Representing to your attention a brief overview of the Ukrainian agrarian sector news.

It is expected, that sunflower processing in 2017/2018 MY will decrease to 19,2 million tons compared to 20,43 million tons for the similar period of the previous season. Primarily this is due to the decline in world oilseeds production.

One more company has committed itself to the introduction of “green project” in its production and launched own power plant with capacity of 2Mw, by installing solar panels on the barns roof. From our point of view, this question is not so much about one company progress, but about tendency entirely, when more and more companies find their own solutions for proper energy independence and participation in solving global environmental issues.

In April Ukrainian dairy index decreased by 13,3%. This is the sharpest drop since February 2015. Moreover, in May, purchasing milk prices continued falling under the pressure of the seasonal growth of production. The interpretation of this phenomenon is overlapping “cheese schemes” and low export price for other dairy products. The biggest problem for milk farmers in the period of low prices is searching for an alternative source of protein, as the main product, namely, sunflower meal, became dearer on 80,2% in 2018.

The Verkhovna Rada of Ukraine adopted in first reading the draft law on the banning of palm oil in the production of foodstuffs. According to the deputies’ opinion, palm oil provokes cancer and severe cardiovascular diseases. Based on this bill, there will be amend in the Code of Ukraine on administrative offences.

According to a study, conducted at the investment forum Agri Invest Forum-2018, more than 70% of agrarians will not grow soybeans, in connection with the norm on the abolition of VAT upon its export, effective from March 1, 2018.

Ukraine lost to Russia ammoniacal dispute in the World Trade Organization. The WTO upheld the demands of Russia and required from Ukraine to liquidate infringements. Let us recall, the anti-dumping duties on ammonium nitrate were introduced back in 2014.

Despite the fact, that sowing campaign in Ukraine began only on mid-April, sunflower seeding goes at a record pace. Gross harvest of sunflower can probably make up about 15 million tons, which at 13% will exceed the previous year.

And, finally, weather news. Despite the fact, that April and May were incredibly warm, which is not typical for this period, weather conditions did not render a negative impact on crops, keeping the yield potential above the average. That is all due to the excellent source of moisture, which was accumulated in the early spring. And even, the sudden hail storm, which took place in most Ukraine regions, did not cause irreparable damage.

With kind regards, team of GC “Agroliga”.