REUTERS
Agri-businesses' demand for seeds was on the rise in 2019.
Ukraine in January-November 2019 imported 32,500 tonnes of grain seeds and 42,000 tonnes of oilseeds to the tune of US$427.8 million, which was almost 34 times up from exports of Ukrainian seeds worth US$12.7 million over the said period.
"The trend towards an increase in seeds imports, which has been observed in Ukraine since 2015, and continued in the past year, is the result of a sharp increase in demand from holding companies, as well as large- and medium-sized producers," the press service of the National Scientific Center "Institute of Agrarian Economics" quoted Doctor of Economics Oleksandr Zakharchuk, as saying on February 10.
At the same time, large foreign seed companies have built their plants in Ukraine to sell locally produced seeds to local farmers to circumvent imports, the expert says.
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In 2019, maize seeds accounted for the lion's share (90%) of grain imports into Ukraine, that is 29,400 tonnes against 1,900 tonnes of wheat seeds.
The share of sunflower in oilseeds imports was 70%, or 29,600 tonnes. Ukraine also purchased 9,100 tonnes of rapeseeds and 1,100 tonnes of soybeans.
In addition, there is still a trend towards increasing imports of sugar beet seeds and those of other vegetables.
"In January-November 2019, nearly 600 tonnes of sugar beet seeds were purchased for US$18.3 million, which makes it possible to sow almost all the area under sugar beets in Ukraine. Imports of vegetable seeds in value terms grew by 1.6% year-over-year, to US$22.7 million. Purchases of seeds of niche crops, in particular, sorghum, flax, and mustard, increased as well," the report said.
Prices of imported sunflower seeds in 2019 dropped by more than US$1,000 per tonne against 2018, the press service added.
"Some US$7,573 should have been paid per tonne of seeds, compared to US$8,643 in 2018, or 12.4% down," it said.
In the 11 months of 2019, prices of maize hybrids rose by 1.8%, to US$4,023 per tonne, those of soybeans by 21.7%, to US$1,848, while rapeseed prices grew by 18.2%, to US$4,063.
"Thus, the increase in the value of imports also occurs due to growing prices of imported seeds, which are already several times higher than those of domestic ones," Zakharchuk summed up.