Credit Agricole summer agro-expeditions

Dear customers!

Over the three summer months, agro-experts of Credit Agricole Bank together with the national agro-site Latifundist.com effected three agro-expeditions and visited all in all 22 regions, 43 agro-companies in just 17 days, inspecting fields with winter wheat, sunflower and soy and assessing production potential of these crops.

Wheat agro-expeditions have now become traditional, while sunflower and soy crop inspections took place for the first time. The interest in the latter plants can be clearly understood as both sunflower and soy are export crops in Ukraine. Ukraine is the world’s largest exporter of sunflower oil and ranks sixth among global exporters of soy. Moreover, soy is widely used in food production and industry.

So the expedition on winter wheat, which ranks first in Ukraine in terms of crop acreage, took place in the late June. The agro-team’s itinerary ran across Mykolayiv, Kirovohrad, Cherkassy, Kyiv, Zhytomyr, Volyn, Vinnytsia and Khmelnytskyi regions. The team visited 16 agro-enterprises and over 40 fields. According to the forecast of the expeditionists, it is expected that the crops of winter wheat will reach 22.5 - 23 mln tons, with feed wheat comprising 60-70% of the total yield. Such result is attributed to heavy precipitation during the vegetation period, lodging of crops and, respectively, progress of disease.

The agro-expedition on sunflower – the most profitable crop in Ukraine – that took place in the first half of August was focused on the fields of 15 farm enterprises, and its itinerary ran from the South of Ukraine northward. Wide expansion of sunflower in northern regions of Ukraine is a present trend, though in the past sunflower cultivation used to be curbed there. Increased demand for sunflower seeds together with the attractive price bolster producers to augment crops. And the average yield in Ukraine improves thanks to the results of the northern enterprises. There is another trend that has all the prospects for expansion – cultivation of high oleic sunflower containing over 80% of oleic acid. Traders are ready to pay a higher premium (+50 USD per ton) for it. This year Ukraine, like the entire world, expects good sunflower yield. Back in June, national and foreign analysts revised upwards their outlook for the volume of production, processing and export of sunflower. The experts of the Ministry of Agriculture of the USA believe that Ukraine will get at least 13 mln tons of seed harvest in the marketing year of 2016/2017, which in its turn will result in higher export of both sunflower and sunflower oil.

Finally, the end of this summer was marked by agro-expedition dedicated to soy, which is a rather new agricultural plant for Ukraine. As a rule, strong demand for soy persists through the season, and its price guarantees high profitability. Over the last six days of August, agro-expeditionists inspected the fields of 12 companies in 6 regions. This year, soy crop acreage has slightly decreased as a result of the last-year’s draught and under-received projected harvest. However, no production shortfall is expected. The fields that were visited revealed a high potential, and the representatives of households expect far better results compared to the previous year. Interestingly, the Ministry of Agriculture of the USA forecasted record-breaking 4.5 mln tons of soy production in Ukraine in the marketing year of 2016-2017. Today there is a strengthened regional specialization in soy growing, majorly across the central regions of Ukraine with key market players emerging from among producers.

Dina Sapych, expert of Agro expertise division, who took part in the three agro-expeditions, speaks about the importance of such events for the Bank’s agro-team: «Agro-expeditions cover many regions and households where plants are cultivated. These households differ in terms of capacity, technology, financial opportunities; they are located in different climate zones, so the plants are grown in different weather conditions and on different soils. Such visits across the country help to create an understanding of the situation in the region. Another benefit of the agro-expeditions is the opportunity to receive first-hand information from the producers themselves».

About the Bank:

PJSC «CREDIT AGRICOLE BANK» is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of bank insurance and third - in project financing in Europe. CREDIT AGRICOLE has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including VIP clients, and business. The Bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of CREDIT AGRICOLE in Ukraine is confirmed by the highest possible FITCH ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 442 000 private and 35 000 corporate customers, including representatives of small and medium business, large Ukrainian companies and international corporations.

Contacts:

Viktoriia Torianyk, Head of PR and corporate communications Credit Agricole Bank.

Phone. +38 044 581 07 45, e-mail: Viktoriia.Torianyk@credit-agricole.ua