Currently, the results are summarized and we can suggest familiarizing with the main figures and trends for 2017.
Thus, in 2017, Ukraine produced 5.21 million tons of sunflower oil which is by 17% more than in 2016. Over the previous year, 73.23 thousand tons of sunflower seeds were exported for the amount of $ 29.73 million, 64.2 thousand tons of rapeseed oil for the amount of $ 49.99 million, 19.39 million tons of corn in the amount of $ 2.99 billion, 5.76 million tons of sunflower oil for $ 4.3 billion.
The foreign trade turnover of agrarian and food products for 2017 amounted to $ 22.6 billion; exports amounted to more than $ 17.9 billion and increased by 16.3% compared to 2016. At the same time, the top three exporters of Ukrainian agrarian and food products are headed by cereals with a share of 36.2%, the second place is occupied by vegetable oils – 25.1% and the third – seeds of oilseeds with a share in the structure of 11.3%.
The total volume of harvested grain crops in 2017 is estimated at 62.3 million tons, which still exceeds the average value of five-year period.
The news of this 2018 year is diverse by their nature. Let’s start with not the most advantageous ones.
Since the beginning of 2017/2018 marketing year, Ukraine has exported 23.07 million tones of cereals, which is slightly less than the figures of the previous year. Exports of wheat amounted to 11.99 million tons, 3.93 million tons of barley, 7.06 million tons of maize and 13.2 thousand tons of rye. Analysts of the investment company Concorde Capital, commenting on the fall in grain exports by 10% in the first half of 2017/18 MY, predicted exports of grain at 42 million tons against almost 44 million tons in 2016/2017 MY. Analysts of the investment company Concorde Capital, commenting on the fall in grain exports by 10% in the first half of 2017/18 MY, predicted exports of grain at 42 million tons against almost 44 million tons in 2016/2017 MY. Experts attribute this drop to the amendments to the Tax Code lobbied at the end of December, abolishing the VAT refund for exporters of oilseeds and industrial crops. Despite the postponement of the decision, VAT for soybeans from September 1, 2018 and rape from January 1, 2020 will not be refunded.
The most important and positive news of January is the information that the state of sowing of winter crops in both southern, central and even northern regions is estimated mainly as good and satisfactory. Falling precipitation in the form of snow covered the fields with a sufficient layer to protect the crops from frost. In different areas, the snow cover is fixed from 5 cm to 50 cm, which, according to experts, will have a positive effect on the wintering of winter crops. Agrarians inform that the presence of ice crust under the snow is practically not fixed. The weather conditions prevailing in the winter season in the current season are quite favorable. Future harvest of “Agroliga” also does not cause any concern. According to our highly qualified specialists, our crops will provide a good level of yield, and at the moment, no threats are foreseen for this.
In early January, Bioenergy Association of Ukraine announced the beginning of work on a bill to create a biofuel trade exchange, the main function of which would be to create a mechanism for the market purchase of a large amount of biofuel for the needs of boilers and power plants, the number of which is constantly increasing. Taking into account the fact that the launch of new oil extraction plant of “Agroliga” will increase not only sunflower oil production but also sunflower products, namely, meal and fuel pellets, which are such biofuels, this news is a positive signal and gives hope for a significant increase and more convenient ways for selling wholesale lots of our biofuels.
Favorable news for Ukrainian farmers is the fact that since January 16, agrarian receipts are in effect throughout Ukraine which should improve access to financial and logistical resources for small and medium agricultural producers against the background of credit starvation.
In general, January brought optimistic news and once again gave strength to a productive and promising start this year. We plan to continue to cover monthly key news in the agricultural sector.
Sincerely, group of companies “Agroliga”.