Business news from Ukraine

UKRAINE USES QUOTAS FOR DUTY FREE EXPORTS OF NINE GROUPS OF AGRICULTURAL GOODS TO EU IN H1 2016

7 July , 2016  

KYIV. July 7 (Interfax-Ukraine) – Ukraine in the first half of 2016 fully used quotas for duty free exports of goods to the EU for the nine groups of agricultural products: honey, sugar, cereals and flour, malt and wheat gluten, processed tomatoes, grape and apple juices, oats, wheat, wheat flour and granules, corn, corn flour and granules.

The press service of the Ukrainian Agribusiness Club (UCAB) reported, referring to data from the European Commission, the main quarterly poultry and semi-finished products quota was fully used in the first and second quarter of 2016.

“The following groups are close to the full use of the quota: barley, barley flour and granules (31% used), glucose and glucose syrup (18.8%), off-corn (18.6%), barley (16.4%), starch (8.8%), processed food made of sugar (8.1%), ethanol (4.6%), processed food made of grain (1.9%), food (0.2%) and sweet corn (0.2%),” UCAB said.

Beef, pork, egg and albumin, butter and dairy paste, milk, cream, condensed milk, yoghurt and milk powder quotas were not used for the whole period when the trade part of the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA) Agreement is in effect.

The key reason is that Ukrainian producers do not have European quality certificates.

“Only 12 dairy companies in Ukraine passed certification and were permitted to export dairy products to the EU. The first pilot batch of dairy products was delivered to Bulgaria in late April,” the association said.

Restrictions in trade with Russia caused some logistics difficulties with exports to Russia and Central Asia, and the EU countries play an important role in foreign trade with Ukrainian agricultural products now.