News&Events
10.02.2024
Venky's Q3 Results: Firm posts loss on subdued oilseed business
Venky's (India) reported a third-quarter loss on Thursday, hurt by the subdued performance of its key oilseed business, sending its shares down by 6%.
The company reported a net loss of 79.4 million rupees (nearly $957,000) in the three months to Dec. 31, compared to a profit of 165.3 million rupees a year earlier.
Pune city-based Venky's sells edible oil obtained from processing oilseed such as soya, while the by-product de-oiled cake is sold or used as poultry feed. It also sells poultry and animal health products.
The oilseed business, which accounts for about 48% of the total revenue, was impacted due to weak demand and lower realisations.
Realisations were affected by lower edible oil prices, which also led to a decline in profit for oil maker Adani Wilmar.
The oilseed segment's revenue fell more than 16%, while revenue from poultry and poultry products - which accounted for 46% of the total - was flat.
As a result, total revenue fell 8% to 9.53 billion rupees.
Realisations in the poultry segment were lower from sales of day-old chicks and adult broiler birds, which are reared for consumption.
Shares of Venky's are on track for their worst day since early August 2023.
Rival Godrej Agrovet, a farm feed producer, reported a decline in third-quarter profit.
The company reported a net loss of 79.4 million rupees (nearly $957,000) in the three months to Dec. 31, compared to a profit of 165.3 million rupees a year earlier.
Pune city-based Venky's sells edible oil obtained from processing oilseed such as soya, while the by-product de-oiled cake is sold or used as poultry feed. It also sells poultry and animal health products.
The oilseed business, which accounts for about 48% of the total revenue, was impacted due to weak demand and lower realisations.
Realisations were affected by lower edible oil prices, which also led to a decline in profit for oil maker Adani Wilmar.
The oilseed segment's revenue fell more than 16%, while revenue from poultry and poultry products - which accounted for 46% of the total - was flat.
As a result, total revenue fell 8% to 9.53 billion rupees.
Realisations in the poultry segment were lower from sales of day-old chicks and adult broiler birds, which are reared for consumption.
Shares of Venky's are on track for their worst day since early August 2023.
Rival Godrej Agrovet, a farm feed producer, reported a decline in third-quarter profit.
Abundant harvests for wheat, corn and barley in Turkey for marketing year 2023-24 are expected to lower import demand for these grains while wheat exports could reach a record, according to the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
In its Feb. 1 Global Agricultural Information Network (GAIN) report, the FAS said favorable weather conditions during much of the growing season bumped up production. Wheat is projected at 19.5 million tonnes, corn at 8.4 million tonnes and barley at 8 million tonnes. If realized, the barley crop would be the second largest ever.
The wheat import forecast by the FAS was held steady at 10 million tonnes, assuming the private sector will continue purchasing wheat from abroad, down from 12 million tonnes in 2022-23. Barley production has pushed import demand down to 400,000 tonnes from 2.1 million tonnes the previous year. Corn imports are seen at 2 million tonnes, down from 2.6 million last year.
“The pace of (wheat) imports is expected to hold steady during the second half of the year,” the FAS said. “However, with a sizeable amount of imported wheat being processed and re-exported as flour and pasta through the Suez Canal, there is a chance that import demand could slip if the current situation in the Red Sea persists.”
Grain shipments increasingly are being diverted away from the Suez Canal because of attacks on commercial vessels in the Red Sea and the Gulf of Aden by Iranian-backed Houthi militia based in Yemen, according to the World Trade Organization...
10.02.2024
Bulgaria disagrees with the simplification of the procedure for Ukrainian sunflower seed export
Bulgaria opposes the implementation of the decision adopted in Ukraine to simplify the export of sunflower seeds to be delivered to the country. This is stated in the letter of the Minister of Agriculture and Food of Bulgaria Kyryl Vatev to the First Vice Prime Minister - Minister of Economy of Ukraine Yulia Svyridenko, VTA reports.
As K. Vatyev noted, there were no negotiations with his country about any liberalization and simplification of the licensing regime for the import of sunflower seeds from Ukraine to Bulgaria.
"As the Minister of Agriculture and Food of Bulgaria, I work to protect the interests of the Bulgarian agricultural sector and do everything possible to prevent market distortion," the minister wrote.
Meanwhile, he acknowledged his appreciation for the Ukrainian government's endeavors and endorsed its resolution. The decision entails that Ukrainian enterprises exporting to Bulgaria without a license will face exclusion from the list of accredited exporters, barring them from exporting to third-party nations for a duration of 6 months.
As K. Vatyev noted, there were no negotiations with his country about any liberalization and simplification of the licensing regime for the import of sunflower seeds from Ukraine to Bulgaria.
"As the Minister of Agriculture and Food of Bulgaria, I work to protect the interests of the Bulgarian agricultural sector and do everything possible to prevent market distortion," the minister wrote.
Meanwhile, he acknowledged his appreciation for the Ukrainian government's endeavors and endorsed its resolution. The decision entails that Ukrainian enterprises exporting to Bulgaria without a license will face exclusion from the list of accredited exporters, barring them from exporting to third-party nations for a duration of 6 months.
10.02.2024
Ukraine and Great Britain extended the duty-free trade regime for 5 years
The abolition of import duties and tariff quotas in bilateral trade between Ukraine and Great Britain has been extended for another 5 years. This is stipulated in the Agreement, which was signed on February 8 by the First Deputy Prime Minister - Minister of Economy of Ukraine Yulia Svyridenko and the Minister of State for Trade Policy in the Department for Business and Trade of Great Britain Gregory William Hands, the Ministry of Economy of Ukraine reported.
The Agreement provides for the cancellation of all import duties, as well as tariff quotas in bilateral trade. This agreement is set to remain in force for five years, expiring on March 31, 2029. Notably, certain exceptions such as eggs and poultry meat products will see a liberalization extension for an additional two years, extending until April 1, 2026. Furthermore, there's provision for the extension of the agreement beyond its initial term, subject to mutual consent between the parties involved.
"We've reached a significant milestone in our trade relations with the conclusion of the Agreement on full trade liberalization back in 2022," stated Yu. Svyridenko. "The implementation of this Agreement has led to bilateral trade in goods between Ukraine and Great Britain exceeding $1.4 billion, marking a 20% increase since its signing. Today, we're pleased to announce the signing of a new Agreement that will extend full trade liberalization for another 5 years, significantly invigorating our trade partnership. This move will strengthen Ukraine's export potential, fostering business development and boosting the national economy," added Svyridenko.
The Agreement provides for the cancellation of all import duties, as well as tariff quotas in bilateral trade. This agreement is set to remain in force for five years, expiring on March 31, 2029. Notably, certain exceptions such as eggs and poultry meat products will see a liberalization extension for an additional two years, extending until April 1, 2026. Furthermore, there's provision for the extension of the agreement beyond its initial term, subject to mutual consent between the parties involved.
"We've reached a significant milestone in our trade relations with the conclusion of the Agreement on full trade liberalization back in 2022," stated Yu. Svyridenko. "The implementation of this Agreement has led to bilateral trade in goods between Ukraine and Great Britain exceeding $1.4 billion, marking a 20% increase since its signing. Today, we're pleased to announce the signing of a new Agreement that will extend full trade liberalization for another 5 years, significantly invigorating our trade partnership. This move will strengthen Ukraine's export potential, fostering business development and boosting the national economy," added Svyridenko.
09.02.2024
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09.02.2024
Grains and oilseeds: Ukraine stages incredible export recovery
BRUSSELS. Ukraine’s exports have recovered to an incredible degree for wheat and corn. China’s soybean stocks have slumped by 19% and Tallage expects EU rapeseed production to decline in 2024/2025.
International demand for wheat declines sharply
Wheat has continued to slide on the back of sluggish international and sluggish European demand. Even Russia is struggling to sell prompting the quotations for 12.5% wheat to drop to USD 228/mt FOB Black Sea ports. As the Grain Union reports Russia’s exports stood at 405,600 mt on 05 February, which is 48% down on last year. Remaining export supplies range at 24.6 million mt. Egypt and Turkey have bought less, whereas shipments to Mexico are up. Algeria is increasingly turning to Russia rather than France...
International demand for wheat declines sharply
Wheat has continued to slide on the back of sluggish international and sluggish European demand. Even Russia is struggling to sell prompting the quotations for 12.5% wheat to drop to USD 228/mt FOB Black Sea ports. As the Grain Union reports Russia’s exports stood at 405,600 mt on 05 February, which is 48% down on last year. Remaining export supplies range at 24.6 million mt. Egypt and Turkey have bought less, whereas shipments to Mexico are up. Algeria is increasingly turning to Russia rather than France...
09.02.2024
Suez Canal grain and oilseed volumes drop by 20% in December, IGC analyst says
Citing private, real-time shipping data, IGC senior economist Alexander Karavaytsev said volumes were well below the same month in 2022 and the three-year average.
The drop in shipments came against a backdrop of ongoing drone and missile attacks on shipping vessels in the Red Sea by Yemen-based Houthi rebels, which had started to significantly impact dry bulk shipments, including grain, after being mainly limited to the container segment during the first stages of the crisis, the 25 January report said.
The Houthis have been attacking vessels in the region since late October, shortly after Hamas’ attack on Israel, which provoked an Israeli counterattack on the Gaza Strip, where Hamas is based. The Houthis claim that their attacks on the Red Sea are in response to Israel’s counteroffensive.
As a result of the attacks, the situation had led ships transporting bulk commodities, such as grain, to divert deliveries away from the Suez Canal, Karavaytsev said.
Several of the world’s largest shipping firms — including Maersk, Hapag-Lloyd, and the Mediterranean Shipping Co — had suspended shipping through the Suez Canal, a move that added to the journey and increased costs, World Grain wrote.
According to IGC estimates, re-routing from the EU and the Black Sea countries via the Cape of Good Hope at the southern tip of Africa “adds around 10 to 15 days to the journey time and around US$6-US$8/tonne to freight costs.”
Additional costs were directly linked to marine fuel prices, which accounted for about 20% of total voyage expenses, which – in turn – were linked to crude oil prices, Karavaytsev said...
The drop in shipments came against a backdrop of ongoing drone and missile attacks on shipping vessels in the Red Sea by Yemen-based Houthi rebels, which had started to significantly impact dry bulk shipments, including grain, after being mainly limited to the container segment during the first stages of the crisis, the 25 January report said.
The Houthis have been attacking vessels in the region since late October, shortly after Hamas’ attack on Israel, which provoked an Israeli counterattack on the Gaza Strip, where Hamas is based. The Houthis claim that their attacks on the Red Sea are in response to Israel’s counteroffensive.
As a result of the attacks, the situation had led ships transporting bulk commodities, such as grain, to divert deliveries away from the Suez Canal, Karavaytsev said.
Several of the world’s largest shipping firms — including Maersk, Hapag-Lloyd, and the Mediterranean Shipping Co — had suspended shipping through the Suez Canal, a move that added to the journey and increased costs, World Grain wrote.
According to IGC estimates, re-routing from the EU and the Black Sea countries via the Cape of Good Hope at the southern tip of Africa “adds around 10 to 15 days to the journey time and around US$6-US$8/tonne to freight costs.”
Additional costs were directly linked to marine fuel prices, which accounted for about 20% of total voyage expenses, which – in turn – were linked to crude oil prices, Karavaytsev said...
09.02.2024
Sunflower seeds: Polish farmers to start blocking borders
SOFIA/KYIV. Ukraine's goverment has simplified licencing procedures for exporting sunflower seeds to Bulgaria. Farmers in Poland intend to block border checkpoints with Ukraine.
Protests pay off
Last week sunflower seed processors in Bulgaria threatened to take to the streets should free trade with Ukraine remain restricted. Trouble is that a shortage persists in the doemstic market and continuous supplies from Ukraine are urgently required. Although the EU did not renew the import ban for Ukrainian wheat, rapeseed and corn along with sunflower seeds to the neighbourging member states Bulgaria, Romania and Hungary, Poland as well as Slovakia, trading is regulated by licencing procedures to protect the individual domestic markets and produce...
Protests pay off
Last week sunflower seed processors in Bulgaria threatened to take to the streets should free trade with Ukraine remain restricted. Trouble is that a shortage persists in the doemstic market and continuous supplies from Ukraine are urgently required. Although the EU did not renew the import ban for Ukrainian wheat, rapeseed and corn along with sunflower seeds to the neighbourging member states Bulgaria, Romania and Hungary, Poland as well as Slovakia, trading is regulated by licencing procedures to protect the individual domestic markets and produce...