UKRAINE – GrainCorp, the Australian grain and related commodities handler has opened a new company in Ukraine to provide its customers with agricultural raw materials, grains, seeds and animal feeds.
In reference to data from the Ukrainian state registry, Reuters reported that the new firm, GrainCorp Ukraine Ltd, was registered on May 14 within the Ukrainian State registry.
According to the report, the grain merchant had indicated earlier this year that it expected to be present in Ukraine for the 2018 new crop and that an initial asset-light Ukraine presence was being established.
It seems to be eying the prospective sector in Ukraine, one of the leading grain producers and exporters as the country plans to harvest at least 60 million tonnes of grain this year.
In 2017, it harvested 61.3 million tonnes of grain and plans to export 41 million tonnes in the 2017/18 season.
GrainCorp, whose core business involves storage of grain and related commodities as well as provision of logistics and market for the commodities, slashed its interim dividend amid a plunge in first-half profit, and warned it faces more challenges from unrelenting dry weather.
Profit for the six months to March 31 was down 59.9 per cent to $36.1 million, compared with $90 million the previous corresponding period.
The group’s results are primarily weighed down by challenging market due to oversupplied wheat.
According to BlackSea, this year has observed continued buckwheat imports to Ukraine and that in July-April 2017/18, Ukrainian companies brought to the country over 15.1 KMT of buckwheat that is already 94% more than in the whole of MY 2016/17.
This year’s buckwheat seeding is 66% the progress of last year as farmers had planted just 64% of its projected area by June 7 and according to UkrAgroConsult’s analysts, Ukraine’s planted area of buckwheat may fall to a new low this year.