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UKRAINE: Agriculture news 2016


Bayer crop products sales steady in Ukraine at USD 100 million in 2015
The Bayer international chemical and pharmaceutical concern sold USD 100 million more in crop planting sector goods last year than in 2014. “Bayer’s total sales in Ukraine last year exceeded EUR 283 million. Sales of goods in the crop planting sphere – EUR 100 million,” Head of Bayer Crop Science in Northern Black Sea Countries Andreas Loechel told reporters on Monday. Bayer, the International Finance Corporation (IFC) and Raiffeisen Bank Aval on March 14 announced the start of a new partner financing program. The program helps agricultural companies and farmers by providing low-cost harvest planning and financing.
Bayer has been operating in Ukraine since 1992 and focuses on health care, agriculture, and high-tech materials. It is a large supplier of plant protection agents (pesticides, herbicides and fungicides).
16.03.2016 Source: Interfax

Iran is ready to attract investments to Ukraine and found joint agricultural ventures
Representatives of the Iranian official delegation declared determination to found joint ventures and attract investments to the agro-industrial complex of Ukraine, informed the Minister of Agrarian Policy and Food of Ukraine, Oleksiy Pavlenko on March 10, while commenting on the signing of a Memorandum of Understanding between Ukraine and Iran. Ukraine is interested in expanding the range of agricultural products for exports to Iran, including grains, vegetable oils, animal products, live cattle, sugar and confectionery, fruit and vegetables.
16.03.2016 Source: APK-Inform

Agriculture Ministry preparing pilot project to sell 10,000 ha of farmland in 2016
Ukraine’s Ministry of Agricultural Policy and Food is preparing a pilot project to sell 10,000 hectares of agricultural land in 2016. Minister Oleksiy Pavlenko noted that to realize the project it is necessary to complete the formation of the cadaster and adopt necessary laws. As reported, Ukrainian Prime Minister Arseniy Yatseniuk considers it necessary in the framework of the land reform to sell at public auctions one million hectares of land being in state ownership. At the same time, the prime minister did not specify whether he was referring to agricultural land, on the sale of which Ukraine each year extends a moratorium. The moratorium on the sale or alienation of agricultural land in Ukraine in December 2015 was extended until January 1, 2017.
11.03.2016 Source: Interfax

Agriculture Ministry expects that grain exports to hit record of 37 million tonnes in 2015/15 MY
The Agricultural Policy and Food Ministry of Ukraine expects that grain exports in the 2015/16 agricultural year (July-June) will expand to 37 million tonnes. A year ago grain exports hit a record of 35 million tonnes.
11.03.2016 Source: Interfax

MHP to launch poultry plant in Netherlands
Myronivsky Hliboproduct (MHP) in a month will launch a factory for poultry processing and production in the Netherlands. As reported, with reference to MHP chairman Yuriy Kosiuk, the holding planned by 2015 to complete negotiations on the acquisition of meat assets in the European Union. The agricultural holding plans by the end of 2016 to expand the land bank by at least 50,000 ha. As of the end of 2015 it amounted to 370,000 ha. MHP is the largest poultry producer in Ukraine. It also deals with production of grain, sunflower oil, and meat.
11.03.2016 Source: Interfax

Danone with partners plans to bring number of family dairy farms in Ukraine to 206
Danone, a large dairy producer in Ukraine, jointly with partners, plans to boost the number of family dairy farms in the country to 206 by late June 2017, Director of the purchase department at Danone Iryna Kukhtina said in Kyiv last week. Sie said that the total volume of the cooperative and family farm development project financing in the period from 2010 to 2017 would be EUR 6.5 million. At present, the third phase of the project focused on the creation of the large number of family farms with 10-20 cows is being realized. Farmers that are taking part in the project reconstruct their cow farms or build a new one for some 10 cows using own money, while equipment (milking, cooling equipment, drinking, lighting and ventilation systems) are provided as part of the project.
In June 2015, USAID has joined the project, and the project was extended to one year. “We planned to open 96 farms in the third phase of the project, but when USAID joined the project, it was extended for one year, and its value grew by EUR 1.4 million. This includes the money of the Canadian government, our partner,” Kukhtina said. Danone is realizing the project to develop family dairy farms and cooperatives in Ukraine jointly with International Charitable Organization Community Wellbeing with support of Danone Ecosystem Fund and the Canadian government, USAID via Dnipropetrovsk Agricultural Advisory Service LLC.
09.03.2016 Source: Interfax

Chervona Zirka plans to boost sales by 25% in 2016
Public joint-stock company Chervona Zirka, a large agricultural machinery manufacturer in Ukraine, part of Elvorti Group, plans to boost production and sales by 25% in 2016. In 2015 its sales grew by 71%, to UAH 654.81 million, and in units sales rose by 13.2% or 550 units, to 4,717. The share of exports of total sales in 2015 reached 55.9% compared to 64.9% in 2014, while supplies to the European Union market, particularly, Bulgaria, Lithuania, Hungary, Romania, Poland, the Czech Republic and Slovakia, rose by 40%. Capital investment in the form of own funds almost doubled, to UAH 140.4 million. Equipment worth UAH 20.4 million was bought.
Chervona Zirka started production of Elex 81A excavator last year and this year it is planned to boost production of sowing machines Vega-16, pneumatic sowing machines Orion and Alcor. It is planned to bring machines designed for the requirements of European farmers to the EU market, in particular, universal pneumatic sowing machines Vesta-6, sowing machines Vega-6 and Astra-3 grain seeder.
04.03.2016 Source: Interfax

Early spring crops sowed on 45,000 ha in Ukraine
Taking into account good weather conditions, sowing of early spring crops has been started in three regions of Ukraine and 45,000 ha has been sowed or 2% of the target. Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko said that spring barley was sowed on 34,000 ha or 2% of the target, oats on 11,300 ha (6%) and peas on 10,000 ha (6%).
According to tentative data from the regions, it is planned to sow crops for the 2016 harvest at the level of 2015 – 26.7 million ha.
03.03.2016 Source: Interfax

APK-Invest sees UAH 65.34 million in net profit in 2015
Private joint-stock company APK-Invest (Donetsk region), one of the largest pork producers in Ukraine, saw UAH 65.34 million in net profit in 2015 compared to net loss of UAH 109.92 million a year ago. APK-Invest increased pork production by 7% in 2015, to 42,000 tonnes of cooled pork.
APK-Invest is a vertically integrated agro-industrial company with a complete closed cycle of production of chilled pork from growing grain and animal feed production to production and sale of meat goods.
03.03.2016 Source: Interfax

Cargill to invest USD 100 million in construction of a grain terminal in the port Yuzhny
Cargill signed an investment agreement on construction of the grain terminal with M.B. Cargo, which operates in the Sea Commercial Port Yuzhny (Odessa oblast). The Prime Minister of Ukraine, Arseniy Yatsenyuk noted that Cargill Incorporated decided to invest USD 100 million in the construction of a new grain terminal at the Yuzhny port that such grain terminal could actually become one of the largest hubs in Ukraine.
01.03.2016 Source: APK-Inform

Kernel sees 2.7 times rise in net profit in Q2 FY2016
Kernel, one of the largest Ukrainian agrarian groups, saw a rise of 2.7 times in net profit in Q2 of FY2016 started in July 2015, to USD 117.75 million. Revenue from sunflower oil sold in bulk rose by 11%, to USD 316 million, from bottled sunflower oil fell by 12%, to USD 34 million, grain – by 17%, to USD 258.5 million, it grew by 12% from export terminal services, to USD 12.4 million and fell by 9% from silo services, to USD 22.7 million.
Kernel is a vertically integrated company which has been operating in the Ukrainian agribusiness sector since 1994. The group produces sugar and sunflower oil, distributes bottled oil under the brand names Schedry Dar, Stozhar and Chumak Zolota, exports oil and grain, and provides elevator storage services for grain and oilseeds.
29.02.2016 Source: Interfax

Ukraine started its sowing campaign
Some farms in Nikolayev, Odessa and Kherson regions began the early-spring crops sowing campaign. Thus, in Odessa region 7.9 thsd ha had already been seeded out of the planned 165 thsd ha. In Kherson region – 6.3 thsd ha (177.3 thsd ha), in Nikolayev 3.9 thsd ha (163.3 thsd ha).
29.02.2016 Source: UkrAgroConsult

Capital investments in agriculture increased by 27.1%
 “Throughout the year 2015, the volumes of capital investments in agriculture, forestry, and fisheries have amounted to 27.9 billion UAH, 27,1% more than in the previous year, and this trend occurred at the background of general decrease of capital investments in the country’s economy by 1,7% and specifically, in the industry by 20%”, the Minister of Agrarian Policy and Food of Ukraine Oleksiy Pavlenko reported.
26.02.2016 Source: Ministry of Agrarian Policy and Food of Ukraine

Ukraine: in 2015, investments in agriculture totaled nearly 1 bln USD
In 2015, investments in the agricultural industry of Ukraine totaled nearly 1 bln USD, while in the current year the index will increase to 2 bln USD, declared the Minister of Agrarian Policy and Food of Ukraine, Oleksiy Pavlenko. He reminded that Ukraine has already signed the agreement with the European Investment Bank on raising of 10 bln UAH of loan funds for agrarians. "We are working hard to raise investments in restoration of the irrigation system in the south of Ukraine", the Minister said, adding that realization of the irrigation project in five southern oblasts of Ukraine is strategically important. Investments in the growth of competition level will become a guarantee for the further development of the agricultural sector.
24.02.2016 Source: APK-Inform

Ukraine earned USD 11 billion from exports of agricultural products
"The total amount of funds from export of Ukrainian agricultural products makes up about USD 11 billion. This means inflow of foreign currency into the country and financial stabilization within the country", said Prime Minister of Ukraine Arseniy Yatsenyuk on Tuesday, February 16, at the Parliament during the Government's report on its activities for 2015. He stressed that the previous year Ukraine had demonstrated record export volumes - 35 million tons of grain - and became third in export of grain crops in the world. Ukraine ranks first in the world in oil and honey, third - in grain exports. New markets for the Ukrainian commodity items are the EU, Israel, Saudi Arabia and China, he stressed, noting record volumes of exports to China this year.
22.02.2016 Source: Ministry of Agrarian Policy and Food of Ukraine

Ukraine. Ministry of Agrarian Policy predicts grain exports at the level of 37 MMT
According to the forecast of Ministry of Agrarian Policy,  grain exports from Ukraine in 2015/16 MY will reach 37 MMT compared to 36 MMT predicted earlier. As a reminder, according to the State Statistics Committee, the total crop of grain and leguminous crops in Ukraine amounted to 59,96 MMT in 2015 that is 6.1% lower than in 2014.
15.02.2016 Source: Ministry of Agrarian Policy and Food of Ukraine

In 2015, the share of Ukraine in the global exports of sunflower oil totaled 57%
In 2015, Ukraine exported 3.9 mln tonnes of sunflower oil, which covered 57% of the world trading with the reporting product, declared the General Director of the association Ukroliyaprom, Stepan Kapshuk. He recalled that last year, the production volumes of sunflower oil in Ukraine reached 4 mln tonnes. The industry still remains highly investment-attractive one. The oilseed processing capacities continue growing and reached 16.5 mln tonnes by the end of 2015, which allows processing the whole volumes of sunflower seed produced in Ukraine, said S.Kapshuk.
10.02.2016 Source: Ukroliyaprom

In 2015, Ukraine increased agricultural products exports to Asia, Africa and the EU
According to the Minister of Agrarian Policy and Food of Ukraine, Oleksiy Pavlenko, the TOP-5 countries with the largest share of agricutlural commodities trade with Ukraine includes China - 7.2% (1.3 bln USD), India - 6.5% (1.2 bln USD), Egypt - 5 7% (1 bln USD), Turkey - 5.3% (993.4 mln USD), and Spain - 5.3% (987.2 mln USD). Generally, in 2015 the general sum of foreign trade turnover with agricultural products in Ukraine totaled 18.5 bln USD, including the exports - 14.8 bln USD, imports - 3.7 bln USD. According to O.Pavlenko, 2015 brought new records: rapid growth of agricultural commodities exports to Asia, new sales markets, favorable foreign trade balance, and new prospects and directions of development.
08.02.2016 Source: Ministry of Agrarian Policy and Food of Ukraine

Saudi investors intend to invest USD 10 bln in Ukrainian agriculture
The businessmen from Saudi Arabia are expected to invest USD 10.5 billion in the Ukrainian agricultural sector. Such a statement was made after the talks between Ukrainian Ambassador to the Kingdom of Saudi Arabia Vadym Vakhrushev and 25 local businessmen. This decision is linked to stop of wheat cultivation in Saudi Arabia and the reorientation of investment in agriculture overseas. The decision will come into force in three years.
06.02.2016 Source: Ukriniform

Lozova Machinery plans to start bulk production of harvester trailers jointly with Britain’s Larrington Trailers
Lozova Machinery, the agricultural machinery brand manufactured at Lozova Forging-Mechanical Plant (Kharkiv region), plans to start bulk production of the Harvester trailer with a dump body as part of joint production created with one of the leading manufacturers of trailer for farmers in Britain Larrington Trailers. The press service of the UPEC Group, which incorporates Lozova Forging-Mechanical Plant, reported that the two-axle trailer with a carrying capacity of 18 tonnes will transport and unload grain, edible roots, ensilage and other cargos. The trailers can be used with 150 hp and more powerful tractors. The Harvester will be the first in the line of trailers which production will start in Ukraine in the future. The first sample made in Ukraine will be exhibited at the Grain Tech Expo 2016 in Kyiv on February 10.
05.02.2016 Source: Interfax

Agricultural companies invest billions of hryvnias in development of facilities at Ukrainian seaports in 2015
Some agricultural companies invested billions of hryvnias in the development of facilities at Ukrainian seaports in 2015, according to a report of the Cabinet of Ministers published on its website.
Noble Agri (China) used around UAH 500 million to realize a project on building a grain terminal in the rear part of berths 1 and 2 at Mykolaiv seaport.
Bunge (the U.S.) invested around UAH 1.7 billion in construction of a modern grain terminal and a seed crushing plant in the rear parts of berths 13 and 14 of Mykolaiv seaport.
Brooklyn-Kyiv LLC (Louis Dreifus, France) is building a grain terminal in the rear part of berth one of Odesa seaport. The Ukrainian Sea Port Authority is implementing a project on construction of berth 1-z for general cargos. Brooklyn-Kyiv raised $60 million from the EBRD to create the grain complex with an annual capacity of 4.5 million tonnes.
HPC Ukraine (Germany) is the operator of a container terminal on the Quarantine Mole of Odesa seaport and the investor in its expansion. Total investment in the project is UAH 5.18 billion. The construction will be finished in 2018. At present, the readiness of the project is 61.5% and UAH 3.192 billion has been used.
In 2015, state-run enterprises managed by the Infrastructure Ministry of Ukraine and companies investors signed several memorandums of intent. On July 19, 2015, a memorandum of intent was signed between Illilchivsk Maritime Merchandise Port and Soufflet Negoce S. A. The memo envisages investment in construction of a new terminal on one of the port’s berths. Total investment will be up to $100 million. On August 13, 2015, a trilateral memo of cooperation between the Ukrainian Sea Port Authority, MV Cargo LLC and AT Cargill on the joint realization of affiliated projects on building a grain handling terminal with berth 25 and the creation of a working water area near the berth 16 meters deep. Total investment is planned at some $130 million. Then the memorandum of intent was signed between Oktiabrsk Sea Port and public joint-stock company ArcelorMittal Kryvyi Rih. The document announces joint actions and development of cooperation in the sea transport and metal exports area.
04.02.2016 Source: Interfax

Ukraine, Canada to sign FTA agreement this year
In 2016, Ukraine and Canada will finally sign an agreement on free trade area between two countries. Prime Minister of Ukraine Arseniy Yatsenyuk told reporters after a meeting with Canadian Foreign Minister Stéphane Dion in Kyiv. "We have decided that this agreement [on FTA] has to be finally signed this year and sent to national parliaments for ratification", he said.
01.02.2016 Source: Ukrinform

Government support is a key to success of Ukrainian livestock sector
The livestock breeding has great potential in Ukraine due to favorable climate conditions, land, and human resources. The potential would be unlocked through an effective mechanism of the Government’s support, Oleksii Pavlenko stressed. Government’s support of livestock breeding implies a range of activities and measures. In particular, the Ministry of Agrarian Policy has developed a number of projects aimed at cattle breeders’ support. Also the new Tax Code provides great support for the livestock industry. Producers of milk and livestock have received the biggest grace term for the transition to the general VAT taxation system – they may keep up to 80% VAT on their private accounts, and only 20% must be transferred to the State Budget. Manufacturers of the other livestock products would have to divide the VAT funds in the proportion of 50 to 50”, the Minister stressed.
According to the Minister, the signing of an agreement with the European Bank on the investments in the amount of €400 million to the agrarian sphere would be a significant impetus for the livestock development. These funds are long and cheap credit money and they are designed to address a number of projects including those supporting the livestock industry.
28.01.2016  Source: The Ministry of Agrarian Policy and Food of Ukraine

In 2015, the general grains production of Ukraine totaled 60 mln tonnes
According to preliminary data, in 2015 in Ukraine the general production of grains and pulses (excluding the Autonomous Republic of Crimea) totaled 59.96 mln tonnes, down 6.1% compared with the index in 2014, declared the State Statistic Service of Ukraine. Such reduction of the harvest is caused by the drought lowering the corn production by 5.28 mln tonnes compared with 2014 (down 18.5%) - to 23.217 mln tonnes. At the same time, wheat harvest reached 26.491 mln tonnes (up 9.9%, 2.37 mln tonnes), due to increasing of the planted areas to 6.833 mln ha (up 13.7%), and despite declining of the yield by 0.13 t/ha - to 3.88 t/ha. Generally, the average yield of grains and pulses decreased by 0.27 t/ha - to 4.1 t/ha, and the harvested areas decreased by 13 thsd ha (down 0.1%) and totaled 14.614 mln ha. In addition, in 2015 the sunflower harvest volumes totaled 11.165 mln tonnes in clean weight (up 10.2%).
27.01.2016 Source: State Statistic Service

Bioethanol production is key direction for 2016
“Bioethanol production should become a key direction for us in 2016. However, biogas and bioethanol production requires improvement of the national legislation”, Oleksii Pavlenko, the Minister of Agrarian Policy and Food of Ukraine. The Ministry of Agrarian Policy and Food of Ukraine is very actively involved in the preparation and support of the relevant bills which provide for a number of adjustments: the improvement of the legislative framework for the “Green Tariff” for electricity produced of biogas and biomass in 2015, the simplification of the licensing system, for instance, the cancellation of licensing on the manufacturing of biogas and liquid bio-fuels, and the implementation of joint projects of production and export of bioethanol raw materials and bio-fuels. The Minister stressed that Ukraine is currently on its way to sustainable energy independence. “Moreover, we have good prospects for bioethanol production, and the agricultural sector is an inexhaustible source for it. For example, the processing of 10 million tons of corn may produce more than 4 million tons of bioethanol”, Oleksii Pavlenko stressed.
25.01.2016  Source: The Ministry of Agrarian Policy and Food of Ukraine

Milk production in Ukraine in 2015 amounted to 10.7 mln.t.
According to the State Statistics Service, production of milk in Ukraine in 2015 decreased by 4% compared with the previous year and amounted to nearly 10.7 mln.t. Despite the difficult economic and political situation in the country, agricultural enterprises even managed to increase milk production by 0.8% to 2.67 mln.t, this means that volumes of production were decreased mainly by private households. The number of cows on private farms during the year declined by nearly 4% to 1.67 mln. heads.
18.01.2016 Source: State Statistics Service

Ukraine may obtain about USD 2 billion in investment for irrigation project
Minister of agriculture and food Oleksiy Pavlenko hopes to get about two billion U.S. dollars of investment in 2016. The funds will be used mostly to upgrade irrigation systems in southern Ukraine. "In 2016- 2017 we expect to raise $1.5-2 billion in investments. The estimated effect of the project – irrigation of almost 500,000 hectares of farmland," said Pavlenko.
18.01.2016 Source: Ukrinform

Ukraine is interested in German experience in reforming agrarian industry
“Ukraine pays special attention to the development of mutually beneficial cooperation in agriculture, particularly in the aspect of deepening trade and economic relations”, Oleksii Pavlenko, the Minister of Agrarian Policy and Food of Ukraine, stated during a meeting with Christian Schmidt, the Federal Minister of Food and Agriculture of Germany, held in the framework of the Global Forum for Food and Agriculture in Berlin. The Minister noted that the main aspects of the bilateral cooperation covered seed production, bioenergy, and veterinary issues.
According to O. Pavlenko, for 11 months of 2015, the trade turnover between the two countries amounted to USD 473.9 million, including the export of Ukraine in the amount of USD 169,4 million. The major exported items included cereals – USD 62.4 million, natural honey – USD 24.2 million, meat and meat products – USD 15.9 million. The share of import amounted to $304.5 million. The major import items included – other food products (USD 62.5 million), tobacco and tobacco products (USD 28.7 million), meat (USD 20.6 million). The Minister also noted the importance of the project “German-Ukrainian Agro-Political Dialogue” in Ukraine, extended for another 3 years term (2016 – 2019). The project supports Ukraine in the development of sustainable agriculture, efficient processing industry and increased international competitiveness in accordance with the principles of the market and regulatory policies.
16.01.2016 Source: The Ministry of Agrarian Policy and Food of Ukraine

Agricultural trade turnover between Ukraine, Egypt reaches nearly a billion dollars
Agrarian Policy Minister of Ukraine Oleksiy Pavlenko and Agrarian Policy Minister of Egypt Essam Osman Fayed discussed further ways to enhance cooperation in the agriculture field. The meeting was held within the framework of the Green Week agricultural fair. "Ukraine is ready to establish a regular supply of agricultural products to Egypt, primarily of grain, livestock products, oils, confectionery and dairy products," Pavlenko said. He said that in 11 months of 2015 the trade turnover in agricultural products between the two countries amounted to USD 941.9 million, the Ukraine's exports reached USD 908.2 million while import made up USD 33.8 million.
15.01.2016 Source: Ukrinform

Last year purchase prices for cattle increased by 52%
According to UCAB research, in 2015 prices for cattle in Ukraine increased by 52%. Average purchase prices for bulls accounted for 30,15 UAH/kg (including VAT), and for cows of above medium fatness – 26,60 UAH/kg (including VAT). Purchase prices for cattle reached maximum in July, when the bulls were sold for 30,00-35,00 UAH/kg, and cows of above medium fatness - for 27,00-31,00 UAH/kg. Inflation and devaluation processes, as well as increasing demand for live cattle for exports where the main reasons for increase of prices for cattle last year.
12.01.2016 Source: UCAB

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