(AOF) – At the end of January 2023, AgroGeneration, a grain and oilseed producer based in Ukraine, completed the 2022 harvest, more specifically the corn harvest. This delay in the harvest was caused by the weather difficulties (heavy rains) in the fall of 2022, as indicated in the press release of November 30. The net maize yield is 8.2 tons per hectare, and the total net crop production is 8,400 tons. At the end of December, the group completed the sunflower and soybean harvest with approximately 480 tonnes of soybeans produced with an average net yield of 2.5 tonnes/ha.
The net yield of sunflower is 2 tons/ha, and the net crop production is around 24,000 tons.
In total, according to the latest estimates, the group managed to harvest 79,800 tons of the 2022 crop. 000 ha due to the war in Ukraine which started in February 2022. Crop quality was affected by both war-related difficulties and weather conditions during the production season.
With the partial opening of Ukrainian Black Sea ports under the Black Sea Grain Initiative in August 2022, the Group managed to resume part of its export activities.
Currently, AgroGeneration’s business environment remains difficult, unstable and uncertain. Since the beginning of October 2022 and as of the date of this publication, it has been impossible to resume activities at the Group’s offices in Kyiv and Kharkiv due to the massive Russian missile attacks on Ukrainian critical energy infrastructure, followed by blackouts and the absence of mobile networks and Internet connection, as well as heating and water.
It remains unlikely that AgroGeneration will be able to meet the deadline for the publication of the Group’s 2022 accounts (scheduled for April 30, 2023). The convening of the General Meeting of shareholders in charge of reviewing and approving these financial statements will also be postponed. At the same time, the Group will continue to keep the market informed of the publication date as soon as it has more information.
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Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSEs-SMEs, according to Ania (National Association of Food Industries). Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases. However, they have not been renewed for 2023 and after. Consequently, 25 of the main inter-professional organizations (Intercereals, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to investment.
The State has proposed several devices, including an “electricity damper”, which are deemed insufficient. The organizations also deplore the failure of European negotiations to achieve a tariff shield to avoid distortions of competition. Agriculture and agri-food require a maximum ceiling price of €180/MWh, while many companies buy at prices above €500/MWh on the French market.