Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.
An order was issued to amend the date of entry into force of the new standard for wheat In Ukraine. According to it, the new standard for wheat will come into force on June 10, 2019, before the beginning of 2019/20 MY. The new standard reduced the number of classes and changed the methodology for determining grain quality. Changing standards during the harvesting campaign will lead to significant complications and misunderstandings in the reception, placement, shipment and accounting of grain in enterprises, as well as complicate international trade.
The newly elected President of Ukraine team stands for the abolition of the moratorium on the sale of agricultural land. “The position is the same as that of all normal people – the team is for the opening of the land market,” said Aivaras Abromavicius, former minister of economy, now Vladimir Zelensky adviser. At the same time, he stressed that it is necessary to hold meetings with farmers and discuss the issue of opening the land market, since each participant has his own vision of the functioning of this market. Simultaneously, Olga Trofimtseva, acting Minister of Agrarian Policy and Food, said that land in 2019 will not be sold for sure. According to her, the government bill on the opening of the land market is in its “raw” form.
Due to the suspension of supplies of diesel fuel from Belarus and the uncertainty over the issue of its supplies from Russia, the price of diesel fuel in Ukraine began to grow. Recently, the wholesale price of fuel in Ukraine has increased by an average of 10%. In addition, among the farmers there are rumors about a possible shortage of diesel fuel in the future due to supply restrictions from Belarus and Russia. And if some farmers have stocked up on fuel in advance, others have to buy it at a new price. But those who managed to buy it in store, met with a new problem. For the lack of a license to store fuel, farmers will be obliged to pay a fine. From July 1, 2019, agricultural producers with fuel tanks must obtain a license for the right to store it. The fine for storing fuel without a license is 500 thousand UAH.
During the first quarter of 2019, exports of agricultural products from Ukraine to the EU countries increased compared to 2018 by 24.4%. The TOP-5 countries to which Ukraine exports: the Netherlands, Spain, Italy, Poland and Germany.
Ukrainian farmers are fully provided with mineral fertilizers. As of May 15, taking into account the carry-over balances in 2018, agricultural enterprises contracted and acquired 1.1 million tons of mineral fertilizers, which is 108% of the previous demand. This is reported by the press service of the Ministry of Agrarian Policy and Food.
World prices for corn continue to fall under pressure from low demand and increased supply from South America. Oilseed prices continue to fall due to the conflict between the United States and China. China applies a ban on soybean imports from the United States and canola from Canada as a lever of influence in resolving political and trade disputes. Wheat prices in the US and the EU have risen sharply against the backdrop of a forecast of further precipitation on the American Plain and Midwest US, which will reduce the rate of sowing of spring wheat and significantly worsen the quality of winter wheat.
In the first quarter of 2019, the net profit of Agroliga grew by 43% to € 1.03 million, compared to the same period last year (€ 0.72 million). In the reporting period, revenues from the company’s sales increased to € 9.32 million, which is 16% higher than the first quarter of 2018 (€ 5.06 million). Gross profit rose by 33% to € 1.41 million, compared with the same period in 2018 (€ 0.72 million). The operating profit of Agroligi was € 1.29 million (€ 0.66 million in the first quarter of 2018). In the first three months, the cost of sales of the company increased by 13% to € 7.91 million. (€ 4.22 million in the same period of 2018). Recall that in 2018 Agroliga received € 5.75 million in net profit, which is 38.2% more than in 2017.
With kind regards, team of GC “Agroliga”.