Business news from Ukraine

HARVEST OF GRAIN IN UKRAINE IN 2019 COULD RAISE TO 71.8 MLN TONNES

The harvest of grain and leguminous crops in Ukraine in 2019, according to preliminary data from the regions, could reach 71.8 million tonnes, which is 1.7 million tonnes more than in 2018, the Ministry of Agrarian Policy and Food has reported. According to the agency, wheat production may increase by 3.5 million tonnes, to 28.1 million tonnes, the yield of barley by 1.6 million tonnes, to 8.9 million tonnes, oats by 26,000 tonnes, to 444,000 tonnes, millet by 84,000 tonnes, to 165,000 tonnes.
At the same time, the ministry expects the reduction in the harvest of corn by 3 million tonnes, to 32.8 million tonnes, peas by 203,000 tonnes, to 572,000 tonnes, rye by 60,000 tonnes, to 333,000 tonnes, buckwheat by 52,000 tonnes, to 85,000 tonnes, rice by 6,000 tonnes, to 63,000 tonnes.
In addition, the forecast for rapeseeds in 2019 was raised by 472,000 tonnes, to 3.2 million tonnes, for sunflower seeds decreased by 589,000 tonnes, to 13.6 million tonnes, soybeans by 827,000 tonnes, to 3.6 million tonnes.
The Ministry of Agriculture expects that 9.8 million tonnes of sugar beets will be harvested, which is 4.2 million tonnes less than in 2018.
The forecast for potato was reduced by 2.2 million tonnes, to 20.3 million tonnes, vegetables by 575,000 tonnes, to 8.9 million tonnes.

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GRAIN HARVEST IN UKRAINE COULD HIT RECORD OF 80 MLN TONNES

Deputy Governor of the National Bank of Ukraine (NBU) Dmytro Sologub has said that grain harvest in Ukraine this year could reach 80 milion tonnes compared with 70.1 million tonnes in 2018. “This year, grain crops harvest in Ukraine could hit a record of 80 million tonnes, and this is not a coincidence, not a factor of favorable weather conditions, but rather an increase in the effectiveness of the agricultural sector, which has invested a lot in updating machinery and technologies in recent years,” the NBU said in a message on its Facebook page citing the deputy NBU governor.
In addition, according to Sologub, 80 million tonnes of grain is not the limit, and land reform can contribute to a significant increase in crop yields in the coming years.
As reported with reference to the Ministry of Agricultural Policy and Food, this year the harvest in Ukraine may reach 71.1 million tonnes (of which wheat – 27.8 million tonnes) compared to 70.1 million tonnes in 2018.

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BAYADERA GROUP CUTS GRAPE HARVEST BY 16%

Bayadera Group, one of the largest alcohol companies in the Ukrainian market, finished the grape harvesting season in Koblevo (Mykolaiv region), harvesting over 10,500 tonnes, which is 16% lower than 2018, the press service of the group has said.
According to the report, this year they harvested 400 tonnes of grapes per day, which is a record for Koblevo.
“Summer 2019 was not very favorable for Ukrainian winegrowers – dry and hot without rain – not typical for the Black Sea coast. However, the advantage of the current harvest is not quantity, but quality: thanks to the dry season, the entire crop is fully ripe and this will influence the quality of the wine,” the group said.
About 70% of grapes was harvested by hand, for the Select i Reserve wine lines, 270 people were involved in selective harvesting. Now the grape processing season is passing, after ripening in the winery, wine, starting in January 2020, will be on shelves.
In Koblevo, the Bayadera Group on the territory of more than 2,000 hectares grows 16 European and local varieties of grapes.
Bayadera Group was established in 1991. The company owns such assets in the alcohol industry as distribution companies and alcohol production facilities in Ukraine and Belarus. It produces wine, vermouth and cognac and is the exclusive importer of international alcohol brands in Ukraine.
The main trademarks are Persha Gildiya, Kozatska Rada, Hlibny Dar, Koblevo, Marengo, and others.
Its owners are Natalia Bondareva and Sviatoslav Nechytailo.

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UKRAINE’S AGRICULTURAL POLICY AND FOOD MINISTRY REVISES UPWARDS FORECAST FOR GRAIN HARVEST TO 71.1 MLN TONNES

Ukraine’s Agricultural Policy and Food Ministry has revised upwards its forecast for grain harvest in 2019 from 70.8 million tonnes to 71.1 million tonnes, the ministry reported on its website. The wheat production will total 27.8 million under the ministry’s forecasts.
According to the ministry, in September the ministry and market participants will decide on acceptable balance of grain exports and will sign a memorandum of understanding over the volume of grain exports in 2019/2020 agricultural year.
“The main document of the memorandum, the so-called agreement of understanding for 2019/2020 agricultural year, will be sent to all participants of the grain market before the end of this week,” the ministry said.
As reported, Agricultural Ministry and grain market participants in August 2018 memorandum envisaged 16 million tonnes of wheat export for 2018/2019 agricultural year against 16.5 million tonnes envisaged for a previous marketing year.

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APPLE HARVEST IN UKRAINE COULD FALL BY 30% OVER WEATHER CONDITIONS

The fruit and berry harvest in Ukraine this season could fall by 25% compared with the previous one due to unfavorable weather conditions, Chairman of the Ukrainian Association of Agrarian Export Dmytro Kroshka has said.
“The upcoming season will definitely become less fruitful compared to the previous one. We can see a 25% decline in production at industrial farms of pome, stone fruit and berry crops that are traditionally grown in Ukraine. Manufacturers complain of the rainy spring, dry summer, hail due to rapid temperature changes. There are still two months ahead, which, due to weather conditions, will be, like a lottery, for producers of pome crops,” he said at a press conference at Interfax-Ukraine.
According to Kroshka, the harvest of apples in Ukraine in the current season from industrial producers can fall by 30%.

“If in 2018 we collected 655,000 tonnes of apples of different quality and different varieties, today we expect a total harvest of 460,000 tonnes, which will definitely have an impact on the entire market and the production of derivative products,” the head of the association said.
In 2018, industrialists harvested 45,000 tonnes of stone fruit crops, this year the harvest could be about 38,000 tonnes.
“We expect a decline in the production of traditional berry crops in Ukraine due to weather and climatic conditions from 26,000 tonnes to 23,000 tonnes. At the same time, due to the start of fruiting of significant areas with blueberry, the production of this crop will be increased. Last year, we collected about 3,000 tonnes of this crop, this year we will reach 4,000 tonnes, which is significant for the Ukrainian market, and we predict that by the results of the next marketing year we will see export growth,” Kroshka said.

He said that it would be logical against this background to increase prices for the entire range of fruit and berry products made in Ukraine. The most tangible may be an increase in the price of apples, while the price of blueberries may remain stable or even decline. At the same time, the ratio of high and low quality of the harvested fruit and berry crops in the production structure remains unknown.
Kroshka also said that in the 2018/2019 season, Ukraine’s exports of apples increased 1.6 times, to 55,600 tonnes thanks to the demand for Ukrainian apples, at the same time, export of pears decreased 41%, to 434 tonnes.
Ukraine increased the export of walnut for this period by 45%, to 48,500 tonnes and this figure will continue to grow thanks to the entry into the fruiting of the nut trees, the area under which is expanding from year to year.
The head of the association said that a reduction in the export of stone fruit crops (cherry varieties, plums) is influenced by the lack of technology for presale preparation of products in terms of cooling, packaging of products. In addition, exports are constrained by undeveloped logistics for the supply of fresh stone fruit products.
“We have a serious drop in plum exports [from 8,000 tonnes to 133 tonnes]. This is due to the fact that the main market for Ukrainian plums was the EU, where last season local producers had large production volumes. Ukrainian producers were not able to compete with European and sold plums mainly in the domestic market,” Kroshka said.
According to him, the export of berry crops (strawberries, raspberries, blueberries) decreased in the season 2018/2019, which is due to the insufficient provision of presale preparation for fresh crops.

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UKRAINIAN ASSOCIATION OF AGRARIAN EXPORT TO CONDUCT PRESS CONFERENCE “RESULTS OF EXPORTS OF FRUITS AND BERRIES IN 2018-2019. FORECAST FOR HARVEST”

On Tuesday, July 9, at 10.00, the press center of the Interfax-Ukraine news agency will host a press conference entitled “Results of Exports of Fresh Fruits and Berries in 2018-2019. Forecast for Harvest (and Ukrainian Exports) for 2019-2020 Season.”
Participants: Dmytro Kroshka, the chairman of the Ukrainian Association of Agrarian Export, Volodymyr Hurzhiy, an expert for exports at First Ukrainian Apples Producers Aggregating Company USPA FRUIT, Oleksandr Yaschenko, the deputy director for research of the Institute of Horticulture, and Oleh Bosy, the agricultural technologist and managing partner of FruiTech (8/5a Reitarska Street). Registration of journalists requires press accreditation.

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