In order to continue to occupy a leading position in the global ranking of exporters of selected agri-food products and to stabilize its own exports, Ukraine in 2020 should establish supplies to the Asian and European markets as soon as possible.

 

This opinion was expressed by a senior researcher at the Department of Economics of Agricultural Production and International Integration of the NSC “Institute of Agricultural Economics”, Ph.D. Bogdan Dukhnitsky.

 

 

“According to the latest data from the State Statistics Service of Ukraine and the International Trade Center (ITC), Ukraine has traditionally retained first place in terms of export of sunflower oil. Since 2006, when our state first headed the rating of exporters of this type of product, selling 1629 thousand tons of oil to the world markets, export volumes grew by 3.7 times. Last year, foreign supplies of domestic sunflower oil amounted to 6107 thousand tons, ”says Bogdan Dukhnitsky.

 

 

According to him, Ukraine became the second among the exporting countries of barley, rapeseed, fresh peas, millet, oilcake and meal, strengthening its position in most of these products.

 

 

“If in 2018 with the supply volumes of 4471 thousand tons, Ukraine took the third place (after Indonesia and Canada) among exporters of oilcake and meal (mainly from sunflower), then last year it increased the supply by almost 11% to 4957 thousand. t, securing a second position in the ranking and losing only to Indonesia. Having increased barley exports to 4143 thousand tons (+ 15%), Ukraine moved from fourth to second place, overtaking Australia and Russia. France leads with 7171 thousand tons, ”says Bogdan Duhnitsky.

 

 

The expert notes that Ukraine ranked third in the ratings of suppliers of shelled walnuts (41 thousand tons; + 32%), dried peas (461 thousand tons; -26%) and apple juice concentrate. At the same time, export volumes of apple juice concentrate increased last year by almost 1.6 times – up to 102 thousand tons, allowing our country to move from fifth place to third.

 

 

Ukraine also holds the fourth place in the corn market since 2016. Last year, domestic agricultural producers exported 32346 thousand tons of this crop, 1.5 times higher than in 2018.

 

 

“In the framework of the top 10, Ukraine occupies a place on the world market of many other products, namely: dried egg whites, coriander, soy, corn starch, soybean oil, poultry meat, canola-rich rapeseed oil, canned tomatoes, corn oil, ”says Bogdan Dukhnitsky.

 

 

According to him, a characteristic feature of 2019 was the preservation or even strengthening of positions in most types of domestic exports of agricultural food products. The expert notes that Ukraine began 2020 better than the previous one, actively increasing agricultural exports. However, he believes that the introduction in March of quarantine measures related to the coronavirus COVID-19 could seriously inhibit import-export operations, including agricultural and food ones.

 

 

“Now in the world market, the most critical issue is the restoration of the stable functioning of the developed logistics chains. Therefore, competition for sales markets, which had previously been strong, will only intensify this year, ”predicts Bohdan Dukhnitsky.

 

 

Source: AgroPortal

This was stated by Minister of Foreign Affairs of Ukraine Dmitry Kuleba during a conversation with the Deputy Prime Minister, Minister of Foreign Affairs of the State of Qatar, Sheikh Muhammad bin Abdulrahman bin Jassim Al Thani, the press service of the Ukrainian Foreign Ministry said.

 

 

As noted, the interlocutors agreed that Qatar will consider a number of investment projects that can be implemented in Ukraine. We are talking primarily about investments in Ukrainian infrastructure: bridges, roads, railways, airports, etc.

 

 

Kuleba assured of readiness for cooperation in the fields of investment, trade, economy, energy and food security.

 

 

It is noted that the foreign ministers discussed the export of Ukrainian agricultural products to Qatar.

 

 

“Ukraine is ready to be a strategic partner of Qatar in its region. In particular, despite its transit potential and the role of the guarantor of world food security. We are ready to work together so that our countries benefit from this cooperation, ”Kuleba emphasized.

The costs of agricultural production in Ukraine in January-March decreased by 7.3% compared with the first quarter of 2019. This is evidenced by the State Statistics Service.

 

 

So, the total costs of crop production decreased by 8.3%, livestock – by 6.6%.

 

 

At the same time, in March, the cost of agricultural production increased by 0.6% compared with February. In crop production – by 0.1%, in livestock – by 2%.

 

 

According to the data, the price index for the material and technical resources of industrial production used in agriculture has decreased by 9.8% since the beginning of the year compared to the same period last year, and by 1.3% in March compared with February.

In recent years, Turkey has been increasing imports of corn to ensure the active development of the poultry industry and the export of poultry meat. Turkey relies almost entirely on the Black Sea region for the supply of feed raw materials, according to the Telegram channel of Refinitiv Agriculture.

 

 

As noted, for the period September 2019 – March 2020, Turkey imported almost 3 million tons of corn, which is 87% more than the same period last year, and 146% more than the average for the previous 4 years.

 

 

Trade flow models show that during the first 7 months of the current marketing year, the countries of the Black Sea region (Ukraine and Russia) plus Romania in total delivered 90% more corn to Turkey than during the same period last year, and 2 times more than the average for the previous four years. Thus, during the first seven months of the 2019/2020 marketing year, Ukraine (with a share of 50%), Romania (22%) and Russia (17%) dominated the supply of corn to Turkey with a combined market share of almost 90%. Similarly, these countries have maintained an aggregate market share of at least 90% in the Turkish corn import market over the past four years.

 

 

Turkey is a fairly important market for the sale of corn from Ukraine, Russia and Romania. For example, in the 2018/19 season, Turkey was the fifth largest importer of Ukrainian corn with a share of about 8% in total exports. In the same season, Turkey became the largest importer of Romanian corn with a share of 33%. Romanian corn exports during the 2019/20 season seem to follow the same trend: a third of Romanian corn exports from the country during the current season went to Turkey.

 

 

“Despite the fact that over the past decade, corn production in Turkey has grown by 43%, it cannot fully satisfy the demand from livestock. For example, in 2018/19, Turkey’s own corn crop was able to provide only 65% ​​of domestic consumption. The animal feed industry accounts for about 80% of Turkey’s total corn consumption. Corn is the main ingredient with a share of more than 50% in the production of feed for poultry, ”analysts say.

Over the past 10 years, wheat bran production has been decreasing every year due to lower demand, but in 2019, production began to grow, albeit at a small pace – 2% compared to the previous year. It is reported by UkrAgroConsult.

 

 

As noted, the domestic consumption of these products is small, so most of the bran produced in Ukraine is exported.

 

 

“Since the beginning of the season, 357 thousand tons of wheat bran have been exported, which is 10% more than in the same period of 2018/19 MY, but 19% less than in 2017/18 MY,” analysts said.

 

 

The first place in the list of importers is traditionally occupied by Turkey, which imported 40% more than last season. Deliveries to the EU, on the contrary, declined.

 

 

Saudi Arabia, whose share in export last season was 17%, has not yet made a single purchase this year.

For the year in Ukraine, among all types of meat, only chicken fell in price. This is evidenced by the data of the State Statistics Service.

 

 

So, chicken fillet fell in price by 12%. Beef has grown significantly in price – by 8.2%.

 

 

According to the data, chicken remains the most affordable type of meat. So, 1 kg of chicken can be purchased for 92.06 UAH, 1 kg of beef – for 138.07 UAH.

In January-March 2020, Ukraine exported beef worth $ 18.73 million, which is 19% lower than in the same period of 2019 in monetary terms. This is evidenced by data from the State Customs Service of Ukraine.

 

 

At the same time, in physical terms, exports for the first quarter of 2020 reached 5.47 thousand tons – 27% less than the same period last year (7.5 thousand tons).

 

 

For 3 months of 2020, Ukraine delivered 4.77 thousand tons of frozen beef for $ 16.61 million. The main deliveries were made to:

 

Kazakhstan – 1.42 thousand tons at $ 4.93 million (29.67%);
Azerbaijan – 998 tons at $ 2.47 million (20.91%);
China – 792 tons to $ 2.76 million (16.6%);
others – 1.57 thousand tons for $ 5.45 million (32.83%).

 

 

In particular, Ukraine exported 698 tons of fresh or chilled cattle meat for $ 2.13 million. The main importers of cattle meat in January-March were:

 

Belarus – 636 tons for $ 1.94 million (90.98%);
Azerbaijan – 48 tons for $ 145 thousand (7.15%);
Turkey – 13 tons for $ 38 thousand (1.58%);
others – 2.3 tons for $ 7 thousand (0.3%).

Ukraine increased its corn exports to Asian countries in Q1 2020 – it increased by 46% in January-March – from $ 553 million in Q1 2019 to $ 778 million in Q1 2020, and 51% compared to the previous quarter.

 

 

Over the reporting period, maize shipments to Africa also increased: 45% year-over-year (from $ 341 million to $ 495 million), up 80% from the previous quarter (from $ 274.5 million to $ 495 million).

 

 

According to agrotimes.ua, Ukraine reduced corn deliveries to the EU by 28% compared to the same period last year (from $ 887 million to $ 636 million) and by 10.8% compared to the previous quarter, when these products were exported to the EU by $ 713 million

In the first quarter of 2020, Ukraine exported 2.92 million tons of wheat worth $ 581.34 million. This is evidenced by the data of the State Customs Service of Ukraine.

 

The main importers of Ukrainian wheat in the reporting period were:

 

• Egypt – by $ 214.5 million in the amount of 1.08 million tons (36.9%);
• Bangladesh – by $ 58.37 million in the amount of 292.7 thousand tons (10.4%);
• Yemen – by $ 52.59 million in the amount of 263.8 thousand tons (9.05%);
• Others – by $ 255.89 million in the amount of 1.28 million tons (44.02%).

In Ukraine, as of April 1, 2020, 10.2 million tons of oilseeds were processed, which is 45.9% of the gross yield. It is reported by the Association “Ukrolіyprom”.

 

 

“According to the results of 2019/20 MY, the production of sunflower oil will reach a record high of 6.6-6.7 million tons, which is 2-3% more than last season,” analysts said.

 

 

From the beginning of the season, Ukrainian producers processed 9 million tons (59% of the gross harvest) of sunflower, 0.8 million tons (21.6%) – soybeans, and 0.4 million tons (12.2%) – rapeseed.

 

 

Oil and fat production in Ukraine for September-March:

 

• unrefined sunflower oil amounted to almost 3 897.6 thousand tons, which is 11.7% higher than last year;
• refined sunflower oil – 536.2 thousand tons (+ 21%);
• soybean oil – 161 thousand tons (+ 3.8%);
• sunflower meal – 3 568 thousand tons (+ 3.2%);
• soybean meal – 662.17 thousand tons (+ 2.3%).

 

The production of rapeseed oil in July-March amounted to 160.5 thousand tons, which is 27% more than the same period last season.