Tendencies of Ukrainian agrarian market in June 2020.

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Traditionally, representing to your attention a brief overview of the world and Ukrainian agrarian sector news.

In Ukraine registration of land system was simplified. On June 3, at a government meeting a resolution was adopted which introduces the principle of extraterritoriality in the state registration of land. The document was developed in order to increase the level of accessibility, openness and transparency in the provision of state services for state registration of land.

Ukraine spends more than $ 16 billion annually on the import of coal, oil and gas, as well as the maintenance of nuclear energy. Switching to renewable sources will help to return this resources to the country’s economy. This opinion was expressed by the president of MHP Eco Energy, Alexander Dombrovsky. One of the important reasons for the active development of alternative energy, Alexander Dombrowski called the counteraction to climate change. Exactly in agriculture Alexander Dombrovsky sees significant potential for innovation, in particular – bioenergy. The latter include technologies for the production of heat, electricity and fuel from biomass, that is, plant and animal-made raw materials.

World grain consumption in 2020/21 MY may increase by 1.6% (43 million tons), recovering from stagnation in 2019/20 MY, and reach a new record level of 2.73 billion tons. The main increase is expected to be due to an increase in cereal consumption for feed purposes compared with the 2019/20 MY level, while consumption for food and industrial purposes may also increase.

Analysts have raised the forecast for sunflower crops in Ukraine. In 2020, the sunflower crop in Ukraine may amount to 16-16.2 million tons against 15.5 million tons harvested last year. Experts raised their estimate, which previously amounted to 15.4-15.7 million tons in mid-May, due to beneficial precipitation observed in late May and June.

Ukrainian agricultural sector will receive $ 200 million from IBRD. Ukraine has launched the program “Accelerating Private Investment in Agriculture”. A loan of $ 200 million was provided by the International Bank for Reconstruction and Development (IBRD). It is planned that the program will allow Ukraine to ease certain restrictions on the path to increased participation of the private sector, in particular, small and medium enterprises, in the agricultural market of factors of production and the market of goods of Ukraine.

In Ukraine, indicators of all sectors of the economy deteriorated, except for the agrarian – NBU. According to the report, the indicators of the agrarian sector did not deteriorate mainly due to the exhaustion of the statistical effect associated with a shift in the harvest time of the previous quarter. At the same time, the growth of agricultural exports, in particular cereals, slowed down. The report indicates that in the first quarter of 2020, real GDP fell by 1.3% year on year.

In Ukraine, in the water area of the Berezansky estuary in the Ochakov district of the Nikolaev region, it is planed to build the largest deep-water port on the Black Sea for $ 5 billion. According to the report, the port will also include a grain and oil loading terminal. The author of the idea of the port is the Berezan Port company. They plan to build a seaport in full near Ochakovo in 3 years and $ 5 billion. In total, the project to create a port, airport, railway terminal and industrial zone is estimated at $ 60 billion. The planned cargo turnover is 120 million tons per year.

The record grain marketing year for Ukraine 2019/20 comes to the end where the production of grain and oilseeds reached 98 million tons, and export – 62 million tons. The press service of the Ukrainian Grain Association writes about this. “Ukraine over the past three years has been steadily demonstrating yields of more than 90 million tons. This was made possible by increasing crop yields and agricultural efficiency. In the medium term, UZA expects further growth in grain and oilseeds production due to increased yields – up to 113 million tons, while exports may exceed 70 million tons” the report says.

With kind regards, team of GC “Agroliga”.

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