Home Business

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.

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 round table “Ukraine – Malaysia”

December 21, in the Kiev Chamber of Commerce was held a round table Ukraine – Malaysia. Excellent presentation, analysis of import and export of Ukraine and Malaysia, could not overshadow a number of issues that are between two countries. Thus, by Malaysian partners frequent the cases of fraud, especially in the printing industry.
The good moments, you can single out that Ukraine is increasing quantities of supplying metals, ferrous-alloys, electrical goods, vegetable oil, and, strangely enough, vehicles. Malaysia, in turn, provides us with the equipment, products, chemical production, food products, particularly palm oil.

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.

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.

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.

Ukrainian-Pakistani Business Forum

U%2526P8th of December 2011 was held Ukrainian-Pakistani Business Forum, which called first high-level forum
Despite the strong statements, conference hall was half empty, and the bulk of those attendants was Pakistan delegation by themselves.
This delegation is different from others because they are very serious people and big players. They not only want to sell the Ukraine, but (and that is very important) to buy and invest. 
Here you have the clue.

Ready to buy – metal (steel long products), copper plates, coal, manufactured goods.

Ready to sell: textiles, fabrics, clothing, carpets, leather goods, footballs, sports goods, food, rice, and various tropical fruits, spare parts for automobiles, electric and gas devices, surgical instruments.
Yearn for cooperation in the energy sector, offer joint development of oil and gas in Pakistan.

Who came to us?
Here they are:
1.     F. Rabbi Steel (Pvt.) Lt, Steel Products.
2.     Siddiqsons Ltd, Denim Fabric & Tin Plates.
3.     Herbion Pakistan (Pvt) Ltd, Herbal Medicines.
4.     Qaim Automotive Mfg(Pvt) Ltd, Exporters of Auto parts and Filters & Importers of Steel & Steel Product.
5.     Abdul Rehman Corp (Pvt) Ltd, Home Textile & Institutional linen.
6.     Faisal Fabrics (Pvt) Ltd, Home textile. (Check this Home Lovers site for inspiration) 
7.     Hi-Rose Corporation, Surgical & Dental instruments.
8.     Lucid Industries, Lane, Sports goods.
9.     Roshan Enterprises, Fruits and Vegetables.
10.  Iftekhar Ahmed & C, Fruits and Vegetables.
11.  F.A. INTERNATIONAL, Fruits & Vegetables.
12.  Vision Group of Companies Vision House, Main Barki Road, Lahore, Pakistan, General trading and importer of construction related items.
13.  Services Industries Limited, Footwear.
14.  Atlas Foods (Pvt.) Ltd, Rice.
15.  Ather Corporation, Carpet.
16.  Nasreen Trader, Steel.
17.  Qazzafi Medico/Surgical, Surgical.
18.  Tabani Group, Exporter of general trading & importer of industrial goods & machineries.
19.  Eastern Energy Pvt Ltd, Cooperation in exploring oil & gas resources of Pakistan, import of motors and industrial machinery, export of food product.
20.  Best Exports (Pvt) Ltd, Textile products including bed linen, table linen and other items of all kind in 100% grey, bleached, dyed & printed cotton fabrics.
21.  Integrated Textiles Network, Textile fabrics, Made-ups.
22.  Two Star Pakistan Limited, Exporter of Citrus Fruits, Fresh Mandarin (Kinnow).
23.  Al-FATAH INDUSTRIES, Manufacturer & exporter of electric and gas appliances.
24.  Shahraj Fabrics (Pvt) Ltd, Exporter of fashion wear and uniform.
25.  Mumtazmehel Corporation, Importer of coal steel coils and sun flower meals.
26.  Al- Nazeer Nippon Chemicals, Adhesives / Sealants / Glues and Epoxy.

What do we know about mutual cooperation between Ukraine and the Islamic Republic of Pakistan?
Here’s what:




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:
% of change
EU 27
South Korea
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:
Net export, million tons.
South Korea
EU 27
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.

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

Salaries in Ukraine

The highest salary in Ukraine paying airlines and banks
The lowest salaries are in agriculture.
Salaries in Ukraine

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.
overcast clouds
2.1 ° C
2.1 °
0.9 °
84 %
97 %
5 °
3 °
4 °
5 °
4 °
USD - United States Dollar