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Ukrtsukor believes that due to the changes on the domestic and global sugar markets in recent years, the need for administrative regulation "has lost relevance".
Ukrainian agriculture exports could reach or exceed a record-breaking $18bn in 2018 , mainly due to growing demand from Asia, especially India, according to the Ukrainian Agribusiness Club Association (UCAB). 2012 holds the current record for Ukrainian agricultural exports with $17.9bn in foreign sales. Meanwhile, in January-October, exports increased by about $140mn year-on-year, amounting to $14.7bn. UCAB believes that there’s "every chance" Ukraine will achieve record-breaking export numbers if there is "preservation of the current dynamics", the Kyiv Post r eported on November 16. Despite a modest lag in exports until August, when compared to 2017, the final quarter of 2018 is seeing numbers catch up and exceed the previous year, according to the association’s experts. In January-October, export of livestock product, almost entirely poultry, is up by about 12%, while rapeseed and corn is up by 3% and expected to increase more. Finished food product, notably soybean meal, is also up by 4%. At the same time, export of oils and fats are down by 7%, a loss of $262mn according to UCAB experts who cite a drop in Chinese demand for these products for the decrease in sales. According to official data, Ukraine’s exports of agricultural produce totalled $8.6bn in January-June vs. $8.7bn during the same period of 2017. Agricultural exports were led by Ukraine's traditional products of grains (36.8% share), vegetable oils (26.2%) and oilseeds (7.5%). Meanwhile, the fastest-growing food groups included eggs (more than doubling to $27.7mn); apples, pears and quinces (advancing 5x to $6.7mn); legumes (surging to $11mn); and butter (rising 65% yoy to $29.2mn). Export markets remained mostly the same, with Asia's share at 43.2%, the EU at 30.4%, and Africa at 14.6%. The top five destination countries were India, Egypt, China, the Netherlands, and Spain. Agricultural trade turnover reached $11.3bn in January-June, increasing 3.5% y/y. The share of agricultural produce in external trade turnover was 23%.
Ukrainian farmers sour on sugar, as world prices lag at barely half the levels of two years ago . Next spring, the area planted in sugar beets could be down by 25%, according to Uktsukor, the National Association of Sugar Producers. This year’s area, 280,000 hectares, was down 13% from last year. The number of operating sugar refineries could fall to 38 in 2019, from 46 in 2017. Sugar exports were down 27% in the marketing year ended in August, to 560,400 tons of sugar. Ukrtsukor says: “The global market continues to be surplus, and this directly affects the reduction of sugar exports.”
Ukraine exported 16.58mn tonnes of grain since the beginning of the 2018-2019 marketing year (July-June) and as of November 21, which is almost 4.9% more than last year in the same period, Interfax news agency reported on November 21. According to the nation's Ministry of Agrarian Policy and Food, the country exported 8.8mn tonnes of wheat, 3mn tonnes of barley, and 4.4mn tonnes of corn. In addition, 82,500 tonnes of flour had been exported on that date. According to official data, Ukraine exported 39.4mn tonnes of grain in the 2017-2018 marketing year. Grain exports in the 2018-2019 marketing year are projected to be 42.5mn tonnes.
Harvest reports indicate that Ukraine’s total grain production will hit a record of 70mn tons , up 14% over last year, reports Dragon Capital. Last year, the harvest was 51mn tons. In 2016, it was 66mn tons, then a record.
63 UKRAINE Country Report December 2018 www.intellinews.com