Business news from Ukraine

Ukraine harvests 23.4 mln tonnes of grain crops this season

By August 19, Ukrainian farmers harvested 23.4 million tonnes of grain and leguminous crops (2.6 million tonnes more during the week of August 12 through August 19) from a total area of 6.1 million hectares (0.6 million hectares more), the Ministry of Agricultural Policy and Food reported on its website on Friday.
The crop was harvested from 55% of the planned areas, while a week earlier this figure was 49%.
“The harvest of 2022 continues. According to the latest data, 91% of wheat, 96% of barley, 97% of peas, and 98% of winter rapeseed have been harvested. The leaders in harvesting are Mykolaiv region – 86%, Odesa region – 85%, Volyn and Dnipropetrovsk regions – 70% each, Kirovohrad – 60%,” the ministry said in a statement.
In general, 17.4 million tonnes of wheat (2.0 million tonnes more in a week) were harvested from 4.3 million hectares (0.5 million hectares more), 5.3 million tonnes of barley (0.4 million tonnes more) from 1.5 million hectares (0.1 million hectares more) and 243,700 tonnes of peas (4,700 tonnes more) from 108,000 hectares (2,000 hectares more). Also this week, harvesting of millet has begun, of which 7,700 tonnes have been harvested from 3,200 thousand hectares.
In addition, by August 19, Ukraine harvested 3.1 million tonnes of winter rapeseed (0.2 million tonnes more in a week) from 1.08 million hectares (40,000 hectares more).
According to the ministry, the average yield of wheat was 40.4 tonnes per ha, barley – 3.45 tonnes per ha, rapeseed – 2.84 tonnes per ha, millet – 2.39 tonnes per ha, peas – 2.26 tonnes per ha. At the same time, the highest average yield of grain and leguminous crops was recorded in Khmelnytsky region – 6.2 tonnes per ha.

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UKRAINIAN ECONOMY MINISTRY SETS MAXIMUM VOLUME OF WHEAT EXPORTS FOR CURRENT SEASON AT 17.5 MLN TONNES

The Ministry of Economic Development, Trade and Agriculture of Ukraine on August 17 signed an annex to the grain memorandum with grain market participants and agreed on the maximum grain export volume in the 2020/2021 marketing year (MY, July-June) at the level of 17.5 million tonnes of wheat and 1,000 tonnes of rye.
“The grain memorandum is a good example of the ability to negotiate and make balanced decisions. In our common opinion, the export of 17.5 million tonnes of wheat and 1,000 tonnes of rye for this marketing year is the benchmark that will preserve our internal food security. In addition, taking into account the coronavirus crisis, in the forecast balance, we have increased the volume of carry overs by half a million tonnes, to 1.7 million tonnes,” Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko is quoted as saying.
In addition, depending on weather conditions and the final data on wheat production from the State Statistics Service, the forecast grain market balances may be revised by the signatories of the memorandum in the fourth quarter.
Now the Ministry of Economy predicts the grain harvest in Ukraine this year at 72.1 million tonnes.
The ministry clarified that the grain memorandum has been signed annually since 2011. The document provides for interaction of grain market participants, exchange of information, monitoring the grain market.

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UKRAINE EXPORTS 5.1 MLN TONNES OF GRAIN SINCE NEW SEASON START

Since the beginning of the new 2020/2021 marketing year (MY, July-June) and as of August 19, 2020, Ukraine exported 5.1 million tonnes of grain and legumes, which is 1.26 million tonnes less (due to corn) than on this date in the past MY.
According to the information and analytical portal of the Ukrainian agro-industrial complex, 3.03 million tonnes of wheat, 1.56 million tonnes of barley and 502,000 tonnes of corn (1.18 million tonnes less) was exported to date.
As of August 19 of this year, 28,400 tonnes of flour was also exported.
As reported, in the 2019/2020 MY Ukraine exported a record 57.2 million tonnes of grain, legumes and flour, which is 13.5% more than in the previous MY.

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UKRAINE OPENS NEW SUGAR PRODUCTION SEASON

Ukraine officially opened a new sugar production season on September 1 with the production of sugar beet at Radekhivsky Tsukor LLC, the National Association of Sugar Producers Ukrtsukor has said. According to its website, this year the most part of sugar plants of Ukraine postponed a start of new season of beet refining for later terms.
“The reason is unfavorable weather conditions, because in most regions of Ukraine, soil crust has formed due to hot and dry weather, which complicates the technological process of harvesting. In other parts of the country, due to heavy rains, the sugar content of root crops decreased, so the farmers stopped field works, expecting higher quality indicators of the crops. These very factors influence the reduction of sugar beet digging,” the association quotes its deputy board chairman Ruslan Yanenko as saying.
Besides, Ukrtsukor expects better situation on the fields, and the most number of plants will start operating in the end of September. In total, 32 sugar plants will work in new season.
As reported, the production of sugar in the 2018/2019 marketing year decreased by 15%, to 1.82 million tonnes. Some 42 sugar refineries operated during that season.
According to estimates of Ukrtsukor, the number of operating sugar plants in 2019/2020 will drop from 42 to 32, when sugar production is predicted on the level of 1.1-1.2 million tonnes.

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