Summing up the expiring 2017, we offer you to get a quick view of general trends in agrarian market of Ukraine.
Frankly speaking, farmers are going through a tough time now. The cost of growing crops is rising each year by at least 15-20% compared to the previous season; with regard to cost-effectiveness, it doesn’t grow and even decrease. Difficult weather conditions prevent from receiving of planned crops and it results in extra costs. Raiding, poor invest climate and absence of market for land hinder the development of agrarian field the most.
The sunflower’s crop disappoints market participants in 2017. According to recent data, the average crop of sunflower lags behind level last year by 13% (18.7 centner / ha opposite to 21.5 centner / ha). The volumes of stored sunflower raw materials as of mid-December of the current year decreased by almost 10% compared to the corresponding date of the previous year. According to the latest USDA report, the final figure for the production of sunflower seeds in Ukraine in marketing year 2017/18 is expected to be at level of 13.0 million tons, which is almost at 15% lower than the record result of the previous marketing year. Directly in October of the current year, the production of raw sunflower oil in Ukraine amounted to 509 thousand tons, which is at 47.1% higher than the result of the previous month. At the same time, the final indicator of marketing year 2017/18 is expected at the level of 5.5-5.6 million tons, yielding to the result of the past season at about 14%. The volume of production of cereal and leguminous crops in 2017 will amount to 62.2 million tons, which is at 5.9% less compared to 2016. The share of sunflower oil in export shipments of vegetable oils from Ukraine in marketing year 2016/17 increased by 23%. And stocks of sunflower in Ukraine according to the results of October 2017 amounted to 7.2 million tonnes. During October
2017, the olive reserves increased by 1.43 million tons (25%). Ukraine produced 4.2 million tons of sunflower oil for January-October of 2017, which is at 26.4% more than in the same period of 2016.
And after all, Ukrainian farmers are gradually increasing their product delivery in the EU despite the difficulty of access to the European market and its peculiarities. On the basis of January-November 2017, Ukraine has exported 16,05 million tons of wheat amounting to $ 2.55 billion and 5.35 million tons of sunflower oil amounting to $ 3.99 billion. In just 10 months of 2017, exports of agricultural products and food products increased by almost 23% to $ 14.7 billion.
But even with such challenges Ukrainian potential is great. Now Ukraine ranks first in the world in the production of sunflower, sunflower oil and its export; third – in the production of barley and fourth – in the export of corn. An importance of agrarian sector becomes more evident, if you know that it provides Ukraine with 12% of GDP.
As for “Agroliga” Group of companies, we have something to brag about, seeing off this year. As before, our main purpose is consolidation of position in the Ukrainian market and maximum satisfaction of our partner’s and consumer’s needs. Proceeding from the basic principles such as professionalism, efficiency, effectiveness and responsibility, we’ve reached great heights.
For starters, allow us to congratulate once again our precious executive director and co-founder Poplavskaya Irina with an honoured place in the She Rank TOP 100 (rating of the most successful women of Ukraine).
Furthermore, despite the rainless autumn, we managed to avoid depreciation of quality of the sunflower and preserve high oil percentage and strong nature of the seed through the efforts of competent specialists and company unlike other participants of the market. The average crop of sunflower is still 45 centner / 1 ha, what is much higher than the corresponding figure in the region. The use of an intensive hybrid of sunflower “Neoma” from the originator Syngenta has significantly improved a number of indicators of the final product.
This year we managed to collect the forecasted yield, namely, about 12 thousand tons of sunflower, about 15,5 thousand tons of wheat, about 6 thousand tons of barley and almost 3 thousand tons of rapeseed and corn.
Also, thanks to the active export of grain products and partial feedback in foreign currency, the company maintained its financial stability during a period of sharp fluctuations in the foreign exchange market.
The main attention and efforts were paid to the construction of our new oil extraction plant, the first stage of which will provide the processing of 150 thousand tons of sunflower per year. The construction was carried out at an accelerated pace and, despite the minor transfer of the deadline for completing the plant, we are optimistic about the future. At the moment the readiness of the project exceeds 90%, the stage of equipment installation has already been passed and only the structure facing has remained. It can be safely asserted that the construction of the plant is almost complete and its end is planned for the first quarter of the coming year. The new year 2018 will be marked by the grand launch of the new plant of “Agroliga” group of companies.
The outgoing year was not easy, but we are completing it with decent results. It was filled with important interesting events. I would like to express my gratitude to all those who worked for the welfare of our company, to all those who contributed to the success of the common cause with their daily work. In these pre-holiday days we look forward to the future with hope, we are waiting for bright events and good deeds. Let the coming year be a year of creative and fruitful work, a time of new achievements.
Sincerely, President of “Agroliga” Group of Companies Berdnik Aleksander.