ve reached an agreement during the meeting with Federal Chancellor of Germany Angela Merkel and German Foreign Minister Heiko Maas on a strong German governmental delegation, which should visit Ukraine in the near future, to hold a powerful business forum,” Poroshenko said at a joint briefing with German Chancellor Angela Merkel in Berlin on Friday. The president also specified that Germany is one of the leaders in investing in Ukraine.
“Both the Chancellor and I are satisfied with the growth rates of mutual trade, which has increased by more than 20%,” Poroshenko added.

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