What awaits Ukrainian farmers and consumers in the new agricultural season?

In the new agricultural season, which will begin on July 1, 2014, the State Food and Grain Corporation of Ukraine, within the framework of a program to reconstruct service facilities, will modernize the Krolevets Grain Processing Plant (Sumy region), which is part of its structure, as well as the Hrebinka elevator (Poltava region). In particular, new dryers manufactured by the Italian company Bonfanti will be installed at both enterprises. Thanks to this, the Krolevets Grain Processing Plant will be able to increase grain procurement volumes fivefold.

To throw a spanner in the works

Consultations on lifting the embargo on supplies of Polish agricultural products to Ukraine will take place at the end of May.

The consultations will be conducted by the veterinary services of both countries. It is assumed that during them specific agreements will be reached that will make it possible to lift the embargo. In March, the State Veterinary and Phytosanitary Service of Ukraine banned the import into the country of animals susceptible to the African swine fever (ASF) virus, products derived from them, and reproductive material from Poland.

Vodka will become more expensive

By August, the cost of vodka in Ukraine will increase significantly—the retail price of a half-liter bottle will be about 44–45 UAH. Experts from the alcohol market warn about this. The main factors behind the rise in alcohol prices will be another increase in excise tax from July 1, higher costs of components and alcohol, as well as inflation. Currently, the retail price of a half-liter bottle of vodka is around 30–35 UAH. Due to the rise in price, production will also decline—over January–April 2014, it fell by 15.3% compared to last year.

Bring the price down

The Agrarian Fund will sell up to 150 thousand tons of sugar by the end of summer in order to reduce prices. The government made this decision in mid-May. It is planned to release 30–35 thousand tons to the market in May, 40–45 thousand tons in June, and the remaining volumes in August. The government believes that this is exactly the amount that needs to be released to stabilize sugar prices. Each month, the Cabinet of Ministers will adopt a separate resolution regarding the volumes of sugar to be sold.

Figures

170–180 thousand tons of poultry meat are planned to be exported by poultry industry enterprises in 2014, taking into account the European market. In the first quarter, Ukraine sold 34 thousand tons of poultry meat abroad, which is 14% more compared to the same period last year.

10%—this is how much exports of Ukrainian dairy products to Russia decreased in the first quarter of 2014—overall, the volume of dairy exports from Ukraine to Russia, recalculated as milk, amounted to more than 100 thousand tons.

58.5 million tons—this is the forecast for gross grain harvest in Ukraine this year given by the consulting agency AAA. At the same time, the forecast for corn harvest has been increased and that for oilseeds, in particular sunflower, has been reduced.

$310–320 per ton—to this level the price of wheat may rise in autumn 2014 according to forecasts by international experts, who expect a reduction in the gross wheat harvest in Ukraine and other producing countries.

1.5 million tons was the production of unrefined sunflower oil in Ukraine in January–April 2014, which is 22.2% more than in the first four months of 2013.