Agriculture

Shareholders of the companies LandWest [4K1A GR] and Dakor [DAKOR UZ, WI81 GR] have finally announced completion of their merger into a new company, Dakor Agro Holding (Cyprus).

Trading company “Kernel-Trade” (Kyiv) has attracted a sindicated loan of USD 170 mln. The crediting rate is (Libor + 5,0%)/0,98, maturing August 31, 2010. The purpose of the loan is to finance raw materials purchase and to cover the expenses of storage, transportation and processing of sunflower seeds.

Today, the 23d of September, a cabinet ministry will hold a meeting to consider a resolution implementing an alternative plan for reimbursing companies for VAT from the Agrarian Fund. VAT-repayment is a long-standing problem for exporting companies in Ukraine.

Prime-minister Iulia Timoshenko initiates a reduction in the price of natural gas for beet-sugar producers of 16,98%, or UAH 450, down to UAH 2200 per thousand cubic meters. Presently gas accounts for 30% of the cost of sugar.

The biggest Ukrainian poultry meat producer “Myronivsky Hliboproduct” [MHPC LI, BUY] confirms its plan for poultry output for FY2009 at 285 thsd t, which is 26,7% higher in comparison with 2008 (+60 thsd t), MHP's (MHPC LI, N/R) CEO Yuriy Kosyuk announced at a press-conference for analysts. According to his statement, output will be up to 335 thsd tons (about 50% of the market) by the end of 2010.

As reported Interfax, the Ukraine’s daily newspaper, the government decided to provide agrarians with USD 36.1 (UAH 275 mln) from the State Reserves Fund. In particular, for bank’s interest reimbursement will be directed USD 15.1 mln (UAH 115 mln). A total USD 2.6 mln (UAH 20 mln) will be addressed to support domestic animal production.

Ukraine’s domestic sugar prices rolled over the USD 660 mark, while global sugar prices are above USD 500 per mt.

As of August 4, 2009 Ukraine has harvested 29.5 mln mt of grain on 10.5 mln ha. The average grain yield increased to 2.81 mt per ha.

As of July 30, Ukraine’s farmers had harvested a total of 26.5 mln mt of grain from 9.5 mln ha, with an average crop yield at 2.8 mt per ha. The farmers harvested 16.5 mln mt of wheat yielding 3.1 mt per ha and 9.1 mln mt of barley yielding 2.5 mt per ha.

Mriya [MAYA GR, BUY] has completed its winter rapeseed harvesting from an area of 19.8 thsd ha yielding 2.9 mt per ha. Currently, the seeds are cleaned and dried; the harvest is stored at the company’s silo facilities. Furthermore, the company has begun harvesting campaign its winter wheat.