Agrarian Sumy Region – 2015: A Year of Harvests

On Sunday, November 15, people who lay the foundation of the country’s food security for the coming year—Ukrainian farmers—celebrated their professional holiday. And indeed, there is reason for pride: the agricultural sector remains the most dynamic and promising segment of the national economy. The Minister of Agrarian Policy and Food of Ukraine, Oleksii Pavlenko, summarized that agriculture is Ukraine’s number one export sector and accounts for 14% of total GDP.

Despite dry summer months and an autumn that brought little rain, Ukrainian farmers are not complaining about the harvest this year. As of November 13, grain and leguminous crops had been harvested on 14.2 million hectares, or 97% of the projected areas, yielding 58.2 million tons of grain. According to information on the website of the Ministry of Agrarian Policy and Food, the average yield is 40.9 centners per hectare (in 2014—42.8 centners per hectare).

The largest gross grain harvest was recorded by farmers in Poltava (4.7 million tons), Kharkiv (4.4 million tons), Dnipropetrovsk (3.9 million tons), Vinnytsia (3.8 million tons), Odesa and Cherkasy (3.6 million tons each), Kirovohrad (3.3 million tons), Sumy (3.1 million tons), and Chernihiv (3.0 million tons) regions.

The highest yields of grain and leguminous crops were recorded in Cherkasy—58.8 centners/ha, Poltava—55.8 centners/ha, Khmelnytskyi—55.0 centners/ha, Sumy—53.6 centners/ha, and Kyiv—51.5 centners/ha regions.

Agricultural enterprises have practically completed the sunflower harvest, collecting about 10.9 million tons, and also harvested 3.7 million tons of soybeans. Sunflower was harvested on an area of 5.01 million hectares, or 100% of the forecast, with an average yield of 21.9 centners per hectare.

Soybeans were harvested on an area of 2.09 million hectares, with an average yield of 17.7 centners per hectare (last year soybean yields were 21.3 centners per hectare). As of November 13, agricultural enterprises harvested 9.1 million tons of sugar beets.

The harvesting of late crops, in particular corn for grain, soybeans, sunflower, and sugar beets, is currently ongoing.

Read more about what and where Ukraine exports, as well as the successes of the Sumy region’s agricultural sector, in the continuation of the article.

Not only Europe will be fed

Whatever is said about Ukraine and its economy, it is precisely in the agricultural sector that Ukraine influences the global agricultural market like no other country. According to the Ministry of Agrarian Policy and Food, Ukraine exports more than half of its 2015 grain harvest. This was reported by the Ukrainian Ministry of Agrarian Policy citing Minister Oleksii Pavlenko. Ukraine intends to export a record 36 million tons of grain with an expected 2015 harvest of 60 million tons. With domestic consumption at 24 million tons, a record grain export can be expected. European Commissioner for Trade Cecilia Malmström believes that reforms in Ukraine’s agricultural sector contribute to increased exports to the European Union: “Indeed, there has been a decline (in Ukrainian exports to the EU) due to the overall economic situation in Ukraine, as well as the situation on the global market. However, in those areas where quotas were increased, exports have grown. Ukraine has many opportunities to increase exports to the EU.”

In addition, the Ministry of Agrarian Policy and Food reports a 2.4-fold increase in exports of agricultural products to China, or by 615 million USD, reaching 1.055 billion USD in monetary terms for January–September 2015 compared to the same period last year. Ukraine is currently actively exporting vegetable oils to China—sunflower, rapeseed, and soybean oils.

Neighboring Belarus also provided pleasant news. During the first four months of the current season (July–October 2015), Belarus increased imports of apples from Ukraine almost 18-fold, according to official statistics. Thus, during this period, Ukraine shipped 2.02 thousand tons of apples to the Belarusian market, whereas in the same period last year this country imported only 113 tons of Ukrainian products.

A spoonful of tar

Despite good harvests and an increased share of exports, pessimistic forecasts also appear. For example, the All-Ukrainian Bakers Association (AUBA) allows for a 10–15% increase in prices for bakery products by the end of November. However, this is not related to a shortage of raw materials. It may occur due to rising exchange rates and fuel prices.

Sumy region among the leaders of the agro-industrial complex

According to the Department of Agro-Industrial Development of the Sumy Regional State Administration, to date farmers of the Sumy region have harvested grain and leguminous crops on an area of 586 thousand hectares, threshing 3.14 million tons of grain with an average yield of 53.6 centners per hectare (Ukraine average—40.6 centners per hectare). In terms of such an important indicator as grain yield, the region ranked fourth among the regions of Ukraine.

At present, agricultural producers of the region are actively harvesting corn for grain, which has been collected on an area of 225 thousand hectares (73%), with gross production amounting to 1.7 million tons.

“With the average corn yield in Ukraine at 54.3 centners per hectare, Sumy region harvested 75.8 centners per hectare, which is the best result in the country,” notes Oleksandr Nepochatov, Director of the Agro-Industrial Complex Department of the Sumy Regional State Administration. The region also demonstrates high buckwheat yields—14.8 centners per hectare; by gross production and yield, Sumy region ranked second among the regions of Ukraine.

Over 10 months of 2015, all categories of farms in the region produced gross livestock output worth 1 billion 695 million UAH, including 676 million UAH by agricultural enterprises. During this period, milk production amounted to 357 thousand tons, meat—49 thousand tons, eggs—360 million units. One of the most important indicators in dairy farming is cow productivity and herd reproduction. At agricultural enterprises of the region, compared to the corresponding period of 2014, the number of calves increased by 400 head; 8.5 thousand heifers were introduced into the main herd, which is 1.1 thousand more and averages 23 head per 100 cows across the region.

The dairy sector also has its record holders. In particular, at LLC “Veletien” of the Hlukhiv district, from January to October of this year, 8,596 kg of milk were obtained per cow; at the agricultural firm “Vladana” of the Sumy district—6,792 kg; at LLC AF “Kazatska” of the Konotop district—6,392 kg; at LLC “Vitchyzna” of the Konotop district—6,319 kg.

Invest your money

The agro-industrial complex remains one of the popular areas for attracting investments. According to operational data, over 10 months of this year, 737.6 million UAH of investment funds were attracted to the region’s agro-industrial complex against the projected 1,028.6 million UAH (72% of the projected indicators, or 112% compared to the corresponding period of 2014).

Investment funds make it possible to develop rural areas, create additional jobs, and increase revenues to budgets at all levels. Together with district state administrations, the Department of the Agro-Industrial Complex of the Sumy Regional State Administration developed a production and investment map for the development of the region’s agro-industrial complex for 2016, according to which it is planned to attract 1 billion 150 million UAH of investments into the development of the agro-industrial complex and rural areas of the region, which is 1.1 times more than planned in 2015.

Developing trade

The Sumy region has all the opportunities to export its agricultural products to the EU market. Exports of crop production from the Sumy region for January–September 2015 increased by 12.7% compared to the corresponding period of 2014, with export revenues totaling 68.8 million USD.

During January–September of this year, grain crops of the region were exported for a total of 58.4 million USD, or 1.2 times more than in the corresponding period last year. In total, for January–September 2015, agricultural products of the Sumy region were exported for a total of 409.6 million USD (74.1% compared to the corresponding period of 2014).

Agrarian Sumy Region – 2015

The project was prepared by the newspaper “Panorama” and the website “Vsi Sumy”

Partners of the project “Agrarian Sumy Region – 2015”

Agrobiznes TSK, LLC
Sumy region, Nedryhailiv district, village of Sakunykha, 105 Riabova Street
(05455) 5-88-05, 5-89-10

Article about Agrobiznes TSK LLC

Agrofirma Viktoriia, LLC
Sumy region, Bilopillia district, urban-type settlement Zhovtneve, 1 Brativ Riabokon Street
(05443) 97-3-82
http://viktoriya.sumy.ua/

Article about Agrofirma Viktoriia LLC

Astarta, LLC
Sumy, 1 Rymskoho-Korsakova Street
(0542) 64-08-20, 65-999-0, 65-99-91

Okhtyrka Bread Factory, Hlukhiv Bread Factory

Article about the Okhtyrka and Hlukhiv bread factories

Vitchyzna, LLC
Konotop, 6 Vatutin Street
(05447) 61000

Article about Vitchyzna LLC

Sad, PJSC
Okhtyrka, 42 8 Marta Street
(05446) 2-85-36, (067) 542-29-81
http://sad.okhtyrka.net/

Article about Sad PJSC

Sumy Agroservice Company, LLC
Sumy, 4 Cherkaska Street
(0542) 64-01-97, 64-01-64

Article about Sumy Agroservice Company LLC

Urozhaina Kraina, LLC
Sumy region, Romny, 5E Sumska Street
+38 (05448) 5-77-16
http://www.ur-kraina.com.ua/

Article about Urozhaina Kraina LLC