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Solid waste situation in Ukraine

For Ukraine, as well as for many other countries, the issue of solid waste treatment is very urgent, considering that accumulated solid waste is the main cause of soil and groundwater pollution. According to the Ministry of Regional Development and Construction (hereinafter – “MRDC”) in Ukraine in 2011 about 12 m tons of municipal solid waste (MSW) were produced, and the annual amount is growing by an average of 3-5% per year. Also, according to MRDC, waste accumulated by this point of time contains about 2.5 m tons of paper, 400 thsd tons of steel, 25 thsd tons of ferrous metals, and 400 thsd t of plastic. In 2011, the UNDP estimated the value of raw material potential in case of introduction of separate waste collection and waste recycling would amount to c. UAH 1.3 bn (about EUR 120 m).
Ukrainian government recognizes importance and urgency of the problem of solid waste treatment in Ukraine and is currently implementing a number of initiatives at the national level –  National project “Clean City” (under the patronage of the President of Ukraine) – construction of waste processing plants in 10 regions of Ukraine on terms of public-private partnership.
Cities chosen for the E2 80 9CClean City E2 80 9D project
Solid domestic waste production
According to MRDC, c. 50 m cubic meters of waste are produced annually in Ukraine, or about 11-12 m tons of waste, an average of 240 kg per capita (in large cities this figure may be as high as 400-450 kg/ person). The forecasted growth of MSW production is 3-5% per annum. Also, the Ministry estimates that currently there have been accumulated approximately 2.5 m tons of paper and cardboard, 400 thsd tons of ferrous and 25 thsd tons of non-ferrous metals, and 400 thsd tons of plastic in the form of waste.
According to the analytical study carrid out in 2011 under the UNDP project “Municipal Governance and Sustainable Development”, calculations based on market prices for secondary raw materials in Ukraine resulted in the following estimations of economic effect from operation of waste processing complexes, which incorporate waste sorting stations and incinerators for solid waste: paper and cardboard – UAH 180 m, metals – UAH 225 m, glass – UAH 40 m, polymers – UAH 740 m, textile – UAH 80 m, and heat or electricity generated for the surrounding neighborhoods and waste processing purposes – UAH 35 m. The total effect could amount to UAH 1.3 bn (EUR 120 m).
In 2011 only 7% of household waste was recycled and disposed of (3% – separately collected and recycled, 4% – burned in two incineration plants – in Kyiv and Dnipropetrovsk).
In 9 Ukrainian cities: Kyiv, Sevastopil, Kharkiv, Chernivtsi, Simferopol, Olexandria (Kirovohradska obl.), Novohrad-Volynskyy, Bucha and Pohreby (Kyivska obl.) there are waste sorting lines in operation, and in 19 more towns such facilities are under construction. In two cities (Kyiv and Dnipropetrovsk) waste is partially being utilized at incineration plants, and in Lyubotin (Kharkivska obl.) a pilot incineration plant has been recently put into operation.
Waste treatment plants in Ukraine
Waste treatment plants in Ukraine

Features of the Ukrainian market of vegetable oils

Sunflower oil market Ukraine1Sunflower 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

Global rating of steel exporters-2011

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.

Ukraine increases imports of waste paper

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.
Ukraineb2b waste+paper
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: prices on the export market of crude sunflower oil down

According to data of APK-Inform Agency, the prices on the Ukrainian export market of crude sunflower oil with FOB delivery basis started decreasing. The trend was mainly caused by the range of macroeconomic factors. Besides, a gradual increase of the number of offers from the major countries-producers of crude sunflower oil provides the significant influence on formation of the prices.
Thus, the offers to purchase of Ukrainian sunflower oil on FOB terms arrive the prices of 1215 USD/t (delivery in October-November). In turn, the Ukrainian trading companies announced the offer prices not below 1230 USD/t FOB.
As a reminder, at the end of the previous week, the purchasing prices for sunflower oil of Ukrainian origin were announced within the range of 1225-1230 USD/t FOB.

Ukrainian tax benefits for star hotels

Hotel business in Ukraine is gradually recovering, helped by interest from international operators. However, its development is constrained by inexperience Ukrainian players. But, the factor of Euro 2012 and the government’s proposed tax incentives makes a difference for the better. So, we consider the legal norm:
  “Temporarily, for 10 years, starting from January 1, 2011 shall be exempt from income tax business entity received from the hotel services (group 55 CTEA DK 009:2005) hotels” five stars “,” four stars “and” three stars “, including the newly constructed or reconstructed, or in which major repairs or restoration of existing buildings and structures (provided that the income from the sale of accommodation services by providing room for a temporary stay of at least 50% of the total income of an economic for the relevant tax (reporting) period, which shall be discounted). “
 As a result, need to note the positive trend towards the promotion and development of the hotel industry:
1) Profit hoteliers released on the condition that the hoteliers are really engaged in the provision of accommodation services, which is at least 50% of total revenues;
2) The exemptions are granted, but only in respect of profits derived from the business entity of hotel services;
3) With spending hoteliers use at their discretion, but within the 3-year period and to the purpose specified by law, aimed at the development of the hotel industry.

Prices of olive oil fell to a minimum of 10 years


olives oil
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).

The largest bakery in Ukraine will be launched in July

images

                 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.

Imports of seafood from Alaska to Ukraine has doubled

ryba vkusnaya      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.

2012 is a Year of the Ukrainian organic market

251394How 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] 
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