NovaMova LLC

08/25/08

Ukraine Agricultural News

Ukraine Agricultural News Summary for 11-24 August 2008

Compiled by Nova Mova from Internet news sources.

Ukraine May Suspend Beef Exports to Russia

Due to a domestic shortage of beef, Ukraine may suspend exports of beef to Russia. The chairman of the National Association of Meat and Meet Product Producers (Ukrmyaso) made the suggestion last week to a meeting of the Ukrainian cabinet.

Ukrmyaso states that there is a shortage of about 100,000 tonnes of beef per years for processing into meat products. Ukraine exported approximately 11,500 tonnes of beef to Russia in the first half of 2008 at a cost of 17.65 UAH per kilogram. This is below the wholesale factory gate prices on the Ukrainian market, which are between 22 and 24 UAH per kilogram.

Ukrmyaso also recommended that Ukraine import 100,000 tonnes of beef and 200,000 tonnes of pork annually in order to ensure a sufficient domestic supply. The organization estimates that Ukraine will see a shortage in raw meat of between 450,000 and 500,000 tonnes this year.

Although Ukraine is not experiencing a shortage of poultry, Ukrmyaso recommended that conditions for poultry imports be tightened. Ukraine imported approximately 121,000 tonnes of poultry in the first half of 2008.

Margarine Production Declines in Ukraine in July

Production of margarine products declined in Ukraine during July 2008, as 19,500 tonnes were produced, compared with 24,700 tonnes in June. This production also represented a decline of one percent compared to July of 2007.

Between September 2007 and July 2008, Ukraine produced 285,500 tonnes of margarine, which was three percent less than was manufactured during the same time period in the previous manufacturing year. By the end of July, the amount of surplus margarine in storage totaled 5,600 tonnes, which represented an eight-percent decline from the end of June. The leading producer was the Zaporozhye fat-and-oil complex, which manufactured 7,500 tonnes of margarine in July.

Ukrainian plants produced almost 15,000 tonnes of mayonnaise in July. Surplus stores of mayonnaise totaled 2,000 tonnes, which was up by three percent at the end of July, compared to the end of June. Ukraine produced 167,000 tonnes of mayonnaise between September 2007 and July 2008, which was a two-percent increase from the previous manufacturing year.

Ukraine Grain Harvest Passes 42 Million Tonnes

As of August 21, Ukrainian farmers harvested 42.61 million tonnes of grain and legumes from 95 percent of the planted land. A total of 12.33 million hectares of land was planted for the 2008 harvest. By most accounts, Ukraine’s 2008 harvest will be the best since the nation became independent in 1991, and is a welcome relief after a disastrous harvest in 2007.

With 99 percent of the wheat forecast harvested, the crop totaled 26.59 million tonnes. The barley harvest has been completed at 100 percent with a total crop of 13.35 million tonnes. The rye harvest is 99 percent complete with a crop total of 1.03 million tonnes. Ukrainian farmers have also harvested 37,700 tonnes of buckwheat, 48,000 tonnes of millet.

Ukraine Produces 1.78 Million Tonnes of Vegetable Oil

Between September 2007 and August 2008, Ukraine produced 1.78 million tonnes of vegetable oils, including 1.7 million tonnes of sunflower oil. Of this, Ukraine exported 1.46 million tonnes of vegetable oils, including 1.24 million tonnes of sunflower oil.

During the same period, Ukraine imported 473,000 tonnes of vegetable oils. According to the Ministry of Economics, the 57-percent rise in demand for foreign oils was due to expanding use in the dairy and confectionary industries.

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