Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
At the very beginning of September, prices for Ukrainian corn on the domestic market quickly collapsed (minus 500-550 UAH/t). At the same time, the decline was limited to a small supply of high quality wheat and the devaluation of the national currency. For two weeks, corn prices for shipments to the port fell from 180 to $165/ton due to the busy port terminals. As for the world prices, the corn on the world market EuroNext (Paris) fell in price down to 233.27 $ / t (-6.6 $), on the Chicago Stock Exchange SWOT – to 213.2 $ / t (-5.3 $). Such a drop in prices is a due to an increase in the forecasts of the world harvest for this crop.
President of Ukraine Petro Poroshenko expressed doubt that in the near future the Verkhovna Rada will open the land market, especially now, when a new election campaign actually began. At the same time, Prime Minister Vladimir Groisman believes, that it is necessary to allow Ukrainians to sell and buy land from each other in a fixed amount, at the same time, land should not fall into the hands of large agroholdings. In their turn, the deputies demand to cancel the land moratorium again.
In Ukraine a new platform for selling land lease rights started to work. The state enterprise CETAM and the State Service for Geodesy, Cartography and Cadastre have concluded an agreement on the functioning of the system of electronic land auctions. According to the procedure defined by the Land Code of Ukraine, trades can be held not earlier than 30 days after the exposure of lots. The general director of CETAM noted, that the cumulative rise in price of land lots from the State Executive Service is 26.6%.
The launch of the land cadastre on the basis of Blockchain failed and was reduced to the putting the hash tag on the documents from cadastre, with the help of which it became possible to verify their “authenticity”. This action could be done earlier through electronic cadastre services, using a series and document number.
The state support of the agricultural sector of Ukraine decreased almost in 4 times. Over the four years of implementation of the coalition agreement, the state support of the agricultural sector has decreased from UAH 23 billion down to UAH 6.3 billion. From the promised in 2018, 6.3 billion UAH, agrarians have only mastered about 7% of the funds. Target programs for farmers used even less – about 1%.. Because of this situation, the agrarians publicly called the agrarian minister Maxim Martyniuk to resign from office for delay with the allocation of budgetary funds and a complex procedure.
Concerning to the export successes of Ukraine, we can say the following. In 2017/18 MY (September-August), Ukraine exported more than 353 thousand tons of soybean meal, which is almost 22% more than the last season and turned out to be a record for export statistics of this product. The potential for export of sunflower oil from Ukraine in 2018/19 MY was revised upwards to 5.9 million tones, which is 11% higher than the previous season. In addition, exports can reach an absolute maximum, exceeding the record of 2016/17 MG (5.85 million tons). Due to increased yield and higher seed oil, the future production of sunflower oil is estimated at a record 6.4 million tons (+ 12% compared to the previous season).
For GC “Agroliga” last week of September promises to be very saturated. Firstly, on Monday a very important meeting is going to take place, which is able to radically change the course of the company’s development for the better. For now, we prefer to keep silent about who exactly this meeting will be held with, but in case of success, we will describe everything in details. Secondly, on September 27, a grand opening of the oil extraction plant is scheduled. And even, in fact, the plant has been working for several months, we cannot allow ourselves not to open it by all the canons of launching into the light of a new enterprise. And finally, this week our shareholders from Poland will visit us, in order to inspect and familiarize themselves with the production. We will also write about this shortly after the completion of all events.
Stay with us.
With kind regards, team of GC “Agroliga”.