Business news from Ukraine

UMANPYVO ENTERS BELARUS MARKET

Umanpyvo (Uman beer) LLC (Uman, Cherkasy region), the local producer of beer and soft drinks, will begin exporting its products to Belarus, and the first batch of 21.5 tonnes of products will be delivered in April.
“The first 21.5 tonnes of products will be delivered in April. We are constantly expanding the geography of exports. However, we only cooperate with partners who do not require changes in the recipe and increase expiry date of our products, as this contradicts the principles of Umanpyvo,” the company reported in a press release, citing the company’s CEO Ihor Kysil.
According to the company, Umanpyvo is trying to find new partners, negotiate, adapt packaging to the requirements of legislation of specific countries, and obtain all the necessary certificates during the quarantine period because of coronavirus (COVID-19) pandemic.
Now the company is negotiating with potential new partners from Kazakhstan, Latvia, Lithuania, Estonia, Georgia, Armenia, Germany, the United States, Canada, and also plans to expand its participation in the markets of Poland and Israel.
Umanpyvo representatives said that the company began to enter foreign markets in 2018. During this time, point deliveries were provided to ten countries, as well as regular export to Poland and Israel.
Umanpyvo (Uman beer) is a Ukrainian local producer of beer, cider and soft drinks with a closed production cycle.
Uman Brewery was founded in 1878.

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UKRAINIAN OVOSTAR ENTERS ISRAELI MARKET

Ovostar Union, a leading egg and egg products manufacturer in Ukraine, supplied 466,000 eggs or 40 tonnes to Israel in April, which is 0.003% of its monthly production volume, the company’s press service has told Interfax-Ukraine.
“Israel is a country with high requirements for safety and quality of food, and we are proud that our products passed the control of the Israeli veterinary service, and we have the opportunity to supply eggs to this market. Israel is currently experiencing a shortage of this product, and, in addition to Ukraine, buys eggs in other European countries. On April 1, 2020, the Israeli Veterinary Service allowed producers of table eggs from Ukraine to export them to the country,” the company said.
Ovostar Union said that the company has been consistently implementing its export development strategy since 2015. Ovostar products are delivered to 55 countries, including to the markets of the EU, the Middle East, Southeast Asia and Africa. The export volume in 2019 amounted to an average of 43 million units per month, in 2018 – 48 million units per month.
Ovostar, citing the State Statistics Service, reported that the production of industrial eggs in Ukraine is growing annually, and in January-February 2020, egg production by specialized enterprises increased 8.6% compared to the same period in 2019.
“At the same time, the volume of the domestic market, taking into account the significant share of eggs collected by households, remains almost unchanged. The egg is one of the key export goods of the agricultural sector of Ukraine. With an average monthly production of 780 million pieces by poultry farms in general, 190 million eggs are exported, making our country one of the key players in the global egg industry,” the company said.
Speaking about the company’s work during the coronavirus disease (COVID-19) pandemic in Ukraine, Ovostar said that since the introduction of quarantine restrictions, the company, despite the additional costs of ensuring sanitary standards at enterprises, exchange rate fluctuations and rising cost of feed, has not changed selling prices for packaged products delivered to retail chains.

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QUOTES OF INTERBANK CURRENCY MARKET OF UKRAINE (UAH FOR 1 USD AND 1 EURO, IN 02.03.20- 31.03.20)

Quotes of interbank currency market of Ukraine (UAH for 1 usd and 1 EURO, in 02.03.20- 31.03.20)

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CIGARETTE MARKET IN UKRAINE FALLS BY 15% IN 2019 – OPINION

Ukraine produced 51 billion cigarettes in 2019, which is 15% less than in 2018, Country General Manager of Imperial Tobacco in Ukraine Rastislav Cernak has said.

“Compared to European countries, the decline in the volume of the cigarette market was indeed proceeding rapidly. According to our data, the market dropped by 15% compared to the previous year. In 2011-2017, the decline was less than what we observed in 2019,” he said in an interview with Interfax-Ukraine.

There are several objective reasons for the fall of the Ukrainian market, according to Cernak, including an increase in excise duty.

“In 2018, the excise tax on cigarettes increased 30%, in 2019 we had two increases – in January by 20%, and in July, by an additional 9%. A significant increase in excise tax led to an increase in the price of a pack of cigarettes, which caused growth in illegal trade,” he said.

The general manager of Imperial Tobacco in Ukraine said that over the past few years, the level of illegal trade has doubled. According to TNS Kantar research, in 2019, the level of illegal trade reached 7%. The upward trend has been observed since 2017.

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MARKET OF NEW PASSENGER CARS IN UKRAINE GROWS BY 8% IN 2019

The initial registration of new cars in Ukraine in 2019 increased by 8% compared to 2018, to almost 88,500 units, Ukrautoprom reports.
According to a press release on the association’s website, the market rose, despite the pressure exerted by the sharply increased imports of used cars and the legalization of cars with European registration.
As reported, with reference to data from Ukrautoprom, in 2018 the market of new passenger cars did not exceed the indicator of 2017, amounting to 81,800 units.
The leader in 2019 was the Renault brand with the registration of 14,603 cars (in 2018 it ranked second after Toyota with 8,722 cars), followed by Toyota with 12,570 registered cars (in 2018 it ranked first with 10,082 cars). KIA ranks third with 7,586 vehicles.
The top ten rating of 2019 also included Skoda with 6,231 cars, Nissan with 5,333 cars, Hyundai with 5,099 vehicles, Volkswagen with 4,675 cars, Suzuki with 2,614 cars, Mazda with 2,483 cars, and Peugeot with 2,366 cars.

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MARKET OF NEW COMMERCIAL CARS IN UKRAINE 6% DOWN

The initial registration of new commercial vehicles in Ukraine (including heavy vehicles) in January-November of this year decreased by 6% compared to the same period in 2018, to 10,800 cars, the Ukrautoprom association reports.
In November 1,007 new commercial vehicles were registered, which is ten units less than in November 2018, and 11% less than in October of this year.
Most often last month, like a year earlier, Renault cars were registered, whose sales grew by 30%, to 216 cars. Fiat ranks second with 142 cars with an increase of 14%, and Volkswagen ranked third, the registrations of which grew by 2%, to 89 units.
Ford ranked fourth (81 registered cars, up by 4%), and Mercedes-Benz ranked fifth, despite a 43% drop in registrations from November 2018, with 62 cars.
Belarusian MAZ vehicles lost 43% in registrations and occupy the seventh place of the November rating with 48 vehicles, Russian GAZ ranks 12th with 28 vehicles (down by 57%), and Ukrainian KrAZ ranks 14th (22 vehicles against 12 in November last year).
As reported, in 2018 the demand for new commercial vehicles in Ukraine increased by 10%, to 12,700 units, while registrations of imported used cars increased by almost a quarter, to 38,800 units.
According to the statistics data of Ukrautoprom, in November 2019 some 186 buses (all classes) were also registered for the first time in Ukraine, which is 4% more than in November last year and 3% less than in October 2019.

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