Сельское хозяйство

Astarta [AST PW, BUY] has signed an agreement with Coca-Cola Beverages Ukraine to supply the company with sugar for the next three years.

Astarta [AST PW, BUY] and Ukrros [UROS UZ, N/R], the top Ukrainian sugar producing companies, have announced the beginning of their sugar production campaigns.

The Kernel Group [KER PW, N/R], a bulk oil and grain trader, plans to attract a USD 225 mln loan from a Europe-based bank.

According to Reuters, the world could possibly face a sugar deficit in the 2008/09 marketing year, which would amount to 3.3 mln mt versus profits of 9.4 mln mt in 2007/08 marketing year.

The Ministry of Economy drafted new regulations for the Ukrainian government on soft commodity exports in 2008/2009.

Trigon Agri [TAGR OMX, N/R], an international agricultural company that operates land assets in Ukraine, Russia and Estonia, with a land bank comprised of 144 thsd ha in Ukraine and Russia, released financial results for 1H08

The Kernel Group [KER PW, N/R], a bulk oil and grain trader, released its 4Q 2007/2008 consolidated financial results: net revenues soared 89% YoY to USD 663.1 mln, EBITDA surged by 172% to USD 126.0 mln, and net income increased by 4.3 times to USD 80.8 mln.

According to an official press release made by the Minister of Agriculture Yuriy Melnik, the Ministry upgraded its forecast for the year’s harvested grain crops by 5.7 mln to 48.7 mln. Moreover, Ukraine is going to export 22.6 mln mt of grain in the 2008/2009 marketing period.

Astarta [AST PW, BUY] harvested 262 thsd mt of early grains on an area of 59.5 thsd ha. The average yield of winter wheat is 5.2 mt per ha (+ 51% YoY), the average yield of winter barley is 4.0 mt per ha (+39% YoY) and 3.9 mt per ha for spring barley (+ 68% YoY).

The new sugar season will begin on September 2008. Only 64 sugar plants will be able to process sugar beet this season. That is the lowest rate witnessed in the last ten years. The shrinking sugar offer will drive sugar prices up.