Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
According to expert forecasts, prices of mineral fertilizers will rise for 15-20% by the spring 2019. This forecast is explained by the fact, that the rainy end of June and the beginning of July, did not allow the farmers to obtain a sufficient quantity and quality of early grain, the sale of which could provide them with operational resources for harvesting late grain and sowing winter crops. Therefore, in the first place, they saved on the purchase of fertilizers, as a result of which, the activity on this market significantly decreased. Fertilizer producers kept prices down and did not raise them after the exchange rate jump, which formed a false opinion in the market, when most farmers expect this situation to stay so. However, in the spring, a new products will already be for 15-20% more expensive and will not allow save.
The first reference book on the country’s elevator capacities has been published in Ukraine. Handbook shows the scale of the elevator market and its trends. Reference sections include information on the number of elevators by regions, data on large linear and port elevators and their owners, data on capacities, and so on.
On December 4, a meeting of agrarians under the walls of the Verkhovna Rada was announced. It is planned to block VRU because of the moratorium on the sale of agricultural land. The main requirement – s the extension of the moratorium until January 1, 2022. This is quite interesting, because almost everyone understands, that ordinary people, like no one, are interested in its abolition. The Ukrainian entrepreneur, as well as the deputy of the Verkhovna Rada of Ukraine, explains what is happening as follows: “…As for the abolition of the land moratorium, it is “fictitious” because the land is bought and sold. But much cheaper, because no taxes are paid and, most importantly, there is no additional incentive for the long-term development of the agricultural sector.” According to his opinion, the agro-oligarchs will fight to preserve the moratorium by any means.
The trade turnover between Ukraine and China over the course of 5 years can reach $ 20 billion. A memorandum of cooperation has already been signed between the Ukrainian Bank for Reconstruction and Development and the Ukrainian Silk Road Association Silk Link on the creation of a joint e-commerce platform with the aim of increasing the volume of exports of Ukrainian goods to China. Also, an agreement was reached with the Chinese stock exchange and the Ukrainian Bank for Reconstruction and Development to create a Ukrainian-Chinese online commerce platform in order to increase the number of Ukrainian manufacturers, who will export their products to the Chinese market.
The Verkhovna Rada was introduced a bill №8275 amending the Law “On the promotion of the development of domestic engineering for the agro-industrial complex”, which provides subsidies for drones of Ukrainian origin. Relatively cheap and low cost in operation, they are used for rapid assessment of fields and the local introduction of plant protection products, say the co-authors of the initiative.
The Verkhovna Rada of Ukraine granted the resignation of the Minister of Agrarian Policy and Food Taras Kutovoiy, which he submitted on May 23, 2017. We are expecting news about new appointments.
Agroliga Group of Companies in January-September 2018 received € 2.35 million of net profit compared to € 2.42 million for the same period last year (-3%). At the same time, the group’s revenues increased by 4.8% – to € 15.26 million. Gross profit compared to the reporting period in 2017 increased by 4.7% – to € 3.427 million, operating income decreased by 5.6 % – up to € 2.8 million.
On November 26, the Verkhovna Rada of Ukraine approved the decree of the President of Ukraine “On the imposition of martial law in Ukraine” for a period of 30 days. It will operate in areas bordering Russia, including in the Kharkiv region. Our company has no experience in such conditions, however, there are hopes that business interests will not be affected. We will comment on the situation in the near future.
With kind regards, team of GC “Agroliga”.