Business news from Ukraine

Seed harvest of main types of oilseeds will grow to 19.5 mln tons – Ukroliaprom

Harvest of seeds of the main types of oilseeds in Ukraine in 2023/24 MY will grow to 19.5 million tons, which is 7.7% higher than in the previous season, predicted the association “Ukroliaprom”.
The industry association recalled that by exporting sunflower seeds from Ukraine sufficient to meet the needs of the EU and other countries in volumes, the country loses the market for sunflower oil and meal in these countries.
“The mass export of oilseeds from Ukraine to the world market has led to a sharp drop in prices, which has caused discontent among farmers in European countries. As a consequence, the mass export of sunflower seeds from Ukraine has led on the part of some EU countries to a ban on imports into their territory until mid-September 2023, and possibly until 2024”, – noted in “Ukroliaprom”.
The association expressed confidence that this would not have happened if the repeated requests of Ukroliaprom to limit sunflower seed exports, particularly to EU countries, by introducing additional fees and licensing had been taken into account.
Ukroliaprom expects soybean exports from Ukraine to exceed 3.0 million tons at the end of MY 2022/23, or more than triple against MY 2021/22.
“This may negatively affect domestic processing, which even under martial law remained not only stable, but also increased,” experts emphasized.
The industry association expects the highest production growth in MY 2023/24 for soybeans – by 12.2% to 4.107 million tons. This will happen thanks to a 20.5% increase in sown areas, which reached 1.84 million hectares, but the yield of the oilseed crop will increase by only 0.4% to 22.3 c/ha.
Sunflower production this season will increase by 6.5% year-on-year to 11.813 million tons. Despite the expansion of areas under the crop by 7.7% to 5.64 million hectares, analysts expect yields to be 3.3% lower than last year’s -20.9 c/ha.
Ukrpoliyaprom expects a 9.1% increase in the gross rapeseed harvest, which will amount to 3.318 million tons. It will be harvested from almost 1.35 million hectares (+16.3%) at a yield of 26.5 c/ha (-9.3%).
“At the same time, we should take into account significantly lower carryover residues of oilseeds in Ukraine at the beginning of MY 2023/24 against the beginning of the previous season. Accordingly, the supply in 2023/24 MY will be less, which requires urgent action at the government level to create conditions for maximum domestic processing and increase exports of products with high added value,” – summarized in the industry association.

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UKRAINE INCREASE SEED EXPORTS TO EU IN JAN-NOV

Ukraine exported 1,640 tonnes of seeds to the countries of the European Union in January-October 2021, which is twice the figures for the entire 2020 (820 tonnes) and 5 times more than in 2019 (320 tonnes), according a Thursday posting on the website of the State Service for Food Safety and Consumer Protection.
“Opening the European market for us is a 10-year way. Negotiations on the recognition of domestic seeds as compliant with EU requirements began in 2011 and lasted a very long time. Now, we have every opportunity to benefit from the many years of work of negotiators – dozens of people from business and government,” the authority quoted its head Vladyslava Mahaletska speaking at the online conference Seed Forum 2021.
According to the authority, in January-October 2021, 1,210 tonnes of corn seeds, 330 tonnes of wheat seeds, and 50 tonnes of sunflower seeds and all other crops in total were exported to the EU.
To open the export of seeds from Ukraine and to comply with the phytosanitary requirements of the EU, in 2021 17 areas in Ukraine on a total of 673 hectares were assigned the status of pest-free, to be able to grow seed on them.

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