Tendencies of the agrarian market of Ukraine in February 2018

Agroliga Group brings together a number of dynamically developing medium-sized companies that operate in the agriculture sector of Ukraine

300+

CLIENTS

100+ K

TONE SHIPPED

10000+

TOTAL LAND AREA

As we announced earlier, we continue to practice the coverage of monthly key news in the Ukrainian agrarian sector.

Let’s start with the global and Ukrainian news.

At the beginning of the month, the world was shocked by news about the collapse of stock indices in the US and Asia. However, according to the expert, grain markets do not directly depend on the changes in world stock indices, although indirect, through oil prices and certain panic moods, influence is possible. And as confirmation, the prices of cereals in world markets showed growth against the backdrop of weather conditions and speculation around the winter crop.

The formation of the crop in 2018 occurs with a significant increase in the cost of basic resources. Inflation, an increase in the cost of land rent, as well as a significant increase in the cost of fertilizers by 33%, fuel and lubricants by 29% and seeds by 17% will inevitably lead to a significant increase in the cost of spring sowing. In this regard, according to the Institute of Soil Protection of Ukraine, agrarians in 2018 are provided with mineral fertilizers only by 32%, and fuel by 53%.

Also, some producers in different regions of Ukraine inform about the formation of “ice saucers” on the fields due to the lack of snow cover due to winds, which, in turn, may lead to the sowing of winter crops. However, it should be noted that such signals to date are single.

Recall that from January 16, 2018 agrarian receipts operate throughout Ukraine, and for a month this service was used by many, receiving more than 200 agricultural receipts for a total of 1.5 billion UAH. Agrarians are credited not only for the supply of traditional export grain and oilseeds, but also for the future harvest of niche crops. This fact will undoubtedly have a favorable effect on the agrarian climate in the country.

Continue the news directly to the company “Agroliga”.

The company “Agroliga” received € 4.21 million of net profit in 2017, which is 11.36% more than the previous year. At the same time, revenue from sales for the period increased by 2.1% to € 21.79 million, gross profit by 30.63% to € 5.97 million, and operating profit by 33.93% to € 5 , 19 million.

Note that the cost of sales has slightly decreased from € 17.01 million in 2016 to € 16.71 million in 2017.

As we reported earlier, as a result of special inspections of winter crops of the company “Agroliga”, our experts assessed the vitality of winter wheat in 96%, and winter barley in 93%, respectively. Concerning similar information on Ukraine, as of mid-February, shoots were obtained for 99.6% of the area from sown winter crops. Nearly 87% are in good and satisfactory condition. According to preliminary data from the regions, the sowing area for the harvest of 2018 is comparable to last year and is expected to be within 27.2 million hectares. Among them, 14.6 million hectares (54%) under grain crops.

Also, the main engineer of the company was all the equipment after the winter. All technical inspections and scheduled repairs were carried out. The main agronomists prepared, and management approved and paid for, all applications for the purchase of seed, protection and fertilizers, fuel and fuels and lubricants. The degree of availability of all the above materials is currently estimated at 90%. Our directors and agronomists have formed all the required technological process maps.

It can be absolutely confidently asserted that the company “Agroliga” is completely ready for the sowing of spring crops. Also in the course of the week it is planned to visit the fields, the next inspection of the state of winter crops and the application of carbamide-ammonium mixture (CAS) for top-dressing winter crops will be before the beginning of vegetation.

Summing up, February did not violate the optimistic forecast for our company and in Ukraine as a whole.

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