Ukraine is a key figure in the global agricultural market




Konstantin Bugera
Commercial Director of the company

Ukraine occupies a key place in the world agricultural market: we are the first in the export of sunflower oil (6.5 million tons, 55% of all world trade), and, we are the second in the export of grains (40 million tons, 1st place - USA). We would like to focus on the progress that our country has achieved in the agricultural sector over these decades.

Let`s compare today's economic figures with those of 1990, when agriculture was at its peak in the Ukrainian SSR. The figures, that we see today are impressive. The total harvest of grains (corn, barley, wheat, etc.) increased from 38 to 75 million tons, and sunflower - from 2.3 to 15.9 million tons.

The yield of crops has doubled: sunflower from 14 to 26 c/ha, wheat from 28 to 49 c/ha, and corn - from 29 to 68 c/ha. In addition to sunflower, rapeseed and soybeans became popular oilseeds (production increased 20-30 times).

Our agricultural enterprises have been thoroughly integrated into the world economy over the past decades. We know the fact that the majority of agricultural holdings are concentrated in Australia, China, USA, Russia and Latin America, but in Europe we are the undisputed leader. The total land bank of TOP-3 Ukrainian holdings: Kernel, UkrLandFarming and MHP - is about 1.5 million hectares (for information - holding № 1 in the world is Kidman & Co Ltd (Australia, 8 million hectares)). Every day Ukrainian companies are becoming larger, more competitive, their shares are listed on global financial markets.

In 2020 the total revenue of 13 Ukrainian agricultural corporations (excluding transnationals) grew to record of $ 12.5 billion (Kernel revenue is $ 4.35 billion (profit - $ 200 million) and MHP revenue is $ 1.9 billion (profit - $ 195 million)).

In addition to the large agricultural business, today in Ukraine there are a sufficient number of farms (with an area of ​​up to 40 thousand hectares), trading, logistics, forwarding, insurance and brokerage companies in this area.

It is not necessary to be a “whale” of the agricultural market and be somewhere in the center of the world in order to influence trends in world trade.

We see that the world and in Ukraine is undergoing a process of business defragmentation, the influence of transnational corporations is decreasing, and small companies are becoming more competitive due to their flexibility. This happens due to the fact that everyone has access to important information (contractors, prices, freight), but the main thing remains - to use it correctly. The strengths that are important today are: reaction speed, openness to new things, digitalization.

The volatility of recent seasons has shown that even the fundamental approach to business planning has changed: earlier it was 5 years, 1 year, but now for each business and situation this is an individual concept, for some it is even 3-4 months.

Today, small and medium traders can successfully trade all over the world, on different bases, including CIF. The POSEIDON TRADEWAVES company uses this opportunity, and we also work with direct buyers in different regions and even go further - we use the infrastructure of the importing countries for our trade.

Our company continues to provide new effective approaches and methods of trading activities that ensure the simplicity and comfort of trading operations.

As for the general forecast for the 2021/2022 season, we believe that it will be no less interesting than the previous one. At the beginning of December, the harvesting campaign is already over and statistics show that the yield of the main crops (wheat, barley, corn, soybeans) is 30% higher than in the previous season, but prices are also growing.

Agrarians will definitely win this season, but we wish everyone in the new season a good margin and good luck.