Business news from Ukraine


The cancellation by the UK of all duties and quotas on products from Ukraine to support it in the face of a military invasion by the Russian Federation may allow Ukrainian farmers to increase their presence in the UK markets of poultry meat, walnuts, honey, cranberries, blueberries and peas.
The list of high-margin agricultural products that Ukraine could supply to the UK at a time when the export of its traditional agricultural raw materials is blocked by the aggressor country of the Russian Federation was published on the website of the Ukrainian Agribusiness Club (UCAB) on Wednesday evening.
According to the results of 2021, agricultural products worth $553 million were exported from Ukraine to the UK, including sunflower oil (31% of export earnings), rapeseed (28%) and corn (24%). However, the supply of traditional agricultural crops in 2022 is difficult due to the naval blockade of Ukraine by Russian warships, as a result of which the country can potentially increase the export of a number of other agricultural products by road.
Ukrainian farmers, in particular, can focus their export efforts on the supply of poultry meat to the UK. The volume of its export in 2021 was 2,600 tonnes. The share of Ukraine of UK imports is 1%. Main competitors: the Netherlands, Poland, and Belgium.
The export of walnuts without shells is also promising. The volume of its export in 2021 was 0700 tonnes. The share of Ukraine of UK imports is 6%. Main competitors: the United States, Germany, and China.
According to the UCAB, Ukrainian farmers can increase honey exports to the UK (800 tonnes were delivered in 2021). The share of Ukraine of UK imports is 1%. Main competitors: China, Poland, and Mexico.
The export of cranberries and blueberries is also promising (supplies in 2021 – 200 tonnes). The share of Ukraine of UK imports is 0.3%. Main competitors: Spain, Peru, and Chile.
Ukraine exported 4,900 tonnes of peas to the UK in 2021, which amounted to 12% of the UK market in 2021. At the same time, Russia is Ukraine’s main competitor in this market, which, taking into account the economic sanctions imposed against it, adds an advantage to Ukrainian suppliers.
“Now the railways and seaports of neighboring countries are heavily loaded due to the export of grain crops, the volumes of which we have the largest. Therefore, to increase export earnings, we should focus on the export of goods that have a higher price with less weight and thus export by road,” UCAB cites a promising export model from its analyst Svitlana Lytvyn.

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Japan on August 2 lifted the ban on the export of Ukrainian poultry and eggs, introduced in December 2020 in connection with the spread of pathogenic avian influenza in Ukraine, according to a Wednesday posting on the website of the State Service for Food Safety and Consumer Protection.
“We are not only creating new export opportunities for Ukrainian companies, but also restoring access to foreign markets that were closed for one reason or another. Such closure decisions are usually made quickly, and it takes a long effort to convince partners to reopen the market. I am glad that we managed to convince the Japanese partners of the safety of Ukrainian products, and from now on Ukrainian companies can again export their products,” the authority said, citing Minister of Foreign Affairs of Ukraine Dmytro Kuleba.
The authority said that the Ukrainian side informed its Japanese partners in detail about the measures taken in Ukraine to combat outbreaks of avian influenza.

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Myronivsky Hliboproduct (MHP) sold 174,260 tonnes of poultry in October-December 2020, which is 10% more than in the same period in 2019.
According to the company’s report on the London Stock Exchange, poultry sales as a whole grew by 4% for the year, to 698,020 tonnes.
MHP clarified that poultry exports in the fourth quarter rose by 8%, to 94,710 tonnes, and in general for the year by 5%, to 373,730 tonnes.
According to the report, the average price of one kg of poultry last year (excluding VAT) decreased by 5% in hryvnias from 2019, to UAH 36.11, and in dollars – by 9%, to $ 1.34. In the fourth quarter, the average price was UAH 38.49, or $ 1.36, which, respectively, is 11% more and 5% less than in the fourth quarter of 2019.
“The 12-month 2020 average chicken meat price was UAH 36.11 ($ 1.34), which is 5% lower in hryvnia terms (9% less in dollars) compared to chicken price in 12 months of 2019, mainly driven by the product mix change in exports (significant decrease in sales of fillet to the EU and increased sales to MENA) and weaker prices on breast fillet in EU as many global competitors experienced reduced demand, which resulted in excess stocks,” the report says.
The company also clarified that Slovenian-based Perutnina and its production in Croatia and Serbia, whose figures will now be given separately as a European operating segment, sold 15,170 tonnes of chicken in the fourth quarter, which is 7% more than in the fourth quarter of 2019. In general, for the year its sales amounted to 63,010 tonnes against 59,800 tonnes in 2019, while prices for European chicken in the fourth quarter decreased by 6%, to EUR2.48 per kg, and for the whole of 2020 by 4%, to EUR2.52 per kg.
“After a temporary decrease in utilization of poultry production capacity in Q1 (by 10% from February to the end of March 2020 as a result of the avian influenza outbreak in Ukraine), since the beginning of Q2 all the company’s poultry production facilities have been operating at full capacity. There were several outbreaks of the avian influenza in Ukraine in December 2020, however, the company continued to export poultry meat to its major markets (except to the EU banned market). None of MHP poultry complex were affected with avian influenza by the time of pre-close trading update release,” according to the document.
“Poultry production volumes in Q4 2020 remained relatively stable, constituting 189,687 tonnes. In 2020 poultry production volumes were relatively stable and constituted 731,279 tonnes,” the company said.

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Imports of poultry meat from Ukraine into the EU countries (hereinafter excluding the United Kingdom) decreased in January-November 2020 by 18.1% compared to the same period in 2019, to 100,880 tonnes, however, the country retained the third place among top three exporters in this segment, according to a report on the website of the European Commission with reference to Eurostat.
According to it, in general, imports of these products into the EU for 11 months of 2020 amounted to 479,000 tonnes, which is 14.3% less than in 11 months of 2019.
Among other large exporters, Brazil reduced imports of poultry meat into the EU by 3.9%, to 213,010 tonnes, Thailand by 24.1%, to 124,520 tonnes, and China by 25.7%, to 15,430 tonnes.
Imports of poultry meat from the EU into Ukraine in January-November 2020 amounted to 134,740 tonnes, decreasing compared to the same period in 2019 by the same 18.1%. According to this indicator, Ukraine also ranked third.
In general, exports of these products from the EU decreased by 4%, to 1.590 million tonnes.
According to the report, in 2020, poultry meat production in the EU is expected to decrease by 2%, to 13.23 million tonnes, and consumption by 1.6%, to 12.43 million tonnes. The largest producers are Poland (19%), Spain (13%), France (12%), Germany (12%), Italy (10%) and the Netherlands (8%).
The European Commission said that the United Kingdom in January-September imported 478,660 tonnes of poultry meat, and exported 658,930 tonnes.
As the State Customs Service of Ukraine said, in 2020, exports of poultry meat from Ukraine in quantity terms increased by 4%, to 431,000 tonnes, while in monetary terms it decreased by 4.1%, to $555 million.



Ukraine in January-November 2020 increased export of poultry by 5.1% compared to the same period in 2019, to 394,240 tonnes, the State Customs Service has said.
According to its data, in monetary terms, export of these products decreased by 3.6%, to $512.33 million.
At the same time, import of poultry for the 11 months of this year decreased by 17.4%, to 100,030 tonnes, in monetary terms by 13.1%, to $41.88 million.
Export of pork, according to the State Customs Service, rose by 30.2%, to 2,670 tonnes. These products were delivered for $5.8 million, which is 23.9% more than in January-November 2019. Pork import for the 11 months of 2020 increased by 22.6%, to 26,880 tonnes, in monetary terms by 25.6%, to $52.54 million.
In addition, during the specified period, Ukraine reduced export of eggs by 20.8%, to 102,130 tonnes, in monetary terms by 11.7%, to $92.09 million. Egg imports fell by 1.9 times, to 2,670 tonnes, in money terms by 2 times, to $9.58 million.



Belarus has placed temporary restrictions on the importation of poultry from the Republic of Tatarstan; the regions of Rostov, Samara, and Tomsk, Russia; the areas of Mecklenburg-Western Pomerania and Lower Saxony, Germany; Corsica, France; Central Jutland, Denmark; as well as the provinces of Groningen and Gelderland, the Netherlands, the Veterinary and Food Supervision Department of the Agriculture and Food Ministry of the Republic of Belarus said.
According to the World Organization for Animal Health, cases of highly pathogenic influenza in birds have been reported in these areas, the Belarus department said on its website.
Consequently, as of November 23, temporary restrictions have been introduced on the importation of live poultry, hatching and edible eggs, poultry meat, egg powder, egg mixture, egg albumen and other processed food from chicken eggs, down and feathers, non-disinfected game bird trophies, feed and feed additives, as well as other products from the said regions to Belarus.
All previously issued permits to import the specified goods and products have also been suspended. Meantime, goods and products subject to veterinary oversight and supervision that are subject to the restrictions and which have originated from the said regions prior to November 22 of the current year inclusive follow as per the usual regime, the department added.
“Meanwhile, additional oversight measures must be taken in order to ensure the biological protection of poultry facilities of all types of ownership,” the department said in the statement.

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