Page 67 - UKRRptFeb21

Ukrainian dairy producers charge that imported milk, butter and cheese are driving them out of business​. Facing competition, largely from the EU, only 160 dairy producers survive – about one quarter the number of a decade ago, Vadym Chaharovsky, head of the Union of Dairy Enterprises, tells Interfax-Ukraine. According to the State Customs Service, cheese imports almost doubled last year in dollar terms to $210mn, butter imports increased 2.5 times to $41mn, and milk and cream imports more than tripled, to $12mn.
Drought, frosts and poorly timed rains caused Ukraine to suffer the biggest drop in farm production in a quarter century in 2020 – 11.5% y/y, reports the State Statistics Service. Crop farming was down 13.9%. The grain harvest is expected to be down 10%, to 64mn tons. Dragon Capital writes: “The drop in agricultural production in 2020, which became the sharpest since 1994, was mainly caused by a lower harvest, as late-crop yields were hit by poor precipitation.” Due droughts and “unusually intense spring frosts,” Ukraine lost almost 800,000 hectares of crops in 2020, Ackerman writes. She warns: “While southern regions of the country slowly adapt to the lack of rainfall and develop sophisticated irrigation systems, droughts are now becoming an increasingly commonplace feature in the agricultural regions of northern and northeastern Ukraine, where such conditions were not previously an issue.”
After the United States, Ukraine was the world’s second largest grain exporter in the marketing year that ended June 30​, Taras Kachka, Deputy Minister of Agriculture and Economy, told the International Grains Council last week. Citing USDA figures, Kachka said Ukraine ranked 2nd in barley exports, 4th in corn exports and 5th in wheat exports. After a poor harvest this fall, Ukraine may fall behind. During the first seven months of the current marketing year, exports are down by 6.3mn tons, a drop of almost 19% y/y.
UBJ, BNKMM
The agricultural production in Ukraine decreased by 11.5% in 2020 ​y/y, and declined 12.4% over the first 11 months of the year, the State Statistics Service said on January 18, as cited by Interfax Ukraine.
Crop production fell by 13.6% (over 11 months by 14.8%), while livestock by 2.6% (by 2.5% over 11 months), according to Ukrstat.
The State Statistics Service said that the decline in agricultural enterprises was 14%, including crop production by 16.5%, and livestock by 0.9%, while in households it amounted to 6.8%, including crop production by 7.8%, and livestock by 4.5%.
The service said that in 2019 agricultural production in Ukraine increased by .1.4%
The State Statistics Service said that from the regional perspective in 2020, the growth of agricultural production was achieved in such regions as׃ Sumy by 4.1%, Ivano-Frankivsk by 3.2%, Chernihiv by 4.7%, Rivne by 3.1% and ׃Chernivtsi 0.6%, while the greatest decline was recorded in such regions as Odesa by 38.4%, Kirovohrad by 32.2% and Cherkasy by 24.4%.
Corporate farms suffered a 14% y/y drop in crop harvests in 2020, ​the State Statistics Service reported in January. While this export-oriented sector was hardest hit, Ukraine’s overall agricultural production fell by 11.5% last
67​ UKRAINE Country Report​ February 2021 ​ ​www.intellinews.com