Ukraine in the 2022-2023 marketing year (MY) harvested 70 million tons of grain and managed to export two-thirds of the harvest planned for export even taking into account the record high transitional residues, Minister of Agrarian Policy and Food Mykola Solskiy said on air of the marathon “United News”.
“Last year we harvested only about 70 million tons. All that we planned to take out, we took out. This is about two-thirds. We have transitional residues by the beginning of July – several million tons. If we compare it with the transitional residues last year, it is several times less – it was 22 million tons then. This is due to the fact that we were not traveling for a couple of months and had a huge harvest in 2021,” he explained.
Solsky recalled that in May in the Ministry of Agrarian Policy predicted that this year’s grain harvest will be 10% lower than last year. However, now the expectations have changed and the Ministry expects that the grain harvest will be less by about 6% due to favorable weather conditions.
“Agrarians have decided to sow corn not in the same volume (as before – IF-U), but to sow more sunflower and soybeans. It can be the same income in money, but the logistics costs are less and it is necessary to deal with it less, because conditionally the yield of corn per hectare is two to three times higher than that of soybeans and sunflowers,” the minister explained.
Solsky noted that farmers are not accustomed to difficulties and expressed confidence that Ukrainian farmers will cope with the challenges that constantly arise before them.
The minister called the main problem of Ukrainian farmers not difficulties with the realization of the produced products, but with the price for them.
“In the coming months, the work of everyone related to the state authorities will be related to the fact that they (agrarians – IF-U) will be able to sell expensively. This has to do with reducing logistics costs, with expanding opportunities, where it can go, to which countries to sell,” he summarized.
Transit of Ukrainian grain through Poland is steadily growing: if in February it was 114 thousand tons, in June it exceeded 260 thousand tons, Polish Minister of Agriculture and Rural Development Robert Telusz said after online talks on Wednesday with Ukrainian Minister of Agrarian Policy Mykola Solskiy.
“This is very good news for agrarians, because grain from Ukraine does not enter the Polish market,” the Polish minister was quoted as saying in a tweet and on the ministry’s website.
At the same time, he said he saw a chance for the European Commission to extend the decision to ban Ukrainian grain exports to Poland after September 15, blaming both those in power in the EU and the Polish opposition for trying to destabilize Poland.
“It is in our interest to protect the Polish farmer. That is why a clear statement was made by Prime Minister Morawiecki that Ukrainian grain will not enter Poland after September 15,” Telusz reiterated.
According to him, the Polish side wants the so-called “solidarity corridors” to work effectively, which would allow for efficient transportation of Ukrainian goods without harming the Polish agricultural sector.
A press release from the Polish ministry indicates that to this end Telusz proposed measures to facilitate the transit of Ukrainian grain to seaports in various EU countries, in which Solsky was interested, but no other details are available and the Ukrainian ministry has not officially commented on the talks.
The Polish Ministry of Agriculture said that the Ukrainian side will also present a draft of detailed solutions in the near future. “He (Solsky – IF-U) explained that Russian missile strikes on Ukraine’s port infrastructure have put Ukrainian exporters in a very difficult situation. Now they will have to organize grain exports via other routes,” the release said.
Telush informed about ongoing negotiations with Lithuania and Latvia on the use of their ports for grain exports from Ukraine. “These negotiations are going in the right direction,” the minister added.
According to him, Poland has managed to significantly increase grain exports through its four main ports this year. In particular, if in January it amounted to 299 thousand tons, in February – 539 thousand tons, in March – 628 thousand tons, in April – 704 thousand tons, in May – 882 thousand tons, and in June – almost 940 thousand tons.
Poland exported more than 4.5 million tons of crops in 4 months of this year, stated Telusz.
It is noted that the ministers also raised the issue of access of Polish poultry products and eggs to the Ukrainian market, and currently the veterinary services of both countries are working intensively to resolve this issue.
The Polish Ministry of Agriculture pointed out that Ukraine is an important partner of Poland in agri-food trade. In 2022, an increase in agricultural exports to the Ukrainian market by 16% to $945.3 million was recorded. The main export items were: cheese and cottage cheese, products used for animal feed, and coffee. In April 2023, exports of agricultural products to the Ukrainian market increased by more than 35% compared to the same period in 2022, the release added.
The rental rate of grain and flour wagons of conditional type 972, owned by JSC “Ukrzaliznytsia”, from August 1 will increase by 100 UAH compared to July and will amount to 400 UAH/day (excluding VAT), according to the company’s website.
According to the report, the daily fee for the use of Ukrzaliznytsia’s mineral wagons for the transportation of grain cargoes next month will decrease from UAH 1,500 in July to UAH 1,300, and in the case of the use of cement wagons for these purposes will increase from UAH 500/day to UAH 600/day.
The rate of payment for the use of tank cars for transportation of food products in August will decrease from 1700 to 1500 UAH/day.
The gondola car rental rate will increase to 1400 UAH/day next month (1300 UAH/day in July).
On September 15, Kyiv will host the business forum “Grain. Pigs. Meat – 2023”. This is an unprecedented event that will bring together the grain business, pig farming and meat industry to overcome the consequences of the war. This is an event where the possibility of increasing the profitability of crop production will be substantiated, where real tools for obtaining added value will be presented, where an alternative to grain exports will be justified and why pig production will save the grain market of Ukraine!
The main goal of the forum “Grain. Pigs. Meat – 2023” forum is to prevent losses in crop production due to the blocking of grain exports and to create added value of more than 200% from the implementation of the intersectoral program “New Pig Production 2025”.
Also, within the framework of the business forum “Grain. Pigs. Meat – 2023” business forum, a specialized exhibition Meat Industry Expo-2023 will be held, where you will be able to present and get acquainted with modern solutions from feed production, pig keeping and breeding to meat processing and trade. The exhibition will be open throughout the day of the forum.
So, if you don’t want to miss this unique opportunity to communicate with leading experts, manufacturers and suppliers of advanced equipment, pig genetics, producers and meat processors, as well as learn about current trends, financial and technical opportunities to start a new business or scale an existing one in pig production, you should visit the business forum “Grain. Pigs. Meat – 2023”.
The forum will be held on September 15, 2023 in Kyiv, Golf Center Kyiv (20 Obolonska embankment).
The forum is organized by the Meat Industry Association, the Center for Efficiency Improvement in Livestock Production and Agro Marketing Agency.
Forum partners: Cofarming Ukraine, Eurofeed, Topigs Norsvin.
The forum is for you if you:
– Aiming to jump out of raw material production
– A grain producer who does NOT want to give grain at cost price
– You are engaged or want to engage in pig production, but do not know how
– You want to process meat or already process it, but dream of your own pig farm
– Want to scale up your existing pig business
– Looking for or providing financing
– You can share your experience and present equipment
– A bioethanol producer who wants to double profits on production waste
– Decided to expand the range of products and markets
– A supplier who wants to expand its customer base
– Planning to diversify your business
– Aiming to create added value
The main topics of the forum
– Prospects of Ukraine in the world pork market
– State and prospects of development of pig breeding and meat industry of Ukraine
– Analysis of grain market development through the prism of pig production
– Presentation of a model for replacing grain exports with exports of meat and value-added meat products
– Prevention of ASF as an incentive for the development of pig farms
– Real benefits in the “grain and meat products” chain from the implementation of the intersectoral program “New Pig Production 2025”
– Biofuels and animal husbandry: smart synergy – big profits
– Financing of pig production: available loans, grants, investments
– Investment opportunities of the New Pig Production 2025: benefits for grain producers and future pig producers
– The lowest cost of Ukrainian pigs in the world now and forever
– Feed production: an underestimated area of grain processing
– Effective technologies in pig and meat industry
– Quality, safety and certification of meat products
– Modern technologies for producers and processors of meat products
– Modern pig genetics and feeding
The conference will also include a specialized exhibition “Meat Industry Expo”
Preliminary program*.
9:00-9:30 Registration. Welcome coffee.
Permanent exhibition “Meat Industry Expo”
9:30-10:00 Opening of the conference. Greetings of the organizers and partners
10:00-12:00 Session 1: Development of the pig industry in the conditions of war. The role of the government and business efforts
12:00-12:30 Coffee break
12:30-14:00 Panel discussion “How grain producers can earn 200% on pig production”
14:00-15:00 Lunch
15:00-16:00 Round table discussion “Bioethanol and livestock or how to get 400% profit from the right synergy”
16:00-16:30 Coffee break
16:30-17:30 Discussion “New pig production = Precision pig production. Cost, profitability, profit, investments”
17:30-18:00 Summarizing the results. Closing of the conference
18:00 – 20:00 Friendly dinner, free communication, golf game
* The program is subject to change, please follow the announcements and updates on the conference website – https://meatindustry.com.ua
Registration is required at the link – https://forms.gle/ksfdAwGFnptzP3wv7
*Accommodation is not included in the participation fee and is to be provided by the participants themselves.
For participation, sponsorship, advertising, presentation, please contact the conference coordinators:
Sponsorship and participation
Agro Marketing Agency
Svyatoslav Tkachenko
+38(063)357 73 59
market@agromarketing.com.ua
Participation in the exhibition and partnership
Association of “Meat Industry”
Vladyslav Kachmar
+38(068)500 30 04
2023@meatindustry.com.ua
Interfax-Ukraine is a media partner
The Russian Federation’s attack on the Danube port of Reni on the night of July 24 has led to a significant increase in freight rates for the transportation of grain and oilseeds by barges from the ports of Reni and Izmail (both in Odessa region) to Constanta (Romania), freight for transportation by coasters has increased significantly, the press service of the Ukrainian Grain Association (UGA) reported.
According to the report, as of June 27, 2023, freight rates for transportation of corn and wheat, rapeseed and barley by barges to the Romanian port increased by EUR8/tonne – to EUR38/tonne and EUR43/tonne respectively. At the same time, freight for transportation of granulated sunflower meal increased by EUR7/ton – up to EUR45/ton.
Besides, freight rates for wheat and corn transportation by coasters from Reni and Izmail ports to Crete increased by USD4-6/tonne – up to USD42-44/tonne, to Israel and Eastern Mediterranean – by USD3/tonne, to USD48-50/tonne and USD43-45/tonne respectively, to the east coast of Italy – by USD2-5/tonne to USD50-53/tonne, to the east coast of Greece – by USD2-3/tonne to USD39-40/tonne. Rates for grain transportation to Spain increased by USD1-4/ton to USD56-59/ton.
At the same time, UZA noted that shipowners demanded payment of additional military insurance premium for shipments to Spain, Israel and the eastern coast of Italy.
According to its data, freight on transportation of rapeseed meal by coasters from Reni and Izmail ports to Spain increased by USD2-5/tonne to USD77-80/tonne, granulated sunflower meal to Marmara by USD3-4/tonne to USD43-44/tonne, non-granulated by USD3/tonne to USD48/tonne.
“At the beginning of the week, amid mass anxiety, some shipowners refused to provide their vessels to call at Sulina (Romania), but later returned to fulfill their obligations,” UZA stated.
Kernel Agroholding, one of the largest in Ukraine, processed 650.4 thousand tons of sunflower seeds in the fourth quarter of fiscal year 2023 (April-June), a 4-fold increase compared to the same period last FY.
According to the company’s report, processing was down 13% quarter-on-quarter, reflecting the usual sunflower seed shortage near the end of the season, which forced three of the group’s six operating plants to temporarily stop processing oilseeds in May-June.
“Two processing plants owned by the Group remain inaccessible in the high-risk area of the Kharkiv region with regular shelling by Russian occupiers,” the report states.
Overall, in 2023 FG processing grew by 15% to 2.51 million tons.
According to the report, vegetable oil sales in April-June 2023 increased by 14% quarter-on-quarter to 312,700 tons, including 21,000 tons of bottled sunflower oil, and the growth was fivefold compared to the fourth quarter of last year.
“The group continues to prioritize vegetable oil and meal exports over grain exports, given the more attractive margins in the oilseed processing value chain compared to grain export operations,” it said.
For the entire 2023 FY, sales reached 1 million 132.7 thousand tons, exceeding the previous FY by 17%.
It is pointed out that Kernel’s silo loadings in the fourth quarter of FY 2023 were seasonally insignificant at 98,000 tons, 50% higher than the fourth quarter of last year. As a result, total intake during FY 2023 was 2.83 million tons, down 32% from FY 2022.
According to the report, the transshipment volume of export terminals in Ukraine in April-June 2023 decreased by 13% quarter-on-quarter to 933.1 thousand tons, while there was no transshipment in the same period last year.
Overall for FY 2023, Kernel terminals transshipped 4 million 437.7 thousand tons of goods, 39% less than a year earlier, which the company attributed to failures in the grain deal.
“Russia terminated the grain deal on July 18, 2023. Thus, the Group’s future ability to export goods through Ukrainian Black Sea ports is unclear,” the report states.
“Kernel” recalled that on July 19, its assets in the port of “Chernomorsk” were subjected to a massive missile attack from Russia. As a result, grain transshipment facilities and grain stored in the port were significantly damaged. According to initial estimates, it will take considerable time to return the assets to operation.
According to the report, the group’s grain exports from Ukraine in the fourth quarter of FY 2023 amounted to 755,000 tons, down 8% from the previous quarter but 6 times higher than in the fourth quarter of FY 2022.
On a year-on-year basis, Kernel’s grain export volumes more than halved year-on-year to 3 million 833.2 thousand tons, the document specifies.
“Kernel” before the war ranked first in the world in the production of sunflower oil (about 7% of world production) and its export (about 12%), and was the largest producer and seller of bottled sunflower oil in Ukraine. In addition, the company was engaged in the cultivation of other agro-products and their sales.
Kernel’s net profit for the first nine months of 2023FY increased by 36% to $437 mln, while revenues fell by 45% to $2.715 bln.
