Let’s sum up the results of 2019 and go over its key events in Ukraine and the world.
On January 1, 2019, the nationwide regulatory monetary valuation of agricultural land, which eliminates the need to draw up technical documentation on regulatory monetary valuation for individual agricultural land, came into force. Thus, for the first time since 1995, all agricultural land on the territory of Ukraine has been assessed (except for the land within settlements).
Of course, as for the Ukraine, the main news of April was the election of a new President.
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.
The Ukrainian sunflower oil price reached maximum again. On the Ukrainian market of raw sunflower oil, as before, there is a shortage of offers, which is the reason for a high level of export quotations on the basis of FOB Chernomorsk.
The land moratorium will be lifted by the end of 2019. The Office of the President of Ukraine is negotiating with the World Bank on the choice of a model for opening a land market. The World Bank constantly recommends that the Ukrainian authorities accelerate land reform, while bank experts have previously acted as government consultants on land reform issues. Now they are actively studying this topic and its components for Ukraine. President of Ukraine Vladimir Zelensky said that in 2019 land reform will be carried out in Ukraine, which will create a land market in 2020. On August 23, the Parliament of Ukraine registered the Law on Land Market No10469 “On Amendments to the Land Code of Ukraine (regarding the introduction of a free land market and the abolition of land serfdom)”.
The Ukrainian government has proclaimed a bill on the land market. From October 1, 2020, the ban on the expropriation of agricultural land of all forms of ownership is lifted. And to support the launch of land reform in the budget for 2020, UAH 4.4 billion has already been provided. The renters shall have the pre-emptive right to purchase a land plot. In his turn, the President of Ukraine Vladimir Zelensky said that only Ukrainian farmers and Ukrainian companies will be able to buy and sell agricultural land after the market opens. After the opening of the land market, according to rough preliminary estimates by experts, the cost of 1 ha in the first stage will range from $ 1 thousand to $ 2.5-3 thousand.
Ukrainian wheat became stronger in price on the world market. Increased competition in the wheat market contributed to a slight decrease in prices for Russian wheat. At the same time, Ukrainian wheat has strengthened slightly due to the demand for wheat with a protein content of 11.5%.
Ukrainian corn displaces American corn in the Chinese market. Against the backdrop of the Beijing and Washington trade war, Ukrainian corn producers began to replace Americans in the PRC market. Previously, the US was the main supplier of corn to China. In 2011-2012they supplied 5 million tons of corn – almost 100% of Chinese imports.
According to the results of January-September 2019, the net profit of GC Agroliga reached € 2.72 million, which is 15.2% more than in the same period of 2018 (€ 2.35 million). The company’s revenue in the reporting period increased by 57.3% to almost € 24 million. Agroliga’s gross profit for the reporting period decreased by almost 6% compared to last year to € 3.22 million (€ 3.43 million for 9 months of 2018). According to the report published on our website, the operating company also declined by 5%, to € 2.67 million (€ 2.81 million).
Another year is coming to the end. Awesome, amazing and incredibly productive year. Our new oil extraction plant has reached its full capacity, we have collected a good harvest, we are on the verge of launching the TPS. We thank everyone who was directly involved, provided support and simply believed in us. Our company has excellent prospects. We are convinced that together we will continue all positive undertakings and achieve even higher success.
With kind regards, team of GC “Agroliga”.