Prices of olive oil fell to a minimum of 10 years

Business

Prices of olive oil on the world market fell to its lowest level in a decade. It writes The Financial Times. In May this year, wholesale prices for oil, the first spin of premium olive oil fell to 2.9 thousand dollars per ton.

For comparison, in 2005, world prices for olive oil reached nearly six thousand dollars per ton. The publication notes that the fall in prices could worsen the debt crisis in Greece, Spain and Italy, the largest world producers of olive oil. The share of these countries is around 70% of global sales of the product.

However, demand for oil fell through the economic crisis: now in Mediterranean countries, the demand for oil is the lowest since 1995. At the same time the market supply significantly ahead of demand. Particularly in Spain, which is a leader in the field, expecting a record harvest of olives in 1.1 million tons. In addition, sales of olive oil falling due to increased demand for other, cheaper types of oil – sunflower and soybean.

As pointed publication of this evidence, in particular, the growth of wholesale prices of soybean oil: in 1990 they accounted for 20-30 cents per pound (about 440-660 dollars per ton), it is now increased to 57 cents pound (about 1260 dollars per ton).

Salaries in Ukraine

Business

The highest salary in Ukraine paying airlines and banks

The lowest salaries are in agriculture.

The biggest salary in Ukraine are paid to employees of airlines – they manage to get an average of 13 097 hryvnia per month. In this case, for the three months average salary in the aviation industry grew by more than 2,500 hryvnia, reported the State Statistics Committee.

In second place there are areas with the highest salaries by a wide margin situated financial sector. According to official statistics, bankers, insurers and financiers in Ukraine earn an average of 6,454 hryvnia per month. Particularly rapid growth in wages since the beginning of the year in the financial sector was not observed – salaries grew by 500 hryvnia.

Less than all continue to get farm workers – 1,966 USD per month. For the three months salary in this area practically grew up – purses employed in this area, “fatter” only on the 13 hryvnia per month.

In general, the average in Ukraine increased by 212 hryvnia and amounts to 3212 hryvnia is a month, say the statistics service. Tiny houses can save you a lot of earned money.

Global rating of steel exporters-2011

Business

According to the UGMK.INFO rating, in 2011 the largest exporter in the world became China, while Japan has remained the leader in terms of “pure” export. Ukraine, retaining the 6th place in the top 10 exporters (and the third place in terms of surplus), almost caught up with Russia, which last year was noted by 16% of the fall in exports.

In 2011, the position of the largest exporter of steel in the world came China (almost 49 million tons), beating the victim of the Fukushima tragedy in Japan (41 million tons). At the third position – the European Union, the external supply of which increased by 11%, to 36 million tons, at the 4th place with South Korea rose indicator 28.5 million tons (9% compared to 2010), on the 5th, respectively, fell in Russia, whose exports in 2011 fell by almost 5 million tons at the 6th position – Ukraine (24 million tons), in pursuit of which Turkey aspires ambitious which set a goal to reach 20 million standard steel export already in 2012

Rating UGMK.INFO steel exporters-2011, million tons:

№	Countries	2011	2010	% of change
1	China	48,9	42	15%
2	Japan	41,24	43,4	-5%
3	EU 27	36	32,7	11%
4	South Korea	28,48	23,9	9,3%
5	Russia	24,4	29	-16%
6	Ukraine	24,14	23,8	2%
7	Turkey	15,54	14,8	5,3%
8	USA	13,45	12	12%
9	Brasilia	10,8	8,9	21%
10	Taiwan	8,3	9,8	-16%

According to ISSB, in 2011, the volume of world trade in metal products (including tubes) grew by 6.2% to 292 million tons in the 3rd quarter of last year from 71.9 million tons of global steel trade half (36 8 million tons) fell flat steel, long products sales totaled 14.7 million tons, semi – 11.9 million tons and pipes – 8.5 million tons

Rating UGMK.INFO of leading net exporter of steel in 2011:

№	Countries	Net export, million tons.
1	Japan	33
2	China	28,4
3	Ukraine	22,3
4	Russia	18,6
5	Brasilia	7,2
6	Taiwan	6,4
7	South Korea	5,7
8	Turkey	4,8
9	EU 27	2

CIS

Russian steel exports in 2011, according to the Ministry of Economic Development of the Russian Federation, have declined by 16%, to 24.4 million tons, while imports increased by 21.5%, to 5.8 million tons. Thus, net exports declined to 18.6 million tons including, semi- finished goods deliveries abroad decreased by 19%, to 12.9 million tons of flat products – by 11%, to 8.6 million tons of long-16 , 5%, to 2.9 million tons.

Imports to Russia rose by 21.5%, to 5.8 million tons including, flat products increased by 13% to 3.5 million tons of long – by 37%, to 2.3 million tons.

Ukrainian metallurgical enterprises in 2011, increased exports of steel products by 2% to 24.14 million tons. When imports rose by 10% to 1.84 million tons, and a positive trade balance amounted to 22.34 million tons.

Last year, Ukraine has reduced export semi-finished goods 5% to 10.81 million tons, including, billets – 13%, to 5.14 million tons, while the supply of slabs rose by 1.6% to 5.572 million tons.

In 2011, Ukrainian steelmakers have reduced exports of long products by 0.1%, to 5.77 million tons, including exports valves – by 7% to 2.25 million tons, rods – 4, 6% to 1.7 million tons of flat steel deliveries last year rose 15% to 7.56 million tons, including an increase in exports of the c / c rolled by 15% to 6.52 million tons, c/k rolled steel products – by 11%, to 0.9 million tons.

According to ISSB, the 3rd largest exporter in the CIS remained Kazakhstan, external supply of which in 2011 decreased by 11%, to 2.5 million tons of steel exports from Belarus increased by 6% to 1.8 million tons.

Imports of seafood from Alaska to Ukraine has doubled

Business

The volume of imports of seafood from Alaska to the Ukraine in 2011 grew by almost a factor of 2 in quantitative terms compared with 2010 and amounted to 47 million dollars.This was announced by U.S. Ambassador to Ukraine John Tefft met with reporters at the launch of Alaska seafood, organized by the Institute of Alaska Seafood Marketing with the support of the U.S. Embassy in Ukraine. The event took place in the fish-market “Fish World” South Pacific “.

At the meeting, noted that the global financial crisis, the U.S. seafood trade volumes in Ukraine is fully recovered and continues to grow. By results of 2011 the volume of imports of Alaska seafood has exceeded the best pre-crisis years.

For the first time consumers in Ukraine have discovered the American seafood in 2000, and since then the number and variety of fish represented only expanded. The last few years, fish consumption in Ukraine Knuckles . Traditional varieties of inexpensive fish Ukrainians increasingly prefer the more expensive and high quality.

It should be noted that fish and seafood of Alaska live in the wild Pacific Ocean. Waters of North America, their habitats, are recognized as one of the cleanest in the world. Alaska fishing meet modern technical requirements to preserve the quality of products. Catch carried out strictly in accordance with the law and is controlled at the state level in order to preserve natural resources and the renewability of fish populations in the natural environment.

Ukraine’s Solar Energy Sector

The geography of Ukraine shows a great potential for the solar energy market development, thus the potential of solar energy in Ukraine is high enough for the wide application of solar equipment (please, see Appendix I and Appendix II). The incidence of solar radiation increases from northwest (1070 kW/m2) to southeast (1440 kW/m2) with the highest potential on the Crimean peninsula. The time period for the efficient usage of solar collectors in the southern regions of Ukraine is 7 months (from April to October), in the northern regions ‐ 5 months (from May to September). Photovoltaic equipment can operate effectively during the year. Currently solar collectors for water heating are widely implemented in the southern part of Ukraine and their volume is growing.

According to National Agency for Energy Saving and Energy Efficiency (former NAER) the solar potential of Ukraine is much higher than that of Germany and it is technically possible that the share of solar energy will reach 10% of Ukraine’s energy balance till 2030. Despite the fact that the equipment for generation of solar energy is still quite expensive, the world experiences a trend of decreasing production costs of such equipment.

CURRENT STATUS

According to EBRD, Ukraine appears to be ready to become a leader in Europe’s clean energy economy soon, especially with regard to the solar energy market which seems to be one of the most perspective markets of the renewable energy. Currently, Ukraine became a host for the biggest solar‐ power plant in Europe and it is projected that solar energy market of Ukraine will grow by 90% annually until 2015. Ukraine has all the prerequisites for the successful development of the solar energy market: high indicator of DNI (Direct Normal Irradiance), high feed‐in “green” tariff, possibility to use JI under the Kyoto Protocol for solar power projects and favorable tax exemption provisions. Additionally, Ukrainian energy strategy aims to grow up to 20% of energy from renewable sources by 2020 and Ukrainian feed‐in tariff for alternative energy is nearly twice as of some G8 members.

The introduction of “green” tariff became a powerful stimulus to the development of industrial photovoltaic generation in Ukraine. Solar energy production chain is between players: monosilikon manufacturers, polysilikon manufacturers and producers of ingots, wafers, solar cells, modules.

FUNDING FOR PV PLANTS

The commissioning of photovoltaic facilities in Ukraine is mainly funded by private investment. In addition, there are opportunities to raise international funds. At the end of 2010 a program of the European Bank for Reconstruction and Development called USELF (Ukraine Sustainable Energy Lending Facility) was launched in the country. The program is aimed at facilitating the implementation of projects with the use of renewable energy sources in Ukraine. The program volume is EUR 50 million, which is sufficient to co‐finance the construction of stations with a total capacity of 10–15 MW. Although this amount is not enough to have a global impact on the industry, the initiative of EBRD has an important symbolic nature.

Small projects can also count on support in the amount of EUR50–350 thousand from the NEFCO (Nordic Environment Finance Corporation). In contrast to the industrial segment, the segment of small and medium‐sized installations in Ukraine develops less actively. The combined stock of such solar stations in the country is estimated at 1100 units with a total capacity of 1.1‐ 1.2 MW. Ukraine puts into operation 50‐100 kW of capacity every year, 80% of them being commercial installations. Low level of private and commercial generation development is explained by the impossibility for individuals to obtain a green tariff, as well as by economical inexpediency of small projects with a capacity of 30 kW amid low prices for centrally supplied power. Moreover, the process of obtaining permits for green tariff is completely identical for investors of commercial and industrial stations.

Features of the Ukrainian market of vegetable oils

Business

Sunflower oil in Ukraine are used to, that the price of sunflower seed is linked to the price of sunflower oil in the international market. In this marketing 2012/13, the right game have changed. Now we see that the price of oil fell and the price of oilseeds grown. Refiners’ margin decreased. What is the reason?

The last marketing year is generally perceived as a success for the industry. In Ukraine, according to IA “APK-Inform”, was a record harvest of sunflower – 9.4 million tons, of which produced a record amount of sunflower oil – 3.85 million tons. Industry working at full capacity and has been provided with raw materials completely. A similar situation exists in Russia. Two countries of the Black Sea region to were realized their export potential and were expanding their presence in the international market of vegetable oils. We have seen that the sunflower oil in a year replaced soybean oil tenders in Egypt. India – succinct, but very sensitive to the price of the market, also significantly increased its purchases of Ukrainian sunflower oil.

It should be noted that the increase in the proportion of sunflower oil on the world market of vegetable oils has been achieved due to low prices. During the whole of last season, the price of sunflower oil in key markets was lower than soy. For example, on the basis FOB six northern European ports, this difference was on average 100-120 USD / t.

Industry Outlook

We understand that in the context of a global recession internal situation will only get worse. We already know that the President of Ukraine Viktor Yanukovych signed into law on November 15 № 5480-VI, which gives the right to the National Bank of Ukraine (NBU) to enter for up to six months of mandatory sale of foreign exchange earnings and reduce the time of its return. NBU has already exercised his right and cut back period of currency in 2 times, and introduced compulsory sale. I think that the next steps in this direction will not be long in coming. Our state will seek financing from a new, triple force. This year will be rich in the authorities’ attempts to share financial success of sunflower oil’s industry and foreign currency earnings.

There is also quite disturbing trends deficit of sunflower seeds on the market, which began to manifest itself in the last year, and this year in their full strength, supported by inflation expectations. Our farmers are not hardened first devaluation of the currency and, in general, believe only in the U.S. dollar and the physical product that will grow in value if inflation starts. How justified expectations of inflation? We see the efforts made by the State and the National Bank, to avoid devaluation of hryvnia. But in actual fact – it is a crisis of liquidity – banks do not have money, loans at 25% per annum, the interbank overnight sometimes as high as 70%! Therefore, the choice of alternatives is small – or stagnation and crisis, or inflation, or both.

Expectation of inflation or crisis – is one reason the supply shortage of sunflower seeds, but there is another. For years, we have seen that from the various farmers’ associations and large agricultural holdings held organized containment sales of sunflower seeds. And, apparently, this long-term trend. The reason for this – a new balance of power and productivity, and this was a turning point. Below are some numbers and calculations.

First, the long-term yield of sunflower grown at the same rate as production facilities for processing. Secondly, the area of agricultural land in Ukraine is limited and is 41.5 million hectares, of which the cultivated area 32.5 million hectares. From year to year, these values remain virtually unchanged. The area under sunflower this year is 5.2 million hectares. Proper crop rotation sunflower – once in 8 years. Multiply the area by 8 and 42 million hectares, and it exceeds the area of farmland. I beg to note that not all areas are suitable for the cultivation of sunflower, respectively, in the past year, we have reached the upper limit of the possible yield. Third, the production capacity continues to grow. According to forecasts of APK-Inform, if the trend for commissioning new facilities will continue, by 2015, the total capacity will be 2 times larger than the sunflower crop. Hence, if all the companies will work with the same load, yield enough for six months of work. Of course, will be a struggle for the harvest. And in this struggle will win not oil producers, and the producers of sunflower seed. In the race for the harvest will benefit the company:

– With good logistics (the closer to the raw material and ports, the better);

– With good infrastructure (more places of acceptance of goods – more opportunities to buy raw materials);

– Well-funded (percent of hryvnia loans up to 25% per year. If producers have to borrow at such a high percentage, then in that case make banks, not farmers);

– With good modern equipment (as always, are important factors for the extraction of oil from sunflower seeds, as well as energy efficiency);

– With the ability to finance the crop (farmers will sell raw materials fall to the person who helped financially in the spring);

– The company that will be able to process soybeans and canola, have an additional opportunity to upload their company.

APK-Inform

The largest bakery in Ukraine will be launched in July

Business

In July 2012 Ukraine’s largest bakery capacity of 250 tons per day, located in the village Krushinka, Kiev region, will be put into operation and will launch products .

In the range of products the largest bread-baking plant will include a variety of bakery and confectionery products. Along with the opening of the largest bakery trade will build a network of 300 stores, and the total number of staff will be up to seven thousand people.

Market bakery products: competition

With the advent of powerful new competitor in the bread market in a metropolitan area his balance, and so shaken after starting in the village Petrivtsi Ltd. “The First Metropolitan Bakery”, owned by holding “Grain Investments,” will clearly be violated.

In the most disadvantaged was Vasilkovsky Bakery, part of the holding “Kyivkhlib” as a bakery in the village of buckthorn will be able to meet the demand for bread of Vasilkovskaja area, which could lead to a reduction in output at Vasilkovskiy bakery, and some of its equipment may be transferred to other plants holding.

Investor company is Vladimir Misikov owner plant “Kulinichi,” one of the leading manufacturers of bread in Kharkov and complex “Kulinichy” in Poltava. According to preliminary data of investment in the project amounted to 45 million U.S. dollars.

The structure of the grain market in Ukraine

Note that in the past year and a half structure of the grain market of Ukraine – is still one of the most stable in the country – has changed significantly. Clear separation of the regional players, which was characteristic of the market for many years, no longer exists, and a series of mergers and acquisitions has made adjustments to the rating of the largest producers. The author of the majority of transactions in the grain market was the company Lauffer (holding “Harvest”). Sold part of its asset holding “Tees” are assets of bread sells Arsen Avakov.

Despite all these changes ambiguous, we note the piece of news is clearly positive character for all owners of the meat business, the purchase and delivery of imported equipment will now be cheaper. In Ukraine, came into effect on the decision of the Cabinet of Ministers № 392 of April 11, 2012 on the introduction of equipment for the bakery industry in the list of energy-saving materials, equipment and components that are exempted from import duties and import operations for which the customs territory of Ukraine are exempt from VAT.

2012 is a Year of the Ukrainian organic market

Business

How to invest in organic market in Ukraine? Leave an inquiry on [email protected]
Experts predict that in 2012 to the Ukrainian market of organic products will come major players and big capital.

Small shops of eco-products and farmers, who sell through the Internet products of their labor, soon will feel strong competition.

In the perspective of the domestic organic market believed large investors. The growth of enviromental awareness, not only in the West, but also in ukraine in 2012 will be even more obvious. In addition, organic products are perceived as better.

If in 2008 the market volume of organic matter was estimated at $ 660 thousand, today it is $ 4-5 million a number of manufacturers of such products during this period increased from 92 to 142.

In March of this year, one of the largest Ukrainian agricultural companies – “Argo Dakor Holding” has announced its intention to grow organic crops, the price of which in Europe is for 40% higher than the usual wheat. This holding company plans to deliver products just in the EU countries. The market attracts investor’s profitability of organic matter in 40% and in high demand both domestically and in foreign markets. Large-scale investments inhibit only the absence of legislation.

Expensive health

Today, the organic market accounts for only 1% of products sold in Ukraine. In Europe, organic products occupy 6-7% of the market. The demand for organic products by consumers is growing rapidly: today it is much greater than the supply.

“People began to think more about their health. They were disappointed in the products that can be purchased in supermarkets, and are looking to buy quality food, “- says the chairman of the Association of Producers of organic products of Ukraine Basil Pindus.

Organics, usually bought by people wealthy and middle class: the price of these products is 50-80% higher than their inorganic counterparts. Experts explain the difference in price that producers of eco-products don’t use chemicals and fertilizers, so the yield of organic crops is lower than conventional plants. Expensive are also non-mechanical prossecing and storage products. The price may lay and other costs, like promotion of goods and insurance of non implementing.

If earlier the major problem for producers of organic products was distribution then more recently, these products are actively interested by supermarkets.

“There are no specialty stores that would offer only organic products – says Pindus. – This can be explained by the fact that there are little of such products. Therefore, on the shelves with organic products you can find its conventional counterparts. Pindus said that specialty stores can appear very soon. Prerequisite for this is enough: growing demand from customers and interest of this business segment will contribute to further growth of the market.
How to invest in organic market in Ukraine? Leave an inquiry on [email protected]

Ukraine increases imports of waste paper

Business

In 2011, imports of waste paper and cardboard (scrap) according to the State Customs Service of Ukraine increased by 25% relative to the previous year. Ukrainian enterprises imported 267,873 tons of waste paper totaling nearly $ 70 million in 2011. And the export of waste paper was only 2843 tons with worth about 0.5 million dollars.

In 2010 Ukrainian enterprises imported 214,813 tons of scrap worth about $ 45 million.

The average price of imported waste paper and cardboard in 2011 was $ 260 per ton, while in 2010 was about 211 dollars per ton.

The main supplier of paper for Ukrainian enterprises still remains Russia. 85% of all imported waste paper in 2011, it received from the Russian Federation. Other major suppliers of waste paper for Ukraine are Hungary, Moldova, Poland and Slovakia.

Ukraine is the leader in the CIS on the use of stem cells

Business

Ukraine is the leader among the CIS countries in the legitimate use of stem cells in clinical practice.

As reported by the press conference in UNIAN – Ukrainian scientists – Biotechnology – Ukraine became the first country in the CIS, where stem cell therapies have received state registration in 2012, the Ministry of Health officially approved method of stem cell treatment of serious diseases such as panktreonekroz, critical limb ischemia , as well as injuries and burns.

Director of the Coordination Center of organ transplant, tissues and cells the Ministry of Health Ruslan Salyutin stressed that Ukraine has the right to declare the promise of clinical use of cell-tissue grafts, and this allows the current national regulatory framework.

“Today, from all countries of the former Soviet Union in Ukraine, there is a complete legal framework, which allows for clinical trials with stem cells. On the basis of the legal framework and the relevant permits in 2008 began the first phase of clinical trials, which were held in well-known scientific and medical centers – the Institute of Reconstructive and trauma surgery im.Gusaka, Institute im.Shalimova, National Academy of Postgraduate Education im.Shupika. A series of clinical trials could not have been possible without the participation of the Institute of Cellular Technology “, – said R.Salyutin.

According to the director of the Institute of Urgent and Reconstructive Surgery im.Gusaka Vladislav Green. The idea of using stem cells to treat burns and their effects, arose 15 years ago in medical facility, which Vladislav Green heads.

“Then in the Donbass was the large number of accidents in the mines and other industrial enterprises, when our burn center were many patients with critical burns. There were nothing to close burns. Then I got the idea to use the latest biotechnology and grow from them a kind of skin. In 2003, we opened the laboratory of cell tissue cultivation, unique to this day. Now we have treated hundreds of patients burned, hundreds of lives saved. But we have seen that the ability of the laboratory extend far beyond burns. Therefore, we began to apply biotechnology in patients with severe trauma, fracture nonunion, false, false joints, then in cardiology, neurology, diseases of the gastrointestinal tract, liver cirrhosis, “- said V.Grin.