Due to the COVID-19 pandemic and as a result of the impact on the economy of external and internal shocks, the GDP of Ukraine in 2020 will decrease by 7%.

 

 

This is evidenced by the data of the report of the European Commission for the first quarter of 2020, reports Meat-Inform.

 

 

Ukraine took the fourth place among the top exporters of poultry meat in the EU. In the last quarter, the country took 3rd place, but so far the UK has been added to the list of suppliers, which separated from the European Union and became Ukraine’s new competitor in the European market.

 

 

Now the five largest exporters of chicken to the EU countries look like this: Great Britain (63 thousand tons for the first quarter of 2020), Brazil (57.8 thousand tons), Thailand (40.79 thousand tons), Ukraine (23 46 thousand tons), Chile (7.97 thousand tons).

 

 

In January – March last year, Ukrainian producers exported 31.53 thousand tons of poultry meat to the EU countries. Thus, in the first quarter of 2020, sales decreased by 25.6% compared with the same period last year.

Due to the COVID-19 pandemic and as a result of the impact on the economy of external and internal shocks, the GDP of Ukraine in 2020 will decrease by 7%.

 

 

These forecasts were voiced by the consultant of the German Economic Team (GET) and the author of the study “Economic Impact of the COVID-19 Pandemic on Ukraine” by David Zach, conducted by the GET team in conjunction with the Institute for Economic Research and Political Consultation (IEI).

 

 

“The COVID-19 pandemic will lead to a strong reduction in Ukraine’s GDP in 2020. In the baseline scenario, the fall in GDP is 7%, which is ten percentage points below the level of GDP projected before the COVID-19 pandemic. According to the pessimistic scenario, the level of GDP decline increases to -11.2%. The main reason for this sharp contraction is the combination of internal and external shocks. Tough but necessary internal quarantine measures reduce economic activity in the retail, restaurant and transport sectors. Foreign exports and remittances are falling, as other countries have also been hit hard by the pandemic, ”explains David Zaha.

 

 

According to the study, due to internal and external shocks caused by the pandemic, in 2020, investments in the Ukrainian economy will decrease by 11.2%. Private consumption will decrease by 5.7%.

 

 

The transport sector will suffer the most (a decrease in the volume of service provision is expected to be 14.3% compared to 2019) and retail trade (due to quarantine and a drop in demand, a decrease of 8% is expected).

 

 

Experts also note that imports are declining to a greater extent than exports. In 2020, imports to Ukraine will decrease by 12.7%, and exports – by 7.6%.

 

 

“Significant uncertainty remains. The economic downturn in 2020 may worsen in the future, if restraining measures cannot be mitigated in the expected time frame. The longer the quarantine lasts, as a result of which the enterprises close, the slower the recovery will be, ”says David Zaha.

The UN Relief Agency purchased about 80 thousand tons of wheat, which will be delivered from Ukraine to Sudan.

 

 

This was reported by European traders to Reuters.

 

 

It is specified that about 40 thousand tons will be shipped by the end of May, and another 40 thousand tons in the first half of July.

 

The UN provides food aid to Sudan through a number of programs.

During January-April of this year, Ukraine exported more than 11 thousand tons of cereals from cereal grains in the amount of $ 3.9 million. In money terms, this is 49.5% more than in the same period last year ($ 2.5 million).

 

 

This is reported by AgroTimes with reference to the data of the State Customs Service.

 

 

At the same time, the supply of cereals to the EU market in monetary terms decreased by 6.3% – from $ 436 thousand in January – April 2019 to $ 08 thousand in 2020. But exports of these products to Asia over the reporting period increased by 112% – from $ 0.5 million to $ 1.1 million

 

 

The purchases of Ukrainian cereals and African countries increased by 42% – from $ 382 thousand to $ 544 thousand. More than doubled the import of these products and the countries of America – from $ 290 thousand in January – April 2019 to $ 603 thousand for the same period in 2020- go.

 

 

In the first four months of 2020, more domestic cereals were exported by Israel (22%), Moldova (17%) and Costa Rica (14%).

 

 

Recall that in March, cereal exports more than doubled the previous two months.

Poultry farms in Seychelles currently sell their eggs directly to local consumers in the markets. An egg in the market previously cost about $ 0.17, but now it has fallen to the level of $ 0.06, depending on the number of sellers in the market.

 

 

“Before the whole situation with Covid-19, egg producers could sell their products without much complaint. This is simply because many of them were oriented towards tourist establishments. Since the fact that the number of tourists is currently zero, we know what impact this could have on them, ”said Antoine Usa, chief secretary for agriculture in the Seychelles.

 

 

According to the Seychelles Agricultural Agency, 23 farmers are active egg producers, 6 of which are large and produce about 22 million eggs a year. One large owner of the poultry farm said he would not be able to support production, as 50% of the eggs produced in the country are usually consumed by the hotel industry.

 

 

“I produced almost 15,000 eggs a day, of which only 3,000 reached the local market through my 2 stores,” he said.

To date, demand between sunflower and soybean oils has reached a record for the last 5 years – $ 136 / t, and between sunflower and palm – $ 192 / t.

 

 

It is reported by UkrAgroConsult.

 

 

The company notes that the demand for sunflower oil remains at a consistently high level, as evidenced by data on oil shipments from Ukrainian ports.

 

 

So, as of May 10, they exceed last year by 45%, which leads to a decrease in oil reserves in ports. April export of sunflower oil showed a historically record result, reaching 717 thousand tons.

 

 

UkrAgroConsult notes that expectations of a good sunflower crop not only in Ukraine but also in other countries of the Black Sea region formed prices for sunflower oil from new crop sunflower with delivery in October-December 25 dollars below the current level.

The Qatari company QTerminals, which won a concession tender in the port of Olbia, equipped the Mykolayiv City Hospital with 3 innovative beds. In this way, the international port operator wants to help local doctors in the fight against the pandemic.

 

 

“Today’s epidemic is our test of humanity and mutual assistance. We understand how important support of Nikolaev and its inhabitants is. After all, victory over the disease depends on the provision of hospitals and doctors. That’s why we need to pass this strength test together, ”commented Neville Bissett, CEO of QTerminals.

 

 

For the needs of the patients of the new intensive care unit, Cuterminals Olvia, a company founded by QTerminals, purchased 50 four-section beds and 50 mattresses. The latter are equipped with anti-decubitus systems. The furniture is designed for the care and rehabilitation of critically ill patients, in particular those connected to ventilators.

 

 

“We are grateful to the Qatari operator QTerminals for its socially responsible position. In the near future we plan to conclude a concession agreement for the port of Olbia, but it is not just about business, but about the fact that the company is already helping here and now. People and their health are the main values ​​of both our Government and QTerminals, ”said Vladyslav Krykliy, Minister of Infrastructure of Ukraine.

 

 

The local infectious disease hospital became the basic hospital for hospitalization of patients with coronavirus. However, understanding the rate of spread of the disease, the city authorities have prepared two more facilities for the reception and treatment of patients with COVID-19. These are city hospitals №1 and №3. The latter was in particular need of modernization, as it could become another supporting medical institution in addition to the infectious diseases hospital in the city. Therefore, QTerminals undertook to equip the department with innovative beds for patients.

 

 

Qatari port operator QTerminals has won the tender for the Olbia port concession. The company has pledged to invest UAH 3.4 billion in the development of the port. The planned size of investments makes the agreement one of the largest foreign direct investments in the port industry of Ukraine in the history of independence. Besides, QTerminals will invest 80 million UAH in infrastructure development of Nikolaev.

In 2019, Ukraine showed a significant increase in honey exports – by almost 13%, exporting it more than 55 thousand tons. According to the results, Ukraine entered the top five largest countries exporting honey. The task for the coming years is to enter the top three.

 

 

This opinion was expressed by the President of the Ukrainian CCI Gennady Chizhikov during the Honey Marathon 2020: “Added value in the honey business and the crisis, as a time of opportunity.”

 

 

“Since 2011, the export of Ukrainian honey has grown by almost 8 times. In 2012, Ukrainian honey was exported to 11 countries, and now to more than 40 countries. Our honey industry has a very optimistic trend. But we need to think together what needs to be done, and what kind of support from the state and business associations should be so that there is even more Ukrainian honey on foreign markets, ”said Gennady Chizhikov.

 

According to him, it is also worth changing the approach to honey in the domestic market: starting to perceive it not only as a product for health, but for a daily diet.

 

 

“During the coronavirus pandemic, it is the beekeepers who demonstrate the entrepreneurial spirit – how to develop and continue to do business. We must together develop this honey brand of Ukraine, help and support manufacturers, so that in all countries of the world they understand – if it is about honey, then primarily about Ukrainian, ”said Gennady Chizhikov.

The Cabinet of Ministers of Ukraine is preparing a resolution restricting the export of live cattle abroad.

 

 

This was reported by AgroPolit.com.

“Today, at an extraordinary meeting of the Cabinet of Ministers, a government resolution on restricting the export of live cattle abroad will be considered. The purpose of the resolution is to support the internal development of the livestock industry, “the statement reads.

According to the results of analyzes and forecasting of the IFCN analytical platform, two scenarios of the current crisis in the global dairy industry are possible, based on the general form of the average price chart for stock dairy products: V-shaped and U-shaped scenarios. The crisis of 2009 was taken as the zero point.

 

 

This was reported by IFCN analysts during an international webinar for the rapid exchange of information on the state of the global dairy market, reports APM.

 

 

The V-shaped scenario assumes that the supply of raw milk will quickly respond to a decrease in demand, while the reduction in demand will be comparable to the period of 2009.

 

 

The U-shaped scenario – by the way, more likely – assumes that the milk supply will be strengthened (+ 1-1.5%) and similar to the current one, but demand growth will be higher than in 2009. In support of the realism of the second scenario, experts cite updated data on the situation with milk production in the world, which from January to April grew by 2.3% compared to last year.

 

 

According to updated information, IFCN leaves its forecasts for world milk prices at the end of this year at 32 $ / 100 kg.

 

 

In the 2-4 quarter, the average milk price in the EU is expected to be $ 28.9 / 100 kg, in the US – $ 28.0 / 100 kg, in New Zealand – $ 33.3 / 100 kg.

 

 

According to the results of an express survey of webinar participants regarding a fall in the price of raw milk in April compared with February, it was found that in most countries, in particular EU members, the decline did not exceed 5%. The same situation is in Ukraine. Although the United States, Brazil and India have reported price reductions of more than 15%.

 

 

The results of an online survey among the countries participating in the webinar regarding the difference in the price of raw milk in April versus February 2020.
Results of an online survey among countries participating in the webinar regarding the difference in the price of raw milk in April versus February 2020
According to the results of the first quarter, China increased its imports of dairy products by 3.4% in terms of the dairy equivalent compared to last year. Most of all, imports of oil -> 100% and cheese -> 25% increased, which blocked the decline in imports of COM by 16%. Of course, this is a positive signal for the markets.

 

 

However, on the other hand, Russia, reducing consumption against the background of increasing milk production, is changing its balance and is approaching self-sufficiency in dairy products. This is already affecting its imports and will have consequences in the future.

 

 

“Summarizing these data through the Ukrainian prism, it is obvious that, first of all, we should be concerned about the release of the Russian share of Belarusian exports, which may come to Ukraine. Moreover, all the conditions for this have already been formed, and Belarus in the first quarter has already significantly increased the presence of its products on the Ukrainian market, ”summarizes the analyst of the Association of Milk Producers Vladimir Andriyets.