Agriculture

Earlier in November, the Verhovna Rada (Ukraine’s Parliament) adopted the anti-crisis law and priority measures to be taken by the government in order to mitigate the possible negative consequences from the economy’s recession. The adopted legislation introduces changes to the Fixed Agricultural Tax (FAT), effectively abolishing restrictions on its validity until December 31, 2009. In addition, the law preserves the preferential taxation regime regarding the Value Added Tax (VAT) for agricultural producers.

Ukraine’s Ministry of Agriculture has announced price levels for grain purchases under collateral from agricultural companies. The price for wheat of the second class will be USD 145.5 per mt, wheat of third class will be USD 128.4 per mt, wheat of sixth class – USD 87.2 per mt, and first class barley – USD 115.6 per mt.

Landkom International [LKI LN, N/R], an international agricultural company and producer of grain and oil-bearing crops with land assets in Ukraine, has harvested 52,247 tons of crops in 2008. This information was officially released by the company.

The Netherlands development fund Financierings-Maatschappij voor Ontwikkelingslanden N.V. opened a line of credit of USD 25 mln for Astarta Holding [AST PW, BUY] for the period of 7 years.

Ukzernoprom [4GW1 GR, N/R], a Ukrainian agricultural holding, has completed its winter sowing campaign for the 2009/10 marketing year.

Astarta [AST PW, BUY] has capacitated six self–owned sugar plants for the sugar processing campaign this season. Moreover, the company is going to launch sugar production at the Volynskiy plant through a lease agreement.

The European Bank of Reconstruction and Development (EBRD) has bought a 17.5% share in Shostka Milk [SHMK UZ, N/R].

According to an official press release made by Astarta on the Warsaw Stock Exchange, the company has received permission from the ABN AMRO Bank for an extension to its USD 25 mln loan for another 12 months until October 8, 2009.

According to the updated forecast of Kingsman, a UK-based consulting agency, the world sugar deficit will deepen to 4.7 mln mt (+42% YoY) in the 2008/09 marketing year.

Dakor [DAKOR UZ, N/R], a Ukrainian vertically integrated sugar producer with a land bank of 122 thsd ha, is going to produce a total of 110 thsd mt of sugar in the 2008/09 marketing year.