Agriculture in Ukraine. Trade Guide for Norwegian Importers.

Transcription

TABLE OF CONTENTS
1.
UKRAINE: MACROECONOMIC OVERVIEW ....................................................... 3
2.
GRAIN MARKET OVERVIEW ............................................................................ 9
3.
OILSEED MARKET OVERVIEW ........................................................................ 36
4.
MEAT AND MEAT PRODUCTS MARKET OVERVIEW ....................................... 66
5.
DRIED MILK MARKET OVERVIEW .................................................................. 79
6.
HONEY MARKET OVERVIEW ......................................................................... 85
7.
TOMATO PASTE MARKET OVERVIEW............................................................ 89
8.
NUT MARKET OVERVIEW .............................................................................. 94
9.
MUESLI (FLAKES) MARKET OVERVIEW .......................................................... 97
10. YEAST MARKET OVERVIEW ........................................................................... 98
11. VEGETABLE, FRUITS, BERRIES MARKETS OVERVIEW ................................... 100
12. CONFECTIONERY SUNSEED MARKET OVERVIEW (SEEDS FOR BAKERY)........ 117
13. PELLETS MARKET OVERVIEW ...................................................................... 119
1. UKRAINE: MACROECONOMIC OVERVIEW
Ukraine is amongst the countries usually categorized as “developing”, like the majority of post-Soviet Union
countries. While Ukrainian economy is diverse and is not as dependent on single sector of economy as
some of its neighbors, goods produced and exported from its territory are usually of low added value.
Ukraine is the largest exporter of sunflower oil in Europe, amongst world leaders in terms of grain exports.
Agricultural commodities also account for 25-30% of total exports. Modernization and economy growth are
usually associated with agrarian sector of Ukraine, despite the fact that it accounted only for 9.1% of
country’s GDP (2013).
Ukrainian economy currently is facing crisis, which started in the beginning of 2014 due to political protests,
later turning into armed confrontations between local militia and protestants. Later, political issues
escalated with former President Yanokovych leaving the country, annexation of Crimea by Russian
Federation and military actions in the East of Ukraine, which are still ongoing. In the beginning of spring,
National Bank of Ukraine implanted concept of free-floating exchange rate of Ukrainian national currency –
Hryvnya (UAH), which led to its devaluation against USD and EUR by 40-45%. Since Ukraine has negative
balance of trade, meaning that imports are higher in monetary terms than exports (by USD 13.7 billion or
21.6%), prices of imported products have increased significantly. Higher prices for imported products are
accompanied by deficit of external funding, once again due to high country risks, as currently assessed by
international ratings agencies. International government institutions (IMF and others) are almost the only
ones that are actively investing in Ukraine.
At the same time there is a clear opportunity for local producers, who will be looking at the market with
higher demand for locally-produced goods. There is a potential for growth and development of the local
scale due to low production and operating costs. These opportunities are represented in the form of
interest from EU-country-members in terms of importing goods from Ukraine.
Warfare in the East leads to daily losses of lives and further degradation of the Eastern regions. While there
is currently no official statistics, majority of the businesses has seized their operations in the region.
Infrastructure is getting destroyed, leading to significant worsening of life quality. While there is not
enough evidence to report food shortage, judging by 4 cities (Slavyansk, Kramatorsk, Druzhkovka and
Konstantinovka) of Donetzk region where Ukrainian Authorities renewed control lately, food and water
shortages are one of the biggest problems in the region. It is also clear that unemployment and poor
healthcare conditions are the next key issues that will arise in the region as ATO nears its completion.
Positive agreements were reached recently as Seize Fire Treaty was signed in Minsk, between Ukraine and
pro-separation forces.
Newly formed Ukrainian Parliament is formed mainly from pro-Western ideology parties, looking into
peaceful resolution of the conflict in the East and further cooperation with the EU. Combined with efforts,
taken by the President of Ukraine, Petro Poroshenko, main government bodies are taking immense efforts
to implement reforms that would minimize corruption, optimize spending and help development of the
country. Investor-friendly climate is amongst the top-priorities of Ukrainian authorities as well.
Migration flows from Eastern regions leads to necessity of implementing new social programs for IDP,
mainly at the expense of other social programs. In addition, there is a need to increase funding of the
standing Ukrainian army, which will further burden Ukrainian budget. At the same time, Prime Minister of
Ukraine has set a goal of UAH 40 billion cut of expenses for the country, leading to conclusion that only the
most vulnerable strata of Ukrainian population will continue receiving benefits from the government. It is
essential to take closer look at the most vital indicators of Ukrainian economy that will define further
development of the country in general and its food security in particular.
Ukrainian GDP (2013) was estimated at approximately Ukrainian Hryvnya (UAH) 32Th per capita, equivalent
to USD 3 979 per capita (3.4% increase compared to 2012). Official data suggests gradual increase of GDP
per capita value after its drop in the recession year of 2008. At the same time, projections for growth for
2014 are mainly negative. Development and Reforms Program 2020, presented by Petro Poroshenko,
President of Ukraine suggests that decline country is experiencing at the moment is temporary and result of
changes, that were necessary for a long time. By the year 2020, main sectors of economy are expected to
recover and start stable growth, making them high-risk – high-reward assets at the moment.
Table 1.1. Ukraine: GDP, M USD, current prices
Name/Year
2005
2006
2007
2008
GDP, M USD
87 418 112 104 147 467 183 185
GDP, % change
28%
32%
24%
GDP per capita,
1 852
2 390
3 165
3 948
USD
GDP per capita, %
29%
32%
25%
change
Source: State Statistics Service of Ukraine, World Bank Reports
2009
114 880
-37%
2010
137 870
20%
2011
165 092
20%
2012
176 645
7%
2013
184 555
4%
2 492
3 004
3 605
3 874
4 047
-37%
21%
20%
7%
4%
As a result of social unrest and political instability in the end of 2013 – early 2014 (Crimea events and
warfare in the Eastern part of Ukraine) Ukrainian GDP is expected to decline by 7-9% in 2014 with 6%
decline officially reported for January-August 2014. This forecast is constantly being revised on the basis of
ongoing military conflict in the Eastern regions. In addition, it is vital to note the significant devaluation of
Ukrainian currency by 50% from 8 UAH/USD in the beginning of March to 11.5 UAH/USD in the beginning of
April. Drastic devaluation of currency is explained by implementation of free float policy elements by the
National Bank of Ukraine in March 2014. Current official rate is estimated at 13 UAH/USD. Net foreign debt
of Ukraine is estimated at about USD 142,1 Billion, which is USD 15,6 Billion higher than total GDP of
Ukraine for 2013 if considering the current exchange rate.
At this point, it is important to note that IMF ratified stand-by program for Ukraine total worth of USD 17
Bl, in addition to USD1.5 Bl, which were guaranteed by the World Bank. First transfer from IMF was
conducted on May 7, 2014. European Union provided Ukraine with total of EUR 250 M on June 13, 2014,
EUR 100 M were provided in May, and on June 17 European commission provided EUR 500 million. These
loans are aimed at support of Ukrainian economic development as well as coverage of external debt.
Ukrainian government had already undergone the process of cutting government spending in order to
balance the State Budget.
Total volume of the Budget spending cuts reached USD 2.2Bl. At the same time budget revenue was also reevaluated and decreased by USD 1.9 Bl, leaving budget for 2014 with USD 5.96 Bl deficit.
Diagram 1.1. Exchange Rate of UAH against USD
Source: Balance of Payments, UkrAgroConsult calculations
Due to Ukrainian currency devaluation, it also became apparent that consumer prices will start catching up
to the new currency rates at least as the result of increased fuel prices. We observed steady growth of
consumer prices, which could be a positive factor for the producers, which usually welcome inflation.
Inflation has been growing at slow 0.2-0.6% on monthly basis in January-February and picked up the pace
over the next three months to 2.7-3.3% on the average. Based on data available, we forecast approximate
10-12% inflation rate for the entirety of 2014. At the same time Head of the National bank of Ukraine
Valeriya Gontareva stated early in July, 2014 that inflation rate might grow as high as 17-19% due to
devaluation of national currency as well as increase in tariffs for population.
Table 1.2. Ukraine: consumption price index (inflation index) (% to the previous year)
Name/Year
2005 2006 2007
Consumer price index (inflation rate,%
110.3 111.6 116.6
, yoy)
Producer price index (%, yoy)
109.5 114.1 123.3
Agricultural production (%, yoy)
108.1 102.4 138
Source: State Statistics Service of Ukraine, World Bank Reports
2008
2009
2010
2011
2012
2013
122.3
112.3
109.1
104.6
99.8
100.5
123
110.3
114.3
106.4
118.7
130
114.2
113.6
100.3
106.8
101.1
107.4
Inflation rate has indicated steady growth since 2005, having deflated only in 2012. The average rate for
2005-2010 is estimated at 13-14% on the average, while it has decreased to 3-4% over the past 3 years.
Inflation rate reached 100,5% in 2013, reflective of global price drop of major commodities. Low inflation
rate ensures higher purchasing power parity in Ukraine, however, affects cost of production for the
exporters in the country. 2014 result is forecasted to reach 110.1% by the end of 2014.
Diagram 1.2. Average salary in Ukraine, UAH
Source: State Statistics Service of Ukraine, UkrAgroConsult calculations
While inflation benefits national producers, average consumer salary growth has to outperform inflation
growth in healthy economy in general and with the purpose of maintaining food security within the country
in this particular case. We have been observing tendency towards faster inflation growth rate compared to
income growth rate starting October 2013 when consumer price index grew by 0.4% compared to 0.2% of
population income growth for the first time since January of 2011. The tendency remained until November
2013 and reverted in December. However, as country risks grew, tendency repeated itself in February of
2014 and held strongest in April and May. June and July indicated reverse trend as salaries were growing
either at the same rate or higher than consumer prices. August started repeating April and May trend. We
can see this tendency continue thought the year or at least until situation stabilizes in the most Eastern
regions of Ukraine. Such potential exists with signing peace treaties and delegating more authorities to the
regions of Ukraine.
Diagram 1.3. Change of consumption prices vs. income level change, %
Consumer expenditures/behavior patterns in such economy usually indicate downward trend, and it is clear
Ukraine does reflect this tendency, especially given the fact that consumer prices are growing at faster
pace, compared to income. We are assuming Ukraine will follow this tendency until the end of 2014,
additionally burdened however by higher utility bills and gasoline prices. Expenses are more likely to be
targeted at basic products, avoiding additional spending on premium products.
Table 1.3. Average household spending, UAH
2010
2011
2012
2013*
Total expenses per household, UAH
3 072.7
3 456.0
3 591.8
3 600.0
Total consumption expenses
90.00%
90.2%
90.9%
90.9%
Food and non-alcoholic drinks
51.60%
51.3%
50.2%
50.2%
Alcohol and tobacco
3.30%
3.4%
3.5%
3.5%
Non-food products
35.10%
35.5%
37.2%
37.2%
Non-consumption expenses
10.00%
9.8%
9.1%
9.1%
Ukrainian population had been decreasing on the average of 0,43% per annum over the past 9 years with
main factors that contribute to the stated tendency being high mortality and migration rates. Another
tendency for Ukrainian population is aging: share of older people is increasing while share of younger
people is on the decrease. Instability in the Eastern parts of the country in addition to Crimean problem
further contributes to the trend.
Table 1.4. Ukraine: population, Mln
Name/Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
Total population
47.2
46.9
46.6
46.4
46.1
45.9
45.8
45.6
45.4
-0.6%
-0.6%
-0.4%
-0.6%
-0.4%
-0.22%
-0.44%
-0.44%
Change, %
While flow from migrant remittances constituted on the average 1% from Ukraine’s GDP, it is important to
mention an ongoing trend of declining remittance flow from 2011 with the average 10% per year rate. High
skilled specialists mostly migrate to Russia though share of laborers is also sufficient in this direction.
Migration to western destination includes usually low skilled unemployed people and/or migrants from
rural areas looking for job as even the latter are paid better abroad compared to incomes within Ukraine.
Year
Total
Average change, %
Table 1.5. Flow from remittances, Ml USD
2010
2011
1 560
1 890
21.2%
2012
1 749
-7.5%
2013
1 531
-12.5%
Due to military operation in the East of Ukraine, it is apparent that 2014 will indicate another year of
decline for the labor remittances. While there were no actual steps taken towards creation of barriers
between countries for its citizens to move across border to work, we highly doubt that this will remain for a
long time. As a first step in mounting such barriers we consider Russian Government body statement about
admittance to Russian territory of all CIS countries only if they have foreign passports starting from January
1, 2014 while earlier it was possible having national passport.
Indeed, reported decline of cash flow from remittances for the first quarter of 2014 only constituted 8.1%,
however we anticipate even further drop as armed confrontations in the East of Ukraine expanded only in
the second quarter of 2014.
Diagram 1.4. Quarterly break-down of cash flows of remittances, Ml USD
Global rating of international has been reflecting deteriorating state of Ukrainian economy over the past 4
years with constant decline of country’s credit ratings. Currently Ukraine holds Caa3 foreign and local
currency rating by Moody’s, which indicates poor country’s standing and very high credit risk. The rating is
the lowest that is usually given to countries with near-default state. CCC (negative) by S&P reflects a
country which urgently needs to create favorable business, financial and economic conditions to meet its
financial obligations. Finally, Fitch suggests substantial credit risk for Ukraine with default being considered
as a possibility.
Table 1.6. Moody’s Long Term Rating
Foreign Currency
Date
Rating
4-Apr-2014
Caa3 (Negative)
31-Jan-2014
Caa2 (Negative)
20-Sep-2013
Caa1 (Under Review)
5-Dec-2012
B3
15-Dec-2011
(Negative)
11-Oct-2010
(Stable)
Source: Moody’s Rating Agency
Local currency
Date
4-Apr-2014
31-Jan-2014
20-Sep-2013
5-Dec-2012
Rating
Caa3
Caa2
Caa1
B3
The ratings of the agencies are key indicators for the decision makers and most likely high country risks will
promote change of the investment strategies for major producers, including agrarian sector. Such approach
will result in curtailing of private investment programs (both national and foreign) in Ukraine and moreover
encourage intensive sales of available assets. These trends may negatively influence employment climate
and worsen consumer access to high quality foods.
Macroeconomic situation in Ukraine is characterized by declining growth rate of Gross Domestic Product,
decline of foreign investment levels, and an increasing external debt of the country. Country’s gold and
foreign currency reserves were on decline up to 2014 and national currency had undergone heavy
devaluation. Current political and geopolitical risks remain at high levels as seen through ongoing conflicts
in various parts of the country, more drastically in the Eastern regions.
These factors are additional risks that have to be accounted for by companies willing to operate in Ukraine.
At the same time this is the time for opportunities, as majority of Ukrainian population, including business
owners and the government are willing to make new changes in order to get closer to international
standards of business conduct, ethics and general operating principles. Parliamentary elections, which took
place on October 26, 2014 indicated that Ukrainians are determined to commit to the laws and principles,
promoted within the EU. Top-3 parties, which constituted roughly 60% of the new Parliament, clearly state
their intentions to complete necessary changes and bring confidence in Ukraine to the eyes of global
community. Favorable investment climate, reforms of the tax legislation and many other will result in boost
to Ukrainian economy within the next 3-5 years. These changes will occur even faster when the conflict in
the East of the country is settled completely.
Agriculture in Ukraine generates attractive and consistent returns for the following reasons:
1. Scalability. Ukraine has the largest arable land bank in Europe – 32.5 million hectares – but only
10% of this area is being used productively. The country has a well-developed infrastructure –
including an intensive rail network, irrigation and plentiful storage – as well as a favorable
location close to major export markets in Middle East and North Africa.
2. Low operating costs. Ukraine benefits from low cost land leases, agricultural labor and fuel.
3. Yield improvement potential. Ukraine’s famous black soil is among the most productive on the
planet. Agricultural yields could be tripled by using basic modern farming techniques and
improving technology.
4. Global trends. The appetite for food worldwide continues to rise. The Black Sea region is the
only area that can meet the marginal demand for wheat and corn. Ukraine overtook Argentina
for second place in global corn production – behind the United States – and remains the swing
producer for key crops.
2. GRAIN MARKET OVERVIEW
Sector
Key figures (2013 unless noted)
Trends
Outlook
Major risks
Market leaders
- Attractiveness
Grain
Area under grain 15-16m ha
Total harvest
~55-60MMT
Average yields
3,5 MT/ha
Fertilizer use
80 kg/ha
Major crops
- Wheat
6.2m ha/21.5MMT production/9,2MMT exports
- Corn
4,8m ha /27MMT production/19,9MMT exports
- Barley
3.1m ha /7,8MMT production/3.5MMT exports
- Area under grain mostly unchanged since independence in 1991.
- Grower preference for higher-margin oilseeds preventing gains in
hectares sown and tons of production harvested.
- Ukraine’s livestock industry remains biggest domestic grain consumer.
- Driven by greater use of inputs, cereal production will increase as a
result of higher yields
- Flat domestic consumption will lead to higher exports
- Weather
- Government policy, especially export quotas
Top ten exporters hold some 35% of exports
- supply of high quality grain for competitive prices owing to low
production costs
- a potential for boosting high-protein wheat supply due to climate
changes
- a high potential for production of deep processing products
Wheat
Ukraine offers high-quality wheat at the most competitive prices in the world. Steadily high
production allows planning trade relations on a medium- and long-term basis.
Planted acreage is unlikely to expand. In the medium-term outlook, there is a potential for a rise in
wheat yields and, correspondingly, total crops if investment is made in inputs (plant protection,
fertilizers, seed etc.). Despite increasing production costs, Ukrainian grain remains highly competitive.
Wheat from Ukraine enjoys persistently strong demand from the world market.
The quality of Ukrainian wheat in many respects depends on weather conditions. The global trend
towards a warmer climate leads to a larger portion of high-quality wheat in the crop. Lately, dry years
are more and more frequent in Ukraine that will contribute to an expanding crop share of highprotein wheat. Wheat with 14%+ protein currently accounts for less than 0.5% in both production
and exports.
Possessing a sufficient wheat processing capacity, Ukraine has a high flour export potential. The
positive trends of the recent two or three years include an expansion of flour export volumes and
destinations.
We are confident in the efficiency and potential of deep processing of grains and oilseeds in Ukraine
(starch, wheat gluten, glucose and fructose syrups, lysine, lecithin, glycerin). Investment in this area
could be highly effective because of persistently strong demand and the absence of domestic
production.
Corn
Ukraine is the world’s second largest corn exporter after the U.S. Ukrainian corn is supplied to
roughly 50 countries of the world. Its high competitiveness results from good quality with minimum
prices. The deep processing market can be promising because it is underdeveloped and has access to
cheap raw materials. Ukrainian corn is exported to nearly 50 countries.
Barley and others
The main advantage of Ukrainian barley is its low production cost. This is what makes the Ukrainian
commodity very competitive and accounts for the country’s fourth position in the global list of top
barley exporters. The low cost of barley growing results in more attractive cultivation and sales of this
crop in the period of a financial crisis.
Barley, millet and buckwheat are so-called emergency spring crops in Ukraine. Their plantings expand
in years of heavy winter crop losses. In this case, lost winter crops are reseeded with spring crops, in
particular millet and buckwheat.
Wheat, barley, corn production (main producing regions, crop structure, general trends)
Table 2.1. Ukraine. Total Grains S&D, KMT
Opening stocks
Acreage seeded
Acreage
harvested
Yield
Crop
Imports
SUPPLY
Food Industry
Feed Usage
Seeds
Exports
Losses
DEMAND
Ending stocks
Stocks/Use (%)
2009/10
3233
15760
2010/11
3377
15910
2011/12
5147
15720
2012/13
7262
17290
2013/14
3135
16316
2014/15*
3385
15265
15360
14905
15282
14775
15730
14767
2,96
45405
119
48757
8215
11970
2685
20675
1835
45380
3377
14,8
2,62
39042
136
42555
7665
12640
2595
12298
2210
37408
5147
22,5
3,29
50302
199
55648
7550
12570
2875
23131
2260
48386
7262
31,6
2,85
42155
162
49579
7350
13055
2500
21820
1719
46444
3135
13,7
3,66
57625
177
60937
7285
13890
2460
31919
1998
57552
3385
14,3
3,98
58745
212
62342
7070
14275
2435
33230
1848
58858
3484
14,7
*-forecast, Source: UkrAgroConsult estimates
Wheat, maize and barley are the main crops in Ukraine with their share in total seeded grain acreage
being at 90%. Recently maize production in Ukraine increases by high rates due to high export
demand and attractive export prices. Farmers cultivate mainly winter wheat (about 95%), while
barley is mostly spring (65%).
Diagram 1.1. Cereal cropping pattern, Th ha
Source: UkrAgroConsult estimates
The impressive growth of grain production during 2009-2012 demonstrated the great potential of
farming in Ukraine if modern technology is applied on basis of easier access to financing.
Table 2.2. Grain production with breakdown by crop, 2001 – 2014, KMT
Crops
Wheat
Barley
Corn
Rye
Total grains
2001
20 204
8 794
2 500
1380
35 344
2005
17 910
8 824
6 570
1285
36 822
2007
13 700
6 150
6 400
560
28 302
2008
24200
12300
8 400
975
48100
2009
20800
11 600
10 200
915
45 400
2010
16850
8 500
11 950
465
39 270
2011
20600
8300
19000
580
50 302
2012
14180
6520
19000
670
42 155
2013
21000
7350
27000
635
57 625
2014*
22500
8300
25900
460
58 750
Source: UkrAgroConsult’s estimates, *-forecast
With relatively stable planted area, grain crop has been growing mainly due to increasing
productivity.
Diagram 2.2. Grain planting area, yield and production
Wheat
Wheat is a traditional crop cultivated in Ukraine and its acreage has been relatively stable at 6-6.7 Ml
ha in the last 13 years. An exception was a few years, when harvest area shrank below 6 Ml ha due to
weather factors (autumn or spring drought, winter-kill etc.).
Unlike plantings, wheat yields are extremely unstable, varying from 1.47 MT/ha in the extremely
unfortunate 2003/04 season to 3.48 MT/ha in the bumper 2014/15 year.
Mostly winter wheat is cultivated in Ukraine. Its key growing areas are concentrated in the south-east
of the country. Plantings are stable. The crop substantially depends on the fall weather and wintering
conditions.
Diagram 2.3. Wheat planting area, yield and
production
Map 2.1. Wheat main producing regions
The crop’s quality also varies from year to year: from 27% of milling wheat (1st, 2nd, 3rd grades) in
the 2008/09 crop to 66% in 2010/11:
Table 2.3. Milling to feed wheat crop ratio
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
% of milling
wheat
69.7%
63.2%
27.2%
42.3%
65.7%
40.0%
82.7%
70.0%
55.0%
% of feed
wheat
30.3%
36.8%
72.8%
57.7%
34.3%
60.0%
17.3%
30.0%
45.0%
The wheat quality depends mostly on weather conditions. In dry years, the share of milling wheat
surges up to 83%. In this case, wheat with high protein (13-13.5%) appears in the market. Milling
wheat with 11-13% protein is present in the market in normal years like 2014. Wheat with a higher
protein content is extremely difficult to find in the market.
Barley
Mostly spring barley is grown in Ukraine. Due to a rather serious winter-kill threat, winter barley
plantings are concentrated mainly in the southernmost parts of the country. Spring barley is
cultivated everywhere.
Map 2.2. Barley main producing regions
Winter
Spring
Barley plantings have been shrinking in the last three years in favor of corn acreage.
Diagram 2.4. Barley acreage, Th ha
Diagram 2.5. Barley planting area, yield and
production
Corn
Ukraine’s corn planted area has been expanding in the last 13 years due to steadily high producing
margin. The key corn growing regions are Central and North Ukraine. The global climate change
trends not only promoted a northward shift in the corn production belt, but also – along with
cultivation practices improvement – increased corn yields in Ukraine.
Diagram 2.6. Corn planting area, yield and
production
Map 2.3. Corn main producing regions
Rye
Winter rye is grown in Ukraine. Thanks to high winter hardiness, rye is cultivated in the north of the
country.
Rye is a commodity for purely domestic consumption. Its exports are extremely small, mostly to the
post-Soviet countries. Having no support from export demand, rye prices are usually low, too. Low
profitability caused a downward trend in rye plantings over the previous five seasons.
Diagram 2.7. Rye planting area, yield and
production
Map 2.4. Rye main producing regions
Millet & Buckwheat
Millet and buckwheat are so-called emergency spring crops in Ukraine. Their plantings expand in
years of heavy winter crop losses. In this case, lost winter crops are reseeded with spring crops, in
particular millet and buckwheat.
Diagram 2.8. Millet planting area, yield and
production
Diagram 2.9. Buckwheat planting area, yield and
production
Wheat flour production and exports
For the last two decades (1990-2014) share of food grain consumption (mainly of wheat) was
comparatively stable. Meanwhile, in weight terms wheat consumption showed a steady downtrend.
This is explained by declining Ukrainian population. If in 2010 Ukraine's population totaled 45.8 M,
then as early as 2020 it will decrease to 42.9 M, going down to 35 million by 2050 (FAO estimates).
Diagram 2.10.Wheat flour production in Ukraine
Source : State Statistics Service of Ukraine, UkrAgroConsult estimates
Ukrainian flour production dropped in July-September of MY 2014/15 against the same time last
season due to plummeted flour milling in the troubled eastern regions of Donetsk and Luhansk. Flour
production may close the season down 12% from MY 2013/14.
Table 2.4. Top 5 wheat flour producers in MY2013/14
1
2
3
4
5
StateReserve
State Food and Grain Corporation of Ukraine, PJSC, Kiev
Kyivmlyn
Lauffer Group
Lihanskmlyn
Demand for wheat from Ukrainian milling industry is limited by domestic market. As a rule, Ukraine
flour is competitive in the global flour market only in years of wheat crop failures in Kazakhstan and
Russia.
Wheat flour exports increased over the last three years. Remarkably, the range of export destinations
changed considerably. While Ukraine supplied flour to the former Soviet countries before, now, apart
from Moldova, its top buyers include China, Israel, and Syria. China received the first trial parcels of
Ukrainian flour in the 2012/13 season and has been monthly purchasing on average some 5 KMT of
Ukrainian product since then. Among European countries, minor flour purchases were made by the
UK and Spain in 2013/14.
Table 2.5. Wheat flour exports, KMT
2009/10
117.9
2010/11
86.9
2011/12
114.7
2012/13
198.8
2013/14
229.1
Diagram 2.11. Wheat flour export destinations, MY 2013/14
Table 2.6. TOP-10 wheat flour exporters in MY 2013/14
#
1
2
3
4
5
6
7
8
9
10
KMT
45.4
29.9
21.4
21.4
20.6
13.4
10.7
8.8
6.1
5.9
Name
KHP Talne, Ltd, Cherkassy reg.
Novopokrovsky KHP, Kharkov reg.
Vinnytsky KHP #2, Ltd, Vinnitsa
State Food and Grain Corporation of Ukraine, PJSC, Kiev
Lugansk-Nyva, JSC, Lugansk
Ukrhidroproekt, JSC, Kharkov
Mega Import Plius, Ltd, Kharkov reg.
Mariupol mlynkombinat, CJSC, Donetsk reg.
Enlil, Ltd, Kharkov
Pivdenmlyn, Ltd, Kherson reg.
%
19.8
13.0
9.4
9.3
9.0
5.8
4.7
3.8
2.7
2.6
Trends in Ukrainian grain exports
As domestic consumption of grain is quite steady in Ukraine, the volume of export shipments directly
depends on harvest. During the last 4 years grain exports exceeded 20 MMT owing to grain
production ranged between 42 – 57 MMT.
Table 2.7. Grain exports from Ukraine, KMT
2006/7
2007/8
2008/9
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15*
Total grain
9879
4112
24688
20675
12298
23131
21820
31920
33230
Wheat
3300
895
12640
9160
4100
5220
6830
9215
11000
Barley
5145
1037
6335
6230
2900
2455
2100
2475
3400
Corn
1100
2080
5500
5000
5000
15140
12500
19900
18500
Rye
3
0
6
5
38
11
17
51
20
* UkrAgroConsult’s estimates, *-forecast
Before 2009, wheat was the main export grain crop in Ukraine. A significant increase in maize planted
area since 2008 has changed the export structure. Currently maize form the basis of grain exports
(about 60% of the total grain exports).
Diagram 2.12. Ukrainian grain export structure, KMT
Source: State Statistics Service of Ukraine, UkrAgroConsult estimates
In the long term, the world’s growing population and increasing incomes in developing countries,
which are the main consumers of cheap Black Sea grain will promote further increase in exports.
Wheat
The world wheat markets trends, as well as Ukrainian export potential, promoted taking by Ukraine
position of one of the market leaders. Over the last few seasons, Black Sea wheat, in particular
Ukrainian one, compete with European, North and South American grain in the main target markets.
In the 2013/14 season the share of Ukrainian wheat and corn in the world’s total exports were 5.9%
and 16.3%, respectively.
Exports of Ukrainian grain, including wheat, are seasonal. From 50% to 85% of the total export
capacity of wheat is shipped abroad during the first half of a season (July- December).
Diagram 2.13. Ukrainian wheat export, KMT
Ukraine is one of the largest suppliers of feed wheat to the world market. The low and medium
quality wheat averaged about 50% in the total Ukrainian wheat exports from 1995 to 2013, reaching
as high as 75-88% in some years.
However, during the 2012/13 and 2013/14 seasons, the share of milling wheat in crop reached 6575% owing to weather conditions. Consequently, the share of milling grain in wheat exports
increased.
Traditionally, Near East, North African and European Union are among the main importers of
Ukrainian wheat. Asian and African countries generate demand for Ukrainian mainly milling
wheat, whereas European countries give preference to importing feed wheat from Ukraine.
We should note the transformation that has taken place in the geographic component of Ukrainian
exports. Ukrainian wheat exports have grown significantly to Asian and African countries over the last
ten years. This became especially noticeable in the period of 2008-2012. This was, in the first place,
due to increased demand for food wheat of medium quality in these countries. And, in the second
place, a considerable reduction in freight costs as a result of the global crisis, giving nice chances for
Ukrainian exporters to open up new markets, for instance, those in South-East Asia.
This same period saw reduction in exports to the EU-27 countries. This may be due to the export
quotas for low and medium quality wheat, which have been in force in the EU-27 since 2002. Exports
to the CIS countries have been insignificant.
Diagram 2.14. Wheat export destinations
2012/13
2013/14
Table 2.8. Wheat S&D Balance, KMT
Wheat
2009/10
2010/11
2011/12
2013/14
2014/15*
Opening stocks
2165
2110
3662
2012/13
5944
2146
2685
Acreage seeded
6715
7065
6900
6950
6886
6230
Acreage harvested
6600
6460
6690
5645
6565
6047
Yield
3.15
2.66
3.08
2.51
Crop
20800
17200
20600
14180
3.72
21000
22500
2
2
Imports
5
2
2
SUPPLY
22970
19312
24264
20126
Food Industry
5700
5400
5300
5100
5000
4900
Feed Usage
3800
4000
5000
3800
4100
4400
Seeds
1300
1250
1500
1400
1300
1300
Exports
9160
4100
5 220
6830
9213
11000
900
900
1300
850
850
850
20860
15650
18320
17980
20463
22450
Ending stocks
2110
3662
5944
2146
2685
2737
Stocks/Use %
19.5
34.4
50.4
20.8
25.8
25.8
Others consumption and Losses
DEMAND
2
3.20
23148
25187
Barley
Ukraine is among top five exporters of barley in the world. In some years, the share of Ukrainian
barley in global exports exceeded 30%. The peak of barley exports was reached in the 2008/09 season
(6.3 MMT). In recent years, the production and exports of barley from Ukraine have been declining. In
the 2013/14 season barley exports amounted to 2.48 MMT.
Ukraine exports (as well as produces) mainly feed barley. The share of malting barley in the crop does
not exceed 10%, as a rule, while export of malting barley from Ukraine is very low.
Saudi Arabia is the main buyer of Ukrainian feed barley. It is expected that in the near future Saudi
demand for feed grains will be relatively stable generating demand for Ukrainian exports.
Diagram 2.15. Barley export destinations, 2013/14
Table 2.9. Barley S&D Balance, KMT
Barley
2009/10
2010/11
2011/12
2012/13
2013/14
Opening stocks
577
514
701
935
365
2014/15*
250
Acreage seeded
5050
4670
3840
4185
3300
3110
Acreage harvested
4930
4480
3720
3450
3235
3070
Yield
2,35
1,96
2,23
1,89
2,27
2,70
Crop
11600
8800
8300
6520
7350
8300
Imports
7
7
39
10
10
10
SUPPLY
12184
9321
9040
7465
7725
8560
Food Industry
690
620
600
600
600
550
Feed Usage
3400
3800
3700
3350
3500
3600
Seeds
950
900
950
700
700
670
Exports
6230
2900
2455
2100
2475
3400
Losses
DEMAND
400
400
400
350
200
200
11670
8620
8105
7100
7475
8420
Ending stocks
514
701
935
365
250
140
Stocks/Use %
10,2
13,2
17,8
7,8
5,2
2,9
Corn
In 2010s corn becomes main agri crop in Ukraine with its share in total seeded acreage being at 2528%. Corn is considered to be a crop with high margins in Ukraine. The planted area of corn has been
expanded significantly in recent years. During the last 10 years Ukraine increased corn exports by
almost 1670% - from 807 KMT in 2002/03 to 12.6 MMT in 2012/13 season. The largest export was
registered in 2011/12 season - 15.14 MMT.
Such a significant growth of corn exports allowed Ukraine to rise in the rating of world's biggest
exporters from eighth place in 2000 to third in 2013/14.
The 2014/15 corn crop drop along with keen global market competition creates makes possible a
decrease in corn exports to 18.5 MMT.
Diagram 2.16. Ukraine. Corn export dynamics
Ukrainian corn has not only found consumers in the traditional markets, but is also supplied to
promising regions such as Southeast Asia. Export of Ukrainian corn to China expected in 2013/14
season at level of 0.701.0 M MT will confirm the trend of growing importance of Asian markets for
Ukrainian agriculture.
Diagram 2.17. Corn export destinations, 2013/14
Rye
In the 2013/14 season, Ukrainian rye exports hit an eight-year high of more than 50 KMT. At the same
time, Spain emerged as the key buyer of Ukrainian rye: about 24 KMT of grain was shipped to the
country.
In the early 2000’s, Ukraine exported up to 300 KMT of rye a year, but these shipments were made
against the background of harvests reaching 1.4 MMT compared to 0.63 MMT in 2013).
It needs to be noted that an accelerated pace of rye exports is also seen in the first three months of
the current season. Over 10 KMT of rye was already exported in July-September, mostly just to Spain.
However, rye exports are unlikely to beat the previous record in the new season because export
potential is limited due to a 28% crop drop against 2013.
Diagram 2.18. Ukraine. Rye export dynamics, KMT
Table 2.10. Rye exporters from Ukraine
Company
Kernel
Address
Tel.
3 Tarasa Shevchenka lane,
Kyiv, Ukraine, 01001
(+38-044)
461-88-01
E-mail
[email protected]
Web-site
http://www.kernel.ua/
[email protected]
http://www.agropartner.info/
[email protected]
http://www.deltapremium.com.ua/en/
(+38-044)
461-88-04
(+38-044)
461-88-06
Agropartner
Delta
premium
resource
133,
Peremogy
Avenue,
Chernihiv, 14000
st.Zhitnetorzhskaya 8, Kyiv,
04071
+38
0462
65-18-42
+38
(044) 42542-02
Millet & buckwheat
In view of small production volumes, Ukrainian buckwheat and millet exports are low.
Table 2.11. Millet & buckwheat exports, KMT
millet
buckwheat
2011/12
39.9
0.9
2012/13
55.7
0.2
2013/14
16.5
1.1
Table 2.12. Millet export destinations, KМТ
South Africa
3.2
Israel
1.2
Switzerland
0.9
Egypt
0.9
Spain
0.8
Philippines
0.7
Germany
0.7
Malaysia
0.7
Turkey
0.6
Arab Emirates
0.6
Others
6.3
Diagram 2.19. Buckwheat export destinations
Table 2.13. Buckwheat exporters from Ukraine
Company
Makardi
Galex-Agro
Agropartner
Address
40
Lypovetskaya
str, Khmelnyk,
Vinnitsa region,
22000
1-a
Lesi
Ukrainky str.,
NovohradVolynsky,
Zhytomir
region, 11707
Tel.
+380 (433) 822530
E-mail
Web-site
+38 041 41 5 33 21
[email protected]
http://www.galeks-agro.com/
133, Peremogy
+38 0462 65-18-42
Valeriy.Shnaidman@agropart
ner.info
http://www.agropartner.info/
Avenue,
Chernihiv,
14000
Table 2.14. Millet exporters from Ukraine
Company
Palmira Plus
Address
27 Primorskaya str.
of.407,
Odesa,
65026
Anko-Agrotrade
92/94
Lustdorfskaya
doroga str., Odesa
2-G
Bolshaya
Arnautskaya str.,
Odesa 65012
Tekline
Agroseedex
Agrosindikat
21
Bugaevskaya
str, of 813, Odesa
7 Nadezhdy str.,
Mizukevicha,
Odesa region
Tel.
+3 8 (048) 723-2030
+3 8 (04855) 6-3544
+38 (050) 390 4707
+38 (067) 512 5888
E-mail
[email protected]
Web-site
http://www.palmira.odessa.ua/
[email protected]
http://www.ankoagrotrade.com/
(+38048) 709-8318; (8097) 911-8994, (8097) 650-6467.
+380482355724
+380503337388
[email protected]; [email protected]
et.ua, [email protected]
http://www.tekline.com.ua
[email protected]
[email protected]
http://agroseedex.com/
+380 48 7400522
+380(67)4890306
The TOP-10 companies exporting grain from Ukraine include mostly international traders.
Table 2.15. TOP-10 exporting trading companies, KMT
1
2
3
4
5
6
7
8
9
10
wheat
Nibulon
Louis Dreyfus
Cargill
State Food and
Grain Corporation
Kernel
Toepfer
Bunge
858.6
corn
Kernel
Nibulon
State Food and Grain
Corporation
771.7
582.0
380.5
266.4
Rise
Louis Dreyfus
Cargill
Toepfer
Serna/Glencore
Granum Invest
Agrotrade Export
265.1
215.6
214.3
Bunge
Serna/Glencore
Agrotrade Export
1083.9
899.3
1861.0
1860.8
barley
Louis Dreyfus
Nibulon
465.2
321.4
1633.0
East Grains
268.6
1362.4
940.2
724.0
613.2
Kernel
Toepfer
Bunge
Serna/Glencore
Corporation
Cargill
Rostok-Holding.
238.1
109.5
108.9
106.8
575.9
450.7
376.5
91.2
85.8
58.1
Table 2.16. MY2013/14 TOP of Ukrainian trading companies
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Name
Nibulon, Ltd, Nikolaev
Kernel, Ltd, Kiev
Rise, CJSC, Kiev/UkrLandFarming
Agrotrade Export, Ltd, Kharkov
Ramburs, CJSC, Kiev
Hermes-Trading, Ltd, Kiev
Myronivskiy Hliboproduct, CJSC, Kiev /MHP
Tekhnologichna agrarna compania Objednana, JSC, Kiev/TAKO
Promin Agro, Ltd, Kiev
Rostok-Holding, Ltd, Kiev
Latagro, Ltd, Kiev
Zolotoy Rassvet, Ltd, Kiev
Poligrain Agro, Ltd, Kiev
Falkon-Ukraine, Ltd, Kiev
KMT
3361.9
2738.9
1517.4
710.5
437.0
389.0
302.2
198.4
166.5
130.3
115.3
93.5
77.7
74.1
Grain supply value chain from field to port
The main factor determining the grain export prices is the logistics services costs. During the period of
2009-2014 the cost of grain transportation for export increased more than twice.
Also we see the constantly growth of trucks’ transportation as it influence on the EXW prices which
are paid to the framers for their grains. The average distance for grain delivery by trucks is up to
50km.
Despite the raised cost of grain transportation by rail, this transport mode currently dominates the
pattern of export deliveries. Due to a rise in freight rates and toughened control over the
transportation process, freight trucking in Ukraine has lost its advantages by now. As a rule, a lot of
grain deliveries (up to 60% of the export volume) to Ukraine’s ports in season beginning were made
by motor transport. Market players estimate that at most 30% of export grains are delivered to ports
by trucks in the beginning of 2014/15.
Diagrams 2.20, 2.21
The entire logistic chain will have to adjust itself to the strategic necessity of reducing the costs in the
marketing chain to remain competitive in the world market. This process will call for large
investments in logistics tools including inland transportation and Ukrainian port facilities.
Also amendments in government policy will be also required as it is the government that fixes vast
number of costs (certification, for example) directly influencing the price paid to farmers.
Table 2.17. Grain value chain from field to port, USD/MT
wheat
Truck
tariff
Producer's price
185
2
EXW price
FCA price
CPT port price
CPT port price with
margin
FOB price
Drying,
Cleaning
3.5
190.5
Silo's services
1 month
Loading to
storage
rail
2.2
4.5
197.2
Average rail tariff
to port, incl all
certificates
Average
trader's
margin
15
212.2
5
217.2
Fobbing
costs
20
237.2
corn
Truck
tariff
Producer's price
120
EXW price
FCA price
CPT port price
CPT port price with
margin
FOB price
2
Drying,
Cleaning
3.5
125.5
Silo's services
1 month
Loading to
storage
rail
2.2
4.5
132.2
Average rail tariff
to port, incl all
certificates
Average
trader's
margin
16.5
148.7
5
153.7
Fobbing
costs
23
176.7
Export regulations
Many years of observations allow pointing out a trend which shows that unfavorable weather
conditions in Ukraine occurred every 3-4 years. Adverse weather conditions provoke sharp reduction
of grain production, followed by various export restrictions. Bad weather conditions were observed in
2003, 2006, 2007, 2010 and 2011. It should be noted that in 2006-2008 Ukraine introduced quotas for
exports of agricultural products, and in 2010-2011 - export duties were imposed. In 2003 wheat
production declined significantly due to unfavorable weather, but export restrictions were not
introduced. It happened because the shortage of wheat in the market and considerable growth of
domestic prices for wheat and flour made the exports impossible, and traders began importing wheat
from Russia and Kazakhstan.
Table 2.18. Ukraine. Historical retrospective review of weather conditions, production and export
restrictions, 2000-2012
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Adverse weather
conditions
Crop failure/significant
reduction of
production
Export restrictions
Source: UkrAgroConsult
Despite the decline of wheat production in Ukraine in 2012, no official export restrictions were
imposed. For the first time the Government and exporters negotiated the maximum agreed level of
wheat exports. At the beginning of the season a memorandum was signed by traders and the
government, which set a limit of exports, at which there was no threat to food supply security inside
the country. Afterwards the maximum permitted level of exports was reconsidered upwards for
several times. This experience may be considered positive, as agreements were implemented by both
sides that allowed avoiding the introduction of quotas, or any other unclear restrictive mechanisms.
Price behavior, comparison to world grain prices
The grain price behavior in Ukraine closely depends on the two key factors: CBOT world price
dynamics and export demand. The reason for this dependence is that Ukraine exports over half of its
grain production.
Diagram 2.22. Correlation between Ukrainian wheat prices and CBOT futures
Ukrainian grain is most competitive early in the season (in the harvest period and after its close): JulySeptember for wheat and October-December for corn. As a rule, this is the time of the lowest prices
in Ukraine’s market. The next period of a price decline in the Ukrainian domestic market begins in
March-April, when new crop prospects are already clear. In addition, farmers need money in spring to
conduct planting, therefore they are more willing to sell remaining grain.
Diagram 2.23. Comparison of world wheat prices
Main conclusions on grain production and export potential
In terms of production, the opportunities for further expansion of grain acreage in Ukraine are quite
limited due to climatic constraints. The expansion of planted area to the south and east is nearimpossible due to lack of moisture in these regions, and the development of irrigation is unlikely
during the next few years. There are opportunities for some expansion of the area in the north and
west of the country, but careful selection of seeds is required in these regions due to shorter growth
season and smaller sum of effective temperatures.
In this regard, we believe that farmers will switch from extensive way of grain cultivation (expansion
of area) to intensive (higher productivity per hectare). Actually, this process has already started. Large
agricultural holdings deal with grain production increasingly frequently. They can ensure the
necessary set of operations to the full extent and are constantly increasing productivity.
So, Ukrainian grain production is expected to rise in the long run. Its growth will be achieved by
increasing yields, not plantings. However, in the near-term outlook, the grain crop may drop in 2015
due to a lowering level of applied agronomic practices. The use of fertilizers, quality seeds and plant
protection products may decrease due to rising fuel, seed, fertilizer prices in view of the national
currency’s devaluation and falling fertilizer production due to warfare in the east, where
manufacturing plants are concentrated.
The ratio of the domestic consumption growth to gross crop will be the main factor determining the
volume of grain exports. It is expected that rates of production growth will be higher than rate of
domestic consumption increase.
In the long-term, the increase of exports will be promoted by the tendency for world population and
incomes growth in the developing countries, which are the main consumers of cheap Black Sea grain.
The domestic grain demand from flour producers will slacken slowly due to falling population.
However, recent upward trends in Southeast Asia’s demand for Ukrainian flour will support flour
production in the country.
We are confident in the efficiency and potential of deep processing of grains and oilseeds in Ukraine
(starch, wheat gluten, glucose and fructose syrups, lysine, lecithin, glycerin).
In 2013, the volume of Ukraine’s gluten market approximated 1 KMT in natural terms. Market
participants estimate that the Ukrainian market can potentially consume up to 40 KMT of gluten a
year. The Ukrainian gluten market still features total dependence on imported products that come
mostly from Russia and China. The reason is the absence of own production.
The development of the market of deep processing of grains and oilseeds is one of the strategically
important priorities of the future agricultural business in Ukraine. Positive results of investing into this
sector could be:
•
rising demand for products that are in great demand by a number of sectors of the food
industry in Ukraine (confectionery, bakery, dairy, compound feed, brewing, etc.), as well as a
biopolymer, the paper sector;
•
partial shift from exports of raw materials to export of products with high added value;
•
the creation of incentives for the development of grain-processing industry, which reached
the upper limits of domestic markets of flour and cereals;
•
an increase in income of farmers in the face of increasing competition for raw materials.
Brief description of Grain export terminals
14 out of Ukraine’s 18 commercial seaports are engaged in handling export and transit grain cargoes.
They include Illichivsk, Odesa, Mykolaiv, Yuzhny, Kherson, Izmail, Berdyansk, Mariupol, BilhorodDnistrovsky, Reni, Kerch, Ust-Dunaysk, Sevastopol and the port of Ochakiv.
Of the 14 grain-handling seaports, 12 ones are located on the Black Sea and 2 ports (Berdyansk and
Mariupol) on the Azov Sea.
In addition, some grain volumes are exported through the Illichivsk fishing port, the Kerch fishing
port, the Mykolaiv river port, the Dnipropetrovsk river port and through a terminal lying on the
premises of the Sevastopol ship repair yard.
Map 2.5. Map of Ukrainian ports
The unique location of the Ukrainian ports (in the way of international transit corridors) and their
proximity to a number of key destination markets (the Near East, North Africa, Europe) make these
ports much more competitive.
Ports through which grain is exported can be conditionally divided into the 3 main groups:
1. Ports having powerful specialized grain terminals. These ports figure on cargo traffics from all over
Ukraine and on transit grain from Russia and Kazakhstan. They are the Illichivsk, Odesa, Yuzhny, and
Sevastopol ports.
This group of ports has the following features:
- Possibility of loading PANAMAX-size large-capacity vessels;
- Ensured high speed of receiving/loading grain to a vessel. Availability of specialized machinery and
mechanization schemes traditional for port elevator facilities (belt conveyors, bucket elevators,
shiploaders);
- Availability of significant grain storage capacities.
The 1st group ports handle the bulk of grain cargoes and their share in the total transshipment
volume is estimated at 65-70% depending on the season.
2. Ports having small-capacity elevators, limited depths near berths. Their potential grain handling
capacities are lower than in the 1st group ports (under 1.5 MMT a year). The ports of Mykolaiv,
Mariupol, and Kherson can be attributed to this group.
The maximum size of vessels received by these ports reaches 30-35 KMT. The share of these ports
varies from 25% to 30% depending on the season.
3. Ports having no elevators or specialized terminals but located in grain surplus regions.
They are able to ensure export of grain from adjacent regions by a temporary or seasonal technology
and mechanization scheme allowing to operate by the direct method, especially to carry grain from
trucks to vessels.
The ports of Bilhorod-Dnistrovsky, Reni, Skadovsk with its port localities Khorly and Genichesk,
Berdyansk, Feodosia, and the port locality of Ust-Dunaysk can be included in this group.
Private companies actively operate in these ports; they have constructed elevators there. As a rule,
these companies lease berths from the port and also handle grains. This operational scheme is
applied in the ports of Izmail, Reni.
Table 2.19. Ukraine. Estimates of theoretical capacities of grain handling in the sea ports, KMT
Порты
Illichevsk sea port
Illichevsk Fishery port
Yuzchny
Odessa
Sevastopol
Nikolayev region
Nikolayev Sea port
Ochakov
Kherson sea port
Mariupol
Kerch Fishery port
Reni
Belgorod-Dnestrovsky
Izmail
Berdyansk
Total
Терминалы
Transbulkterminal/Kernel
Illichevsk Grain Terminal/Glencore
TIS
Bourivauge
Brooklyn-Kiev
Olimpex-Coupe
Avlita
South Sevastopol
Nibulon
Nika-Terra/DF Group
port
Bunge
Smart-Holding
Dniepro-Cargo
Kherson plant
Ukrtransagro
port
ABC Terminal
Rudis
01.07.2014
6500
2000
800
6000
2000
4000
2500
3000
300
3500
400
2000
3000
300
700
1000
800
800
600
700
500
500
1000
43800
UkrAgroConsult estimates theoretical grain-handling capacity of Ukraine’s sea ports at 43.8 MMT as
of the beginning of 2014/15 against 40.3 MMT a year ago. However, Ukraine’s actual capacities
involved in grain handling have plummeted. So, because of the annexation of Crimea, Ukraine lost 4.8
MMT of grain-handling capacities in the ports of Sevastopol and Kerch in 2013/14. Therefore, actual
grain-handling capacities of the Ukrainian ports totaled 36.9 MMT in 2014/15.
High-performance grain terminals continue enjoying strong demand. This is reflected in high
transshipment volumes and in the concentration of specialized facilities in some ports (Odesa, Yuzhny,
Illichivsk, Sevastopol, and Mykolaiv). At the same time, the role of small ports is reducing in grain
exports. This suggests that Ukraine is experiencing a process of specialization of some ports in grain
cargo handling, and grain-handling transport hubs stand out, aimed at the world market and export
demand (so-called “Greater Odesa ports” and Mykolaiv).
Daigrams 2.24, 2.25
Source: UkrAgoConsult’s estimates and calculations
Assessment of competitive advantages of Ukrainian ports and specialized grain-handling terminals
allows us to single out high-tech, modern terminals, most fully meeting overall world trade
requirements and grain trading trends.
As mentioned above, analysis of grain handling volumes in Ukraine’s ports makes it possible to single
out key ports specializing in handling grain cargoes. These include “the Greater Odesa” ports (Odesa,
Illichivsk, and Yuzhny), the ports of Mykolaiv region, and the port of Sevastopol (Crimea).
Port
Table 2.20. Comparative description of Ukraine’s major Black Sea ports
Advantages
Disadvantages
- Availability of three railway entrances into the port
- Deep-water berths and the possibility of loading two
Panamax-type vessels simultaneously
Illichivsk
commercial
seaport
- It is located on the shore of a bay (no need to pay for
passage of any canals, ice dues, no need to regularly
clean the canal bottom)
- High level of the terminal’s management
- Laboratory for grain quality control meets the GAFTA
standards
- The deepest berths (possibility of loading Capesizetype vessels)
Yuzhny
commercial
seaport
- Availability of significant capacities for simultaneous
storage of grain (380 KMT) and a high loading rate (25
KMT a day)
- High possibilities for unloading grain from trucks
- A technologically intelligent line for unloading
- Depth near the moorage wall is less than in the ports
of Yuzhny, Odesa and Sevastopol
- Insufficient capacities for receiving grain from motor
transport that certainly disadvantages this method of
freight reception compared to receiving grain from
railcars
- Insufficient area of the port (absence of any
expansion outlook)
- Delivery of grain from Luhansk, Donetsk, Zaporizhzhia,
Kharkiv regions is ruled out geographically due to high
logistics costs compared to the ports of Yuzhny and
Sevastopol
- Impossibility of loading several large-tonnage vessels
simultaneously, unlike in the Illichivsk port
railcars, which ensures rapid unloading and has
possibilities for the development (possibility of
constructing additional installations for unloading
more railcars simultaneously)
- An own branch railway and high throughput of the
Chernomorskaya-Khimicheskaya rail line that allows
increasing the total freight traffic by another 1 MMT
without the necessity of any significant investments in
the railway facilities
- A deep-water port
- Possibility of combining various loading methods,
high technical and technological capabilities
- High quality of services is caused by keen
competition between forwarders
Odesa
commercial
seaport
- Reception of railcars is limited by insufficient
throughput of the railway (1 railway track). Although
the intensity of work of the port and station was
somewhat eased through constructing a railway
entrance into Khlebnaya harbor from Odesa-Port
station park in summer 2003, the construction of the
nd
2 entrance into the port remains a topical issue
- Impossibility to develop the port’s infrastructure
because it is located in the city center
- Insufficient length of berths for loading of largetonnage vessels (the depth of moorage walls is
sufficient, but vessels are often forced to occupy the
space of the next berth and thereby make it
unoperational)
- Necessity of carrying out regular dredging works
Mykolaiv
commercial
seaport
- The port is located near grain growing regions, low
logistics costs
- Impossibility to receive Panamax-type vessels for
loading
- The port is located in the Dnieper-Bug estuary, grain
can be delivered to it by river barges
- Limited throughput of the branch railway from the
Mykolaiv – Gruzovoy freight station. Impossibility of
receiving a higher number of railcars
- An additional fee is charged for passage through the
approach canal
- A fee is charged for ice pilotage in the cold season
- Impossibility to expand the port because of its
proximity to the city
Kherson
commercial
seaport
- Possibility of receiving grain delivered from water
elevators by barges along the Dnieper
- Insignificant capacities for simultaneous storage in the
port
- It is convenient enough for loading vessels with
tonnage of up to 10 KMT
- Possibility of receiving vessels under 12 KMT due to
the approach canal’s limited depth (7.6 m)
- Possibility of receiving grain from railcars and trucks
simultaneously
- A low rate of loading by grab buckets
- No impact of storms due to remoteness from the sea
- Competition of grain with other cargoes because the
port has a limited area
In 2013/14 season TIS terminal, Yuzchnyi port, was the leader in cereals’ export. The second was
Nibulon Terminal, the third one – Olimpex-Coupe, Odessa.
Table 2.21. Top 5 cereals’ handling terminals in Ukraine, 2013/14 MY
Nr
1
2
3
4
5
Terminal/port
TIS, Yuzchny
Nibulon, Nikolaev
Olimpex-Coupe, Odessa
Illichevsk Grain Terminal, Illichevsk
Ukrelevatorprom, Odessa
*including grains, oilseeds and by-products
Handled volume*,
MMT
6.3
4.5
2.6
2.5
2.3
% in the whole
transshipment
16.6
12.0
7.0
6.7
6.2
Short description of 5 top terminals
-
Grain terminal in the Yuzhny port owned by Transinvestservice company. The company is
specialized on the handling of mineral fertilizers, ore concentrates and grain.
Terminal is able to handle 6 MMT per year. The depth at berth is 14 m, which allows loading Panamax
type vessels. The berth length is 282 m.
Originally the storage capacity of the flat type warehouses was about 80 KMT.
At present, the storage capacity is increased up to 380 KMT of grain at a time.
Handling of different cargo types in the one terminal (berth No.16 - grain and berth No.17 - mineral
fertilizers) is possible due to application of the unique technology of handling inside the closed
conveyor galleries. This method permits reliable division of two cargoes.
Transshipment of grain is done on the separate berth No.16. Other cargoes are not processed on this
berth. Aside from that all equipment which is used for grain handling starting from the railcars
unloading and including all conveyor lines, warehouses etc. are excluded for handling of other
cargoes.
This complex is characterized with availability of highly mechanized warehouses with a grain
transportation system on a covered conveyor gallery with a powerful dust suppression system.
-
Grain complex “Olimpex-Coupe” was opened in 2010 on the berth number 4. The investors
are strewedouring company“Olimpex-Coupe” and trading company CHS Inc. with the total
sum of investments of USD30ml. The storage capacity is 130 KMT, the handling capacity is up
to 3 MMT. The complex is able to accept grains using both railcars and trucks.
-
Terminal of Nibulon Company - Nibulon company (registered in Nikolayev), in 2005 has
completed the construction of high-tech handling terminal for grain and oil crops based on a
berth of a shipyard.
Nibulon is owner of a 350m long berth. The grain elevator included in the terminal is of storage
capacity of 132 KMT. Annual grain handling capacity is 1.5 MMT per year, nowadays it actually
handles much more. The loading rate is 20 KMT/daily as in the big ports.
This grain handling terminal offers the following advantages compared to Nikolayev sea and river
ports and other terminals:
 The terminal is able to load Panamax type vessels (depth at the berth of 9.13 m). The
practical limit for a vessel draft is the depth of the Dnipro-Bugsky approach channel (10.5
m). Works aimed at deepening it down to 11.5 m requires additional agreements and are
still not approved.
 It is possible to receive grain both from rail and road transport.
 Cargo receiving rate from road transport is 9-10 KMT per day. Railway cars unloading
capacity is 6-8 KMT of grain per day.
 The port is closely situated to grain produce regions, low expenses for logistics.
Among disadvantages of the grain terminal is the motor road to the berth going through the territory
of a shipyard situated in the city center. This means necessity of additional co-ordination both with
city authorities and the shipyard.
-
Illichevsk Grain Terminal was created on the territory of Illichevsk shipyard. The owner of the
terminal is Glencore Company, in Ukraine it is working as Serna Company. The storage
capacity is 130 KMT, the handling capacity is up to 3 MMT. The complex is able to accept
grains using both railcars and trucks – at 15 KMT daily. The loading rate is up to 15 KMT per
day.
The terminal has its own railway station for the grains unloading.
The approach channel was dredged from 9.25m to 12.5m which allows accepting and loading
Panamax vessels.
-
UkrElevatorProm - The second big private grain terminal is situated in Odessa port. The
current capacity of this complex is 2.5 MMT of grain per year. The owner of the terminal is
Alfred C. Toepfer International GmbH, Germany, Hamburg/ADM. The total simultaneous
storage capacity is 170 KMT of grain.
Besides the new grain complex there is a port elevator situated in the seaport with a storage capacity
of 100 KMT, which was built in 1932. Nowadays its storage capacity is limited to 80 KMT. The port
elevator is in the ownership of the state owned company State Food and Contract Organization.
Main grain exporters. Brief description
Nibulon
"NIBULON" is one of the largest domestic producers and exporters of agricultural products (wheat,
barley, corn, rye, sunflower, etc.). In the process of development, the company gradually expands
geography and scale of industrial activity. The company has 22 production units located in nine
regions of Ukraine.
"NIBULON" has its own facilities for storing and bringing agricultural products to merchantable
condition, both at the company`s own subdivisions and at the enterprises, where the company is a
shareholder.
Nibulon has export terminal in Nikolaev port and own shipping company.
Within the framework of the investment project “NIBULON” creates its own logistics system in order
to reduce dependence on external factors, to decrease level of perils in economic operations. The
construction of transshipment terminals which are located along rivers and its own fleet construction
is an advantage for company.
Kernel
The business of the Company is divided into six business units
•
Sunflower oil in bulk – No. 1 sunflower oil producer and exporter from the Black Sea region.
Our sunflower oil business comprises the origination and processing of sunflower seed into
crude sunflower oil and protein meal in Ukraine. Both oil and meal are marketed primarily on
the international market.
•
Bottled sunflower oil – No. 1 bottled oil producer and marketer in Ukraine: Operations in our
bottled oil segment comprise the processing of crude sunflower oil into refined oil, followed
by bottling of the refined oil. Our primary market is Ukraine, where we sell bottled oil mainly
under the Company’s own brands either directly to the largest retailers, or through regional
distributors.
•
Grain – Leading grain exporter in Ukraine: Kernel operates as a leading grain supply chain
manager linking farmers in Ukraine to international markets.
•
Export terminals – Leading provider of grain, oil and meal transshipment and export services:
Kernel provides grain handling and transshipment services both internally and to third parties
through Transbulkterminal, the second largest grain export terminal in Ukraine, owned and
operated by Kernel since June 2008. Oil handling and transshipment services are provided
through Oiltransterminal in Mykolaiv to Kernel exclusively.
•
Silo services – Largest privately-owned network of grain silos in Ukraine: Kernel provides 2.8
million tons of grain and oilseed storage capacity to the farming industry in Ukraine.
•
Farming – Large scale agricultural production: Kernel farms 400,000 hectares of prime farm
land, primarily in the central and central-western parts of Ukraine, which provide unique soil
quality, short distances to storage and production assets of the Group, and fast export routes
through Black Sea export terminals.
Rise/UkrLandFarming
Rise is Ukrlanfarming division engaged in distribution of products and services.
The Ukrlandfarming Group is an agricultural producer that sells its products both domestically and
internationally. It is the largest Ukrainian vertically integrated agricultural holding company, managing
654 thousand hectares of black soilck.
Ukrlanfarming’s land portfolio covers 22 Ukrainian provinces. The Ukrlandfarming Group ranks among
the top-ten cropland operators in the world and holds the largest stock of arable land in Ukraine.
The entity responsible for the production of eggs and dry egg products within the Group is
Avangardco IPL, an agricultural holding company, which is the largest producer of chicken eggs and
dry egg products in Eurasia and in Ukraine, with the second largest stock of laying hens in the world.
MHP
MHP’s group of companies holds an indisputable leading position in the Ukrainian meat market.
Strong growth in all business profiles is a strategic goal of the company.
MHP is
•
One of the leading poultry producers in Europe with one of the strongest food brands in
Ukraine
•
One of the biggest grain producers in Ukraine
•
The biggest processed meat producer in Ukraine
MHP’s land portfolio covers 9 Ukrainian provinces. The Company operates one of the largest land
banks in Ukraine - 320,000 hectares - growing corn, sunflowers, wheat and rape. The corn and
sunflower seeds are used in our fodder mills; the wheat, rape and soya are sold to third parties. In
2013 MHP acquired its first asset outside Ukraine, in the Voronezh region of Russia. This comprises
40,000 hectares of land, 200,000 m³ of silos for grain storage and assorted machinery.
The company employs more than 30,000 people in 30 plants.
MHP is a market leader in meat processing in Ukraine with share of about 10%. MHPis a leader in the
Ukrainian poultry market, with a market share of around 54% of industrially produced poultry. The
also account for 35% of domestic consumption with one of the strongest Ukrainian food brands
Nasha Riaba.
Agrotrade
Agrotrade is vertically integrated holding with a closed agricultural production cycle — production,
processing, storage of and trade in agricultural produce. The company`s land bank has reached 61.000
ha in Kharkiv, Sumy,Poltava,Dnipropetrovsk and Chernihiv Oblast. The company includes 16
agribusinesses.
The Company grows wheat, corn, sunflowers, barley, rapeseeds and soybeans. Agrotrade Group is
among top three leaders in terms of buckwheat processing in Ukraine. The plant that outputs First
grade buckwheat is based on Dvorichanskyi Grain Elevator LLC. The facility’s annual production
capacity is 30,000 tons of the product. Up to 90 tons of raw material can be processed during 24
hours.
Ramburs
The main activity of the Ramburs Group is export of grains from Black Sea Ports (feed barley, feed
wheat, milling wheat, corn, sunflower seeds, sunflower oil, soya beans, wheat flour and canola).
Origination of grains and oilseeds is from Russia, Romania, Bulgaria, Serbia, Moldova as well as from
Ukraine.
The Ramburs Group also has its own grain elevators in central and southern regions of Ukraine. They
buy the exportable grains from farmers truck by truck through the country, bring it to their grain
elevators and ship this grain to over 50 countries around the globe loading vessels from 3000 MTs up
to 75000 MTs.
Since 2006 the Ramburs Group has developed poultry project “Indelika”. Today it is the largest turkey
meat producer in Ukraine.
This project integrates turkey farming, feed production, meat processing and product distribution
within one company located next to Kiev.
ТАКО
The Company manages 105 Th ha in Kiev, Zhitomyr, Rivne, Khmelnitsk Oblast; head office is located in
Kiev. The Company grows corn and soyabeans.
In just eight years – from 2006 to 2013 – TAKO increased land bank to 105,000 hectares, and
expanded its geography to four oblasts – Zhytomyr, Kyiv, Rivne and Khmelnitsky. Along with the
building up the land bank, the company continued experiments with growing different crops in the
crop rotation. Given soil and climatic conditions optimal for growing corn and soybean that ensure
high productivity and quality of grains, TAKO decided to focus on cultivation of these two crops as the
most technologically advanced ones.
TAKO controls three elevators and logistics facilities.
ROSTOK-HOLDING
"ROSTOK-HOLDING" is a vertically integrated agro industrial group specializing in the cultivation and
sale of crops, production, processing and sale of dairy products. The group has been developing dairy
farming since 1993 and crops farming - since 2003. The group’s land is located in Chernihiv and Sumy
regions. The land bank is split into large contiguous clusters. The group grows maize, sunflower,
wheat, buckwheat, oat, soybean, rapeseed and potato.
The total area of high quality black-earth soil under group’s management amounts to 60 Th hectares.
“ROSTOK-HOLDING” group ranks 40th among top 100 landowners of Ukraine.
Group’s trade companies are exporting both in-house produce as well as the produce purchased from
third parties to customers and partners in MENA region, Asia, Europe and the CIS.
Promin-Agro
"Promin Agro" is a young and rapidly growing company, a manufacturer of high-quality agricultural
products, well-known on the Ukrainian market.
Promin Agro grows wheat, buckwheat, corn, rape, barley, flax, lupine, soybeans, sunflower, rye in
Kiev, Zhitomyr, Chernigiv, Khmelnitsk regions.
"Promin Agro" successfully combines rich agricultural experience and advanced technological systems
using a modern fleet of agricultural machines in order to maintain high product quality and ensure
maximum efficiency of the company. In addition to growing crops they are also engaged in receiving,
cleaning, drying and storage of grains and oilseeds. They create optimal conditions on their elevators
as well as guarantee complete safety of products, arranging export shipments.
Latagro
Latagro is an agricultural producer on using the newest technologies of mini-till cultivation to
preserve soil moisture, intensive technologies of crop protection and introducing the elements of
precision farming.
They also specialize on receiving, cleaning, drying and storing grain and oil-bearing crops at our own
grain elevators, and export delivery of agricultural products. The Company grows wheat, corn,
sunflowers, barley, rapeseeds, buckwheat, linseeds and soybeans.
Table 2.22 Contact details of main grain exporters
Company
NIBULON
Address
63
Velyka
Morska
St.,
54030
Mykolayiv,
Ukraine
Tel.
+38 (0512)
37-23-44,
+38 (0512)
58-04-04
Fax.
+38 (0512)
50-01-91,
+38 (0512)
58-04-05
Kernel
3
Tarasa
Shevchenka
lane,
(+38-044)
(+38-044)
461-88-01
461-88-64
(+38-044)
(+38-044)
461-88-66
461-88-04
121V
Peremohy Av.
Kyiv, Ukraine,
03115
MHP
Latagro
Agrotrade
Ramburs
TAKO
Web-site
http://www.nibulon.com/
[email protected]
http://www.kernel.ua/
Kyiv,
Ukraine, 01001
Rise/UkrLandFarming
E-mail
[email protected]
[email protected]
40 Frunze str.,
Kyiv, Ukraine,
04080
31/35
Dmitrievskaya
St.,
Kharkiv,
Ukraine
20 Peremogy
Av.,
Kyiv,
Ukraine
104/24
Zhylyanskaya
Str.,
Kyiv,
Ukraine
+38
(044)
393 40 93
+38 (044)
393 40 94
[email protected]
http://www.rise.ua/
+38 044 207
0000 Head
office
38 044 537
66
87
38 044 207
0002
[email protected]
[email protected]
http://www.mhp.com.ua
+38
044
537 66 88
[email protected]
http://www.latagro.com.ua
+38
057
766-22-22
+38
057
703 2147
[email protected]
http://www.agrotrade.ua/ru/
+38 044 458
50 53
+38
044
475 99 05
[email protected]
www.ramburs.com
+38 044 238
61 05 (+38
044 238 61
06)
+38
044
238 61 19
[email protected]
http://taco.ua/en/
[email protected]
http://www.rostokholding.com/
Rostok-Holding
23B
Chervonoarmiis
ka Str., Kyiv,
01601, Ukraine
+38
(044)
581-51-01
+38 (044)
581-59-89
Promin-Agro
1A
Lybidska
str.,
Kyiv,
Ukraine
+38
(044)
406-92-75
+38 (044)
406-93-59
http://promin-agro.com.ua/
3. OILSEED MARKET OVERVIEW
Sector
Oilseeds
Key figures (2013)
Area under oilseed
8 million hectares
Total harvest
16 million tons
Average yields
2 tons/ha
Major crops
- Sunflower
5.2m ha/11.05MMT production
- Soy
1.4m ha/2.77MMT production/ 45% exported
- Rapeseed
1.1m ha/2.35MMTproduction/ 94% exported
Production
- Sunflower continues to be the main oilseed but its share of area under
seed has fallen from 90% in 2002 to 65-70% today as plantings of
rapeseed and, especially, soybean grow.
- The key drivers for increased soybean production are high margins to
growers, improved soil quality and nutrients (especially critical for farms
that have focused on extensive sunflower production) and growing
poultry and pork herds, which require significant volumes of vegetable
protein in their diets.
- Ukraine’s oilseed yields meet global production averages. However
Ukraine’s yields for soybeans lag behind the US, for sunflower behind
France and for rapeseed behind the UK and Germany. Ukraine can
increase output for all three of its main oilseed crops by moving to
intensive cultivation from extensive cultivation.
Crushing
- Ukraine remains world leader in production and export of sunflower oil,
accounting for half of global sunflower oil exports.
- Strong domestic and global sunflower oil demand and stable abundant
sunflower seed crops in Ukraine stimulated a substantial increase of
sunflower crushing capacities over the last five years. Total crushing
capacity expanded by 275% from 3 MMT 2005/06 to 8.25 MMT by
2009/10. In the current year the estimate is that oilseed processing
capacities amounted to 15 MMT.
- As a result of increased competition the number of vegetable oil
producers fell from 300 in 2007 to 220 by 2013, or a 26% decline. Mostly
small mills with low capacity and low oil yield were driven out of the
business. This trend will likely continue. Financially robust industrial
groups will out compete for raw materials and once the small players are
removed the competition will intensify between large industrial groups.
- Exports and overall production expected to continue increasing due to
improving yields (to 2.2-2.5 tons/ha) and grower preference for highermargin oilseeds over gains.
- Weather
- Government policy, especially export quotas
- For crushers lack of raw material.
Kernel is Ukraine’s largest producer and exporter of sunflower oil/meal.
Kernel is vertically-integrated and also provides services for handling,
storing and exporting grains, vegetable oils and oil meals. Apart from own
grain, the company transships that of third companies.
- Farmland cultivated
330 000 ha of farm land
- Oilseed crushing plants
10 (Ukraine – 7, Russia – 3)
- Oilseed crushing capacity
3.0MMT/year (Ukraine – 2.6MMT/year)
- Elevator storage capacity
2.7MMT
Trends
Outlook
Major risks
Market leader
Vioil is Ukraine’s largest producer and exporter of rapeseed oil/meal.
production plants)
2 (Vinnitsa and Chernovtsy oil and fat
1MMT/year
360KMT
Kahovka Protein-Agro is Ukraine’s largest producer and exporter of soybean
oil/meal.
- Farmland cultivated
330 000 ha of farm land
1 (Nova Kahovka)
220 KMT/year
40 KMT
CROPPING PATTERN OF OILSEEDS, ITS CHANGES
Historically, the main oil crop in Ukraine is sunflower. Prior to the 2005/06 season, sunflower
accounted for 90% of Ukraine’s area planted to oil crops.
Plantings of other oil crops – rape and soy – started to expand in 2006/07. As a result, sunflower’s
share has fallen to a stable 65-70% over the recent years.
Diagram 3.1
Following a rapeseed growing boom in 2005-2008, its plantings began to gradually decrease in
Ukraine. This led to a smaller share of rape in the cropping pattern. This share was just 13-13.5% in
2012/13-2013/14 seasons.
An opposite situation is observed in the market of soybeans, whose plantings expand. Their share in
the cropping pattern grew from 3-6% in 2001-2006 to 8% in 2008/09 and 17% in 2013/14 season.
UkrAgroConsult expects the planted area under soybeans to continue expanding in the coming 2-4
years, as this crop enjoys strong demand.
Diagrams 3.2, 3.3, 3.4
PRODUCTION TRENDS (PLANTED AREAS, YIELDS, HARVESTS). KEY GROWING REGIONS
Sunseed
Ukraine’s unique natural and climatic conditions allow growing sunflower across almost all the
country. The main sunflower growing regions of Ukraine are Zaporizhzhia, Dnipropetrovsk, Donetsk,
Kirovohrad, Mykolaiv, Kharkiv, Kherson, Odessa, Poltava and Luhansk regions.
In addition to the Steppe regions – traditional sunflower producers, sunflower also expands into the
western, northern and eastern parts of the country because of climate warming.
Map 3.1. Most favorable areas for sunseed
Diagram 3.5. Sunseed crop, KMT
production
Sunflower seed production increased substantially in the period of 2001-2013. Sunflower plantings
increased to 5.5-5.7 Ml ha in 2012-2013 from 2.5 Ml ha in 2001. The planted area was the main
contributor to the production growth.
The key stimulus to increase sunflower plantings is high prices/margin. In addition, sunflower seed
production has a number of advantages over other crops, with one of them being relative reliability of
the crop when exposed to weather adversities, its resistance to drought. Even in a dry agricultural
season, its yield may fall by less than one- third, while corn yield may plummet by 60% or more.
Owing to constantly increasing plantings and yields, Ukraine’s sunflower seed crop exceeded 7 MMT
in 2009-2010. In the 2012/13 season, sunflower production has decreased by 7% to 8.66 MMT due to
unfavorable weather conditions. A record 11 MMT of sunflower seed was harvested in 2013.
Table 3.1. Ukraine: Sunseed production
2009/10
2010/11
Seeded area, Th ha
4420
4800
Harvested area, Th ha
4400
4775
Yield, MT/ha
1.67
1.63
Crop, KMT
7350
7800
Source: Own calculations of UkrAgroConsult Analytical Center
2011/12
5250
5220
1.78
9292
2012/13
5700
5530
1.56
8658
2013/14
5500
5430
1.97
10810
Soybean
Soybean cultivation is possible almost in all Ukrainian regions. But leading positions belong to the
regions of so-called “soybean belt”, which includes 17 out of 24 Ukrainian regions. In 2014, 90% of
soybean planted areas were located in Ukrainian “soybean belt”. During 2002-2013 soybean acreage
in Ukraine increased by 1.3 Mln ha and reached 1.4 Mln ha in 2013.
Diagrams 3.7, 3.8
Map 3.2. Ukrainian “soybean belt” in breakdown by
the amount of precipitation
Diagram 3.6. Soybean plantings, Th ha
In Ukraine soy is of interest both for its processors and exporters, food industry’s interest is at least
equal. Soybeans are used for manufacturing semi-products and as ingredients in meat and dairy
production, confectionary and bakery products.
Besides, positive trend in the poultry sector significantly improves demand for high-protein soy
products. In the next 3-5 years we expect soybean crop to be at a stable high level. The solution of
GM-soy problem will contribute to even further extension of soy acreage.
Soybean crop, KMT
Diagrams 3.7, 3.8
Soybean production in Ukraine, 2002-2013
The last years feature with upgoing trend in soy yields. Starting from 2008, the average yields grew
from 1.5 MT/ha to 2 MT/ha in 2011. In 2012 intense heat combined with lack of precipitation affected
soybean development badly. In turn, this caused low yields – 1.7 MT/ha. Soybean yield restored to
1.94 MT/ha in 2013 due to favorable weather.
Due to sharply extension of the acreage and increase in yields by 75%, soybean crop in Ukraine
reached the record of 2.62 MMT in 2013. Consequently, Ukraine became the European leader in
soybean production.
Rapeseed
The soil and climatic conditions of Ukraine are favorable for normal growth and development of both
winter and spring rape. In particular, quite fertile soils, enough precipitation, and good air
temperatures allow gathering over 4 MT/ha of rapeseed across all Ukraine, provided recommended
agronomic practices are applied.
In view of the most favorable soil and climatic growing conditions, it is reasonable to concentrate the
cultivation of winter rape largely in the western, central and northern regions and spring rape growing
in the South and East.
Maps 3.3, 3.4
Most favorable areas for winter rapeseed
Volyn
n
Most favorable areas for spring rapeseed
Chernihiv
Rivne
Sumy
Zhytomir
Kyiv
Lviv
Ternopil
Kharkiv
Poltava
Khmelnitskyi
Luhansk
Cherkasy
Ivano-Frankivsk
Vinnytsia
Zakarpattia
Kirovohrad
Chernivtsi
Dnipropetrovsk
Mykolaiv
Donetsk
Zaporizhzhia
Odesa
Kherson
Crimea
Diagrams 3.9, 3.10
In Ukraine, winter rape yields traditionally exceed those of spring rape. Average winter rapeseed
yields have been varying from 1.7 MT/ha to 2.3 MT/ha over the recent years, while spring rapeseed
yields average 1.2 MT/ha (2001-2010), having reached a peak of 1.5-1.6 MT/ha only in the 200112013 seasons. Therefore winter rapeseed accounts for the bulk of Ukraine’s rapeseed output. Winter
rape’s share in the overall rape planted area has stabilized at 92-95% over the last five seasons
(2009/10-2013/14).
The booming development of Ukraine’s rapeseed market was triggered by the adoption of the
European Union’s Directive 2003/30/EU on voluntary-compulsory biodiesel utilization. Under the
Directive, the biofuel share in total fuel consumption must reach 5.75% in 2010 and 20% by 2020.
This forced European crushers and traders to urgently look for additional sources of biodiesel
feedstocks.
In turn, this led to increasing rapeseed outputs in Ukraine, which has an advantageous geographical
location and suitable soil and climatic conditions.
So, Ukraine’s rape planted acreage expanded by 1.5 Ml ha (+645%) for just three years (2006-2008)
and reached a historical high of 1.75 Ml ha in 2008. Owing to the increase in planted area and ideal
weather conditions, Ukraine’s rapeseed production reached an unprecedented 2.87 MMT in 2008.
However, Ukrainian rape plantings shrank by 264 Th ha (15%) in 2009. This trend continued in 2010
and 2011. Rape crops totaled 1.49 Ml ha in 2010 and just 1.05-1.08 Ml ha in 2012-2013.
Diagrams 3.11, 3.12
Due to continuously decreasing rape plantings and low yields, the total rapeseed crop gradually
declines in Ukraine. In addition, this decline can already be called a trend because it is observed for a
fourth consecutive year now. The 2012/13 rapeseed crop amounted to 1.2 MMT, or down 15% on last
season. It halved compared to the maximum production of 2.87 MMT achieved in 2007/08.
Owing to favorable weather conditions at the time of rape planting, development and ripening,
Ukraine’s rapeseed harvest hit a five-year high of 2.35 MMT in 2013/14 season.
FOREIGN ECONOMIC ACTIVITY. DYNAMICS OF OILSEEDS EXPORT SHIPMENTS. EXPORT DESTINATION
COUNTRIES
Exports through sea ports. Sunseed
Sunseed exports from Ukraine are not too stable. Record sunseed volumes were shipped abroad in
2003/04 and 2008/09 seasons. In 2003/04, this happened due to a poor grain crop in Ukraine and a
grain export ban, therefore exporters switched to the export of sunseed. The reason why exports
grew considerably in 2008/09 was a reduction of sunseed export duty. In 2013/14 season exports of
sunseed was only 72 KMT.
Diagram 3.13
Table 3.2. Ukraine: Sunseed production and
export, KMT
Production
Export
Export-tooutput ratio,
%
2011/12
2012/13
2013/14
9292
282
8658
127
11050
71
3.0
1.5
0.7
The top importers of Ukrainian sunseed are Turkey and the EU. Their share in Ukrainian exports varies
from year to year, but the overall picture remains unchanged. In the 2013/14 season, Turkey’s share in
Ukrainian sunseed exports has totaled 21%. About 52% of all the sunseed exported for this time was
routed to the European Union (France, Germany, Poland and other countries). About 88-90% of
sunseed is exported through ports in 2011/12-2012/13 seasons. But in 2013/14 season it shares are
only 60%.
Table 3.3. Ukraine: Sunseed exports, KMT
Total exports
Exports through ports
Share of exports through ports
2011/12
282
253
89.7%
2012/13
127
112
88%
2013/14
71
43
60.6%
In Ukraine sunseed shipments mostly following commercial seaports: Nikolayev, Odessa, Kherson,
Mariupol, Illichivs'k. In addition, minor amounts of sunflower have been exported through the Yuzhny
port.
Diagrams 3.14, 3.15
Soybean
Up to 2010/11 season, most of the soy produced in Ukraine was consumed by the domestic market
and was used as feed component for livestock. About 35% of the produced soy was shipped abroad.
But, year after year, exports’ share in the total soy production in Ukraine increases. In 2010/20112012/2013 seasons almost 60% of the crop were exported.
Exports’ prevalence over the domestic consumption may persist in the future, as there is no export
duty on soybeans (whereas such duty exists for sunflower).
In 2013/14 season we saw decreasing soybean export from Ukraine to 1158 KMT against 1326 KMT in
last season. And exports’ share in the total soy production in Ukraine was only 44.2%.
Diagram 3.16
Table 3.4. Ukraine: Soybean production and
export, KMT
Production
Export
Export-tooutput
ratio, %
2011/12
2012/13
2013/14
2264
1335
2410
1326
2620
1158
59.0
55.0
44.2
Soybean exports’ geography is wide enough and in 2013/14 it consists of 32 countries.
Export destinations somewhat changed through the last 5 seasons. In 2008 the main buyers were EU
countries (75%), CIS countries (10%) and Turkey (15%).
In 2013/14 the supplies were mainly directed to the EU (47%), Russia (11%), Egypt (13%), Turkey
(19%), Vietnam and Syria (3%).
Lion’s share of soy is exported through ports. Over the last 3 seasons, ports’ share in soybean exports
was 80-90%.
Diagrams 3.17, 3.18
Table 3.5. Ukraine: Soybean exports, KMT
Total exports
2011/12
1333.8
1085.2
81.4%
2012/13
1326
1201
90.5%
2013/14
1259
1009
80.1%
Rapeseed
Ukrainian rapeseed exports rose along with commodity production growth in the country. While 54%
of Ukraine’s total rapeseed output was exported in the 2004/05 season, this percentage exceeded
80% in 2007-2008. In 2008/09, when Ukraine harvested a record total rapeseed crop of 2.87 MMT,
over 92% of it was shipped abroad.
Later, despite a drop in the crop and, consequently, exports, the rapeseed export ratio continued to
expand, reaching an absolute record of 96.3% in the 2010/11 season.
In 2012/13 season, this situation is explained by high carryover stocks. In 2011/12, because of
unfavorable market conditions, Ukrainian traders refused to export rapeseed at loss and kept it in
reserves, which were carried over into 2012/13 season. High carryovers are the reason why exports of
rapeseed exceeded its production by almost 6% and amounted to 106%.
Diagram 3.19
Table 3.6. Ukraine: Rapeseed production and
export, KMT
Production
Export
Export-tooutput ratio,
%
2011/12
2012/13
2013/14
1420
1204
1203
1270
2353
2206
84,8
105,6
94
The key reasons for such high exports include the absence of any export restrictions (duties, export
quotas), low domestic crushing, and strong demand from the EU biodiesel industry.
To load permanently expanding crushing capacities, the European Union countries boosted rapeseed
growing significantly, but this turned out to be insufficient. This forced the Union to import rapeseed.
The proximity of the markets, considerable saving on transportation, lower prices made Ukraine the
key supplier of rapeseed to the European market.
The range of Ukraine’s rapeseed export destination countries has been unchanged for many seasons
now. The lion’s share of Ukrainian export rapeseed goes to the EU and a minor portion to Turkey.
Diagram 3.20
Table 3.7. EU’s share in Ukrainian rapeseed exports,
KMT
Exports total
Exports to EU
MT/%
2011/12
1204
2012/13
1270
2013/14
803/67
1107/87
1687/76
2206
The EU accounted for nearly 40-50% of Ukraine’s rapeseed exports in the period from 2004/05 to
2007/08. The EU share grew to 87% in 2008/09 and to 87,2% in 2012/13.
Among the EU countries, Poland, the Netherlands, France, Belgium and Germany should be
distinguished as they receive over 72% of all rapeseed exported to the EU.
In the coming years the demand for Ukrainian rapeseed will in many respects depend on the EU
biodiesel industry development outlook.
This season’s problems arisen with rapeseed sales to Europe will most likely cause the export flows to
switch to new destinations, in particular to China. This country alone imports over 1 MMT of
rapeseed a year.
The unique location of Ukraine’s ports and their proximity to the key market of Europe make
Ukrainian goods much more competitive. That is why much of the rapeseed is shipped through ports.
Table 3.8. Ukraine: Rapeseed exports, KMT
Total exports
2011/12
1204
708
59%
2012/13
1270
968
76%
2013/14
2225
2090
94%
Ukraine’s commercial seaports handling most of rapeseed include Odessa, Ilyichevsk, Nikolayev,
Kherson. In addition, minor rapeseed volumes are exported through ports such as Ochakiv, Berdyansk
and others.
Diagram 3.21
Key oilseeds exporters
The main exporters of Ukrainian oilseeds are big Ukrainian and international companies. Usually, they
possess with a net of forwarder and representative offices in almost all the regions of the country.
This allows handling large oilseeds batches to Black Sea ports.
Their positions in the overall rating vary from season to season, but the top five remain actually
unchanged.
Table 3.9. The main oilseeds exporters in 2013/14 season
Sunseed
Soybean
1
Kernel, Ltd, Kiev
2
Interexport Trade, Ltd,
Donetsk
Serna, PII, Kiev
3
Avanty, PC, Kherson
Cargill, CJSC, Kiev
Serna, PII, Kiev
Cargill, CJSC, Kiev
Klov, Ltd, Kiev
Bunge, Kiev
4
5
AFH Trade, Ltd,
Dnipropetrovsk
Rodina, Ltd,
Dnepropetrovsk reg.
Rapeseed
Nibulon, Ltd,
Nikolaev
A.C. Toepfer Int
Ukraine, Ltd, Kiev
Linseed
Syaivo, Ltd PVKF,
Chernigov reg.
Lasoshchi, Ltd, IvanoFrankovsk reg.
Tid TD, Ltd, Odessa
reg.
Agrosindikat, Ltd,
Odessa reg.
Hors Group, Ltd,
Odessa
6
Grain-Export, Ltd, Odessa
reg.
Hors Group, Ltd,
Odessa
Myronivskiy
Hliboproduct, CJSC,
Kiev
7
Averazh, PC, Kherson
Tep Transco, Ltd,
Cherkassy reg.
Rise, CJSC, Kiev
8
UPK, Ltd, Kherson
Melagrain, Ltd, Kiev
Ukrselko, Ltd, Kiev
9
Zernotrade grup, Ltd, Kiev
Corporation of Ukraine,
PJSC, Kiev
Lutsky feed plant,
Ltd, Volyn reg.
Delta Wilmar SIC, Ltd,
Odessa reg.
10
Spetszovnishkomplect, PC,
Kirovograd reg.
Kyivkhlib, JSC, Kyiv
Promin Agro, Ltd,
Kiev
Syntez Grup i K, Ltd,
Odessa
Ramburs, CJSC, Kiev
Fruktovyi Svit, Ltd,
Khmelnitsk
Anna Maria, Ltd,
Odessa
State regulation of foreign trade operations
At present there are no export duties on soybean and rapeseed in Ukraine. As to sunseed and linseed,
from January 2010 export duty for these commodities is 10%.
FAT-AND-OIL INDUSTRY AND ITS DEVELOPMENT PROSPECTS
Development trends in Ukraine’s fat-and-oil industry
Strong sunflower oil demand from both domestic and global markets and stable abundant sunflower
seed crops in Ukraine have stimulated a substantial boost in crushing capacities over the last years.
These capacities expanded by 275% to 8.25 MMT of sunseeds a year by 2009/10 season from a bit
more than 3 MMT seen before 2005/06. In the 2013/14 season, UkrAgroConsult estimates, sunseed
processing capacities amounted to 13.2 MMT a year.
Diagrams 3.22, 3.23
In 2007, Ukraine’s fat-and-oil industry comprised over 300 vegetable oil producers. It increasingly
tended to production concentration year by year, which was reflected in a falling number of crushers.
Mostly small mills with low capacity and low oil yield were driven out of the business. In the period of
2007-2013 the number of crushing companies decreased 32.5% to 220.
Nevertheless, Ukraine has at its disposal significant raw material resources, with sunflower remaining
the key oilseed crop for vegetable oil production.
Diagram 3.24
Soybean and rapeseed crushing is still at a low level in Ukraine, as export of these crops is more
profitable than processing them inside the country. Nevertheless, multiseeds equipment is installed at
most of Ukraine’s oil extraction plants that actually allows processing sunflower seed as well as
rapeseed and soybeans.
The share of soybean processing by Ukraine’s crushers is very small compared to sunflower (about
3%), but soybean crushing expanded from 2006 to 2012 with a corresponding rise in soyoil and
soymeal outputs.
In Ukraine, rapeseed is processed largely by agricultural enterprises for own needs and fuel purposes.
Industrial enterprises (oil-extraction plants) are not ready to compete with exporters for rapeseed
purchases.
One of the factors explaining the sluggish rape oil demand from Ukraine’s food industry is the only
profitable use of rape oil in margarine production as an alternative to sunflower and palm oils. In
addition, rape oil demand can be often showed by margarine producers who have invested in own oilextraction facilities in regions with limited rapeseed supply.
In addition, industrial demand is not accompanied by the development of consumer demand:
Ukrainian consumers have not got accustomed to using rape oil and still prefer sunflower oil.
VEGOILS PRODUCTION TRENDS
Sunoil
Sunoil production in Ukraine following a steady upward trend. Production more than trebled between
2003 and 2012, from 1.2MMT in 2003 to 3.1 MMT in 2012/13. Sunoil output dropped slightly in
2004/05, 2007/08 and 2012/13 seasons, chiefly due to declines in the harvest. In 2013/14 season
sunoil production reached a new high of 4.2 MMT (without oil mills) The bullish trend in Ukraine’s
sunoil output will continue in the coming years.
Diagram 3.25. Sunflower oil production
Diagram 3.26. Top sunflower oil producers
Ukraine’s top sunflower oil producers include a limited number of industrial groups. These major
groups account for some 85-87% of all crude sunflower oil produced in Ukraine.
Large industrial groups own over half of production capacities in the Ukrainian fat-and-oil sector and
their share in total output increases from year to year.
Table 3.10. Ukraine: Sunflower seed crushing capacities of major industrial groups, KMT/year
Company group
Kernel
Cargill
Creative
Privat
Myronivsky Hliboproduct
Glencore
Vioil
Bunge
Noble
Delta Wilmar
Total
Others
Grand total
2002/03
585
350
120
329
230
250
256
2120
480
2600
2007/08
1437
930
160
329
180
230
310
870
4446
1689
6135
2012/13
2575
1033
1050
863
747
518
448
415
7649
3622
11271
2013/14
2575
1033
1050
863
747
518
1050
415
500
400
9151
4017
13168
According to UkrAgroConsult, a leading development trend of Ukraine’s oil-extraction industry in
2001-2013 was expanding capacities of most crushers.
Almost 70% of sunflower seed crushing in Ukraine is accounted for by 13 major crushers with a daily
capacity of over 1 KMT. About 17.3% of crushing is carried out by companies with a daily capacity of
500 to 1000 MT.
The highest level of production capacity utilization at crushers with an over 1000 MT daily capacity
also proves advantages of large-scale production in Ukraine’s fat-and-oil industry from the viewpoint
of production efficiency.
Soybean oil
Soy oil production in Ukraine has a sustainable growth trend. From 2009 to 2012 soybean oil
production rose by almost 2.3 times.
In 2013/14 soybean oil production reached the new record of 140 KMT. So, production expanded by
40% for the last season alone.
Notwithstanding that soybean oil is the second vegetable oil in Ukraine after sunflower, its share in
the whole production is miserable.
In 2012/13 season, share of soybean oil in vegetable oils production accounts to only 3% in Ukraine.
In our opinion, this indicator will increase simultaneously with soy processing.
Increase in soy oil production is mainly connected to the demand in soymeal. Considering the positive
forecast of further soymeal demand development in Ukraine, it is fair to say that soybean oil
production will also grow rapidly.
In Ukraine, soybeanoil are currently produced at two large specialized oil extractors – ProteinProduction (Kirovohrad region) and Kakhovka Protein Agro (Kherson region) – and ten oil-pressing
plants. Among the latter, noteworthy are Tegra Ukraine Ltd., LLC UkrSoya, System Company, private
enterprise Zernoprodukt and Kyiv-Atlantic Ukraine.
Apart from the specialized plants, it is only one combined facility – Polohy FOP – that processes
soybeans.
About 67% of soybean oil producing is accounted for by the four companies: Kakhovka Protein Agro
(28%), Protein Production (16%), System Company (13%), and Thegra Ukraine (10%).
Diagrams 3.27, 3.28
Rapeseed oil production
Rapeseed crushing is still at a low level in Ukraine, as export of this crop is more profitable than
processing them inside the country.
In Ukraine, rapeseed is processed largely by agricultural enterprises for own needs and fuel purposes.
Industrial enterprises (oil-extraction plants) are not ready to compete with exporters for rapeseed
purchases.
Nevertheless, multiseeds equipment is installed at most of Ukraine’s oil extraction plants that actually
allows processing sunflower seed as well as rapeseed.
Diagram 3.29
One of the factors explaining the sluggish rape oil demand from Ukraine’s food industry is the only
profitable use of rape oil in margarine production as an alternative to sunflower and palm oils. In
addition, rape oil demand can be often showed by margarine producers who have invested in own oilextraction facilities in regions with limited rapeseed supply.
In addition, industrial demand is not accompanied by the development of consumer demand:
Ukrainian consumers have not got accustomed to using rape oil and still prefer sunflower oil.
The Vinnytsya and Chernivtsi fat-and-oil plants became the top rape producers in 2013/14. Both
plants belong to Vioil Group. This company’s share in overall output came to 54%. About 7% of rape
oil is accounted for by GradOliya’s new plant and almost 4% by Nizhyn Fat Plant.
Meal/cake production trends
The main oilseed meals produced and consumed in Ukraine are sunflower meal and soybean meal.
The rape meal produced in Ukraine in small amounts is largely in no active demand and mostly
exported to the neighboring countries.
Overall, the behavior of vegetable meal/cake production reflects a positive trend in the last decade.
About 3.2-3.6 MMT of cakes and meals were produced in Ukraine during 2010/11-2012/13 seasons
against 1.3 MMT in 2003/04. The key meal in the production pattern is sunflower meal with its share
reaching 85-93% in depend of season.
Diagram 3.30
Sunflower meal/cake
Growth of sunflower meal production in Ukraine is driven by a set of factors, including a substantial
sunflower acreage expansion in recent years with a corresponding sunseed crop increase, and a buildup of sunseed crushing capacities.
Sunflower meal/cake output reached 2.9MMT in 2012/13, or up 2.3 times from 2003/04 season. In
2013/14 sunmeal/cake production increased3.9 MMT due to hikes in both sunseed crop and sunoil
output because of strong demand for the latter.
Domestic consumption of sunmeal varies up and down within 1000 KMT. The reason is price and
quantitative dependencies of the meal and feed grain markets.
Gradual growth of sunmeal production and limited domestic sales of this product causes Ukraine to
turn from a consumer into an exporter. The market has gradually become an export-oriented one.
Diagram 3.31
Soybean meal/cake
The main product of processed soy is meal, ratio of which is almost 80%. Until 2007, soymeal
production was mostly performed by oil-making workshops (small plants) or directly by poultry plants
having their own capacities. The entrance of big specialized plants to the market forced most of these
little uncompetitive enterprises to cease production.
Since 2007, soymeal production in Ukraine started growing at a high pace. The main stimulus for
active development of soymeal production was growing demand from compound feed producers.
In 2013/14 season soybean meal production increase is particularly noticeable. The record soybean
crop obtained in 2013 allowed increasing soymeal production to 600 KMT.
Diagram 3.32
The absence of soybean export limitations in Ukraine results in outflow of the raw materials for
soymeal production (60% of soybean crop is exported). But according to our opinion, the growing
trend in soymeal market will persist in the future.
Until 2005, consumption pattern was as follows: more than 60% accounted for imported soymeal and
40% - domestic soya meal; in 2012 this balance changed to 3% against 97% respectively. This trend
continues in 2013/14 season.
Diagrams 3.33, 3.34
Soymeal consumption structure in 2005/06
Soymeal consumption structure in 2013/14
Rape meal/cake
Similarly to all the meals, the main use of rape meal is for feed purposes. Although rape meal has a
lower nutrient content than soybean meal, the former is used as a feed additive for raising poultry
mostly on household farms.
Due to a biodiesel boom in Ukraine in 2006-2008, facilities for making biodiesel from rapeseed were
installed on some farms. Their capacity is small and the rape cake obtained there is immediately fed
to local livestock. Rape meal is actually not used for feeding poultry on a large scale.
Diagram 3.35
FOREIGN ECONOMIC ACTIVITY
Dynamics of vegoils and meals export shipments. Export destinations
Sunoil
Ukraine it the world’s top sunflower oil exporter, meeting roughly 58% of global demand for this
product. The country is ranked with a wide lead over Russia and Argentina, whose shares equal 20.6
and 9%, respectively.
Diagrams 3.36, 3.37
Source: USDA
As domestic consumption of sunflower oil in Ukraine has been staying at a stable level of 500 - 550
KMT for many years, the main outlet for selling this product is export.
Sunflower oil exports from Ukraine continue to expand at a fast pace. In 2013/14 season Ukraine
exported4.2 MMT of sunoil.The primary reason for the boom in Ukrainian sunflower oil export is
increasing demand from the world market.
The exported share of Ukraine’s total sunflower oil production increases steadily. Over 80% of
sunflower oil produced in Ukraine was shipped abroad in 2011-2013 compared to 54% in 2004/05.
Diagrams 3.38, 3.39
The range of sunflower oil export destinations is quite wide: this commodity was shipped to 63
countries in 2012/13, including Europe, North Africa and the Near East.
The export destinations of Ukrainian sunoil have changed dramatically over the last seasons. Prior to
2007, the top buyers were the EU (with its share reaching 52%), the CIS (17%) and Turkey (10%).
In 20013/14, the bulk of export sunflower oil is destined for India (40%), China (13%), Egypt (8%), Iran
(5%) and Turkey (3%). These countries purchased insignificant sunflower oil volumes before. The EU
share fell to 18%.
Table 3.11. Ukraine: Sunoil production and export, KMT
Production
Export
Export-to-output ratio, %
2011/12
2012/13
2013/14
3835
3239
84.5
3650
3243
88.8
4650
4163
89.5
The unique location of the Ukrainian ports and their proximity to the key markets of Europe, the Near
East and North Africa give Ukrainian vegetable oil a substantial advantage as much of the commodity
is shipped by sea. The share of vegetable oil exported through seaports gradually increases compared
to other modes of transport.
The share of ports in sunflower oil export has sharply increased over the last five seasons. While the
Black Sea ports accounted for 59% of total sunflower oil export in 2007/08, in the 2013/14 season
their share expanded to 97%.
Table 3.12. Sunflower oil exports from Ukraine,
Diagram 3.40
KMT
Exports
total
Exports
through
ports
Share
of
exports
through
ports
2011/12
2012/13
2013/14
3239
3243
4163
3034
3059
4022
93,7
94,3
96,6
Traditionally, about half of export sunflower oil is shipped through the port of Illichivsk. However, its
share shrank from 58% in 2009/10 to 35% in the 2013/14 season. The shares of the ports of Mykolaiv,
Berdyansk and Kherson fell, too.
At the same time, Dnipro-Bugsky port boosted sunflower oil handling with the port’s share reaching
19% in 2013/14 season. This happened owing to an expanded handling capacity of the terminal of
UkrPishcheSbytSyryo. The port of Yuzhny also increased its share from 2% in 2009/10 to 17% in
2013/14.
Soybean oil
Soybean oil exports are negligible in comparison with sunflower oil. But in the recent times the
amount of soy oil exports grows well. In 2003/04 MY exports totaled to 3 KMT only, and in 2012/13
Ukraine supplied more than 69 KMT to the foreign markets. So, during 2003-2012 exports increased
by more than 23 times.In 2013/14 season the growing trend persists. During 6 months of 2013/14
season Ukrainian companies shipped abroad 45.4 KMT of soya oil. This is 27% more than during the
same rime of 2012/13 MY. We project soybean oil exports to come at 90 KMT in 2013/14 season.
Diagram 3.41
Table 3.13. Share of exports in soybean
oil production, KMT
Production
Exports
Exports
share, %
2011/12
54.8
48.4
2012/13
83.1
69.3
2013/14
107
90
88.3
83.4
84.1
In the current season soybean oil exports share in production will total to 84.1%.This means that
almost the whole amount of soya oil produced at the crushing plants is being shipped abroad.
Relatively high exports ratio is explained by strong export demand, high world prices for this product,
and moderate domestic demand, as Ukrainian consumers prefer sunflower oil.
The rest of soy oil is used by Ukrainian fat-and-oil enterprises for margarine production, replacing
more expensive sunoil.
In the recent years the leading positions among the purchasers of Ukrainian soya oil belonged to EU
with 70% of amount shipped to this destination. Except EU, among the main consumers of soy oil
from Ukraine is Belarus. However, this country’s share has been gradually shrinking in recent years.
Diagram 3.42
Table 3.14. Ukraine: Share of exports in soybean oil
production, KMT
Exports total
Exports through
ports
Share of exports
through ports
2011/12
2012/13
2013/14
48.4
69.3
90
88.3
83.4
84.1
Rapeseed oil
Due to Ukraine’s low production of rapeseed oil, its exports are also low, varying from season to
season. The smallest volume (0.25 KMT) was exported in 2010/11 season and the largest (36.4 KMT)
in 2008/09.
Against the background of high rapeseed exports in 2013/14, rapeseed oil is exported actively, too.
Moreover, September’s oil exports hit an all-time high of 20.6 KMT. Ukraine exported 55 KMT of
rapeseed oil in the first 8 months of the season (July-February).
We forecast Ukrainian rapeseed oil exports to total 60 KMT in 2013/14 against last season’s 4 KMT.
This will be a new historical record.
As a rule, the key importers of Ukrainian rape oil are European countries such as Portugal, the
Netherlands, the Baltic States and Spain. They absorb actually 99% of Ukrainian rape oil exports.
An interesting feature of 2013/14 was a new destination market – India – accessed by Ukrainian rape
oil. This country accounted for 6.2% in the total export volume of rapeseed oil.
As rapeseed crushing expands, Ukrainian rape oil exports will most likely grow as well, because rape
oil is not actually consumed inside the country. The export share in its out put equals 98%.
Diagram 3.43, 3.44
Key oil and meals/cake exporters
The main oil/meals exporters in Ukraine are large Ukrainian and multinational companies. Mostly,
they have a network of forwarding agents and representative offices in almost all the regions of the
country. This allows delivering big oil parcels to the Black Sea ports.
The top ten of exporters remains actually unchanged throughout the last 3-4 seasons. Since 2010, the
first-ranked company in exporting sunflower oil through ports is Kernel Trade and Cargill. In 2012/13
season the top five also included Creative, Alfa Trading, Glencore. These five companies are currently
responsible for about 60% of vegetable oil exports through ports and the top ten accounts for over
81% of export shipments.
Table 3.15. The main oils exporters in 2013/14 season
Soyoil
Kahovka Protein-Agro, Ltd,
Kiev
1
Rapeoil
Crude sunoil
ViOil, Ltd, Vinnitsa
Kernel, Ltd, Kiev
Cargill, CJSC, Kiev
Kreativ, CJSC, Kirovograd
Mayola TD, PC, Lvov
Bessarabia-V, PC,
Odessa
AllianceMarket, Ltd,
Kiev
Cargill, CJSC, Kiev
Myronivskiy Hliboproduct,
CJSC, Kiev
2
Globynskyi pererobnyi zavod,
Ltd, Poltava
3
4
Thegra Ukraine Ltd, Kiev
5
Tep Transco, Ltd, Cherkassyr
6
Antaresagro, Ltd, Zaporozhye
7
Astarta-Kyiv, Ltd, Kiev
8
Agropartner, Ltd, Chernigov
UkrOliya, Ltd, Poltava
Pologivskiy MEZ, CJSC,
Zaporozhye
9
10
VMP, Ltd, Volyn
Agrotekhnika, Ltd,
Lutsk
NizhynskiyZhK, OJSC,
Chernigov
Agrocosm/Optimus, Ltd,
Dnepropetrovsk
Serna, PII, Kiev
Bunge, Kiev
Bessarabia-V, PC, Odessa
ADM Ukraine, Ltd, Kiev
Bottled sunoil
Kernel, Ltd, Kiev
Kreativ, CJSC,
Kirovograd
Mayola TD, PC, Lvov
Bunge, Kiev
Viktor i K, PC,
Kirovograd
Pologivskiy MEZ,
CJSC, Zaporozhyereg.
TepTransco, Ltd,
Cherkassy
FirmaKomplekt, Ltd,
Kirovograd
Table 3.16. The main oils exporters in 2013/14 season
1
2
3
4
Soymeal
Kahovka Protein-Agro, Ltd, Kiev
Stela-Kirovogradstroyi, PC,
Kirovograd
Krymskavodochnakompaniya,
Ltd, Crimea
Zaporozhyereg.
5
6
7
8
9
10
Mayola TD, PC, Lvov
Serna, PII, Kiev
Persha Logistychna Kompaniya,
Zhytomyr
TepTransco, Ltd, Cherkassy
Agrotekhnika, Ltd, Lutsk
Rapemeal
Sunmeal
Kernel, Ltd, Kiev
Cargill, CJSC, Kiev
Cargill, CJSC, Kiev
Bessarabia-V, PC, Odessareg.
Agrocosm/Optimus, Ltd,
Dnepropetrovsk
AllianceMarket, Ltd, Kiev
PershaLogistychnaKompaniya,
Zhytomyrreg.
Mayola TD, PC, Lvov
Chernigov
ATK-Dnipro, PC, Zaporozhye
Bunge, Kiev
Bessarabia-V, PC, Odessa
ADM Ukraine, Ltd, Kiev
Zaporozhye
Dniprooliya, Ltd, Dnepropetrov
Table 3.17. The main cakes exporters in 2013/14 season
1
2
3
4
5
6
7
8
Soycake
TepTransco, Ltd, Cherkassy
Kyiv-Atlantic Ukraine, Kiev
Zernoproduct, PC, Donetsk.
Serna, PII, Kiev
Interzernotorg, Ltd, Kiev
Rapecake
Alliance Market, Ltd, Kiev
Chernigov
Melagrain, Ltd, Kiev
VMP, Ltd, Volyn
Ptakhokompleks Gubyn,
Ltd, Volyn
Kompania-Agroinvest, Ltd,
Cherkassy
9
10
Suncake
Kernel, Ltd, Kiev
Dniprooliya, Ltd, Dnepropetrovsk
Fozzi-Food, Ltd, Kiev
Dnepr-2, Kherson
Yugagrotrade, PC, Kherson
BioilUniversalUkraina, Ltd, Odessa
UPK, Ltd, Kherson
GranTerra, Ltd, Kiev
Agrosvit, APK Ltd, Kharkiv
Zinkivskiy combikormoviy zavod,
CJSC, Poltava
State regulation of foreign trade operations
At present there are no export duties on all vegoils and meals/cakes in Ukraine.
Key exporters of sunoil/meal/cake
Kernel
The business of the Company is divided into six business units
•
•
•
•
•
•
Sunflower oil in bulk – No. 1 sunflower oil producer and exporter from the Black Sea
region. Sunflower oil business comprises the origination and processing of sunflower seed
into crude sunflower oil and protein meal in Ukraine. Both oil and meal are marketed
primarily on the international market.
Bottled sunflower oil – No. 1 bottled oil producer and marketer in Ukraine: Operations in
bottled oil segment comprise the processing of crude sunflower oil into refined oil, followed
by bottling of the refined oil. Primary market is Ukraine, where we sell bottled oil mainly
under the Company’s own brands either directly to the largest retailers, or through regional
distributors.
Grain – Leading grain exporter in Ukraine: Kernel operates as a leading grain supply chain
manager linking farmers in Ukraine to international markets.
Export terminals – Leading provider of grain, oil and meal transshipment and export
services: Kernel provides grain handling and transshipment services both internally and to
third parties through Transbulkterminal, the second largest grain export terminal in Ukraine,
owned and operated by Kernel since June 2008. Oil handling and transshipment services are
provided through Oiltransterminal in Mykolaiv to Kernel exclusively.
Silo services – Largest privately-owned network of grain silos in Ukraine: Kernel provides
2.8 million tons of grain and oilseed storage capacity to the farming industry in Ukraine.
Farming – Large scale agricultural production: Kernel farms 400,000 hectares of prime farm
land, primarily in the central and central-western parts of Ukraine, which provide unique soil
quality, short distances to storage and production assets of the Group, and fast export routes
through Black Sea export terminals.
Creative
Creative Group is a leading Ukrainian integrated agro-industrial company, one of the largest
processors of agricultural products in Ukraine , which is engaged in production of sunflower oil and
meal, fats and margarines, soybean oil and meal, biofuel pellets and also agriculture – crop
production and livestock farming. Strategy of Creative Group provides dynamic development of key
business directions, increasing of production capacity, and also improving of financial results of
company and additional capital raising in business of the Group.
At the Ukrainian market Group now is one of the leaders in production of fats and margarines (with
market share of over 30%) and is among 3 top Ukrainian processors of sunflower seeds, and also is
one of the leading companies of soybean processing on installed capacities (with share market about
24%).
The Group includes own production facilities, in particular 9 plants located in Kirovograd region:
•
3 sunflower seed processing plants with a total capacity of about 1,1 million tons per
year;
•
4 plants for production of modified fats and margarines with
production capacity of over 200 thousand tons of finished products;
•
plant for soybean processing with capacity of about 270 thousand tons per year;
•
agricultural enterprises: plant for the production of pellets, crop farms, livestockbreeding complex;
•
8 elevator complexes in Kirovograd, Nikolayev, Kiev, Dnipropetrovsk and Sumy
regions. Group also operates a land bank of 30 thousand hectares involved under
agriculture.
total annual
Creative Group sells its products both to industrial companies and among end-consumers. Group’s
enterprises producing non-brand products and also products under TM "Sonola", TM "Delikon" TM
"Divnoe", TM "Mum." Group sells its products in all regions of Ukraine and exported it to more than
25 countries of the world.
MHP
MHP’s group of companies holds an indisputable leading position in the Ukrainian meat market.
Strong growth in all business profiles is a strategic goal of the company.
MHP is
•
•
•
One of the leading poultry producers in Europe with one of the strongest food
brands in Ukraine
One of the biggest grain producers in Ukraine
The biggest processed meat producer in Ukraine
MHP’s land portfolio covers 9 Ukrainian provinces. The Company operates one of the largest land
banks in Ukraine - 320,000 hectares - growing corn, sunflowers, wheat and rape. The corn and
sunflower seeds are used in our fodder mills; the wheat, rape and soya are sold to third parties. In
2013 MHP acquired its first asset outside Ukraine, in the Voronezh region of Russia. This comprises
40,000 hectares of land, 200,000 m³ of silos for grain storage and assorted machinery. The company
employs more than 30,000 people in 30 plants. MHP is a market leader in meat processing in Ukraine
with share of about 10%. MHPis a leader in the Ukrainian poultry market, with a market share of
around 54% of industrially produced poultry. The also account for 35% of domestic consumption with
one of the strongest Ukrainian food brands Nasha Riaba.
ViOil
Established in early 1992, ViOil Company is now one of leading sunflower oil manufacturer in the
Ukraine. Oil and fat business has been restructured and is known as Vioil Company since 2006. The
Company needed restructuring to enhance business transactions, expand business relations with
major business partners, customers and suppliers. This proved that the company is here today to
flexibly and timely respond to all and any requests from our clients.
Specialized in production and wholesale of the following:
-
Vegetable oil (sunflower, rapeseed and soybean oil);
Vegetable fats;
Meal;
Pellets;
Oil acids.
Sunflower oil is extensively used in food industry of many countries. Company is engaged in activity
not only in the territory of the Ukraine but also in the areas in Russia and Europe. Founded to
manufacture sunflower oil in various forms, ViOil exports to China, India, Egypt and other countries to
meet customers’ requirements.
Today Vioil industrial group comprises of two oil-and-fat product manufacturers, namely Vinnitsa and
Chernovtsy oil and fat production plants. The total processing capacity of plants is up to 1 000 000
tons of sunflower seeds per year. Apart from manufacturing vegetable oils, we can offer to our clients
such services as trading in cereal crops and seeds of oil-plants. Vioil Company owns thirteen elevators
with the total storage capacity about 360 000 tons (in wheat equivalent).
Agrocosm/Optimus
Group of companies operates under the brand name "Optimus" - a leading the Ukrainian agroindustrial company, one of the largest processors of agricultural products in the Ukraine, which is
engaged in the production of sunflower oil, meal and husk.
The company is in the top 5 Ukrainian sunflower seed processors installed capacity at the Ukrainian
market. Finished products are sold to the final consumer not only on the domestic market of Ukraine,
but also on foreign markets. Agrocosm company, monthly, sells 30 thousand tons of sunflower oil
and 27 thousand tons of sunflower meal and up to 7 thousand tons of granulated sunflower husk on
terms: DAF / CPT / FOB / CIF.
Optimus brings together under its brand large private network of elevators in the Ukraine, with a
total capacity of simultaneous storage of more than 1.2 million tons of grain. Interaction with
producers of agricultural products, allowing the company to maintain a leading position on the
market of seeds and food processing. Today the company has over 1800 employees.
Bessarabia-V
The main activity of the company is processing oilseeds, as well as wholesale products of their
processing, such as: refined sunflower and rapeseed oil, sunflower meal, as well as pellets from
sunflower husks.
One of the main advantages of the factory is output to the port on the river. Danube and the Black
Sea, as well as the ability to login barges, and ships in port capacity up to 6 tons and 3 tons of loading
oil and meal per day.
Favorable climatic conditions contribute to high agro-development in the region. The average annual
harvest of sunflower is 150 thousand tons., 300 tonnes of rape., 450 thousand tons of wheat, 700
tonnes of barley, 200 tonnes of maize.
Currently capacity is 600-800 tons per day. The overall performance of the enterprise for processing
raw materials is - 252 000 tonnes of seeds per year. The annual production volume of 108,360 tons of
oil, 98,280 tons of meal and 18,150 tons of pellets.
For the production of waste there is a line in the granulation sunflower husk pellets - pellets.
Performance of this line is 130 tons per day. The quality of raw materials and finished products is
certified laboratory control "Bessarabia-V", equipped with all necessary modern equipment.
Factory has elevator floor storage capacity of 30 000 tonnes of sunflower, as well as 10,000 tons of
meal. Enterprise services are provided free of charge acceptance, undermining and storage of
agricultural products, followed by priority right to buy PE "Bessarabia-V".
Pology
Pology Oil Extraction Plant PJSC ("Pology") is one of the largest vegetable oil and meal producers in
Ukraine founded in 1974. The main goal has always been to manufacture high quality products that
meet consumer requirements.
Today, the plant represents an integrated complex of production and ancillary departments that
process, or support processing of, sunflower, soybean, and rape seeds.
Pology features full oil-bearing crop processing cycle: from receipt, storage, and preconditioning of
seeds to complete oil purification and subsequent packaging.
The plant’s organization includes the following main departments: preparatory, oil extraction, oil
refining, and oil packaging.
Plant has its own storage facilities for raw materials and finished products: 75,000-ton seed elevator,
4500-ton meal elevator, 22,000-ton oil tank yard, and a finished products storage facility. The main
production facilities are supported by ancillary departments and services: power supply, rail
transport, motor transport, production equipment maintenance, local treatment facilities, controlling
and measuring instrumentation and automatic control service.
State-of-the-art equipment, advanced technologies, the latest control methods, and management
systems are the key factors contributing to the plant’s consistently high-quality product output.
The plant’s production processes are fully compliant with ISO 9001:2008 requirements, which allows
us to meet the needs of our customers to the fullest extent possible.
Pology manufactures and sells the following products:
- sunflower, soybean, and rapeseed oils in bulk;
- sunflower oil in polyethylene bottles;
- sunflower, soybean, and rapeseed meal;
- sunflower, soybean, and rapeseed phosphatide concentrate.
Pology produces bottled P-grade refined deodorized winterized and high-grade unrefined winterized
sunflower oil under own trademarks (Slavia and Smachna Kraplia) and other private labels for the
leading retail chains and large distribution companies.
Today, Pology is the national leader in terms of quality of sunflower meal. Our company is the only
producer of sunflower meal in Ukraine that guarantees protein content in dry matter of at least 42%.
Oliyar/Mayola
Oliyar was established in 2003. In 2005, renovation of refining and deodorization capacities was
performed, new processes of winterization, filtration, and packaging were implemented, and new
packaging facility was built.
High degree of automation, as well as strict quality controls by Siemens' advanced computerized
system and specialized software, guarantees compliance with the European standards of the
manufacturing process. Adoption of the state-of-the-art refinement technology ensures production
of carcinogen-free sunflower oil.
Certified laboratory located on-site has implemented the three-tier system of quality control enabling
it to maintain continuous quality supervision beginning with raw material and culminating with the
final product. At the first level, analysis of raw material takes place; at the second, every two hours
raw material being processed is inspected; finally, at the third level of quality control, each lot of
finished product is sampled and tested.
Refined sunflower oil by Oliyar is used as raw material by leading Ukrainian companies to produce
such products as mayonnaise, sauces, snacks etc. The company operates its own fleet of specialized
tankers to deliver refined sunflower oil to its corporate customers.
With a production capacity of 300 tons per day, Oliyar positioned itself as one of the three leading
producers of refined sunflower oil in Ukraine. Every year the company increases its production
capacity, and is currently working on installing new equipment and modernizing several aspects of its
production process to reflect the latest technological advancements.
Private enterprise "Viktor & K"
Private enterprise "Viktor & K" was established in December 1992 as a company engaged in
wholesale and retail trade and catering. In 1998, construction began on the plant for processing
sunflower seeds capacity of 30 tons for one shift. In 2001, the plant was put into operation by the
State Technical Commission.
In February 2002, registered trade mark (Royal Taste) under her production company produced
"Viktor & K". Since March 2002, put into operation bottling line of sunflower oil in bottles. Sunflower
oil begins to be in demand from the population.
Center for Independent expert "Test" appreciated the quality of the production: the results of
comparative testing of 24 brands of sunflower oil products of TM Royal Taste received the highest
rating of "excellent."
In 2002, the plant was put into effect for the production of mayonnaise. Starting power was two tons
for 1 shift. To date, this figure increased to 30 tons per shift. Produced 11 types of different fat
mayonnaise and various convenient packages weighing from 180 to 5000 gramm.
Today PE "Viktor & K" - a powerful and responsible manufacturer of such product groups as
mayonnaise, sunflower oil, catsup, mustard, butter, spreads, vinegar, tomato sauces, halva, pasta,
canned peas, corn and so on.
UKROLIYA
"UKROLIYA" LLC is the company which produces high-quality, ecologically pure and safety products of
the European level. LLC "UKROLIYA" is the modern and high-technology industrial complex which
specializes in sunflower seeds processing.
Year of its foundation is 2001. Capacities of the factory are located in the environmentally pristine
region of Ukraine, Poltava Region, in urban settlement of Dikanka and town of Zenkov.
Core business of the company is production and sale of the packed and bulk sunflower oil, sunflower
cake, and peeling.
Packed sunflower oil produced by the company "UKROLIYA" LLC is sold under the registered
trademarks “Dikanka”, “Khutorok”, “Maslinka”, and “GARNA” which have a wide product line.
Table 3.18. Contact details of main sunoil/meal exporters
Company
Kernel
Address
Tel.
Fax.
3 Tarasa Shevchenka
lane, Kyiv, 01001
(+38-044) 461-88-01
(+38-044)
461-88-64
E-mail
investor_relations
@kernel.ua
Web-site
http://www.kernel.
ua/
mail@creativegrou
p.ua
[email protected]
a
[email protected]
m.ua
http://www.creativ
egroup.ua/activities
http://www.mhp.c
om.ua
(+38-044) 461-88-04
Creative
MHP
Kirovograd, Promislovyi
Prospect, 19
Tel.: +38 (0522) 3571-71,
+38 044 207 0000
Head office
38 044 207
0002
ViOil
26 Nemyrivske shosse
Vinnytsia, 21034
HEADQUARTERS
tel. /fax: 38 (0432)
509-600, 38 (0432)
509-601
Agrocosm/Optimus
122,
Geroyiv
Stalingrada St.,
tel. + 38 056 789 99
80,
Bessarabia-V
Dnipropetrovsk
city,
49033
68600, Izmail, Bolgrad
highway, № 8
Pology
Oliyar/Mayola
Viktor & K"
E-mail:
[email protected]
http://www.vioil.co
m/contact-us/
fax. +38 056
789 99 81
[email protected]
om.ua ,
http://www.optimu
s.com.ua/
+380675189494
Sales Manager and
Purchases
+380674882780
Head Manager
FAX: +380484125574;
http://bessarabiav.com/contacts_en.
html
Lomonosova Str. 36,
Polohy city, Zaporizhia
Oblast, 70600
81118, Ukraine, Lviv
Region, Pustomytivskyi
District, v. Stavchany.
+38 0 (6165) 2-30-37
+38
0
(6165) 3-1100
E-Mail:
bessarabiyav@mail.
ru
[email protected]
et
[email protected]
[email protected]
u
[email protected]
.ua
+38 032 237 40 61
+38 032 242 17 00
+38 032 242 18 00
[email protected]
[email protected]
a
Visotskogo
Vlasivka
Phone: +38 (05236)
6-05-02
Export department
Department head –
Vladimir Saltykov
e-mail:
[email protected]
http://kingsmak.co
m.ua/en/history
[email protected]
http://www.ukroliy
a.com.ua/en/conta
cts/
Svitlovodsk,
Kirovograd
27552
UKROLIYA
str.
2,
region.,
Str.Sadovaya,
4,
Cernechuy Yar, Dikanka
District, Poltava Region,
38521
т./ф.: +38 (05236) 540-13
ReceptionTel./:Fax.:
+38 (05351)
9-43-95, 9-79-06
http://mezpology.z
p.ua/enter/lang/en
/
http://www.oliyar.c
om.ua/
Table 3.19. Contact details of main rapeseed oil/meal exporters
Company
Address
26 Nemyrivske shosse
Vinnytsia, 21034
Tel.
HEADQUARTERS
tel. /fax: 38 (0432) 509600, 38 (0432) 509-601
E-mail
E-mail:
[email protected]
Web-site
http://www.vioil.com/c
ontact-us/
68600, Izmail, Bolgrad
highway, № 8
FAX: +380-4841-25574;
+380675189494 - Sales
Manager and Purchases
+380674882780 - Head
Manager
http://bessarabiav.com
Oliyar/Mayola
81118,
Lviv
Region,
Pustomytivskyi District, v.
Stavchany.
+38 032 237 40 61
+38 032 242 17 00
+38 032 242 18 00
E-Mail:
bessarabiyav@ma
il.ru
bessarabiav@ukr.
net
[email protected]
[email protected]
.ua
«Nizhynsky
Zhyrcombinat»
2, Prylutska Str, Nizhyn,
Chernihiv
Region,
Ukraine, 16600
Tel.: +380 4631 314 31,
+380 4631 310 79
[email protected]
http://ngk.net.ua/conta
cts.php
ViOil
Bessarabia-V
http://www.oliyar.com.
ua/
«Nizhynsky Zhyrcombinat»
PSC «Nizhynsky Zhyrcombinat» was founded more than 115 years ago and has a broad experience in
production of vegetable oil as well as paint and varnish products.
PSC «Nizhynsky Zhyrcombinat» is multicultural Enterprise - it processes Sunflower Seeds, Rape Seeds,
Flax Seeds, and Soybeans and exports vegetable oil to EU countries, Africa and Asia.
More than 90% of manufactured production is exported abroad. Production capacity is about
100’000 metric tons of Oilseeds per year.
The Enterprise is located on the 8 hectares area in Chernihiv region. In 2013 the Enterprise has
constructed a new department and increased the capacity of Oilseed processing up to 280 metric
tons a day. Now the project documentation for building of extraction department is preparing and
coordinating with the public authorities.
There is an elevator on the territory of the Enterprise. Its hoisting capacity is about twenty five
thousand metric tons. The elevator is equipped with two modern and powerful driers.
Currently new elevators with capacity of twenty thousand tons are being built. It will give an
opportunity to keep simultaneously forty five thousand metric tons of Oilseeds.
Table 3.20. Contact details of main soybean oil/meal exporters
Company
Kahovka
Agro
Address
Tel.
Protein-
E-mail
[email protected]
Web-site
http://en.kpagro.com.ua/co
ntacts
+3805549 71555
Thegra Ukraine
01015, Kiev,
Staronavodnytska
str., 13, office 126-G
+38 044 569 12 22
[email protected].
ua
http://www.thegra.com.ua
Astarta-Kyiv
04070,
Pochayninska
38/44
+380(44) 585 9494
+380(44) 462 5946
+380(50) 444 2511
http://www.astartakiev.com
/en/index.htm
Creative
Kirovograd,
Promislovyi
Prospect, 19
Str.Sadovaya, 4,
Cernechuy Yar,
Dikanka District,
Poltava Region,
38521
Lomonosova Str. 36,
Polohy
city,
Zaporizhia
Oblast,
70600
[email protected]
m
commerce@astartakie
v.com
e-mail:
[email protected]
+38 (05351) 9-4395,
+38 (05351) 9-7906
[email protected]
http://www.ukroliya.com.ua
/en/contacts/
+38 0 (6165) 2-3037
[email protected]
http://mezpology.zp.ua/ent
er/lang/en/
UKROLIYA
Pology
Kiev,
str.,
+38 (0522) 35-7171
http://www.creativegroup.u
a/activities/
"Kakhovka Protein Agro" LLC
Unique enterprise for monoculture processing in Ukraine. The newest equipment of the leading
foreign manufactures: CHIEF (USA), CPM (USA), Mathews Company (USA), GSCOR (USA), Europa
Crown Limited (GB).
Production according to the international requirements. Processing capacity equals to 700 tons.
Production of the soymeal equals up to 550 ton per day or up to 150 000 ton per year, production of
soy oil – up to 150 ton per day or up to 40 000 ton per year
The company owned silos that allow to store up to 40 000 ton of soy beans. Favorable location of the
manufacture: a small distance to to transportation hubs (maritime terminal Kherson, Mikolayiv,
Odesa, Illichivsk) and corridors (international highway Vienna-Reni-Odesa-Rostov-on-Don,
Simferopol-Kyiv' highway)
Modern grain and chemical laboratories guarantee permanent monitoring and control of incoming
raw materials and quality of processed products. Production of soybean meal complies with the
requirements of DSTU (National Standards of Ukraine) 4230:2003
Production of non-refined and degummed soybean oil complies with the requirements of DSTU
(National Standards of Ukraine) 4534:2006. Soymeal is necessary component for high quality and
high energy nutrient budget of all animal, poultry and fish species. Soymeal is the most energy and
protein concentrated component for compound poultry feedstuff. Input of soymeal into compound
feedstuff significantly improves the tasting quality of animals’ meat.
“Astarta–Kyiv”
Founded in 1993, “Astarta–Kyiv” is a vertically integrated agro-industrial holding specializing in sugar
and agricultural production. It has proven to be a growing, transparent company, as well as a reliable
partner and supplier.
Our agricultural business focuses primarily on the cultivation of sugar beet, grains and oilseeds, the
production of sugar and related products (molasses and granulated beet pulp), and milk and meat
production. ASTARTA put soybean processing plant into operation in December 2013. At the same
time ASTARTA actively implements bio projects. Therefore, production of biogas from beet pulp will
be started at one of the Group’s sugar plants.
Implementing a strategy of vertical integration, ASTARTA created a fully integrated production cycle
of sugar from growing the beet to sugar production and sales. Growing sugar beets lowers
dependence on the external supply of sugar beets, lowers the cost of produced sugar, and
guarantees constant manufacturing and the highest possible yield and quality.
ASTARTA implements a scientifically grounded approach to crop rotation. Main crops (outside of
sugar beet) are wheat, barley, soybeans and maize. ASTARTA’s agricultural firms are equipped with
highly efficient modern machinery with a fleet over 3000 units. Through the use of modern
agricultural machinery, the application of progressive agricultural technologies, and optimum crop
rotation, soil quality improves constantly and the yields of main crops increase consistently as well.
Cattle breeding is a synergetic segment. ASTARTA is one of the biggest industrial milk producers in
Ukraine. Over 31 thousand heads of cattle allow the Company to produce over 300 tons of milk per
day.
Our mission toward partnerships with our suppliers and consumers has enabled us to establish stable
long-term business relationships with the leaders of the Ukrainian confectionary industry and with
international agricultural traders, rewarding us with an impeccable credit history. The company’s
priority is to expand its effective industrial base, promote energy conservation, further optimize
logistics, and maximize export opportunities.
“Thegra Ukraine LTD”
“Thegra Ukraine LTD” Company is a daughter of Closed Joint-Stock Company Theeuwes Holding B.V.
(Netherlands), which was founded in 1900.
The holding’s main business activities are concentrated in agriculture and include the following
directions:
- international trade in grains, oilseeds, vegetable oils and compound feed components;
- agricultural produce processing;
- real estate.
“Thegra Ukraine Company LTD” (from 1993 till 1997 worked as a representative office, from 1997
till today – as a daughter company) is engaged in the following economic activities in Ukraine:
- purchase of oilseeds (soybeans, rapeseeds, linseeds) and their further processing into cake and oil;
- trade in obtained products on domestic and international markets;
- oilseeds, grains, sunflower meal and oil export.
Key exporters of oilseeds
Nibulon
"NIBULON" is one of the largest domestic producers and exporters of agricultural products (wheat,
barley, corn, rye, sunflower, etc.). In the process of development, the company gradually expands
geography and scale of industrial activity. The company has 22 production units located in nine
regions of Ukraine.
"NIBULON" has its own facilities for storing and bringing agricultural products to merchantable
condition, both at the company`s own subdivisions and at the enterprises, where the company is a
shareholder.
Nibulon has export terminal in Nikolaev port and own shipping company.
Within the framework of the investment project “NIBULON” creates its own logistics system in order
to reduce dependence on external factors, to decrease level of perils in economic operations. The
construction of transshipment terminals which are located along rivers and its own fleet construction
is an advantage for company.
Rise/UkrLandFarming
Rise is Ukrlanfarming division engaged in distribution of products and services.
The Ukrlandfarming Group is an agricultural producer that sells its products both domestically and
internationally. It is the largest Ukrainian vertically integrated agricultural holding company,
managing 654 thousand hectares of black soilck.
Ukrlanfarming’s land portfolio covers 22 Ukrainian provinces. The Ukrlandfarming Group ranks
among the top-ten cropland operators in the world and holds the largest stock of arable land in
Ukraine.
The entity responsible for the production of eggs and dry egg products within the Group is
Avangardco IPL, an agricultural holding company, which is the largest producer of chicken eggs and
dry egg products in Eurasia and in Ukraine, with the second largest stock of laying hens in the world.
Ramburs
The main activity of the Ramburs Group is export of grains from Black Sea Ports (feed barley, feed
wheat, milling wheat, corn, sunflower seeds, sunflower oil, soya beans, wheat flour and canola).
Origination of grains and oilseeds is from Russia, Romania, Bulgaria, Serbia, Moldova as well as from
Ukraine.
The Ramburs Group also has its own grain elevators in central and southern regions of Ukraine. They
buy the exportable grains from farmers truck by truck through the country, bring it to their grain
elevators and ship this grain to over 50 countries around the globe loading vessels from 3000 MTs up
to 75000 MTs.
Since 2006 the Ramburs Group has developed poultry project “Indelika”. Today it is the largest turkey
meat producer in Ukraine. This project integrates turkey farming, feed production, meat processing
and product distribution within one company located next to Kiev.
Promin-Agro
"Promin Agro" is a young and rapidly growing company, a manufacturer of high-quality agricultural
products, well-known on the Ukrainian market. Promin Agro grows wheat, buckwheat, corn, rape,
barley, flax, lupine, soybeans, sunflower, rye in Kiev, Zhitomyr, Chernigiv, Khmelnitsk regions.
"Promin Agro" successfully combines rich agricultural experience and advanced technological
systems using a modern fleet of agricultural machines in order to maintain high product quality and
ensure maximum efficiency of the company. In addition to growing crops they are also engaged in
receiving, cleaning, drying and storage of grains and oilseeds. They create optimal conditions on their
elevators as well as guarantee complete safety of products, arranging export shipments.
Table 3.21. Contact details of main oilseed exporters
Company
NIBULON
Address
63 Velyka Morska
St.,
54030
Mykolayiv,
Ukraine
Rise/UkrLandFa
rming
121V Peremohy
Av. Kyiv, Ukraine,
03115
20 Peremogy Av.,
Kyiv, Ukraine
1A Lybidska str.,
Kyiv, Ukraine
Ramburs
Promin-Agro
Tel.
+38 (0512)
37-2344,
+38
(0512) 5804-04
+38 (044)
393 40 93
Fax.
+38 (0512) 50-01-91,
+38 (0512) 58-04-05
E-mail
[email protected]
a
[email protected]
a
Web-site
http://www.nibulon.com
+38 (044) 393 40 94
[email protected]
http://www.rise.ua
+38
044
458 50 53
+38 (044)
406-92-75
+38 044 475 99 05
[email protected]
m
www.ramburs.com
+38 (044) 406-93-59
http://prominagro.com.ua/
4. MEAT AND MEAT PRODUCTS MARKET
OVERVIEW
Table 4.1. Ukraine: Key livestock indicators, September 01*
2010
2011
2012
2013
2014
Cattle inventory, КРC, Th head 1628.5 1556.7 1557.1 1502.4 1387.8
Hog inventory, Th head
3644.9 3519.7 3556.8 3803.5 3838.4
*here and hereinafter excluding Crimea
Cattle inventory
According to the State Statistics Service of Ukraine, farms of all types kept 4875.1 Th head of cattle on
September 01, 2014.
The total cattle population in Ukraine decreased 3.1% against September 01, 2013 (5,031.0 Th head on
September 01, 2013).
Regionally, as of September 01, 2014, the highest cattle inventories were available in the following regions:
 Vinnytsya – 333.9 Th head,
 Lviv – 323.2 Th head,
 Khmelnytsky – 272.7 Th head,
 Poltava – 297.9 Th head,
 Chernihiv – 246.9 Th head.
The lowest cattle numbers were in the regions of Zaporizhzhia (138.4 Th head), Chernivtsi (131.6 Th head),
and Luhansk (123.8 Th head).
Diagram 4.1
Ukraine: Cattle inventory, 2010-2014 (Th head )
5800
5300
4800
4300
3800
3300
2800
2300
1800
Jan 10
March 10
May 10
July 10
Sept 10
Nov 10
Jan 11
March 11
May 11
July 11
Sept 11
Nov 11
Jan 12
March 12
May 12
July 12
Sept 12
Nov 12
Jan 13
March 13
May 13
July 13
Sept 13
Nov 13
Jan 14
March 14
May 14
July 14
Sept 14
1300
Public sector
The private sector
Farms of all types
*excluding Crimea since April 2014
The problems faced by this livestock sector include a shortage of beef cattle. In view of available favorable
growing conditions and land, this is a promising area for investment in Ukraine’s livestock sector.
Hog inventory
Farms of all types held 8.151 Ml head of hogs on September 1, 2014.
In August 2014, the highest numbers of hogs were kept on farms in the regions of Dnipropetrovsk (562.4 Th
head), Kyiv (532.4 Th head), and Donetsk (603.9 Th head). The smallest hog population was available in
Luhansk region (111.5 Th head).
Compared with August 2013 (8.175 Ml head), hog inventories on farms of all types decreased 0.3%.
Diagram 4.2
Ukraine: Hog inventory, 2010-2014 (Th head )
9000
8000
7000
6000
5000
4000
Jan 10
March 10
May 10
July 10
Sept 10
Nov 10
Jan 11
March 11
May 11
July 11
Sept 11
Nov 11
Jan 12
March 12
May 12
July 12
Sept 12
Nov 12
Jan 13
March 13
May 13
July 13
Sept 13
Nov 13
Jan 14
March 14
May 14
July 14
Sept 14
3000
Public sector
The private sector
Farms of all types
* excluding Crimea since April 2014
MEAT PRODUCTS PRODUCTION
Table 4.2. Ukraine: Production of some meat product groups at meat processing plants, 2013 – 2014,
KMT
fresh or cooled beef
frozen beef
frozen pork
cooled pork
Total
2010
73.9
20.9
7.3
124.0
Total
2011
50.1
15.0
7.4
167.1
Total
2012
53.0
14.3
7.0
169.0
Total
2013
62.8
25.4
10.4
200.5
Total
for Jan.-Aug. 2013
41.6
17.2
6.6
128.9
Total
for Jan.-Aug. 2014
34.1
10.5
8.3
148.4
In January-August 2014, frozen beef production fell by 27.6% year-on-year to 10.5 KMT (14.5 KMT in
January-August 2013).
The leading producers of frozen beef in 2014 include AgroProduct, RachynMyasoProm, Ivano-Frankivsk
meat-processing plant, Trostyanets meat-processing plant, Drohobych meat-processing plant, and Zevs Ltd.
These enterprises account for some 65% of all the frozen beef produced in the first eight months of 2014.
Production of fresh or cooled beef in January-August 2014 was down 8.6% year-over-year at 34.1 KMT
(37.3 KMT in January-August 2013).
The top producers of fresh or cooled beef in 2014 include Kozyatyn meat-processing plant, Zhytomyr meatprocessing plant, Yatran meat-processing plant, KonotopMyaso, TulchynMyaso, Antonivsky meat-
processing plant, OkhtyrkaMyasoProduct, and ZagotServis. These enterprises account for some 44% of total
output of fresh or cooled beef in the first eight months of 2014.
In January-August 2014, pork production amounted to 156.7 KMT, including 8.3 KMT of frozen pork and
148.4 KMT of cooled. Production of cooled pork in January-August 2014 was up 11.7% year-over-year
(132.9 KMT in January-August 2013).
The top pork producers are APK-Invest and Hlobyne meat-processing plant. In addition, significant volumes
of pork (frozen, fresh and cooled) in 2014 are produced by Evro-Komers, Antonivsky meat-processing plant,
Yasni-Zori-Poltavshchyna, Yuvileyny meat-processing plant, Horlivka meat-processing plant, Agroindustrial
company, MK Rial. These enterprises account for some 54% of total pork production in the first eight
months of 2014.
MEAT AND BY-PRODUCTS EXPORTS
General trends
Just a small portion of Ukrainian meat processing facilities comply with the European Union’s veterinary
standards, therefore few of them can figure on permits for export to the European market.
Table 4.3. Ukraine: Meat products exports, August 2014, MT
Product
Total
2010
Total
2011
Total
2012
Total
2013
Total
for Jan.-Aug. 2013
Total
for Jan.-Aug. 2014
0201 - cooled beef
202
4 613.20
8 891.6
12 193.3
6 974.4
3 297.5
0202 - frozen beef
12
804.40
8 380.10
7 534.0
13 124.5
6 308.4
9 692.9
611.3
12 509.40
20 015.0
5 314.2
2 148.1
3 726.2
0203- fresh, cooled or frozen pork
Beef exports
3.3 KMT of cooled beef was exported in January-August 2014, or 52.2% less than at the same time in 2013
(6.9 KMT).
Frozen beef exports totaled 9.7 KMT in January-August 2014, or 53.9% more than at the same time in 2013
(6.3 KMT).
Diagram 4.3
13 companies exported cooled beef to three countries in January-August 2014. The main destination
country was Russia (95.9%).
Table 4.4. Ukraine: Key exporters of cooled beef
Company
Address
Contacts
Svizhenka (Chernivtsi region)
1, Lenina St., Tarasivtsi
village, Novoselytsya
district
Nester (Vinnytsya region)
155, Sverdlova St.,
Vinnytsya
+380(432)536717
SoyuzTorgInvest (Kyiv region)
1, Balukova St.,
Vyshneve, KyivSvyatoshyn district
+38 (044) 501-63-03
+38 (03733) 30137
+38 (044) 286-70-30
[email protected]
http://ukrmeatexport.com/#production
AgroProduct (Ternopil region)
Rosokhach village,
Chortkiv district
+38 (03552) 56568
+38 (03552) 56572
Fax:
Avtek-StroyTech (Kyiv region)
11, Kikvidze St., Kyiv
Agroexim (SoyuzTorgInvest) (Sumy region)
150, Generala Tkhora
St., Konotop
+38 (03552) 56595
+38 (044) 4960053
+38 (044) 501-63-03
+38 (044) 286-70-30
[email protected]
Opos-Torg (Volyn region)
42, Bohdana
Khmelnytskogo St.,
Lutsk
+380 (332) 72 14 86
+380 (50) 378 45 56
http://www.opostorg.com/eng/contact/
North-Eastern Extracting Company (Kyiv
region)
7, Kotsyubynskogo St.,
office 11, Kyiv
Trostyanets meat-processing plant (Vinnytsya
region)
16, Lenina St.,
Trostyanets
-
+380 (4343) 2-22-52,
+380 (4343) 2-26-93,
+380 (4343) 2-29-73,
+380 (4343) 2-14-60;
fax: +380 (4343) 2-26-93,
+380 (4343) 2-29-73;
ProdExport (Ternopil region)
15a, Zhyvova St.,
Ternopil
(0352) 475002,
475030,
434365,
332917,
433899
Fax: (0352) 475002,
433898
MyasoProduct MPK (Ternopil region)
26, Zaliznychna, Stupky
village
+38 (099) 637-24-22
http://lemov.etov.com.ua/about
Amt Agro (Vinnytsya region)
2, Zvilnennya St., office
204, Vinnytsya
Tavr-Plus (Donetsk region)
1, Alebastrova St.,
Artemivsk
+38 (0627) 481509
Ivano-Frankivski Kovbasy (Ivano-Frankivsk
region)
10, Petlyury St., IvanoFrankivsk
+38 (03422) 23417,
-
+38 (03422) 97816,
+38 (03422) 597220
Fax:+38 (03422) 29013
Alliance Market (Evrotek) (Kyiv region)
5, Sotsialistychna St.,
building 2, Kyiv
+38 044 249 23 50
Fax +38 044 249 23 51
http://www.evrotek.com/ru/evrotek/kontakty/
EtalonMolProduct (Milk Alliance) (Kyiv
region)
9, Leskova St., Kyiv
+38044 284-58-51
284-58-52
284-58-55
[email protected]
In January-August 2014, frozen beef was exported by 32 companies to 11 countries of the world. The main
destination countries were Russia (48.2%), Belarus (24.2%), and Azerbaijan (10.4%).
Table 4.5. Ukraine: Key exporters of frozen beef
Company
RachynMyasoProm (Volyn region)
Address
3, Shkilna St., Rachyn
village, Horohivsky
district
Contacts
+38 (03379) 98093
+38 (067) 3510775
+38 (097) 7627497
Fax: +38 (03379) 98095
Svizhenka (Chernivtsi region)
1, Lenina St.,
Tarasivtsi village,
Novoselytsya district
North-Eastern Extracting Company (Kyiv
region)
7, Kotsyubynskogo
St., Office 11, Kyiv
Тавр-Плюс (Донецкая обл.)
г. Артемовск,
+38 (03733) 30137
-
+38 (0627) 481509
ул. Алебастровая, 1
ProdKompaniya (Vinnytsya region)
AgroProduct (Ternopil region)
31, Pyrohova St.,
Vinnytsya
+380 (432) 530073,
Rosokhach village,
Chortkiv district
+38 (03552) 56568
+380 (432) 536687
+38 (03552) 56572
Fax: +38 (03552) 56595
Ivano-Frankivski Kovbasy (Ivano-Frankivsk
region)
10, Petlyury St.,
Ivano-Frankivsk
+38 (03422) 23417,
+38 (03422) 97816,
+38 (03422) 597220
Fax:+38 (03422) 29013
Zevs Group (Rivne region)
6, Klim Savoura St.,
+38(03656) 34112,
Dubno
+38(097) 2595882;
+38 (036) 5634113
[email protected]
Trostyanets meat-processing plant
(Vinnytsya region)
16, Lenina St.,
Trostyanets
+380 (4343) 2-22-52,
+380 (4343) 2-26-93,
+380 (4343) 2-29-73,
+380 (4343) 2-14-60;
fax: +380 (4343) 2-26-93,
+380 (4343) 2-29-73;
Agroexim (SoyuzTorgInvest) (Sumy region)
150, Generala
Tkhora St., Konotop
+38 (044) 501-63-03
+38 (044) 286-70-30
[email protected]
Meat Alliance (Donetsk region)
EtalonMolProduct (Milk Alliance) (Kyiv
region)
104, Schorsa St.,
Donetsk
+38 (062) 3811421
Fax +38 (062) 3811421
+38044 284-58-51
284-58-52
284-58-55
[email protected]
Avtek-StroyTech (Kyiv region)
11, Kikvidze St., Kyiv
+38 (044) 4960053
Pork exports
Pork exports totaled 3.7 KMT in January-August 2014, or up 76.2% from last year’s 2.1 KMT.
Diagram 4.4
Nine companies exported pork to four countries in January-August 2014. The main destination countries
were Russia (11.9%) and Moldova (86.1%).
Table 4.6. Ukraine: Key exporters of pork
Company
Address
Contacts
Myasna Vesna (APK-Invest) (Donetsk region)
51a, Artema St., Donetsk
+38 (062) 2066926
Fax: +38 (062) 2065274
http://mvesna.com.ua
+38 (062) 3411360
[email protected]
Alior-Trans (Lviv region)
19, Lvivska St., Chervonohrad
+380(67)3405985
+380(67)3544162
Tavr-Plus (Donetsk region)
1, Alebastrova St., Artemivsk
+38 (0627) 481509
ZagotServis (Ternopil region)
15-A, Nezalezhnosti St.,
Pidvolochysk
+38 (03543) 22495
+38 (050) 3777557
Trostyanets meat-processing plant (Vinnytsya
region)
16, Lenina St., Trostyanets
+380 (4343) 2-22-52,
+380 (4343) 2-26-93,
+380 (4343) 2-29-73,
+380 (4343) 2-14-60;
EtalonMolProduct (Milk Alliance) (Kyiv region)
+380 (4343) 2-29-73
+38044 284-58-51
284-58-52
284-58-55
[email protected]
VMP (Pan Kurchak Agro Industrial Group)
(Volyn region)
3, Lutska St., Novovolynsk
Toris (Volyn region)
152, Kutuzova St., Kovel
LubnyMyaso (Poltava region)
26, Industrialna St., Lubny
Meat Alliance (Donetsk region)
104, Schorsa St., Donetsk
Fenix (Donetsk region)
50, Sknareva St., Makiyivka
+38 (03344) 4-68-80
[email protected]
+38 (03352) 22350
+38 (03352) 69036
[email protected]
+380 (50) 305-41-31
+38 (062) 3811421
+38 (06232) 33767
+38 (06232) 32330
[email protected]
Standards of Ukraine
Beef and veal:
Depending on fatness, beef of adult cattle is divided into categories according to the requirements given in
Table 4.7.
Table 4.7. Adult cattle beef categories
Category
Characteristics (lower limit)
Carcasses of cows, oxen, heifers (older than three years)
First
Muscles are developed satisfactorily. The spinal appendixes of breast and loin spines, buttock
points and hips (heads of femur) are indistinctly prominent. Subcutaneous fat covers the carcass
from the eighth rib to the buttock points with significant gaps. Small areas of fatty deposits are
present on the neck, shoulders, fore ribs and hips, pelvic cavity and in the groin area
Second
Muscles are developed less satisfactorily. Hips have dimples, the spinal appendixes of breast and
loin spines, buttock points and hips (heads of femur) are distinctly prominent. Small areas of
subcutaneous fat are present in the areas of buttock points, loin and the last ribs
Bull carcasses
First
Second
Well-developed muscles, the areas of shoulders, neck, pelvis and hips are filled, the spinal
appendixes of breast and loin spines are not prominent
Muscles are developed satisfactorily, the areas of shoulders, neck, pelvis and hips are not filled
enough, shoulders and hips (heads of femur) are prominent
Depending on weight, beef of young cattle is divided into grades according to the requirements set out in
Table 4.8.
Table 4.8. Young cattle beef grades
Grade
Carcass weight, kg
Top
Over 220
First
Over 185 to 220 inclusive
Second
Over 158 to 185 inclusive
Third
158 and lower
Beef of young cattle of all the grades is divided into categories depending on its fatness according to the
requirements set out in Table 4.9.
Table 4.9. Young cattle beef categories
Category
Carcasses of young bulls, oxen, heifers
First
Well-developed muscles, shoulders have no dimples, hips are not fit, the spinal appendixes of
breast and loin spines, buttock points and hips (heads of femur) are slightly prominent
Second
Satisfactorily developed muscles. Hips have dimples, the spinal appendixes of breast and loin
spines, buttock points and hips (heads of femur) are distinctly prominent
Veal (carcasses of calves aged 3 - 8 months and weighing more than 75 kg) is divided into categories
depending on fatness according to the requirements set out in Table 4.10.
Table 4.10. Veal categories
Category
First
Well-developed muscles. Shoulders have no dimples, hips are not fit, buttock points and hips
(heads of femur) are slightly prominent
Second
Satisfactorily developed muscles. Hips have dimples, buttock points and hips (heads of femur)
are distinctly prominent
Veal (carcasses of veal calves aged 14 days to 3 months and weighing at least 15 kg) is divided into
categories depending on fatness according to the requirements set out in Table 4.11.
Table 4.11. Veal categories (veal calves)
Category
First
Satisfactorily developed muscles of pink milky color, hips are filled. Fatty deposits are present in
the area of kidneys, pelvic cavity, on ribs and occasionally on hips. The spinal appendixes of
breast and loin spines are not prominent.
Second
Muscles are developed less satisfactorily, have pink color. Insignificant fatty deposits are present
in the area of kidneys, pelvic cavity and occasionally in the chump area. The spinal appendixes
of breast and loin spines are slightly prominent.
Beef and veal whose fatness does not comply with the requirements set out in Tables refer to lean.
Depending on thermal treatment, beef and veal are divided into:
a) fresh – immediately after slaughter and processing of cattle, whose temperature in hip muscle depth is
at least 35°C;
b) chilled – with temperature in hip muscle depth not exceeding 12°C;
c) cooled – with temperature in hip muscle depth from 0°C to 4°C;
d) subfrozen – with temperature of -3°C to -5°C in a 1 cm hip muscle depth and from 0°C to 2°C in a 6 cm
depth. While in storage, temperature throughout the carcass, half carcass and quarter carcass must stay
within 2 - З°C below zero;
g) frozen – with temperature in hip muscle depth not exceeding 8°C below zero.
In terms of organoleptic indicators, beef and veal must be fresh, with no off-odor. The surface of beef half
carcasses or quarter carcasses must be of pink to dark-cherry color; the surface of veal carcasses or half
carcasses must be of pink milky to pink color; fat is to be of white, yellowish or yellow color.
Carcasses, half carcasses, or quarter carcasses must have no residue of internals, skin, blood clots, muscle
and fat tissue fringes, bruises or dirty spots.
Note. Bruise trimming, stripped subcutaneous fat and muscle tissue are allowed on at most 10% of the
surface of a veal carcass or half carcass and on at most 15% of the surface of a beef half carcass or quarter
carcass.
No ice and snow are allowed on carcasses, half carcasses or quarter carcasses of frozen and subfrozen beef
and veal.
In terms of microbiological indicators, beef and veal must comply with the requirements set out in Table
4.12.
Table 4.12. Microbiological indicators
Indicator
Maximum allowable quantity of mesophilic aerobic
and facultative anaerobic microorganisms, CFU per 1 g
of product, by thermal treatment of meat:
— fresh;
— cooled and subfrozen;
— frozen
Coliform group bacteria (coliforms)
— per 1.0 g of fresh meat;
— per 0.1 g of cooled and subfrozen meat;
— per 0.01 g of frozen meat
L. monocytogenes per 25 g of product
Pathogenic microorganisms, particularly Salmonella
genus bacteria, per 25 g
Normals
10
3
1*10
4
1*10
Not allowed
Not allowed
Not allowed
Not allowed
Not allowed
The content of toxic elements, mycotoxins, antibiotics, hormonal preparations in beef and veal must not
exceed the allowable levels set by MUK and Sanitary Regulations SN No. 5061-89 and the ‘Mandatory
minimum list of raw material tests’ presented in Table 4.13.
Table 4.13. Beef and veal safety indicators
Indicator
Toxic elements, mg/kg:
lead
cadmium
arsenic
mercury
copper
zink
Micotoxins, mg/kg:
aflatoxin B1
Antibiotics, units/g:
tetracycline group
grisin
zinkbacitracin
chloramphenicol, mg/kg
Hormonal preparations, mg/kg:
diethylstilbestrol
estradiol-17β
testosteron
Maximum allowable levels
Test sensitivity
0.5
0.05
0.1
0.03
5.0
70.0
0.005
-
Not allowed
Not allowed
Not allowed
Not allowed
(< 0,01)
(< 0,05)
(< 0,02)
(< 0.01)
Not allowed
Not allowed
Not allowed
(< 0,0005)
(< 0,015)
The content of radionuclides in beef and veal must not exceed the levels specified in GN 6.6.1.1-130 :
137Cз – 200 Bq/kg, 90Sr – 20 Bq/kg.
Pork:
Depending on fatness, pork is divided into categories according to the requirements given in Table 4.14.
Table 4.14. Pig carcass characteristics by category
Category
Category characteristics
Carcass weight in fresh
state, kg
First-extra
Carcasses of young pigs (sows
and boars). Muscular tissue is
well developed, especially on
the back and hips. Fat is dense,
white or with pink shade.
Skin without pigmented lesions,
tumors, rash, bruises, and
damages affecting
subcutaneous tissue. To reveal
bruises, at most three check skin
cuts with a diameter of up to 3.5
cm may be done on the half
carcass
In skin – from 47 to 68
inclusive
Thickness of fat over spinal
appendixes between 6 and 7
breast spines, excluding skin
thickness, cm
from 1.0 to 2.0 inclusive
Second
and boars)
Gilt carcasses
Third
Fourth
Fifth
Sixth
and boars)
Carcasses of boars
Carcasses of sows
Carcasses of milk piglets.
White or slightly pink skin,
without tumors, rash, bruises
wounds, bites.
Neither spinal appendixes of back
spines nor ribs are prominent
Carcasses of boars
inclusive
Without skin – from 43 to
91 inclusive
Without croupon – from
45 to 93 inclusive
inclusive
Without skin – from 12 to
43 inclusive
In skin – to 102 inclusive
Without skin – to 91
inclusive
In skin – over 102
Without skin – over 91
Without croupon – over
93
Unlimited
In skin - from 3 to 6
inclusive
from 1.0 to 3.0 inclusive
In skin – to 47 inclusive
Without skin – to 43
inclusive
at least 1.0
at least 1.0
over 3.0
at least 1.0
at least 1.0
unlimited
Note 1. Pig carcasses which comply with the requirements of the First extra category but have tumors on
the skin, rash, bruises, pigmented lesions, and damages affecting subcutaneous tissue refer to the Second
category.
Note 2. Pig carcasses which do not comply with the requirements set out in Table 14, except the Sixth
category’s carcasses (young boars), refer to lean.
Note 3. Carcasses of young boars which do not comply with the requirements set out in Table 14, as well as
producing boars refer to non-standard category.
Pork with РSЕ syndrome (pale-colored, watery meat of soft consistency) and pH1 < 5.8 (in an hour after
slaughter) and pork with DFD syndrome (dark, dry, sticky meat) and рН1≥ 6.2 and рН24 ≥ 6.2 (in 24 hours
after slaughter), are separated for special processing irrespective of their category.
Depending on thermal treatment, pork is divided into:
— fresh — immediately after slaughter and processing of the pig, whose temperature in hip muscle depth
is at least 35°C;
— chilled — cooled to temperature of at most 12°C in hip muscle depth. The carcass surface is not wetted;
— cooled — cooled to temperature of 4°C to 0°C in hip muscle depth. The carcass surface is not wetted;
— subfrozen — frosted to temperature of -3°C to -5°C in a 1 cm hip muscle depth and from 0°C to 2°C in a 6
cm depth. While in storage, temperature throughout the carcass or half carcass must stay within 2-З°C
below zero;
— frozen — frozen to temperature not exceeding 8°C below zero in hip muscle depth
Meat of pigs in carcasses and half carcasses must be fresh in terms of organoleptic, chemical, microscopic
and histological indicators, with no sliming or off-odor. Muscle tissue color in the separation points is light
pink to red; fat color is white to pink-pale.
Carcasses and half carcasses must have no residue of bristle, internals, blood clots, neither muscle and fat
tissue fringes, dirty spots, or bruises.
Note. Bruise trimming is allowed on at most 10% of the surface, or stripped subcutaneous fat on at most
16% of the surface of a carcass or half carcass of the Second, Third, and Fourth categories.
No ice and snow are allowed on frozen and subfrozen carcasses and half carcasses.
The content of toxic elements must not exceed the levels specified by MBV No. 5061 presented in Table
4.15.
Table 4.15. Allowable content of toxic elements
Indicator
Toxic elements, mg/kg, not more than:
lead
cadmium
arsenic
mercury
copper
zinc
Allowable levels
0.50
0.05
0.10
0.03
5.0
70.0
The content of radionuclides in beef and veal must not exceed the levels specified in GN 6.6.1.1-130 : 137Cз
– 200 Bq/kg, 90Sr – 20 Bq/kg.
In terms of microbiological indicators, pork must meet the following requirements:
Table 4.16. Microbiological indicators
Indicator
QMAFAnM, CFU per 1 g, not more than
Pathogenic microorganisms, particularly
Salmonella genus bacteria, per 25 g
CGB (coliforms) per 0.01 g
CGB (coliforms) per 0.1 g
L. monocytogenes per 25 g of product
Pork:
chilled
10
Not allowed
cooled
3
1*10
subfrozen
3
1*10
Not allowed
Not allowed
Not allowed
Not allowed
frozen
4
1*10
Not allowed
-
5. DRIED MILK MARKET OVERVIEW
In the past, Ukraine was for many years considered a key player of the global dried milk market and listed
among the world’s top ten exporters. However, the situation has changed in recent years. For different
reasons, both production and export of Ukrainian dried milk decreased by several times. The international
markets already began to forget Ukraine as a large supplier of this commodity.
But Ukraine actually lost the cheese market because of “milk wars” with Russia. In these circumstances,
dairy companies began to increase production of whole milk foods and dry dairy products.
To come out of the difficult situation, the Ukrainian dairy industry needs to urgently revive its drying
segment after a long stagnant period.
In 2014, dairy companies got a good opportunity to increase their profits with dried milk. However, this
chance can only be used by strong players capable of rapidly and effectively responding to market changes.
RAW MATERIAL BASE
The annual milk production in Ukraine averaged some 11 MMT over the last five years, gaining 1-3% yearly.
It is concentrated mainly in households (about 77%) and this has a negative impact on the quality of
produced milk.
Strengthening demand from dairy companies and keen market competition for quality dairy raw material
drove the construction and development of large dairy farms. The milk production share of such facilities
has expanded by 3% since 2010.
Major dairy companies (Milkiland Ukraine, Milk Alliance, Danone-Ukraine etc.) invest a lot in the
development of own raw material resources, dairy cooperatives, and modern milk-collecting networks.
Table 5.1. Ukraine: Milk production
Milk production, MMT
Share of large-scale commercial
production, %
*
2010
11.2
2011
11.1
2012
11.4
2013
11.5
2013 (Jan-Aug)
7.8
2014 (Jan-Aug)
7.8
19.7
20.3
22.3
22.5
22.8
23.5
Source: State Statistics Service of Ukraine; *excluding Crimea
MILK PROCESSING AND DRIED MILK PRODUCTION
About 6+6.5 MMT of milk is annually processed in Ukraine. Roughly one-third of dairy raw material was
used for cheese production and nearly as much for producing whole milk products. 6-9% of dairy raw
material was used to manufacture dry dairy products.
Due to a significant loss of cheese markets in 2014 because of a “milk war” waged by Russia, dairy plants
have redistributed raw material flows in favor of whole milk products, butter and dry dairy products. The
share of milk used for making dry dairy products may amount to nearly 11-14% in 2014.
Diagram 5.1. Ukraine: Milk processing pattern
Butter
18%
Dry dairy
products
8%
Others
9%
Cheese
33%
WMP
32%
Table 5.2. Ukraine: Dried milk production
Commodity
Dried milk and cream,
including skim milk powder
(SMP)
whole milk powder (WMP)
2010
68.9
50.3
2011
53.6
39.8
2012
63.1
46.7
2013
53.8
38.2
2013 (Jan-Aug)
38.8
30.1
2014 (Jan-Aug)
51.8
43.0
18.6
13.8
16.4
15.6
8.7
8.8
Source: State Statistics Service of Ukraine; *excluding Crimea
The top five regions of Ukraine in terms of dry dairy production include Vinnytsya, Zhytomyr, Chernihiv,
Poltava, and Khmelnytsky. Their share in total output of these products was nearly 59% in 2013 and 56% in
the first eight months of 2014.
The 2014 leaders include BershadMoloko, Ros – Romny dairy plant (Milkiland-Ukraine), Zolotonosha
butter-making plant, Starokostyantyniv milk plant (Ukrproduct Group), Zhytomyr butter-making plant,
Ichnya milk powder and butter plant, Kupyansk milk canning plant, Rykhalsky dried milk plant, Loostdorf
Firm, and Zhashkiv butter-making plant. These companies accounted for some 57% of total output of dry
dairy products in the first eight months of 2014.
DRIED MILK EXPORTS
Dry dairy products are a major component of Ukraine’s dairy export. The bulk of dried milk exports are
represented by dried skim milk.
The key export destinations for dried milk include Asia and Africa, particularly Bangladesh, Kazakhstan,
Turkmenistan, Syria, Nigeria, and Egypt.
Dried milk exports were boosted considerably in 2014 due to growing domestic supply because of the
possibility to increase its output in view of falling cheese production.
Table 5.3. Ukraine: Dried milk exports, KMT
Commodity
SMP
2010
13.9
2011
22.2
2012
26.0
2013
11.0
2013 (Jan-Aug)
6.0
2014 (Jan-Aug)
21.5
6.2
2.1
1.4
0.6
0.3
1.4
WMP
Source: State Statistics Service of Ukraine
Diagrams 5.2, 5.3
Ukraine: SMP exports, 2010-2014
7000
Ukraine: WMP exports, 2010-2014
5000
1400
6000
4500
1200
5000
4000
5000
UkrAgroConsult©
1000
3500
4000
UkrAgroConsult©
3000
4000
800
2000
1500
2000
3000
t
3000
US$/т
t
2500
600
2000
400
1000
1000
500
0
0
Jan.10 May 10 Sept. 10 Jan.11 May 11 Sept. 11 Jan.12 May 12 Sept. 12 Jan.1 May 13 Oct. 13 Feb. 14 June 14
Export
US$/т
6000
1000
200
0
0
Jan.10 May 10 Sept. 10 Jan.11 May 11 Sept. 11 Jan.12 May 12 Sept. 12 Jan.1 May 13 Oct. 13 Feb. 14 June 14
Custom Value
Export
Custom Value
No dried milk is exported to Europe at the moment, neither other dairy products. The main precondition
for Ukrainian products’ entry into the EU market was the adoption of the Law “On Amending Some
Legislative Acts of Ukraine on Foods” by Ukrainian Parliament. Of the 266 dairy plants operating in Ukraine,
about one-third comply with the EU requirements; therefore they may get the right to supply their
products to the European market in the future.
In September 2014, a mission of food and veterinary experts of the European Commission’s SANCO
Directorate-General inspected Ukraine’s dairy factories and approved their production. Then efforts are to
be made for adopting the mission’s final report and entering Ukraine into the list of countries allowed to
export milk and dairy products to the EU. Dairy exports to the European countries are quite likely to start in
the latter half of 2015.
Table 5.4. contact details of dried milk exporters
Exporter
Address
Milkiland-Ukraine, subsidiary
9, Boryspilska St., Kyiv 02099
9, Lieskova St., Kyiv 01011
LLC EtalonMolProdukt (Milk Alliance)
Ukrproduct Group
47, Budka St., Hadiach,
Poltava region 37300
4, Ivana Gonty St., Zhytomyr
10002
47, Ivana Franka St.,
Starokostyantyniv,
Khmelnytsky region 31104
LLC Loostdorf Firm
25, Sapersko-Slobidska St.,
Kyiv 03039
Ruzhyn-Moloko, subsidiary
3, Promyslova St., Kyiv 03151
PJSC BershadMoloko
147, Komarova St., Floryne
village, Bershad district,
Vinnytska region 24405
LLC TekhMolProm
OJSC Zhytomyr Butter-Making Plant
OJSC Ichnya Milk Powder and Butter
Plant
LLC Haliyivka Butter-Making Plant
164, Bunivka St., Ichnya,
Chernihiv region 16700
20, Zavodska, Haliyivka
village, Chudniv district,
Zhytomyr region 13251
Contacts
+38044 369-5200 (01)
[email protected]
+38044 284-5851
284-5852
284-5855
[email protected]
+380532 61-3899
+38099 730-3090
+38099 155-9429
[email protected]
[email protected]
+380412 42-2902
[email protected]
+3803854 4-1442
+3803854 4-3241
[email protected]
+38044 569-4908
569-4909
569-4910
[email protected]
+38044 285-77-06
+38067575-87-37
[email protected]
+3804352 2-18-16
+3804352 2-34-17
+3804352 2-74-00
[email protected]
+3804633 2-15-87
+38044 581-51-01
581-59-82
[email protected]
[email protected]
+380 4139 4-43-38
4-77-24
[email protected]
DRIED MILK QUALITY STANDARDS
The quality parameters of dried milk produced in Ukraine are governed by DSTU 4273:2003 National
Standard “Dried Milk and Cream.”
Classification
1. Depending on the raw material used, the following products are produced:
- dried skim milk;
- dried whole milk with 20% and 25% fat content;
- dried cream.
2. Depending on the drying method, dried skim milk and dried whole milk with 25% fat content are divided
into;
- spray-dried;
- roller-dried.
3. Dried whole milk with 20% fat content is only produced at spray driers.
4. Depending on the organoleptic, physical and chemical and microbiological indicators, dried whole milk
and dried cream are divided into top and first grades.*
5. It is not allowed to eat dried whole milk and dried cream of 1st grade or to sell them through trade
networks. Such milk and cream are to be used for industrial processing.
Table 5.5. Organoleptic indicators of products
Indicator
Characteristics
skim milk powder
Flavor and
odor
Consistency
whole milk powder
dry cream
spray-dried
roller-dried
spray-dried
Typical of fresh
pasteurized skim milk
with no off-flavors or
off-odors. Flavor of
over-pasteurization is
allowed
Typical of overpasteurized skim
milk with no offflavors or off-odors
Typical of fresh
pasteurized milk
with no offflavors or offodors.
Typical of overpasteurized
(boiled) milk with
no off-flavors or
off-odors
Typical of fresh
pasteurized
cream with no
off-flavors or
off-odors
Finely divided dry
powder
Dry powder of
milled films
Fine dry powder
consisting of
agglomerated
particles of dried
milk.
Fine dry powder of
milled films,
consisting of
agglomerated
particles of dried
milk
Fine dry
powder.
Cream.
White with a
cream tint
An insignificant
number of easily
crumbling grains
are allowed
roller-dried
Easily
crumbling
grains are
allowed
An insignificant number of easily crumbling
grains are allowed
Color
White with a light cream
tint
From light
cream to cream
White with a
slight cream tint
Single scorched
particles are
allowed
st
Note. Single scorched particles are allowed in dried skim milk in transport package and in dried whole milk of 1 grade.
Table 5.6. Physical and chemical indicators of skim milk powder
Normals
Indicator
in consumer
package
in transport
package
- spray-dried milk
4.0
5.0
- roller-dried milk
-
5.0
Mass fraction of fat, not more than, %
1.5
1.5
Mass fraction of protein, not less than, %
32.0
-
Mass fraction of lactose, not less than, %
50.0
-
Mass fraction of moisture, not more than, %:
3
Solubility index of raw sediment, not more than, cm :
- spray-dried milk
- roller-dried milk
0.2
0.4
-
1.5
20.0
21.0
I
II
0
Acidity, not more than, T
Purity, not less than, group
Table 5.7. Physical and chemical indicators of whole milk powder
Normals
Indicator
Mass fraction of moisture, not
more than, %
Mass fraction of fat, not less than, %
20% fat
content,
in
transport
package
25% fat content
in consumer
package
in transport
package
in transport
package
4.0
4.0
4.0
5.0
20.0
25.0
25.0
25.0
0.3
0.1
0.3
0.3
0.4
-
0.4
1.5
21.0
17.0
21.0
21.0
II
I
II
II
spray-dried
roller-dried
Solubility index of raw sediment, not
3
more than, cm :
- for top grade
- for first grade
0
Acidity, not more than, T
Purity, not less than, group
Table 5.8. Microbiological indicators of products
Normal
skim milk powder
Indicator
in
consumer
package
Maximum allowable quantity
of mesophilic and facultative
anaerobic microorganisms,
CFU per 1 g of product
whole milk powder
dried cream
in
transport
package
top
grade
4
5.0х10
5
1.0х10
5.0х10
Coliform group bacteria
(coliforms) per 0.1 g of
product
first grade
4
4
7.0х10
top
grade
5.0х10
not allowed
Pathogenic microorganisms,
particularly Salmonella
genus bacteria, per 25 g
not allowed
S. aureus, per 1 g of product
not allowed
Table 5.9. Content of toxic elements in products
Indicator
Toxic elements, not more than, mg/kg
lead
cadmium
arsenic
mercury
copper
zinc
Mycotoxins, not more than, mg/kg:
aflatoxin M1
Antibiotics: tetracycline group, units/g
penicillin, units/g
streptomycin, units/g
Hormonal preparations, mg/kg:
diethylstilbestrol,
estradiol 17
* Note. In terms of the initial product
Normal
0.1 *
0.03
0.05
0.005
1.0
5.0
not allowed
< 0.0005
< 0.01
< 0.01
< 0.5
not allowed
0.0002
first grade
4
4
7.0х10
6. HONEY MARKET OVERVIEW
Honey production
Ukraine is one of the top five honey powers in terms of both production volume and per capita
consumption of this product.
Ukrainian honey production has been showing a steady trend in recent years. So, 70.3 KMT of honey was
produced in 2012 and 73 KMT in 2013. By contrast, honey production approximated 50 KMT in 2000.
Ukraine’s 2014 honey output is forecast at some 66-71 KMT. The main preconditions for this year’s drop in
honey production include the military and political factors. So, the annexation of Crimea took away some
4% from Ukrainian production. In addition, Donetsk region is the country’s largest honey producer,
accounting for 14% of its total output. The share of Luhansk region approximates 4%.
Apart from Donetsk region, major honey producers are Mykolaiv and Zhytomyr regions, with each of them
contributing some 8-10% to overall production.
Honey exports
Honey exports from Ukraine show positive trends, too. So, 3.3 KMT of honey was exported in 2008, mostly
to Russia.
Honey exports almost doubled over the last four years, from some 7 KMT in 2011 to 21 KMT in 2013.
Experts forecast them to reach 24-27 KMT in 2014.
The primary reason for that rapid rise in exports of Ukrainian honey is that its quality has become fully
compliant with international and European standards. The world honey market condition promoted this,
too. Against the background of strengthening demand for honey as a healthy natural product, a decline
happened in its supply from traditional exporters.
In addition, a deficit of own-produced honey is observed in the European Union. Almost half of the bee
population has been killed in many European countries due to abundant application of pesticides and
herbicides in the fields.
75% of Ukrainian honey exports are aimed at the EU countries, but they are already well-diversified and
include the markets of North Africa, the CIS, and the Near East. Among the EU countries, honey was
supplied mostly to Germany, Poland, Bulgaria, and Slovakia.
The break-through of Ukrainian honey to the world market was also contributed to by its relatively low
price, allowing it to successfully compete with products from Asia and South America.
An incentive that pushed up exports in 2014 was preferential trading terms introduced by the European
Union for Ukraine. Under these terms, Ukrainian producers were granted a 5 KMT duty-free honey export
quota. They had fully used it up by August 13, 2014.
The hryvnya devaluation is also a factor stimulating export supplies.
22 KMT was exported in January-September 2014. About 78% of export deliveries were absorbed by the
four countries: Poland, Germany, Bulgaria, and Canada.
Diagram 6.1.
Ukraine: Honey exports by country, 2014
Others
22%
Poland
42%
Bulgaria
5%
Canada
5%
Germany
26%
Honey exporters
Ukraine has nearly ten serious export companies that sell honey. All the honey that is to be exported passes
mandatory examination in specially certified laboratories under the European standard ISO 17 025. The
product cannot be shipped to Europe until the laboratories complete the examination and draw their
conclusion.
Honey overproduction is observed in Ukraine every year, the surplus reaches tens of thousands tons
because shipping honey for export is infeasible for an ordinary bee-keeper.
A negative point is that Ukraine has actually no possibility to process honey, therefore almost no honey
drinks are produced in the country. Mead-making has no legal framework in Ukraine. To boost export of
Ukrainian honey products and promote them in the world market, state support is required, primarily the
establishment of an effective certification framework.
The leading honey exporter is Bartnik, which accounts for some 20% in the total export volume.
Sodruzhestvo Diversified Concern is also on the list of top honey exporters (15%).
Table 6.1. Ukraine: Honey exports, January-September 2014
Company
Bartnik
Sodruzhestvo
Agro East Trade
Ukrainian honey
Med Ok
Milamed
Alvarium Ukraine
Sub-total
Others
Total amount
Quantity, tons
4 235
3 380
3 323
1 933
847
591
398
14 707
7 233
21 940
Table 6.2. Ukraine: main honey exporters and their contacts
Company
Bartnik
Agro East Trade
Sodruzhestvo
Ukrainian honey
Med Ok
Milamed
Alvarium Ukraine
Address
Stanislavskogo Str.,
#4a, Izyaslav,
Khmelnytsky region,
30300
Kominternu Street 34,
54000 Mykolaiv
Tel.
E-mail
Web-site
+380 3852 41 346
+ 380 3852 40 598
Vadim Pankovskiy
[email protected]
+380 512 58 7073
Elena Shevchak
[email protected]
[email protected]
http://agro-easttrade.eu/contact.html
Pavlovskaya, #29,
01135, Kyiv
Petrenko Str., #18,
Kherson
Illicha prospect,
#109A, Donetsk, 83059
+380 552 41 7070
+ 380 55 424 73 96
Natalia Kostina
[email protected]
www.sodruzhestvo.ua
+380 62 382 96 00
+ 380 63 250 75 92
[email protected]
[email protected]
www.ukrhoney.com.ua
Chichibabina str., #7A,
61058, Kharkiv
Lenina Str., #1a,
Dmitrovka village,
Berdyansk district,
71153, Zaporizhzhia
region
+ 38098 008 88 00
Victor Elkin
[email protected]
Karl Marks Str., #6/1a,
Kamyanka village,
Apostol district,
Dnipropetrovsk region
+ 380 96 511 18 88
+ 380 675 11 18 88
Natalia
Partner in Slovakia:
Blashchak Pavel
+421 90 557 7577
+ 380 67 637 63 17
Konstantin
[email protected] a
www.bartnik.ua/en
http://www.megok.com.ua/
http://milamed.info/about.
html
[email protected]
http://alvariumukraine.com/
Honey quality
The National Standard DSTU 4497:2005 for natural honey is valid in Ukraine.
In terms of organoleptic indicators, natural honey must meet the following requirements.
Table 6.3. Organoleptic indicators
Indicator
Description
Color
Colorless, white, light-yellow, yellow, dark-yellow, dark with various tints
Flavor
Sweet, delicate, pleasant, astringent, irritates mucous tunic of mouth, with no off-flavors
Aroma
Specific, pleasant, faint, strong, delicate, with no off-odors
Consistency
Liquid, viscous, very viscous, dense
Crystallization
From fine-grained to coarse-grained
Signs of fermentations (souring) Not allowed
Mechanical impurity
Not allowed
In terms of physical and chemical indicators, natural honey must comply with the following normals.
Table 6.4. Physical and chemical indicators
Top grade honey
1 grade honey
Method
precision, %
Pollen analysis result*
Pollen grains
present
Pollen grains
present
-
Species composition of pollen grains, % not less than*
10.0
10.0
-
Honey fraction of water, %, not more than
18.5
21.0
2.0
Weight fraction of reducing sugars (per dry matter), %, not
less than
80.0
70.0
10.0
Weight fraction of sucrose (per dry matter), %, not less than
3.5
8.0
10.0
15.0
10.0
10.0
Hydroxymethylfurfural (HMF) content, mg per 1 kg, not more
10.0
than
25.0
15.0
Indicator
Diastatic number (per dry matter), Gothe units, not lower
than
st
3
Acidity, milliequivalents of sodium hydroxide (0.1 mole/dm )
per 1 kg, not more than
40.0
50.0
10.0
Proline content, mg per 1 kg, not less than
300
300
10.0
Electrical conductivity, mS/cm
0.2-1.0
0.2-1.5
4.0
Qualitative reaction for the presence of honeydew
Negative or milk- Negative or milkwhite
white
Note. For honey from bastard acacia, the diastatic number can be at least 5 Gothe units, weight fraction of
sucrose at most 10%, and proline content at least 200 mg per 1 kg.
In terms of safety indicators, natural honey must meet the requirements given in Table 3.
Table 6.5. Safety indicators
Indicator
Allowable level
Toxic elements, mg/kg, not more than:
lead
1.0
cadmium
0.05
arsenic
0.5
Pesticides (per dry matter), mg/kg, not more than:
DDT (total of isomers)
0.005
Hexachlorane (total of isomers)
0.005
Antibiotics* (per dry matter), not more than:
Tetracycline, units/g
Not allowed
Streptomycin, units/g
Not allowed
Levomicetin (chloramphenicol), mcg/kg
0.3
Nitrofuran (OAZ), mcg/kg
0.6
Nitrofuran (AMOZ), mcg/kg
0.6
7. TOMATO PASTE MARKET OVERVIEW
Ukraine is considered a major producer of tomatoes: about 2 MMT of these vegetables are grown annually.
The so-called global “tomato belt” – a climatic zone with enough sunny days, favorable for tomato industry
– stretches through the south of the country.
Farmers in that area produce tomatoes with high dry-matter content that is of special importance for
processing factories.
Ukraine has a significant potential to grow tomatoes for industrial processing. Their crop may reach 1.5
MMT in the near term, provided modern agronomic practices are applied.
According to the World Processing Tomato Council (WPTC; Avignon, France; an international non-profit
organization representing professional tomato growers and/or processors; since 1998), Ukraine is one of
the world’s top ten tomato processing countries.
RAW MATERIAL BASE
Tomato production has been developing quite actively in Ukraine in recent few years. Now tomatoes
represent the largest share of the vegetable produce market (24%). In view of current trends in the tomato
market, its development and saturation will continue. Ukraine’s tomato production also develops mostly in
an intensive way (including a shrinking role of manual labor thanks to mechanical harvesters etc.), because
it allows reducing production costs and, consequently, prices for finished products, in particular tomato
paste. This will make it more competitive in the foreign export.
1.6-2.0 MMT of tomatoes are annually produced in Ukraine with the share of large-scale commercial
production approximating 21%. The output volume and quality of tomatoes grown in the open field are
considerably influenced by weather conditions in the area.
A peculiarity of the Ukrainian raw material market is that the majority of farms grow small amounts (at
most 10 MT) of tomatoes. In addition, many Ukrainian farmers try not to focus on one vegetable crop. By
this means they reduce production risks, but cannot make up large commodity parcels because cultivation
efforts are dispersed between different vegetables.
To solve the raw material problem, some major tomato processing companies either develop a network of
supplier farmers, or go the way of vertical integration. In particular, Agrofusion – the largest company in
the tomato paste market – grows tomatoes for own needs on 15 Th ha of irrigated land in Kherson and
Mykolaiv regions.
Table 7.1. Ukraine: Total tomato crop
2010
2011
2012
Total crop, MMT
1.93
2.09
21.9
28.3
23.2
production, %
2013
1.81
2014*
1.68
21.1
21.4
Source: State Statistics Service of Ukraine; *estimate excluding Crimea
Tomatoes for industrial processing are grown mainly in the south, particularly in Kherson, Mykolaiv, and
Odesa regions.
PROCESSING OF TOMATOES AND PRODUCTION OF TOMATO PASTE
Market participants estimate that roughly 400 KMT of tomatoes are used for tomato paste production.
Depending on the tomato crop, the country annually produces 50-80 KMT of concentrated aseptic tomato
paste in recent years.
Table 7.2. Ukraine: Tomato paste production, KMT
2011
2012
2013
79.9
71.5
57.3
2010
52.9
2014*
68.0
A peculiarity of Ukraine’s domestic market of concentrated tomato paste is that its main buyers – ketchup,
tomato sauce and juice manufacturers – also produce paste for own needs. According to market
participants, demand for tomato sauces in Ukraine is unstable and dependent on the vegetable crop.
Ukrainian tomato paste production is located mostly in Mykolaiv and Kherson regions, which were behind
some 84% of total output in 2013. Among other regions, noteworthy are Odesa and Dnipropetrovsk with a
combined share of 15%.
About 60 enterprises produce tomato paste in Ukraine. Their list is topped by Agrofusion, Chumak,
Sandora, Odesa cannery, ASS, Khersonske, PivdenAgroPererobka, Merkuriy, Kherson fruit and vegetable
plant, Shevchenko Agrifirm, and Evrika Agrifirm. These entities accounted for some 97% of total production
in 2013.
TOMATO PASTE EXPORTS
The establishment of competitive production allows Ukraine to successfully compete with major
manufacturers of this product in the world market.
Exports show an upward trend. The main destination market is Russia. In 2013, this country absorbed 88%
of Ukraine’s total tomato paste exports, while the EU accounted for 4%. However, Russia’s share
plummeted to 57% in 2014, while exports to the EU grew substantially and reached 37%. This was
promoted by the abolition of EU customs duty on tomato paste for six months from May 1, along with a 10
KMT quota opened for this period of time.
Table 7.3. Ukraine: Tomato paste exports, KMT
2010
2011
2012
2013
2013 (Jan.-Aug.)
2014 (Jan.-Aug.)
18.9
11.8
22.0
29.1
21.0
17.4
Diagram 7.1. Ukraine: Tomato paste exports, 2012-2014
1400
5000
4500
1200
3500
800
3000
t
2500
600
2000
400
1500
1000
200
500
0
0
Export
Custom Value
US$/t
4000
1000
Table 7.4. Tomato paste exporters
Exporter
Agrofusion
Address
Contacts
34, Myru ave., Mykolaiv 54034
17, Novozavodska St., Mykolaiv 54028
Sandora
Chumak
3, Kozatska, Kakhovka, Kherson region
74800
Odesa cannery
22, Vodoprovidna, Odesa 65007
ASS
1a, Molodizhna St., Shyroke village,
Kryvorizky district, Dnipropetrovsk
region 53070
Lutsk Foods
150, Kovelska St., Lutsk 43001
Nizhyn cannery
1, Butlerova, room 510, Kyiv 02090
Phone: + 38 0512 587901
Fax: +380 (512) 587910
[email protected]
Тел: +38 (0512) 58 10 83/86;
Fax: +38 (0512) 58 10 85
[email protected]
Phone: +38 (0552) 448-500
Fax: +38 (0552) 448-550
[email protected]
Phone: +38 (0482) 373884
+38 (0482) 357826
+38 (048) 7223182
Fax: +38 (0482) 379254
[email protected]
Phone:+380 56 499 09 09
+380 56 477 26 20/1
+380 50 1725877
Fax:+380 56 477 25 45
[email protected]
Phone: +38 (0332) 77 88 00
Fax: +38 (0332) 77 88 06
e-mail: [email protected]
Phone /Fax: +380 44 593 03 29
[email protected]
TOMATO PASTE QUALITY STANDARDS
The quality parameters of tomato paste produced in Ukraine are governed by DSTU 4273:2003 National
Standard “Concentrated Tomato Products.”
Depending on the quality indicators, concentrated tomato products are divided into grades:
— tomato puree, tomato paste, and concentrated tomato juice – top and first grades;
— salt tomato paste and concentrated tomato juice with salt and spice – first grade.
Requirements for raw materials
The following raw materials are used for producing concentrated tomato products:
— fresh red ripe tomatoes according to RST URSR 1551 Standard;
— minced or coarsely ground or ground tomato pulp, heated and cooled, which is used for producing
tomato puree and tomato paste, according to the current regulatory document;
— common table salt meeting DSTU 3583 Standard, boiled, packed, with no additives;
— dill essential oil according to the current regulatory document;
— essential oils (СО2 extracts) of natural spices (celery, dill, hot pepper) according to the current regulatory
document;
— potable water according to GOST 2874 Standard, which contains no spores of mesophilic obligate
anaerobic microorganisms per 100 cm3.
Fresh tomatoes with pesticide residues, nitrates, mycotoxin penicidin and toxic elements exceeding the
maximum allowable levels set in MUK and SN No.5061 Sanitary Regulations [2], and the radionuclides
content exceeding the levels set in GN 6.6.1.1-130 Hygienic Regulations [3], shall not be admitted for
processing.
Table 7.5. Organoleptic indicators of concentrated tomato products
Characteristics of concentrated tomato products, grade
top
first
Indicator
Appearance and
consistency
tomato puree, tomato paste
tomato puree, tomato paste
Smooth concentrated mass of semifluid Smooth concentrated mass of semifluid
to spreadable consistency (depending on to spreadable consistency (depending on
the mass fraction of soluble dry matters), the mass fraction of soluble dry matters),
with no dark inclusions, skin residue, with no dark inclusions or coarse parts
seeds or other coarse parts of fruits
of fruits.
Single inclusions of seeds and little skin
pieces are allowed.
Flavor and odor
Typical for concentrated tomato paste, Typical for concentrated tomato paste,
with no bitterness or burnt flavor.
with no bitterness or burnt flavor. Salty
No off-favors or off-odors are allowed. favor for tomato paste with added salt.
No off-favors or off-odors are allowed.
Red, orange-red or dark-red, uniform Red, orange-red or dark-red, uniform
throughout the mass
throughout the mass.
Color
Brownish tint is allowed. For salt tomato
paste, red or dark-red with yellowish tint
Table 7.6. Safety indicators of concentrated tomato products
Maximum allowable level
in package of all
types, except
compound metal
containers
in compound
metal containers
lead
0.50
1.00
cadmium
0.03
0.05
5.00
5.00
10.00
10.00
arsenic
0.20
0.20
mercury
0.02
0.02
—
200.00
0.05
0.05
120.00
120.00
50.00
50.00
Toxic elements, mg/kg:
copper
zinc
tin
Mycotoxin penicidin, mg/kg
Radionuclides, Bq/kg:
Cesium-137
Strontium-90
Table 7.7. Physical and chemical indicators of concentrated tomato products
Indicator and normal for the grade
Weight fraction, %
Product
soluble dry
matters (except
chlorides)
top
first
titrating acids (per
lemon acid, per
absolutely dry
matter),
not more than
top
first
Color
iodine color
value,
mg/cm3,
not more than
according to
Tomacolor
instrument,
conventional
scale marks,
not more than
chlorides,
not more than
mineral
impurities, not
more than
top
top
first
0.009
0.030
0.09
44
0.010
0.040
0.09
42
first
iodine color
value,
mg/cm3,
not more than
top
according to
Tomacolor
instrument,
conventional
scale marks,
not more than
first
Tomato puree with weight fraction of
soluble dry matters, %:
12
11—13
15
14—17
10
11
0.5
0.015
18—22
20
0.050
0.09
39
Tomato paste with weight fraction of
soluble dry matters, %:
0.019
0.060
0.09
36
0.023
0.070
0.09
33
33—37
0.027
0.080
0.09
30
38—42
0.030
0.100
0.09
28
25
23—27
30
28—32
35
40
10
11
1.5
32
37
0.1
7
0.1
7
51
49
46
45
41
0.1
7
39
36
0.1
7
Salt tomato paste with weight fraction
of soluble dry matters, %:
27
0.1
7
—
—
—
25—29
—
30—34
—
35—39
—
—
11
—
10
0.080
—
—
—
0.090
—
—
—
0.100
—
—
0.1
7
0.1
7
0.1
7
0.1
7
0.1
7
44
40
38
8. NUT MARKET OVERVIEW
Walnut, hazelnut, and almond are the three main nuts grown in Ukraine, with the lion’s share
belonging to walnut. The interest in hazelnut has been increasing in recent years, but its plantations
are small yet.
Walnut is one of the most promising and remunerative crops for the present-day horticulture in
Ukraine. The high customer value of nuts ensures strong demand and trouble-free sale. Ukraine’s
total nut crop is up to 22.5% of that harvested in Europe, and the export share has reached 30%. This
is promoted by soil and climatic conditions: while only 7% of soils worldwide are suitable for walnut
cultivation, 50% of Ukraine’s territory can be used for nut orchards. All the above-mentioned factors
create favorable conditions for commercial walnut production in Ukraine.
For now, nuts are harvested mainly in households, but this volume is enough for Ukraine to be the
world’s third top walnut exporter, trailing only China and the U.S.A.
NUT PRODUCTION
The largest nut plantations are located in Chernivtsi, Vinnytsya, Dnipropetrovsk, Donetsk, and Lviv
regions. In terms of the harvest, the leaders are Cherkasy, Khmelnytsky, Dnipropetrovsk, Donetsk,
and Zakarpattya regions. These regions accounted for some 44% of overall nut production in 2013.
Almost all Ukrainian walnuts are grown in households. About 75-80% of plantations are on account
of walnut.
Until recently, nut cultivation was of no interest in Ukraine, because it takes 8-10 years to grow a nut
tree. In the period of capital accumulation in the country, this is a “long money” program and bears
many risks. At the same time, according to the Law of Ukraine “On Viticulture, Horticulture and HopGrowing Development Duty,” up to 60% of orchard establishment costs are subject to compensation,
and the use of row spacing (a tree planting pattern of 10х8 m) brings additional revenue. So, all the
costs pay back in 3-4 years.
No sooner than 2009 the targeted formation of commercial intensive nut orchards began in Ukraine.
Their total acreage exceeds 3,500 ha at the moment. Some nut orchards occupy an area of 5 to 700
ha. For example, Agrolux (Dnipropetrovsk region) established a 600 ha nut orchard in 2011. The nut
crop is planned to reach 600 MT in 2020.
Four licensed walnut nurseries operate in Ukraine. 22 varieties are listed in the State Plant Varieties
Register of Ukraine, including 12 Ukrainian, 6 Moldovan, and 4 French varieties.
For now, the total area of commercial intensive hazelnut plantations does not exceed 800 ha. These
are mostly 5-20 ha plots. Most often hazelnut trees are planted on household yards and farms. A
major problem faced when developing commercial hazelnut production is the absence of any
Ukrainian-bred hazelnut variety in the State Plant Varieties Register of Ukraine. This means farmers
cannot be refunded for the cost of orchard establishment and additional indispensable irrigation
facilities.
Any commercial, intensive almond plantations are absent in Ukraine. Almonds are only grown in
households.
Table 8.1. Ukraine: Total nut crop
Planted area, Th ha
Total crop, KMT
production, %
2010
16.0
87.5
2011
17.0
112.6
2012
16.9
97.0
2013
17.0
116.0
2014*
17.1
105.0
0.1
0.1
0.1
0.1
0.1
FOREIGN TRADE
The following several segments have developed in Ukraine’s foreign trade in nuts:

export of high quality nuts for fresh eating to the EU and northwestern Asia,

export of medium quality nuts for domestic use in the CIS and partially Asian markets,

export of shelled nuts,

export of processed products (oil, meal, BAAs),

import of nuts for the domestic market, further commercial treatment and resale to the raw
material markets of West and East Europe, Asia, and the CIS
Table 8.2. Ukraine: Walnut exports, KMT
2011
Inshell nuts
11.4
Kernels
27.4
2012
2013
17.8
30.5
9.4
22.1
Diagram 8.2. Nut kernel exports
3 000,0
1 800,0
1 600,0
2 500,0
7 000,0
6 000,0
6 000,0
5 000,0
1 400,0
5 000,0
1 200,0
1 500,0
800,0
3 000,0
3 000,0
600,0
1 000,0
1 000,0
Custom Value
Sept 14
July 14
Aug 14
June 14
Apr 14
May 14
March 14
Jan 14
Feb 14
Dec 13
Oct 13
Export
Nov 13
Sept 13
July 13
Aug 13
June 13
0,0
Apr 13
0,0
May 13
Sept 14
July 14
Aug 14
June 14
Apr 14
May 14
March 14
Jan 14
Feb 14
Dec 13
Oct 13
Export
Nov 13
Sept 13
July 13
Aug 13
June 13
Apr 13
May 13
March 13
Jan 13
Feb 13
0,0
March 13
200,0
0,0
2 000,0
2 000,0
Jan 13
400,0
500,0
Feb 13
1 000,0
4 000,0
4 000,0
t
1 000,0
US$/t
2 000,0
t
2014
(Jan-Sept)
1.8
16.3
US$/t
Diagram 8.1. Inshell nut exports
2013
(Jan-Sept)
3.2
9.7
Custom Value
Table 8.3. Contact details of walnut exporters
Exporter
LLC UkrNut Company
Exim Group Corporation
Nutsee
Primed
Address
Office 43, Borey business
center, 41, Severnaya St.,
Burlacha Balka village,
Illichivsk, Odesa region
96, Lvivska St., (557A),
Horodok, Lviv region
#8, Bogomoltsa St., 21,
Uzhgorod, 88015
46/2, Moskovska St., Kyiv
01015
UkrDriedFruits
Harchenka St., Kamyanets
Podilsky, Khmelnytsky region
Contacts
+38-048-705-4168,
+38-066-973-5206
E-mail: [email protected]
+38 099 5270784
+38 (0312) 429 917
http://www.nutsee.com/english/
Director: Yanchiy Vyacheslav (Mr.)
Mobile: +38 (067) 310-0067
+380 44 230 2359
www.primed.com.ua
+380 98 599 1881
http://ukrdriedfruits.all.biz
WALNUT QUALITY PARAMETERS
Walnut kernels intended for sale are classified by category as follows:
• Butterflies (halves). Butterfly walnut is separated into two more or less equal parts – kernel halves.
According to the standard, 85%-90% of all the sampled nuts must be intact halves, with the
remaining 10% consisting of kernels with a size of at least 2/3 of the half.
• Quarters. Quarter walnuts are whole halves of the butterfly, i.e. one fourth part of the kernel. All
the kernels are separated into four more or less equal parts, a 10% admixture of large pieces is
allowed in a nut sample. According to the standard, quarter walnuts must not pass through a 7 mm
mesh. The average diameter of a nut lot usually ranges within 7-20 mm. Quarters are used for both
fresh eating and industrial processing.
• One-eighth parts. One-eighth walnut is a piece equaling 1/8 of the kernel. Its diameter averages 614 mm, with 10% of at least 3 mm pieces allowed in each nut sample.
• Mix. Mix walnuts represent a mixture of one-eighth parts, quarters and butterflies. Mix walnuts
are commercially available with a pre-ordered ratio between components of the mix. As a rule, the
mix includes 30% of butterfly walnuts with the remaining 70% consisting of one-eighth and quarter
walnuts.
• Small pieces. The size of small kernel pieces varies from 4 to 6 mm, i.e. the particle does not pass
through a 3 mm mesh.
• Crumble or flour. Walnut of the crumble category represents kernel fragments with a size of at
most 3 mm.
The walnut quality parameters comply with the UNECE DDP-02 and GOST 16832-71 Standards.
Commodity quality specification:
Physical and chemical characteristics:
The kernels must be dry, sound, with no damages, rancidity, mould, decay, visible pest-caused
damages, live or dead bugs. The general appearance is to be healthy, with no dull, shriveled parts
and no foreign smell. The kernels must be from the current marketing year’s crop.
Table 8.4
Indicator:
% Shell pieces, partitions:
% Kernels of amber color in A category:
% Humidity:
% Allowable size deviation
% Foreign matter:
Mycotoxins:
Aflatoxins (B1+B2+G1+G2):
Aflatoxins (Bl):
Radionuclides:
Cesium 137:
Strontium 90:
Pesticides:
α, β, γ – isomers:
DDT and its metabolites:
Toxic elements:
Lead:
Arsenic:
Cadmium:
Mercury:
Allowable levels:
max 0.05
max 3.0
max 6.0
max +2.0%
not allowed
max 0.004 mg/kg
max 0,002 mg/kg
max 200 Bq/kg
max 100 Бк/кг
max 0.5 mg/kg
max 0.15 mg/kg
max 0.5 mg/kg
max 0.3 mg/kg
max 0.1 mg/kg
max 0.05 mg/kg
Shelf life: 12 months (if stored in a dry, cool place at temperatures of +10 C to +20 C and relative
humidity of 55-60%)
9. MUESLI (FLAKES) MARKET OVERVIEW
Dry breakfast market in Ukraine may be considered as favorable. Profitability of dry breakfast
production in Ukraine reached 20-25% in 2012. At the same time, government is not interfering in
regulation of the market.
Total volume of dry breakfast market in Ukraine reached 58 thousand tons in 2013 while 60% of the
products in the market were produced in Ukraine. Ukraine produces approximately 35 thousand tons
of dry breakfasts, including muesli, crunches and corn flakes. Quality of Ukrainian muesli is very
doubtful due to lack of state standards that regulate the quality. There are approximately 10
producers in Ukraine. Muesli production volume in Ukraine is constantly rising.
Ukraine imports approximately 2.5 thousand tons of muesli from Poland and Russia and exports
approximately 3 thousand tons, mainly to Russia, Kazakhstan and Moldova.
Major countries that export dry breakfasts to Ukraine are Germany and Poland. Approximately 56%
of the market share in 2013 belonged to products, imported from these countries. Finland holds third
place with 14% market share. Largest companies that imported dry breakfasts to Ukraine in 2013
were Ltd. “Nestle Ukraine”, Ltd. “Torgtrade-2005” and Ltd. “Raisio Ukraina”.
It is vital to note that share of products that originated in Ukraine is being exported. Companies that
purchase Ukrainian dry breakfasts are Russia, Moldavia and Belarus. They account for 60% of total
exports of dry breakfasts, produced in Ukraine. In general, main consumers of dry breakfasts,
produced in Ukraine are CIS region members.
Major producers of muesli in Ukraine are also largest exporters of these products.
Table 9.1. Contact details of muesli exporters
Company
LANTMANNEN AXA
Address
08300 Ukraine,
Кyivs'kiy region,
Boryspil,
Pryvokzal'na str, 3
Tel.
+(38045) 957 11
34
E-mail
Web-site
http://www.start-ukraine.com/
Sunny Food
01011,
Kyiv
Str.
Pecherskiy
spusk home. 19
and, of. 47a
Str.Ostrovsky, 57,
Poltava,
36014,
Ukraine
Ukraine,
Kyiv
region,
Shevchenko
village,
Shkolna
street, 31
27100,
Kirovograd region,
Novoukrainka,
Chaikovskogo 28
street
+38(044) 500 55
36
[email protected]
[email protected]
http://www.sf.km.ua/en/
+380956014214
[email protected]
[email protected]
http://www.diamantltd.com.ua/
Diamant Ltd
Shevchenko plant
of consumer goods
Novoukrainskiy
kombinat
khleboproductov
+380
5961922
(44)
+380(5251)
23044
50310
50311
http://shzpt.prom.ua/g4247070poprobuj
[email protected]
.ua
www.gerkules.com.ua
10. YEAST MARKET OVERVIEW
Yeast production in Ukraine has been relatively stable over the past 3-4 years. Production upgrades,
the use of state-of-the-art technologies, and product quality improvements in 2006-2010 sharply
reduced the share of imports and saturated the market with yeast made in Ukraine.
Nevertheless, market players expect the market’s capacity to shrink by 2-5% in the coming 1-2 years
due to decreasing production of bread and bakery goods.
At the same time, competition between manufacturers will intensify and the quality of Ukrainian
product will improve.
The yeast market follows seasonal trends. Although bread and bakery goods are bought throughout
the year, the yeast demand is stronger in winter than in summer. There are two reasons behind this:
firstly, bakery product demand from buyers weakens in summer; secondly, baking bread in winter
requires a larger amount of yeast due to low temperature – this is a technological peculiarity.
Table 10.1. Yeast production, 2010-2013
2011
2012
2013
89.8
95.3
91.4
2010
81.1
2014*
88.0
*UkrAgroConsult’s estimate
Just a few companies produce yeast in Ukraine. In fact, they have monopolized the market. These
producers do not confine themselves to domestic sales, but also make export ones and successfully
compete with their rivals based in the former USSR. The main competitive advantage of Ukrainian
yeast is an optimum ratio between price and quality.
The key countries buying Ukrainian yeast include Russia, Poland, the Czech Republic, and Bulgaria. In
total, 30 KMT of yeast was exported in 2013 and 20 KMT in January-September 2014.
Diagram 10.1. Yeast exports from Ukraine, 2013
Romania
Moldova 4%
Hungary
5%
Others
9%
Russia
32%
4%
Netherlands
6%
Bulgaria
11%
Czech Rep.
14%
Poland
15%
Enzym, a Lviv-based company is the undoubted leader in terms of both production and exports. Its
share in overall yeast production varies within 45-50%.
About 25% of production annually is exported to the Netherlands, Belgium, Germany, Czech
Republic, Slovakia, Poland, Bulgaria, Moldova and Russia.
"Enzym Company" is the largest manufacturer of pressed and dried yeast in Ukraine and the industry
leader in the former Soviet Union.
This company is the only one in Ukraine and one of the fewest in Europe capable of manufacturing
dry yeast.
The company exported 10.8 KMT of yeast in January-September 2014, i.e. it accounted for 53% of
the total export volume.
Diagram 10.2
Ukraine: Main yeast exporters, 2014
Others
16%
Enzym
53%
Nadezhda
4%
Odesa Yeast
12%
Kharkiv yeast
company
15%
The next top exporter is the Kharkiv yeast plant.
The company exports its products mostly to Poland and Hungary. They are also shipped to Bulgaria,
Moldova, and Romania. Yeast exports totaled 3.2 KMT in January-September 2014.
The Odeski Drizhdzhi (Odesa Yeast) brand is a yeast market leader in Ukraine and Moldova. 2.4 KMT
was exported in January-September 2014.
Nadezhda Company was established in 2003 and created on the basis of “Krivoy Rog yeast plant” set
up in 1973. Since 2003 JSC “Nadezhda” has been a member of Lesaffre Group, as a result for several
years the plant has been going through the process of equipment modernization that helps to
improve the quality of products to the European level. The key area of the enterprise’s activity is the
production of compressed bread-making and alcohol yeast and yeast milk.
Table 10.2. Ukraine: main yeast exporters and their contacts
Company
Address
Tel.
E-mail
Web-site
Enzym Company
Lychakivska Str., 232,
Lviv, 79014, Ukraine
+38 (032) 298-98-01
[email protected]
http://www.enzym.lviv.ua/
[email protected]
www.yeast.com.ua
[email protected]
http://www.lesaffre.ua/nadejda
+38 (032) 298-98-35
+38 (032) 298-98-25
Kharkiv yeast
company
Moskovskiy Ave, 135-A,
61001, Kharkiv, Ukraine
+38 (057) 732-51-35
Odesa yeast
Melnitskaya Str., 31,
Odessa, 65033, Ukraine
+38 (048) 37-53-90
+38 (0482) 733-58-98
+38 (0482) 35-80-97
Nadezhda, Krivoy
Rog yeast
company
27 Partsezda, Krivoy
Rog, Dnepropetrovsk
region, 50025
+ 38 (0564) 93-66-30
+38 (057) 732-29-01
11. VEGETABLE, FRUITS, BERRIES MARKETS
OVERVIEW
Sector
Fruits and Vegetables
Key figures
-
Trends
Outlook
Major risks
Vegetables - 9873 KMT produced in 2013 with yield 19,9 T/ha
Fruits and Berries 2295 KMT produced in 2013, yield, 10,35 T/ha
Available Storage - 60% of vegetables, 20% of fruits and berries
Average year 30% of crop is lost to spoilage
F&V accounts for 49% of value of all crops produced in Ukraine
30% of produced vegetables are processed, and 20% of fruit and berry
Majority of production is from peasant households
Shift of production to Agricultural enterprises is fastest with fruits and
slowest with vegetables
- Investment is focused on irrigation, storage, greenhouses and orchards
- Domestic consumption of fresh F&V is below EU levels but is moving on
the same trajectory as Poland
- Supermarkets are replacing other channels for fruits and vegetables
- Processing is highly concentrated with top processors increasing export
focus
- Fresh fruit and vegetable supply fluctuates strongly from year to year as
producers strongly increase or decrease planting to capture market
trends often contributing to oversupply or shortages
- Price fluctuations are driving smaller producers out of the market and
over time production from ag enterprises will overtake household
production. We expect this to occur within the next ten years, and it will
be first evident in production of apples and other orchard fruit. Change in
vegetable production from households to commercial farms will be driven
by supermarkets looking for secure reliable and volume supplies.
- Greenhouse production will continue increasing as energy inefficient
houses are being replaced by more cost efficient encouraging producers
to expand.
- Processors will continue expanding by developing contract farm raw
material supply and by undertaking own farming.
Weather risks – late spring frosts
Drought
Excess heat
Market risks –
oversupply/shortages
Better quality lower cost imports
VEGETABLES: ONION, CARROT, BROCCOLI, PEA, MUSHROOMS
Average annual production of vegetables in Ukraine fluctuates from 7 to 10 million tons, as
cucumbers and tomatoes account for approximately 3-4 million tons. Vegetable production is
unstable year-over-year and is heavily dependent on weather factor. Vegetables are produced mainly
in open soil.
Vegetables are grown in all regions of Ukraine. Cultures that require warmth (tomatoes, onions and
cucumbers) are grown mainly in Steppes zone, others that are more susceptible to colder
temperatures (cabbage) are grown in Woodland region and root-crops (carrots, beets) are grown in
Forest-steppe
After collapse of USSR structure of vegetable production in Ukraine has changed significantly with
increase of the private sector share. At the moment, major share of vegetable production is carried
out by the private sector. Main distribution directions for private households vegetable producers,
are wholesale to distributors and farmers markets.
In general, large-scale vegetable business in Ukraine is its developing stage. Since demand for largescale shipments of quality vegetable products from wholesale resellers (supermarket chains, exports)
is increasing annually in Ukraine, there is high growth potential for the fruits and vegetables sector.
At the same time, along with high segment potential, development of supermarket chains under high
consumer demand is attracting new large companies to the sector, which are investing significant
amounts in its development.
However, recent years have shown that fruits and vegetable sector in Ukraine is characterized by
significant over-production due to irrational use of farmland, seasonality factor, as well as lack of
necessary amount of storage facilities, leading to existence of increase of external risk factors.
Although Ukraine is self sufficient in vegetables, it is a net importer of vegetables because on any
given year 10% or more of vegetables produced are lost to waste. The majority of losses are postharvest. The reason for large post-harvest losses is lack of adequate storage.
Five years ago Ukraine had adequate storage for 10% of harvested vegetables, in 2013 availability of
storage increased to about 50% of harvested vegetables.
Ukraine’s vegetables overproduction crisis will likely force numerous weaker smaller producers out
of business, and lead to greater specialization of agricultural enterprises on crops they are best
prepared to produce. Another consequence of the crisis will likely be that investment in equipment
and storage, and on high quality inputs and chemicals will likely fall.
We expect Ukrainian consumption of vegetables will increase by 10-15% over the next five years. The
majority of this increase will be concentrated in urban areas, as rural areas remain mostly self
sufficient in supply of own vegetables than urban ones. The bulk of growth will be concentrated in
the retail chain/outlet channel.
Onion and carrot
Kherson and Odessa regions are leaders in onion production. Crop reached 170 thousand tons in
Kherson region and 90 thousand tons in Odessa region in 2013. Kharkiv (60 thousand tons),
Zaporizhya (54 thousand tons) and Kyiv (52 thousand tons) are holding third, fourth and fifth spots
respectively.
Volyn (90 thousand tons), Kyiv (88 thousand tons) and Kherson (72 thousand tons), were regions
with largest production volume of carrots in terms of geographical break-down.
Diagram 11.1
1200
Diagram 11.2
Ukraine: Onion production, KMT
1000
1000
Ukraine: Carrot production, KMT
800
800
600
600
400
400
200
200
0
0
2010
2011
2012
2010
2013
2011
2012
2013
Due to large production volume of both: onions and carrots, exports of these products from Ukraine
have been growing since 2011. However, share of exports in total production volume of onions is
measured at approximately 7%.
Along with the increase of shipments volume, exports geography has widened as well.
Even though onions from Ukraine was exported to Moldova and further re-exported to Romania and
Bulgaria in 2012, Ukrainian companies managed to secure exports to EU region countries in 2013.
Ukraine also managed to set exports records to Georgia, and made it to top-3 companies exporting
onions to Russia.
Diagram 11.3
Cyprus Romania
3%
2%
Iraq
Seishellas
3%
4%
Moldova
4%
USA
4%
Ukraine: Onion exports by country, 2013
Others
8%
Russia
64%
Georgia
8%
Approximately 20% of carrots, produced in Ukraine are being exported. 21 thousand tons of carrots
were exported in 2013. Main market for Ukrainian carrots is Russian Federation, which imported
17.3 thousand tons of carrots. Ukrainian carrots were also exported to Moldova (3.2 thousand tons).
Diagram 11.4
Ukraine: Carrot exports by country, 2013
Moldova
15%
Belarus
2%
Others
0%
Russia
83%
Peas. Exports of sweet peas is insignificant: 1.2 thousand tons of green peas were exported in 2013.
Main countries that purchased Ukrainian peas were Switzerland, Germany and U.S.
Exports of frozen peas in 2013 reached 2.4 thousand tons. Approximately entire volume of frozen
peas was exported to Russia.
Mushrooms. Main purchaser of fresh champignons, produced in Ukraine is Moldova. 6 thousand
tons of mushrooms were exported to Moldova in 2013, which reached 94% of total exports. At the
same time, Moldova imported frozen champignons, produced in Ukraine, however total volume
reached only 15 tons.
Broccoli. Ukraine exports frozen broccoli as the volume of exports is insignificant. 19 out of 26 tons
were shipped to Russia in 2013.
Frozen products
Demand for frozen fruit and vegetable mixes in Ukraine is growing daily. Market of this type of
product started forming after active expansion Hortex и Hortino.
National producers noted that frozen products are in high demand and decided to bring their own
frozen products to the market, which are of the same quality as imported products and are more
attractive in terms of pricing.
At the moment, market is saturated by approximately 70% or less. Frozen fruits and vegetables
market is characterized by wide assortment, represented by both: fruits and vegetables as well as
wild berries and mushrooms.
Ukrainian market of frozen goods is young, in process of formation and is unsaturated on one hand
and quite narrow and specific on the other.
Structure of national market of frozen goods is composed of vegetable mixes (53%), and vegetables
(30%)
Production of packaged frozen vegetables in Ukraine reaches 40-45%, while the rest of the products
are sold as unpackaged goods.
Share of Ukrainian producers is growing annually and reached 43% on frozen vegetables market in
Ukraine. Imported products are represented by popular producers, such as: Bonduelle, Hortex,
Globus, Hortino. Over 80% of imported products are supplied from Poland and China. Producers from
Hungary, Serbia, Egypt and Belgium hold large shares of the market.
In the future market will be developing as the result of diversification of market participants and own
distributing networks.
Market is vulnerable to seasonality factor. Demand is starting to grow in January-April. At the same
time, frozen goods market requires long-term financial investments as raw materials has to be
purchased in summer, while the goods are sold towards the New Year.
According to evaluation of market participants, demand for frozen fruit and vegetable products will
be growing. Raw material base, which is currently in development in Ukraine will be an important
factor of future market growth. In general, average annual growth rate of Ukrainian market of fruits
and vegetable goods is estimated at 6-8% with simultaneous increase of national production share.
Potential demand growth is forecasted not only by tendencies of end consumption, but also by
general consumption trends, which indicate increase of vegetable mixes share in total consumption
compared to traditional meals.
Table 11.1. Contact details of main vegetable producers/exporters
Company
Frau Marta
(frozen
vegetables)
Frozen Trade
Address
Smilyanska str. 169,
Cherkasy
Tel.
+380 (0472) 63-4553
E-mail
Sovhovnaya Str., # 98,
Dnepropetrovsk, 52005
+380 67 568 30 80
+ 380 67 568 10 44
Silverstoun
Investment
Zhurnalistov Str., #18,
Dnepropetrovsk
+ 380 67 560 06 26
Green Team
Chaplynske h-w, 7, 74 800,
Kakhovka, Kherson region
+380 (552) 44 89
84/85/86
[email protected]
http://www.greenteam.ua/
en/company/
Uvedi (onion,
carrot)
Ivana Kudri st. 22, off 30,
Kiev, Ukraine
+38 (044) 419-6816
+38 (050) 447-2499
[email protected]
http://uvedi.com.ua/produ
cts/onion.html
West Retail
42 Voli Ave., Floor 4, Off.
409, Lutsk 43000
Volyn oblast
+38 0332 78 34 94
[email protected]
http://zakarpatproduct.co
m/en/content/aboutus#main-wrapper
[email protected]
Web-site
http://www.fraumarta.com
.ua/en/
http://darus.com.ua/
FRUITS: APPLE, PEACH, APRICOT, PEAR, PLUM
The unique soil and climatic conditions of Central Ukraine are ideal for growing fruit trees. The
multitude of water reservoirs available in Central Ukraine lead to lower fruit production costs and
higher yields. Fruit tree plantations are located mainly in Cherkasy, Vinnytsya, and Poltava regions.
Mostly private companies and rural residents are engaged in fruit growing now, but they often lack
advanced technology. About 85% of Ukrainian fruit and berries are produced by small private farms.
At the same time, the share of large farming enterprises gradually expands, especially in the central
regions of the country.
The fresh fruit market is at an early stage of development. At the same time, increasingly more
companies venture on fruit-growing business every year. A significant role in this process was played
by a state program for horticulture development support. Another positive factor was growth of
fresh fruit consumption in Ukraine over the last five years.
The market of fresh fruit is represented by a narrow range: pomaceous (apples and pears) and stone
fruits (plums, apricots, peaches, and cherries). Pomaceous account for some 60% of Ukraine’s fruit
and berries production, stone fruits for 28%, while the shares of berries and nuts are 7% and 5%,
respectively.
Ukrainian horticultural businesses are represented mainly by small farms requiring no serious
investment and large-scale growing enterprises having significant investment and using innovative
practices.
Horticulture is a costly business. Having invested in the establishment of an orchard, one can only
expect returns in a few years, because the first harvest will be obtained no sooner than after two or
three years.
The key constraints for the development of horticulture are the lack of start-up capital or effective
state support programs. There is a lack of subsidies, tenders; moreover, credit interest rates are too
high.
Despite all the difficulties, several thousand hectares of new orchards are annually planted in
Ukraine.
Ukraine officially exports about 70 KMT of fruits and berries. The main destination markets include
Russia, Belarus, Estonia, Latvia, and Lithuania.
A number of professional export-oriented players have emerged in the market over the last five
years.
However, there are problems related to underdeveloped infrastructure and logistics, the absence of
large wholesalers, high prices, non-conformity of cultivated varieties with the European standards,
and the lack of experience.
Ukraine imports about 1 MMT of fruits and berries, mostly from Equator, Egypt, Poland, Turkey, Italy
and the Netherlands. These include predominantly bananas, apples, citrus, grapes, and kiwi.
We expect that in five years the total size of Ukrainian market of fruits will increase by about 15-20%
in terms of volume and by about 5-10% in terms of value.
Diagram 11.5
Ukraine: Fruits and berries production, MMT
2.5
2
1.5
1
0.5
0
2006
2007
2008
2009
2010
2011
2012
2013
Fruits prices
Since fruit production is subject to seasonality, fruit prices fluctuate appreciably throughout the year.
Low purchase prices are usually observed immediately after harvest.
As a rule, fruit price changes rapidly depending on the market situation and product quality. To
produce quality fruit and sell it at high prices, the farmer has to thoroughly pick crop varieties and
strictly stick to growing practices.
Apple. Ukraine is currently a net importer of apples, but production has been growing and it appears
that within the next five years it will be a net exporter, displacing Polish imports in Ukraine and
competing with them for market share on other markets.
Intensive orchards are being planted in Vinnytsya, Khmelnitsky, Chernivtsi and Ternopil regions,
which are far enough north to avoid early spring frost damage. Also given the difference in day and
night temperatures apples produced in these regions are assured of good apple coloring.
Opportunities exist for growing apples with good results in the south of Poltava and Cherkasy regions
and in the south of Sumy region, as these regions are very close to large markets of Eastern Ukraine
and are also close to Kyiv. Climatic conditions are also rather favorable, especially for red varieties of
apples.
Fruits
Apple
Table 11.2. Fruits production, 2013
Acreage, Th ha
Yield, T/ha
120.2
11.66
Crop, Th T
1211.44
The Ukrainian apple market develops rapidly. A bumper apple crop was harvested in 2012, making
Ukraine the eighth top apple producer in the world. Owing to the use of new productive apple
varieties and modern growing practices in intensive orchards, high yields were achieved (average
apple yield has increased 50% over the last five years). This allowed growers to meet domestic
demand for apples and successfully export their produce. Although apple production sank in 2013, it
was still high.
Apple consumption rises from year to year because this is the most affordable fruit. The negative
factors include demand in 2014 and a low purchasing power of the domestic market.
Apple exports
Russia continues to be the main market for both |European and Ukrainian apples.
In 2012, Ukrainian apple exports to Russia totaled 17.5 KMT, or 92% of the overall export volume. In
2013, this traffic amounted to 10.6 KMT, or 97% of a total 10.9 KMT of apple exports.
With regard to 2014 exports, in view of a valid ban on apple supplies to Russia and a bumper harvest
in the EU, European farmers may face the problem of apple oversupply. In these circumstances, EU
apple growers will look for alternative foreign markets for their apples. The most promising of them
could be the Near East.
An obstacle for boosting apple exports from Ukraine is competition with Poland, a major apple
exporter. A negative influence was also exerted by a recent temporary ban on imports of crop
produce, including apples. Due to a good apple harvest, produce of good quality was exported to
Russia for higher prices than bid for it in the domestic market. Now these apples will go to the
domestic market that may entail a slight price decrease, but precisely for quality apples.
No doubt, entering new markets should become a strategic priority for the Ukrainian farmer. The
range of promising destinations could embrace Kazakhstan, the Near East, and the Scandinavian
markets.
Noteworthy competitive advantages of Ukrainian apples include their rather low cost compared to
key competitors in the domestic and international markets. This good competitiveness results first of
all from a sharp devaluation of the hryvnia in 2014.
At the same time, the largest supplier of apples to Ukraine is Poland, though import deliveries have
decreased over recent years due to expanding domestic production.
Table 11.3. Apple imports to Ukraine, KMT
2010
200
2011
98
2012
93
2013
55
Prices of apples are affected mainly by prices in Poland and prices in Russia.
Though fruits market structure in the upcoming five years may change, share of apples will remain
stable high. However it is important to note that at least 30% of Ukrainian apples are processed into
concentrate and this segment continues to grow.
Pears. A good pear harvest – 180 KMT – is expected in 2014. This would hit a decade high. Pear
production rose primarily because new intensive orchards came to the fruiting age.
Table 11.4
Fruits
Pear
Acreage, Th ha
14.9
Yield, T/ha
12.74
Crop, Th T
169.40
Ukrainian pear exports are insignificant: 222 MT was exported in 2013, almost all the volume (220
MT) went to Russia.
Ukraine imports much more pears than exports. 5.1 KMT of pears were imported in 2013. The main
suppliers to the Ukrainian market include the Netherlands, Poland, Turkey, Spain, and Italy.
Apricots, peaches, plums, cherries. Production of apricots, peaches, and plums is insignificant in
Ukraine.
Apricot exports totaled 485 MT in 2013. 98% of the total export volume was shipped to Russia.
Apricot imports are nearly ten times higher than exports. 3.8 KMT was imported to Ukraine from
Armenia, Greece, Spain, Turkey in 2013.
Peach exports are insignificant. 44 MT of peaches were exported in 2013, including 32 MT to Russia.
Ukraine is a stable peach importer. So, it imported 36.2 KMT of peaches in 2013. The main suppliers
were Greece, Spain, and Macedonia.
Ukrainian plum exports are insignificant, too. Ukraine shipped just 57 MT of plums for export in 2013
– all this went to Russia.
At the same time, Ukraine imported 2 KMT of plums from Spain, Italy, and Greece.
Cherry exports from Ukraine totaled 4.1 KMT in 2013. The main destination country was Russia.
Cherry imports are insignificant at 412 MT. The main suppliers included Poland and Turkey.
Table 11.5. Fruit production in Ukraine, 2013
Fruits
Peach
Apricot
Plum
Cherry
Acreage, Th ha
7.0
10.3
21.4
22.3
Yield, T/ha
6.39
14.48
9.60
9.88
Crop, Th T
37.40
134.97
183.55
200.77
Table 11.6. Contact details of main fruits market producers/exporters
Company
Svarog West
Group
Corporation
Address
Str. Zarichanska 3/2 (5th
Floor), Khmelnitsky, 29015
Tel.
+38 (0382) 72 47 81
E-mail
Web-site
[email protected]
Group of
companies
Melitopol
chereshnya
Tsentralnaya Str., 12,
Sadovoe village, Melitopol
region, 72382, Zaporizhzhia
region
+380 619 440399
+380 67 612 30 58
[email protected]
[email protected]
http://www.svarogagro.com/en/at-aglance/histiry%20of%20dev
elopment
http://melcherry.com/inde
x.php/our-products/fruitesand-berries
West Retail
42 Voli Ave., Floor 4, Off.
409, Lutsk 43000
Volyn oblast
Agrana Fruit Luka:
Pryvokzalna street 2A,
23234 Vinnitsa region,
Luka-Meleshkivska village
Agrana Fruit Ukraine:
Tarnogrodskogo Street 32,
21022 Vinnitsa
+38 0332 78 34 94
[email protected]
http://zakarpatproduct.co
m/en/content/aboutus#main-wrapper
vitaly.yurchenko@
agrana.com
http://www.agrana.ua/en/
agrana-in-ukraine/agranafruit-luka/
Agrana Fruit
Ukraine
Agrana Fruit
Luka
+380 67 430 77 11
Vitaliy Yurchenko
+380 67 432 1324
Eduard
Andriyevskyy
eduard.andriyevskyy@
agrana.com
Lenina Str., 79A, Tyvriv
villagem Vinnytsia region
+380 4355 2 12 41
+ 380 4355 2 11 35
-
Farm
producer Gadz
Gorishnya, #79, Trybuhivtsi
village, Buchah rayon,
Ternopil region, 48431
[email protected]
Farm Konyk
Zavodskaya Str., #13,
Storozhnytsia village,
Uzhgorod, Zakarpatskiy region
+ 380 3544 2 91 89
+380 67 354 19 48
+380 67 354 61 57
+38 0312 73 23 61
Agro Etalon
Company
http://agroetalon.com.ua/index.php/n
apryamkidiyalbnosti/sadovodstvo
http://fggadz.com.ua/index.php
BERRIES
Ukraine is characterized by favorable soil and climate conditions for growing berries. The main
berries grown in Ukraine are strawberry, blackcurrant, raspberry. In recent years there has been
growing interest in cultural cultivation of bilberries, blackberries, cranberries and lingonberries, from
farmers as well as private households. Absolutely all kinds of berries are profitable: some have a
lower price margin, but bigger market share, the others - do not require a large production, and at
the same time the price is high.
Regionally the highest number of berries is produced in Dnipropetrovsk, Donetsk, Kyiv, Zhytomyr,
Cherkasy regions. These regions account for more than half of the total production in Ukraine.
In Ukraine, the main production of berries is concentrated in private households, but for the last five
years (since 2010) there has been substantial growth in the number of farms growing berries. For
now there isn't many big suppliers of berries in the country; the berry business includes 80-100
players of different sizes. The share of large farms (with total area of plantations over 10 ha) is
approximately 50-60% of the total strawberry production by agrarian enterprises.
The development of the berry business is financed not only by Ukrainian, but also by foreign
investors. For example, one of the largest dairy producers in the world, the company Danone
launched a strawberry growing cooperative in Western Ukraine. Cooperative is provided with
seedlings, equipment for drip irrigation, refrigerators. The area under strawberries is 30 ha.
Investments into the project are about €2 mln.
In Ukraine, a small volume of berries is grown or gathered by population. Large volumes (from 0.5 to
100 ha) in the open field, film greenhouses and glass greenhouses are provided by farmers. Berries
are mainly sold through professional producers.
Households sell fruits and berries mainly on pop-up and roadside markets, which leads to the
instability of commodity supply, narrowed range and assortment of products, low commodity
quality. Farms sell fruits and berries through market, shops, stalls, tents – 32%, through other
channels (businesses) – 45%, to processing plants - 15-25% of production.
The share of exports in the production of fruits and berries products is only 4-7%. In total, Ukraine
had a negative balance of foreign trade of fresh fruits and berries. This is due primarily to the
absence of the country's large-scale industrial production of fruits and berries, which would ensure
the formation of large quantities of high-quality products from fruits and berries, low information,
financial and material support of the farms, passive commodity policy, lack of marketing strategy,
inadequate market infrastructure development and so on.
Over the past five years, the volume of the Ukrainian berries market has increased by 50 th. tons and
is now 200 th. tons. Such dynamic development is due to the fact that the demand for basic kinds of
berries in Ukraine still exceeds their actual supply. The market was growing at 7-12% per year in
2013, but this is not the limit. Even with today's possibilities this figure can be increased to 25% per
year. According to experts, its volume in 2013 in monetary terms amounted to $300 million.
Amid the development of the domestic market occurs a fairly rapid development of domestic
production, as well as positive export dynamics.
Growing berries in Ukraine will be quite profitable business for a long time still. The average
Ukrainian consumes during a year 3-4 times less berries than EU citizens. It is worth noting that
almost all of the consumption of berries is limited by season, thus in the near future it is possible to
predict a rapid increase in the production of off-season berries.
For now Ukraine sees the demand for berries exceeding the supply, and as a result, prices for berries
are rising, which will undoubtedly continue in the next 5-6 years.
Ukraine is developing production of frozen berries, and the demand for such products is growing
during the recent years. Freezing wild berries is not badly developed (Ukraine ranks third in the world
in the production of frozen berries), but the processing of cultivated berries (due to problems with
raw materials) do not yet has such rates.
The main distribution channel of frozen berries - further processing and export. Exported usually are
cranberries, blueberries, and other berries of the genus Vaccinium. 75% of the harvested berries
goes to France, Germany, Lithuania, Poland, USA. According to experts, the export potential of
Ukrainian fruits and berries production remains almost untapped, and that offers tremendous
opportunities for investment in improved technology, technical facilities, processing and marketing.
Unfortunately, today the vast majority of Ukrainian producers can not yet enter the European
market. There are several reasons: the volume and stability of supply, price, quality, certification of
production.
Today in Ukraine only a few of the manufacturers can create export consignment of products, but
given that berries are mostly grown in the open field, the ability to supply depends on weather
conditions. To ensure a steady supply of quality products it is necessary to invest in protected soil
technology and post harvest handling.
Strawberry
There is an annual increase in production of strawberries in Ukraine. In 2013, the country has
recorded a surplus of strawberries. This occurred amid the increase in imports of berries, which
triggered a collapse in prices at the beginning of the season to a record low for the last five years. As
a consequence, in 2014, there was a trend toward lower rates of expansion of the areas under the
earlier varieties of strawberries in the southern and central regions of the country, and the area
under the medium and late varieties of berries remained unchanged.
Table 11.7. Strawberry production, KMT
2010
52.3
2011
52.0
2012
56.6
2013
70.7
2014*
74.4
Source: State Statistics Service of Ukraine; *UkrAgroConsult estimation
Major producers of strawberries in Ukraine are the following companies: Agra, Crimean Fruit
Company, Danone, Agrifirm "Vesna-2011" Melytopolska chereshnya, Eco-fruit.
The main part in the exports of strawberries are fresh berries. The main exports market is Russia.
Table 11.8. Strawberry export, MT
Fresh
2013
183.0
2014 (Jan-Sep)*
1560.1
Frozen
231.8
651.3
Table 11.9. Fresh strawberry exporters
Exporter
Address
Contacts
Tsentralna Street, Sadove village,
Zaporizhia region, 72382
Tel.: +380 619 440399
Melytopolska chereshnia
2A, Pryvokzalna street, LukaMeleshkivska village, Vinnitsia region,
Ukraine, 23234
Tel.: +380 432 553568
113, Kirova Street, Bashmachka village,
Dnipropetrovsk region, Ukraine, 52462
Tel.: +380-56-3730120
AGRANA Fruit LUKA
Soniachne, LLC
Brusiliv Agro Impeks, LLC
1-V, Gur'eva Street, Morozivka village,
Zhytomyr region, 12634
Email: [email protected]
Fax: +380 432 553589
+380-56-3741111
Tel.: +380 63 2452223
Table 11.10. Frozen strawberry exporters
Exporter
Address
Galfrost, LLC
AGRANA Fruit LUKA
Tecofood
SilverStone
LLC
Investment,
Contacts
52, Popudrenka str.,
2A, Pryvokzalna street, LukaMeleshkivska village, Vinnitsia region,
Ukraine, 23234
21, Natalii Uzhvii Street, VolodymyrVolynskyi, 44700, Ukraine
18,
Zhurnalistov
Street,
Dnepropetrovsk,
Dnepropetrovsk
region, Ukraine
Tbilisskyiy Lane 4/10, Kiev, 03055
Tel.: +38 044 492 92 58
Tel.: +380 432 553568
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
Tel.: +380 67 5600626,
+380 67 5603808
Tel.: 380 44 2302368
2302359
Prymed, LLC
Raspberry
The main production of raspberry is concentrated in private households. Industrial production has
started to develop only in the last 5-7 years. Ukraine is actively cultivating remontant raspberries,
which has higher damage resistance while transported.
The increase in production of raspberries is mainly due to the expansion of planting area by farms.
Table 11.11. Raspberry production, KMT
2010
25.9
2011
26.8
2012
27.2
2013
29.5
2014*
31.0
Major producers of raspberries in Ukraine are Agrana, "Gadz", "Malina", BETEC.
The major share of raspberry exports are frozen products.
Table 11.12. Raspberry exports, KMT
Fresh
2013
39.7
2014 (Jan-Sep)*
10.0
Frozen
303.2
635.3
Table 11.13. Fresh raspberry exporters
Exporter
Address
«Malina»
Za Rudkoyu Street, 14a/7,
Ternopil, Ternopil region,
46008
Contacts
Tel.: (050) 607-78-34,
(097) 612-67-70
Tel.: +380 44 494 31 91
BETEC, LLC
Polevaia
Street,
1b,
Barvinovka village, Zhytomir
region
+380 44 494 31 92
+380 4141 6 07 04
Table 11.14. Frozen raspberry exporters
Exporter
Address
Contacts
Tel.: 380 44 2302368
Tbilisskyiy Lane, 4/10, Kiev,
03055
Prymed, LLC
2302359
Tel.: +38 (0352) 430591
9, Promyslova Street, Ostriv
village, Ternopil region,
47728
Sim-Sim, LLC
+38 (0352) 274905
+38 (0352) 291007
Fax: +38 (0352) 430677
21, Natalii Uzhvii Street,
Volodymyr-Volynskyi, 44700,
Ukraine
Tecofood
1, Fruktova Street, Maiaky
village, Volyn region
Darlisad, LLC
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
Tel.:+38(0332) 720118 , +38(0332)
292801
52, Popudrenka Street,
Tel.: +38 044 492 92 58
Galfrost, LLC
Blackcurrant
Highly interesting is the production of blackcurrant. After all, unlike other berries, its cultivation does
not require buying planting materials abroad. Blackcurrant varieties of domestic breeding are better
than foreign. In recent years, the plantations of berries in the Central and Western regions of Ukraine
are expanding.
Table 11.15. Blackcurrant production, KMT
2010
2011
2012
2013
2014*
22.6
24.8
25.1
26.6
29.0
Among the largest producers of blackcurrant are “FruktEksPol”, which grows it on 245 ha. The
planting area under blackcurrant is planned to be increased up to 500 ha (it will be Europe's largest
plantation) and also grow raspberries on 50 ha and on 100 ha - strawberries. “FruktEksPol” grows
blackcurrants according to modern technologies and own all the necessary equipment, including two
custom combines of Polish production.
A major producer of blackcurrant is also a company Dary Volyni, which has 80 ha under berry
plantations.
Currently, Ukraine exports only frozen blackcurrant berries. The products are exported mainly to the
CIS countries.
Table 11.16. Blackcurrant exports, MT
Frozen
2013
43.1
2014 (Jan-Sep)*
91.8
Table 11.17. Exporters of frozen blackcurrant berries
Exporter
Address
Contacts
Tel.: +380 (50) 357-77-54, 1a, Rankova Street, Lutsk, Volyn
region, 43000
Dary Volyni, LLC
+380 (67) 405-91-96, +380 (67) 334-32-16, Email: [email protected]
2A, Pryvokzalna street, LukaMeleshkivska village, Vinnitsia
region, Ukraine, 23234
AGRANA Fruit LUKA
Tel.: +380 432 553568
Tel.: +38 (0352) 430591
9, Promyslova Street, Ostriv
village, Ternopil region, 47728
Sim-Sim, LLC
+38 (0352) 274905
+38 (0352) 291007
98, Sovhoznaya Street,
Dnepropetrovsk,
Dnepropetrovsk region, 52005
Frozen Trade, LLC
Tel.: +380 (67) 5683080
Bilberry/Blueberry
Bilberries in Ukraine are gathered from wild plants. Procurement companies buy the berries from
population. Gathering of berries begins in July and ends in August. Bilberries are picked by hand into
special woven containers (baskets).
In the last few years in Ukraine has seen a significant growth of interest in the cultivation of
blueberries. Areas under high bush blueberry – have grown for the last 5 years from several small
test plots to 280 ha in 2012-2014 in commercial production.
Cultivated blueberries provide high margins, although its share of the market is small and significant
investments into the production are needed. In Ukraine, blueberries are grown only during the last 6
years. However, the berries are interesting not only for consumers, but also for farmers. Thus, in the
last year the areas under its cultivation have tripled. At present, about 10 companies are considering
a proposal for investing in the production of blueberries. The interest of the consumer in it shows the
fact that the growth in prices on the market of fresh berries continues.
Volumes of high bush blueberry production are still small (less than 10 ha), because first harvest is
usually gathered 2 years after the planting, and the full fruition of the crop is on 6th-8th year.
The largest producer of blueberry in Ukraine is company "Flora", which grows it on an area of 110 ha.
It is the largest plantation in Europe. The crop, for now, is harvested from an area of 65 hectares. The
rest - are young plantations, which will bear fruit in a few years. "Flora" uses modern technology –
the company uses drip irrigation, the plants are protected and additionally fed.
Blueberry production in 2014 is estimated to be 4-6 KMT.
Ukraine mainly exports frozen bilberries. The main markets are the EU and CIS countries.
Table 11.18. Bilberry exports, KMT
Fresh
2013
313,9
2014 (Jan-Sep)*
77,4
Frozen
13956,8
10342,7
Table 11.19. Exporters of fresh bilberry
Exporter
Address
Contacts
Tel.: +380 (3344) 44379
Prodholod-M, LLC
3, Ivanichivske shose,
Novovolynsk, Volyn region
+380 (50) 3783815
Tel.: (057) 783-50-91
4, Tbilisskyiy Lane, Kharkiv,
61177
Vesta, LLC
(057) 715-45-32
Table 11.20. Exporters of frozen bilberry
Exporter
Address
Contacts
Tel.: 380 44 2302368
Prymed, LLC
03055
2302359
AGRANA Fruit LUKA
2A, Pryvokzalna street, LukaMeleshkivska village, Vinnitsia
region, Ukraine, 23234
Meteora-Zakarpattia
39, Slyvova Street, Khust
village, Zakarpattia region,
90400
Tecofood
Ukraine
Tel.: +380 432 553568
Tel:+380 3142 55062
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
Tel.: +38 044 492 92 58
Galfrost, LLC
Bos Berries, Ltd
27, Valentyna Tereshkova
Street, Shepetivka, Khmelnytsk
region, 30400
HIPP-UZHGOROD, LLC
82a, Kapushanska Street,
Uzhgorod, Zakarpattya region,
88018
+38 (03840) 41810
Tel.: (0312) 615345
Blackberry
Blackberry in Ukraine is mainly wild growing. Blackberry gathering season begins in June-August,
depending on the area of cultivation. Cultivated plantations for now occupy small areas from 0.05 to
2 ha, but a growing interest in the cultivation of the berries is noted and the areas under them are
constantly expanded.
Ukraine exports frozen blackberry. The main market is the EU.
Table 11.21. Blackberry exports, MT
2013
851.6
Frozen
2014 (Jan-Sep)*
1400.0
Table 11.22. Exporters of frozen blackberries
Exporter
Karpaty-Eko, LLC
Address
Contacts
2, Shevchenka Street, Duliby village,
Lviv region, 82434
Tel.: +380 3245 36789
21, Natalii Uzhvii Street, VolodymyrVolynskyi, 44700, Ukraine
Tecofood
Biopol, LLC
Rivneholod, OJSC
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
127, Borisa Gmyri Street, office 13,
Kyiv, 02140
Tel.: +38 (044) 2358378
112, Kn. Volodymyra St., Rivne,
33009, Ukraine
Tel.: +38 0362 63 38 18
Tel.: +38 044 492 92 58
Galfrost, LLC
Fax: +38 044 492 92 57
Cranberry
Cranberries in Ukraine are wild growing. Cranberry harvest season begins in August-September.
Cultivated plantations are almost non-existent. Experimental areas are planted.
Cranberries are mainly exported frozen. The main markets are the EU countries and the CIS, and is
also exported to US and Israel.
Table 11.23. Cranberry exports, th. tones
Fresh
Frozen
2013
77.3
1197.1
2014 (Jan-Sep)*
161.6
685.0
Table 11.24. Fresh cranberry exporters
Exporter
Address
Contacts
Emita, LLC
2a, 100-richchia Manevych,
Manevychi, Volyn region,
44600
Tel.: +38 (03376) 22592
Biopol, LLC
127, Borisa Gmyri Street,
office 13, Kyiv, 02140
Tel.: +38 (044) 2358378
Table 11.25. Exporters of frozen cranberry
Exporter
Address
Contacts
Ukraine
Tecofood
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
Tel.: 380 44 2302368
03055
Prymed, LLC
2302359
Rivneholod, OJSC
Biopol, LLC
112, Kn. Volodymyra St.,
Rivne, 33009, Ukraine
Tel.: +38 0362 63 38 18
127, Borisa Gmyri Street,
office 13, Kyiv, 02140
Tel.: +38 (044) 2358378
Tel.: +38 044 492 92 58
Galfrost, LLC
Fax: +38 044 492 92 57
18,
Zhurnalistov
Dnepropetrovsk,
Dnepropetrovsk
Ukraine
Silverstone Investment, LLC
Street,
Tel.: +380 67 5600626,
region,
+380 67 5603808
Lingonberry
Lingonberry in Ukraine is wild growing. Gathering season for lingonberry is in August-September.
Cultivated plantations are almost non-existent. Experimental areas are planted.
Lingonberry is exported from Ukraine in frozen form. The main direction of the market is the EU.
Table 11.26. Lingonberry export, MT
Frozen
2013
808.7
2014 (Jan-Sep)*
493.6
Table 11.27. Frozen lingonberry exporters
Exporter
Tecofood
Rivneholod, OJSC
Karpaty-Eko, LLC
Biopol, LLC
Bos Berries, Ltd
Address
21, Natalii Uzhvii Street, Volodymyr-Volynskyi,
44700, Ukraine
112, Kn. Volodymyra St., Rivne, 33009, Ukraine
2, Shevchenka Street, Duliby village, Lviv region,
82434
127, Borisa Gmyri Street, office 13, Kyiv, 02140
27, Valentyna Tereshkova Street, Shepetivka,
Khmelnytsk region, 30400
Contacts
Тel/Fax: +380 (44) 228-22-99
Тel/Fax: +380 (3342) 2-2992
Tel.: +38 0362 63 38 18
Tel.: +380 3245 36789
Tel.: +38 (044) 2358378
+38 (03840) 41810
Tel.: (0312) 615345
HIPP-UZHGOROD,
LLC
82a, Kapushanska Street, Uzhgorod, Zakarpattya
region, 88018
Email:
[email protected]
12. CONFECTIONERY SUNSEED MARKET
OVERVIEW (SEEDS FOR BAKERY)
In the world production of sunflower the share of large-seed and confectionery varieties for the past
5 years has been increasing steadily. The share of large-seeded varieties and hybrids in the world
production of sunflower accounts for about 5% of sowing areas. The growing demand also caused
the CIS to increase the share of varieties with a large weight of 1000 seeds in the overall structure of
sunflower crops.
In Ukraine, there is no precise information on the sowing areas of large-seeded varieties of
sunflower, as the farms do not give a separate data on the share of such varieties in gross revenue of
all manufactured products in statistical reports. However, based on the sales of seeds, you can say
that the acreage of these varieties is 150-200 Th. ha annually. The average yield is 2.0-2.5 T/ha. This
segment is about 3-5% of the total production of sunflower seed. A new trend in the market
stimulates the creation and introduction of sunflower hybrids of confectionery type.
Confectionery sunflower is mainly cultivated in Zaporizhia, Kherson, Dnipropetrovsk, Poltava,
Mykolaiv, Donetsk regions. A number of farms for many years already, specialize in the cultivation of
large-seeded and confectionery sunflower, allocating under it 300-1000 ha. These farms already offer
calibrated product in large quantities (25 tons) for sales.
Special characteristics of confectionery sunflower — seed size, marketable condition, color,
dehusking, and the thickness of the shell. Size parameters - the 1000 seed weight. It should be more
than 100 g for the confectionery sunflower. For confectionery purposes calibrated sunflower 34+,
36+, 38+, 40+ is sold.
7-8 years ago the most common confectionery sunflower in Ukraine was Donskoy, possibly due to
the large mass of seeds and thickness of hull. This variety is in high demand in countries such as
Romania, Bulgaria, Poland. However, in recent years Lakomka has become a more popular sort,
which which yields to Donskoy in size (140 g, and the Lakomka - 115-120 g), but surpasses it in taste
and is quite common in Georgia, Armenia, the Baltic States and in Europe. In addition, the yield of
Lakomka is higher than that of Donskoy. Quite popular in Ukraine cultivars Reine-K, Almaz, Zaporizhia
confectionary, Ranok, Turkish white.
Confectionery sunflower, grown in Ukraine, is consumed in the domestic market as well as exported.
However, to accurately estimate the volume of exports is not possible, because the product does not
have a separate HS code. According to market operators, about 35-40% of the seeds produced in
Ukraine are exported. The main export destinations are the CIS countries, the EU, Canada, USA.
Table 12.1. Contact details of producers/exporters of confectionery sunflower
Producer/exporter
Address
Capital Trade, LLC
8, Sedokova Street, Zaporizhzhia, 69001
Agroholding August
40, Frunze Street, Kyiv, 04070
«Agroprime Holding» LLC
154 , Belgorod-Dnistrovska Street,
Izmail, Odesa region, Ukraine, 68609
“Enlightening-production and
commercial firm “Syaivo” Ltd.
7а, Moskovska Street, Nizhyn, Chernigiv
region, 16608
Company «KANI»
Agrarian
company
50, K. Marx Avenue, P/O box 778,
Dnipropetrovsk, 49008
Kherson
Contacts
Tel. +380672235223
Tel. +380612701163
Tel.: +38 044 425 44 09
Tel/Fax: 38 (04841) 4-88-79
Tel/Fax: 38 (04631) 5 34 04,
5 49 90,
Email:[email protected]
[email protected]
+38 066 567 0 444
+38 096 567 0 444
+38 067-364-17-71
"Cambodzha"
«Kherson-Export» LLC
Email:[email protected]
51, Sovetskaya Street, Kherson region,
Ukraine, 75 663
Tel. +380 (93) 434-26-05 CONFECTIONERY GARNISH MARKET
The only company in Ukraine, which specializes in the production of decorations for the
confectionery industry is "Confectionery decorations factory".
Given the European development trends of the area, the Center of sweet decorations "Ukrasa" was
created as an innovative company in the development of products that hadn't been manufactured in
Ukraine before. After a large amount of developments in this direction, experimental tests,
approbation of product samples in the Ukrainian market, the need of mass production of the goods
arose.
For this purpose, on the basis of the Center of sweet decorations "Ukrasa", the production enterprise
"Confectionery decorations factory" was established. This company has a united creative team,
which is looking for ideas, develops technologies and organizes the production of a number of
products, goods and solutions that enable fast and efficient production and decoration of desserts
and confectionery.
Consumers of these products are manufacturers as well as trade enterprises. The products are
supplied all over the territory of Ukraine, and also to CIS countries, Germany, Canada, USA.
Main activities:

Production and sales of a wide range of Easter products, which helps maintain the best
family and religious tradition of Easter celebration.

Production and sales of decorations for confectionery, which includes individual flowers,
leaves, and also complete compositions of small and large bouquets of various shapes, forms
and colors, as well as full and flat figures of fairy tale characters, interesting story excerpts
from nature and life.

Production and sales of round and long sugar topping for decorating Easter pastries,
confectionery and bakery products, ice cream and desserts. The range includes a wide range
of bright colors and blends.

Production and sales of packaged and weight food concentrates, raw materials and additives
for the production of confectionery.
Table 12.2 Contact detail of producers/exporters of confectionery sunflower
Producer/exporter
Address
Contacts
Ukrasa
9, Chernyshova Street, Rovno,
33001
Tel. +380 67 363 88 16
Tel. + 38 0362 62 80 10
http://www.ukrasa.com.ua
13. PELLETS MARKET OVERVIEW
In Ukraine, pellets are used as cattle fodder – fresh, dried, and granulated. Historically, raw wet
pellets were commercially available in Ukraine and used by collective farms. Now it is a less liquid
product, primarily because cattle inventories have plummeted.
Raw pellets (like cake) is taken by farmers for feed immediately at the production time, then stored
in silo pits and fed sour to cattle in winter.
To obtain dried pellets, raw cake is wringed out to 18-22% and then dried by hot air or furnace gases
in special drums to a moisture content of at most 14%.
Granulated pellets with a granule diameter of at most 12 mm are used for producing compound
feeds.
Most sugar refineries in Ukraine have equipment for making dried pellets. However, in view of high
energy (gas, black oil) prices, dried and granulated pellets are made in insignificant amounts to order
against 100% prepayment. Market participants estimate the share of dried and granulated pellets in
total oilcake output at most at 5-7%.
As of today, dried granulated pellets are rather an export-oriented commodity. At the same time,
sugar holdings optimistically estimate the domestic market, too. They express confidence that this
product will enjoy demand in Ukraine as well. For instance, Astarta-Ukraine is upgrading its mills to
enable them to dry and granulate all the cake.
Cake is a by-product of beet sugar production, therefore the latter directly determines its output.
A downward trend persists in Ukrainian sugar beet plantings. Consequently, the number of sugar
refining facilities and sugar production are on the decrease. The quantity of sugar companies working
on sugar beet will continue falling in the future. Gradually increasing costs of sugar beet cultivation
will urge the companies to produce less beet, replacing it with some cheaper-to-grow crops.
Almost all the sugar grown in Ukraine is consumed in the domestic market, whose capacity amounts
to 1.7-1.8 MMT. This leads to unstable sugar production dynamics due to regular hikes in carryovers.
Table 13.1. Ukraine: Beet pellets production, MMT
Beet sugar
Beet pellets, total
including
granulated
one*
2010
1.8
8.6
0.45
2011
2.3
11.0
0.6
2012
2.1
10.2
0.6
2013
1.3
5.0
0.7
2014*
1.7
8.2
0.4
Source: State Statistics Service of Ukraine; *estimate of UkrAgroConsult
Granulated pellets is produced and supplied mostly in the period of active sugar beet processing, i.e.
in September - January.
The largest producers of granulated pellets are Astarta, Rise-Maximko (UkrLandFarming Holding),
UkrPromInvest, Radekhivsky Tsukor, T-Tsukor (Mriya Holding).
Table 13.2. Ukraine: Granulated beet pellets exports
Quantity, KMT
2010
31.4
2011
39.5
2012
72.1
2013
89.2
2013 (Jan-Sept)
53.1
2014 (Jan-Sept)
12.9
Value, Ml US$
4.6
7.8
13.8
17.8
10.7
2.6
The key destination markets for granulated pellets exports include Europe (United Kingdom, Poland,
Lithuania, Spain, Italy), Asia and Africa (South Korea, Turkey, Morocco).
Table 13.3. Ukraine: Exporters of granulated beet pellets
Contacts
Exporter
Address
38/44, Pochainynska St., Kyiv
Phone: +380 44 585 9417
Astarta
04070
Phone: +380 3255 4-11-10
39, Yunosti ave., Pavliv, Radekhiv +380 50 4312791 (Volodymyr)
Radekhivsky Tsukor
district, Lviv region
Rise-Maximko
121-v, Peremohy ave., Kyiv 03115
UkrPromInvest
29-a, Elektrykiv St., Kyiv
T-Tsukor
10, Mazepy St., 3rd floor, Ternopil
46000
Phone: +38 044 393 40 93
Fax: +38 044 393 40 74
Phone: +38 050 4443855
(Andriy Dmytrovych Zayka)
Phone: +38 0352 47 60 85
+38 067 2468881 (Nazar)
In October 2014, granulated beet pellets in Ukraine were priced at UAH 2500–3000/MT EXW for this
year’s delivery.
PELLETS QUALITY STANDARDS
Granulated beet pellets should meet the requirements of TU 18-1-11-76. “Technical Specifications.
Amido-granulated pellets.”
Granulated dried pellets are green grey cylinders with diameters of 8, 10 and 12 mm containing up to
88% of dry matter. It is used for feeding cattle.
Beet pellets should be dry and meet the requirements of the GOST 18.1-94 Standard “Technical
Specifications. Dried pellets.”

Agriculture in Ukraine. Trade Guide for Norwegian Importers.

Transcription

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