Ukraine - Exporter Guide 2012

An Expert's View about Economic Trends/Outlook in Ukraine

Posted on: 11 Jan 2013

The Ukrainian economy remained stable throughout 2012 due to the demand for food products.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/28/2012 GAIN Report Number: UP1241 Ukraine Exporter Guide Annual Report Approved By: Randall Hager Prepared By: Oleksandr Tarassevych, Agricultural Specialist Report Highlights: Demand for food products, including imported, served as an anchor for Ukrainian economy in 2012. A general economic slowdown observed toward 2013 is likely to have a dampening effect on food sales in 2013, although modest growth is expected. In 2012 tight financial policy and stable local currency provided importers some competitive advantage over domestic producers suffering from expensive financing. This advantage may not be in place in 2013. The trading environment remains complicated and non-transparent. Potential exporters are advised to secure an experienced Ukrainian partner with established contacts who is capable of navigating a myriad of obstacles facing imported agricultural products. Post: Kiev SECTION I. MARKET OVERVIEW Macroeconomic performance and other indicators Despite a lack of economic reforms and plummeting demand for major Ukrainian export products in 2012, Ukraine’s macroeconomic indicators remained stable. Some growth slowdown became evident toward the end of the year with industrial, construction, and agricultural production declining. Trade was the only sector preventing the economy from sliding into recession, although this anchor may be short-lived. Throughout 2012, there was almost zero inflation and an extremely stable local currency exchange rate. These policies tremendously increased mid-term financial risks leading to interest rates growth to 25-28 percent with a consequent increase in the share of bad loans. Exchange rate support led to a decrease of foreign currency reserves from $38 billion to less than $25 billion and investors’ capital outflow. The situation in the economy was favorable for importers: an overvalued currency resulted in almost 30 percent processed food products import growth. Ukrainian trade in food products developed rapidly over the past seven years. In the past this growth had been driven by a strong economy and by an increase in consumer incomes. The October 2008 financial crisis ended these rapid expansion trends and opened a period of new developments in Ukrainian agricultural and food markets. Ukraine’s currency, the Hryvna (UAH), lost 63 percent of its value against the US dollar before stabilizing in the early fall of 2009. This drop significantly reduced the attractiveness of imported food products for Ukrainian consumers. In 2012, expected GDP growth is around 0-0.5 percent. It remains on positive side, but most of the growth comes from exports of raw materials and depends on world markets. The economic situation in the domestic market remains worrisome. The performance of the food sector is tied to performance of the rest of the economy and consumer incomes. Developments in 2012 have been turbulent: due to Parliamentary elections and the Euro-2012 soccer Championship the Government of Ukraine (GOU) maintained many expensive socially oriented programs and infrastructural projects. In 2012 these programs cushioned the impact of the financial crisis on the population. In 2010-12 the GOU continued slow tax and administrative reforms. Both had mixed success and contributed to already cumbersome business environment. Despite financial hardships, the GOU and international organizations agree on a GDP growth forecast in 2012 of a modest 0.1-0.5 percent. Together with social program reductions, this forecast gives little chance for consumer income growth and large scale recovery of the trade in food in 2013. Real GDP Growth (Percent change from the Previous Year) 200 200 200 200 2004 200 200 200 200 200 201 201 2012 0 1 2 3 5 6 7 8 9 0 1 * +5. +9. +5. +9. +12. +2. +7. +7. +2. - +4. +5. +0.3 9 2 9 4 1 7 3 9 1 15.0 2 2 * FAS/Kyiv Forecast Suppliers of food products to Ukrainian retailers will continue to face payment problems limiting sales and assortment. The share of foreign food products will remain relatively small as well as the number of distributors ready to work in an extremely difficult environment. Despite technical barriers to trade importers of food products were able to significantly expand their presence in 2012 mostly due to pork and other meat products increases. Share of Domestically Produced Food Product in Trade Turnover 2005 2006 2007 2008 2009 2010 2011 2012* Total Food Products 90.9 89.3 88.2 88.2 88.4 88.2 87.2 88.5 * FAS/Kyiv Forecast Despite certain stabilization, Ukraine remains in a recession. Low global demand for steel and chemical products, lack of credit, and problems in the Ukrainian financial sector are still troubling. Some unsolved budget issues remain. Ukraine has one of the riskiest sovereign ratings in the world. Agricultural production remained relatively stable. Despite formal 4.8 percent output reduction the 2012 crop was the third best in history and provided stable base for domestic processing industry. Some red meat production drop also contributed to decline. Industrial Output (Percent change from the Previous Year) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 7.0 15.8 12.5 3.1 6.2 10.2 -3.1 -21.9 +11 +7.8 -1.5 * FAS/Kyiv Forecast based on Jan-Nov 2012 data During the 2008 crisis the real household incomes fell 6.8 percent in ’09 and the foreign exchange rate depreciated over 40 percent from the onset of the global crisis in the fall of ’08. In 2012 incomes are expected to grow by 15 percent (after nine percent growth in 2011). According to independent experts, the population saves in hard currency (dollars and Euros) given the steep devaluation. Inflation in 2012 is projected to be at very low for an economy in transition level, around 1-2 percent. Many Ukrainian banks are currently experiencing difficulties because of expansionist policies exercised in recent years. They served as outlets pumping foreign currencies from parent banks (or short term syndicated loans) into Ukraine. The biggest portion of this currency inflow was used for consumption. Although many banks managed to avoid currency risks by providing loans in US dollars and Euros, the risks absorbed by the population and business happened to be extremely high. Abrupt devaluation of UAH from 4.6 UAH/USD to 7.9 UAH/USD undermined the population’s ability to service loans in foreign currency. The macroeconomic situation in the country is subject to constant changes. Trade risks increased greatly last year. Exchange rates, banking sector indicators and GOU policies are changing constantly. Political instability, however, has not vanished. An interested reader needs to refer to third party detailed analytical reports or to reports published by international organizations to get an understanding of the current situation and short term perspectives. Ukraine posses a sizable shadow economy that developed due to tax pressures, frequently changing legislation, and law and contract enforcement challenges. Crisis developments resulted in a gradual growth of the share of the shadow economy over 2008-12. The tax reform of late 2010 did not improve the situation, especially for small and medium size enterprises. Experts estimate the size of the parallel shadow economy to be between 40 and 50 percent of the official economy. The country is ranked 144 out of 174 on the 2012 Transparency International Corruption Perception Index, scoring 26 point out of 100. The population of Ukraine was estimated to be 45.6 million, making it the second largest consumer market in Central and Eastern Europe after Russia. Ukraine’s population is characterized by the increasing number of elderly and a slowly decreasing population. The size of the official labor force is stable at 20.2 million. In 2012, the official unemployment rate floats around 8.4 percent, but experts point out that the actual number is higher due to unrecorded unemployment and underemployment, especially in rural areas. Stabilized real incomes and demand drove the stabilization in the domestic consumer market. Ukraine joined the World Trade Organization (WTO) on May 16, 2008, decreasing most agricultural import duties to previously negotiated levels. The country is also bound by international agreements on Technical Barriers to Trade and Sanitary and Phytosanitary measures. Ukraine is on the final stage of Free Trade Agreement (FTA) negotiations with the EU and framework FTA with the Custom union Countries (Russia, Kazakhstan and Belarus). Because of relatively low incomes and nearly 60 percent currency devaluation in 2008-10, the sale of most U.S. food products available on the Ukrainian market is limited. Most U.S. products are of premium quality and value added and found in some niche markets frequented by wealthy consumers (1.5-1.8 percent of the Ukrainian population) and the growing middle class (13-17 percent of the population). Concomitantly, the rapid development of the Ukrainian food processing industry is opening the door for U.S. ingredient suppliers. Ukraine is endowed with inputs critical to establishing a strong agricultural sector. If the government is able to sustain reforms designed to increase farm efficiency and stimulate growth, then Ukrainian agriculture will continue to grow. However, it is important to note that policy makers are still applying administrative controls that limit the increase of some agricultural and food prices or limiting market development. Opponents to these measures are attempting to prevent implementation of many of these provisions because they will decrease farm efficiency, be a disincentive to investment, drain the national treasury, and are WTO inconsistent. Retail Trade In 2012 some positive trends were observed in Ukrainian retail chains. It was the first year after the 2008 crisis when retail chains renewed careful growth. Owners were opening new stores and invested into rebranding of existing ones. Chains adjusted their expansion plans to shifting consumer behavior and relied heavily on smaller formats to recapture market share. Small mini markets and “shop near home” became predominate formats. Companies that emphasized low prices and relied on smaller stores were able to strengthen their positions in the country. Foreign Trade Upon accession to the WTO Ukraine decreased its import duties to reasonable levels. However it still maintains veterinary and sanitary control. Some existing standards and veterinary regulations have complicated trade in U.S. ready-to-eat products, food ingredients, fish, poultry, red meats, animal genetics, and live animals. Abolishment of most of these trade barriers is yet to be done to bring the country in compliance with WTO rules. All these non-tariff barriers to trade add to high distribution and shipping costs. Custom valuation of the imported products remains to be the biggest problem for U.S. exporters. Because Ukraine signed FTAs with Macedonia, Russia and other countries within the Commonwealth of Independent States (CIS), food and some agricultural products from these countries have price advantages over imported products from the United States. It must be noted that many of these FTAs contain multiple exceptions (especially for agricultural products) that decrease their role. A finalized FTA with the EU could have much bigger impact as many EU food products are in direct competition with the U.S. Despite the U.S. capturing a relatively small share of the trade, in 2010 U.S. agricultural exports reached $245 million. The opening of the Ukrainian red meat market in the end of 2008 and WTO accession further facilitated trade growth for U.S. products. (Note: These are official numbers that won’t capture products imported through the shadow economy.) Despite the crisis, Ukraine will continue to be a major exporter of food and agricultural products, especially within the CIS region. Since the late 1990’s, Ukraine has become an established supplier of grains and oilseeds to the world market. Recent developments suggest that Ukraine can also become a major poultry supplier. Most Ukrainian grain is sold to the Near East, Eastern Europe, and EU countries and can potentially reach markets further afield. Once sizable, exports of dairy products from Ukraine are decreasing due to a shrinking cattle population. Exports of processed and high value added products are not significant, but growing. Advantages and Challenges Facing U.S. Products Advantages Challenges Structural changes in consumption lead to High trade risks due to volatile exchange rate greater demand for value added food and political instability in the country. products. Investment growth in the food processing Strong competition in the local market from industry increases demand for additives domestic producers and increasing imports from and other ingredients not produced in CIS (mainly from Russia), EU and Baltic Ukraine. countries. Joining the WTO made access for imported Long-established consumer preference for goods easier. domestic fresh products with no additives. Current veterinary requirements impede the import of red meat and biotechnology products. Growth of international fast food and High distribution, shipping costs and technical restaurant chains in Ukraine that use barriers to trade. standard procurement systems and that source food ingredients from the U.S. The retail sector is looking for innovative Low awareness of U.S. products; extremely low high value added food imports. presence of U.S. products on the shelves of supermarkets and discounters. U.S. food and agricultural products traditionally suffer from low customer awareness in Ukraine. Several constraints and misconceptions have contributed to the small market presence of U.S. foods: U.S. companies have little reliable information about the country, current market opportunities and potential business partners. Minimum quantities offered for export are often too large for the Ukrainian market. A perception that persists among Ukrainian importers is that landed costs of U.S. products are higher relative to European products due to higher transportation costs. The perception that U.S. exporters are simply too far away to follow market trends and service the Ukrainian market. SECTION II. EXPORTER BUSINESS TIPS Local Business Practices and Customs Entry Strategy There is no single market entry strategy recommended for new-to-market exporters. First, the exporter should define whether Ukraine is a major market for the product, or if only occasional deliveries will be made. The following factors should be considered: Market product need, given consumers income trend and particular food sector development prospects (separate market research in order to assess product prospects maybe required); Availability of similar domestically produced products, (often Ukrainian producers are effective in building barriers to trade by lobbying the GOU, Parliament, veterinary or health inspection services). Calculation of the landed cost of a product in order to make price comparisons vis-à-vis competitors. Availability of similar products from EU or FSU suppliers. Also, comparative advantages / disadvantages of U.S. products relative to products from major competitors (e.g. quality, price, transportation expenses, packaging, labeling, etc.) Availability of a local distributor familiar with the product. It is advisable to initiate personal contact in order to discuss marketing strategies, funding for advertising, slotting allowances, BTL in-store promotions, tasting and sampling events. Suppliers may also want to consider trade fair participation to increase awareness of their products. Tariff and non-tariff regulations affecting the product. (Note: in some cases large Ukrainian food producers lobby for tariff reductions for much-needed ingredients and can settle veterinary or SPS problems should they arise.) Currently, almost all U.S. food and agricultural product exporters work through a Ukraine-based subsidiary, importer or through the procurement service of the buyer (the latter is the most convenient if there are only two or three potential buyers). Local distributors are more flexible, usually have established marketing channels and can provide local customers with short-term (5- 30 days) credits in kind. Recently due to crisis developments in Ukraine’s retail sector credits in kind tend to grow in length from 21-30 days (on average three years ago) to six months. Many Ukrainian retailers are surviving on the expense of importers and local distributors. Due to unavailability of other sales channels for many imported products distributors have no other option but to concur on new terms. Trend for financing of the retailers from the distributors’ pocket was also notable before the crisis, but now this practice became widespread. Importers are also responsible for the entire logistical chain and inland transportation. Due to frequent changes in Ukrainian legislation, non-transparent custom clearance rules, SPS and veterinary procedures, it is recommended that the Ukrainian partner handle all logistics. Some Ukrainian distributors have already established representative offices in major exporting countries. U.S. companies should approach potential Ukrainian partners with due diligence. While information on Ukrainian companies has improved, there is still a significant dearth of background data and credit histories on potential Ukrainian distributors. This presents the greatest obstacle to finding reliable, competent distributors. In order to obtain a due diligence report on a potential Ukrainian partner, a U.S. company is advised to contact either a law firm or an internationally accredited financial service company. It is advised that all U.S. companies consider legal counsel before and while doing business in Ukraine. Ukrainian laws and regulations are vague and open to interpretation. U.S. businesses are advised that establishing a partnership with a Ukrainian company is a challenge that is beyond the control of the U.S. partner and his legal advisors. If the Ukrainian market looks promising, establishing a representative office is recommended to deal with buyers directly. Personal relationships are very important in Ukrainian business practices and often problems cannot be effectively resolved over the phone. It is a very common practice in Ukraine to purchase inputs directly from the producer. Even if the exporter’s policy requires importers to work through the foreign-based distributor, most Ukrainian partners will still attempt to contact and work directly with the producer. In the past, many U.S. companies dealt with Ukrainian partners through a Russian-based representative office (usually in Moscow). This is no longer the case because trade regulations and laws that were once common between the two nations differ more and more. (Note: the Ukrainian food ingredient market is small at the moment and relatively few products can justify a representative office in Kyiv). Select U.S. products may also enter the Ukrainian market through a different route; via a Ukraine- based U.S. intermediary able to manage the distribution scheme more efficiently than a Ukrainian importer. This is vital if the Ukrainian importer lacks technical skills and expertise in product promotion. Exporters of high value-added products must note that larger Ukrainian retail chains use their own procurement centers. Few wholesalers undertake nationwide distribution, and very few carry a complete range of products. In many cases, supplier choices are based on informal personal relationships and ownership ties, rather than driven by quality and price factors. General Consumer Tastes and Preferences Consumer preferences differ significantly among various income and age groups. Similar to other nations, young consumers tend to experiment with new products, but many of them remain at the “tasting level.” Middle-aged and elderly consumers are much more conservative in their taste preferences and often treat new products with caution. Consumers of all ages and income groups are highly patriotic in their choices and often will not buy an imported product if a domestically produced one of comparable price and quality is available. All categories of consumers analyze the content/ingredients of products with great care. There is widespread belief that preservatives, stabilizers, colorants and flavoring agents are not healthy and one should avoid them if possible. However, consumers pay little attention to fat, sugar or protein content. The trend for healthier food consumption (low fat and reduced cholesterol, sugar free) is not yet evident in Ukraine. The diet of many low-income people is not nutritionally balanced and health concerns are found only in big cities, where consumers are wealthier and can afford more expensive products. Biotech products have a negative public perception in Ukraine and the government has imposed compulsory labeling. There are no registered GM plant varieties for human consumption and there are only intentions to have them registered for animal feed. Ukrainian legislation on biotechnology in general is in development. With average per capita income still quite low, Ukrainians spend approximately 56-57 percent of their incomes on foodstuffs. Prepared home meals are preferred over dining out. Women account for 49 percent of the total work force of 20.6 million people and contribute to the increased demand for meals consumed away from home, easy to cook and ready-to-eat products. The market trend for frozen and convenience food is relatively new in Ukraine, but with a large proportion of two-income families and growing incomes of city dwellers this market segment is expanding very rapidly. Almost 33 percent of the population lives in rural areas. Their incomes are quite low and many people rely on subsidiary household plots to provide staple foods (potatoes, vegetables and fruits). Many rural families sell vegetables, meats and traditional dairy products in open-air markets. The majority of their consumers are low income and elderly (these two categories overlap considerably). Food Standards and Regulations For an extensive explanation of Ukrainian Food and Agricultural Import Regulations and Standards, a prospective exporter should refer to FAS\Kyiv’s FAIRS Report, and Subject FAIRS report, which are available on the FAS/USDA web site. An abbreviated review of Ukrainian import regulations and food standards is provided below: Ukraine possesses a complicated and costly food safety system inherited from the Soviet Union. Controls are implemented by various state agencies that often have overlapping functions. In late 2010 the Government of Ukraine (GOU) started a major reform of the regulatory system aimed at reducing the number of controlling bodies and clear separation of their authorities. Although GOU intended to finish most of the transformation by the end of 2011, the process slowed down and very limited reforms were conducted in 2011/12. The authority scopes of both new and old agencies in transformation are provided in the report where possible. Due to ongoing reform these scopes are changing over time. So far the reform has not led to simplification of food import regime. The reader is encouraged to contact FAS/Kyiv should questions arise. The following GOU agencies are involved in assuring the safety of domestically produced and imported food products, and animal and plant health issues: State Epidemiological Service (SES) of the Ministry of Health Care of Ukraine (MHCU) establishes food safety standards and is responsible for all aspects of food safety; State Veterinary and Phytosanitary Service (SVPS) is responsible for animal health, safety and wholesomeness of meat, seafood, other products of animal origin and live animals (State Phytosanitary Inspection Service of the Ministry of Agricultural Policy and Food of Ukraine has not yet joined the SVPS as intended by regulatory reform. It functions separately and is responsible for plant health issues); Agricultural Inspection Service (AIS) of the Ministry of Agricultural Policy and Food of Ukraine (MAPFU) is responsible for plant varieties; State Inspection for Consumer Rights Protection is responsible for compliance of food products with Technical Requirements and safety norms (listed in outdated State Standards which are voluntary for non-safety parts) if they are not controlled by other agencies and not covered by the new Technical Requirements. State Ecological Inspection Service (SEIS) of the Ministry of Ministry of Ecology and Natural Resources of Ukraine (MENRU) is responsible for radiological and environmental control. Imported food products must meet the same requirements as domestically produced foods. While enforcement of food safety norms has been generally effective, outdated nutritional norms have not been rigorously enforced. All food products sold in Ukraine must have Ukrainian language labels attached to the package that contain the following information: 1) Name of food product; 2) Nominal quantity of food product (weight or volume in metric system measurement); 3) List of all ingredients found in the food product, including other food products and food additives used; 4) Nutritive values and energy; 5) Expiry date, or the date of production with indicated shelf life; 6) Storage conditions; 7) Name, country, address of producer, packer, exporter and importer of the product; 8) Terms of use (if any); 9) Presence or absence of genetically modified organisms (GMO) - please note text explanation below; 10) Consumption of food product warnings for certain consumer categories (children, pregnant, senior people, athletes etc.) 11) Consumption warning for food products by certain consumer categories (children, pregnant, elderly, athletes, etc.); This information must be present even on the packaging of products not intended for retail trade. Stick-on labels that meet Ukrainian food safety law requirements are allowed and can be affixed on the side or over the standard US label. Customs authorities require compliance with the Ukrainian labeling requirements prior to granting final clearance to the product. Most importers prefer to deal with products that already contain labels and meet Ukrainian requirements although some chose to attach labels in the customs licensed warehouse in Ukraine. Health claims and statements targeting particular consumer groups (children, pregnant women, and athletes) are prohibited without prior approval from the Ministry of Health. The product’s expiration date (or shelf life indication containing the date of production) must appear on the label. Although Ukrainian food safety legislation allows producers to determine the shelf life of the product, it is highly advisable to verify with the importer whether it meets existing Ukrainian technical regulations (GOST or DSTU). According to GOU Resolution #661, any food product that contains more than 0.9 percent of GMOs, or if any ingredient in a food product contains GMOs as well as food products that do not contain any GMOs but are produced at least in part with agricultural products that contain GMOs and the total weight of GMO or GMO derived products is a single food product package exceeds 0.9 percent of its total weight, this food product has to be labeled “Contains GMO.” If a single package of food product contains no GMOs or less than 0.9 percent GMOs, it has to be labeled “No GMO.” Products without relevant labeling are not permitted for sale in Ukraine and are a subject to confiscation and fines. GMO food product labeling is a responsibility of the producer/supplier. Stick-on labels may be used. Please note that there are potential new recent developments in the law that could change these requirements. Ukraine maintains a positive list of food additives and establishes its own maximum residue limits for chemical and biological contaminants in food products. Recommendations from the CODEX Alimentarius Commission, an international food safety standard setting body is considered in approving new food additives; however Ukrainian authorities conduct their own risk assessment for each new substance. Importing food products that contain food additives that have not received official approval is prohibited. The list of products subject to compulsory certification is provided in a separate GAIN Report. The list is not extensive and includes mostly seafood, canned product for children consumption, wine and tobacco products. In its design, current Ukrainian legislation in many instances mimics EU system, but remains in transition from Soviet-type scheme to a modern one. This transition adds to uncertainty that agricultural producer or importer face. The system is based on both compulsory (Technical Regulation a.k.a. Technical Reglaments) and voluntary (State Standard) regulations. The applicant (either exporter or importer) is responsible for the cost of the certification. There are usually two options available to exporters and importers depending on the value and the frequency of shipments. The first option envisions compliance of a foreign facility to existing Ukrainian norms and regulations on quality and safety. The supplier receives a certificate of conformity valid for two to three years that avoids having to certify each shipment. The second option involves certification of each product shipment with mandatory laboratory tests upon arrival in Ukraine. All food products of animal origin are subject to veterinary surveillance and control in Ukraine. A prospective U.S. exporter should refer to FAIRS GAIN Report for more information even if the exported commodity is not subject to veterinary controls in the United States. A Ukrainian state veterinarian conducts inspections at the border for canned products that contain any amount of meat or animal fat, animal feeds of plant origin (such as soybean meal), ready-to-eat seafood products, and frozen fish. The report also contains multiple reference lists. General Import and Inspection Procedures Import regulations in Ukraine are similar to regulations found in other countries. All applicable duties and taxes are collected by customs authorities upon clearance of imported goods at the border, unless the cargo is forwarded to a bonded warehouse. Almost all Ukrainian import duties are calculated on ad valorem basis. According to Ukraine’s WTO obligations, the only commodity subject to a quota restriction is raw sugar. Agricultural and food products imported into the customs territory of Ukraine may be subject to sanitary testing, certification, radiological, veterinary and/or phytosanitary inspections. Every shipment arriving in Ukraine is inspected and sampled regardless of the statements made in the accompanying health certificate. Custom clearances and co-related inspections are fee-based and are viewed a source of revenue. Ukrainian Customs Service often rejects the declared custom value of imported product as the basis for custom duty calculations. In this case importer should be ready to use appeal procedure and litigation in the court. The testing procedure takes up to seven days, which makes the import of some highly perishable products difficult at best or impossible. Due to small import volumes from overseas, U.S. exporters should be prepared to ship mixed product loads in one container. A separate health certificate is required for each homogenous product lot within the container. There may be specific import requirements (alcohol, tobacco, etc.) or prior notice requirements for certain products. At the planning stage, exporters are advised to verify with their importer what types of controls are applicable to the product. Any food product (except those produced for personal consumption), food raw materials and agricultural products are prohibited entry into Ukraine without documented evidence of their quality and safety. Control over adherence to the procedure of food and agricultural product imports rests with the Customs Service of Ukraine. The product will not be granted final clearance until all legal procedures are met. The following documentation is required for customs clearance: Copy of a contract and an invoice; Bill of lading; Freight custom declaration; Certificate of conformity (if applicable); State sanitary and epidemiological expertise certificate, (or certificate on state registration of special food products); Veterinary certificate (if applicable); Import permit and original phytosanitary certificate (if applicable); Manufacturer’s Certificate of Quality. Ukrainian is the only official language recognized in Ukraine. All documents must be bilingual, submitted in Ukrainian or be accompanied by an official translation. The Law “On Regional Languages” was adopted in 2012. The Law allows for other languages on the label in addition to the Ukrainian one. SECTION III. MARKET SECTOR STRUCTURE AND TRENDS Competition For the past ten years, Ukraine has been a net exporter of agricultural and food products (HTS 1- 24 groups). In 2012, total exports of agricultural products from Ukraine are expected to exceed $15 billion dollars (a 40 percent growth from 2011), exceeding agricultural imports ($6 billion dollars). Ukraine's Imports of Consumer Oriented Agric. (January - September), Million USD Com- mod United States Dollars % Share % Change ity Description 2010 2011 2012 2010 2011 2012 2012/2011 Total 1,933 2,176 2,813 100 100 100 29.3 020329 Meat Of Swine, Nesoi, 92 90 224 4.8 4.1 8.0 149.4 Frozen 080300 Bananas And Plantains, 116 110 204 6.0 5.1 7.3 85.9 Fresh Or Dried 210690 Food Preparations 127 166 182 6.6 7.6 6.5 9.9 Nesoi 210111 Coffee Extracts, 126 176 164 6.5 8.1 5.8 -6.7 Essences Etc. & Prep Therefrom 020714 Chicken Cuts And 128 33 100 6.6 1.5 3.5 205.5 Edible Offal (Inc Livers), Frozen 230910 Dog And Cat Food, Put 57 67 74 3.0 3.1 2.7 11.4 Up For Retail Sale 080930 Peaches, Including 38 30 73 2.0 1.4 2.6 145.1 Nectarines, Fresh 090121 Coffee, Roasted, Not 41 76 73 2.1 3.5 2.6 -3.5 Decaffeinated 080510 Oranges, Fresh 71 63 71 3.7 2.9 2.5 12.6 080810 Apples, Fresh 70 26 58 3.6 1.2 2.1 124.5 070200 Tomatoes, Fresh Or 35 39 58 1.8 1.8 2.1 49.4 Chilled 220421 Wine, Fr Grape Nesoi & 33 51 55 1.7 2.3 2.0 9.2 Gr Must W Alc, Nov 2 Liters 020311 Carcasses & Half- 21 13 53 1.1 0.6 1.9 312.5 Carcasses Of Swine Fresh, Chilled 180690 Cocoa Preparations, 36 49 51 1.8 2.3 1.8 2.3 Not In Bulk Form, Nesoi 080520 Mandarins (Inc Tanger 35 56 50 1.8 2.6 1.8 -11.2 Etc) & Citrus Hybr Fr Or Dri 210390 Sauces Etc. Mixed 39 48 48 2.0 2.2 1.7 -0.3 Condiments And Seasonings Nesoi 080550 Lemons And Limes, 33 30 45 1.7 1.4 1.6 51.5 Fresh Or Dried 180631 Chocolate & Othr Cocoa 36 55 42 1.9 2.5 1.5 -23.4 Preps, Not Bulk, Filled 200819 Nuts (Exc Peanuts) And 22 33 40 1.1 1.5 1.4 24.0 Seeds, Prepared Etc. Nesoi 170490 Sugar Confection (Incl 20 37 39 1.0 1.7 1.4 7.1 Wh Choc), No Cocoa, Nesoi 080610 Grapes, Fresh 27 17 38 1.4 0.8 1.3 121.5 020321 Carcasses And Half- 30 7 38 1.5 0.3 1.3 405.9 Carcasses Of Swine, Frozen 040690 Cheese, Nesoi, 12 20 33 0.6 0.9 1.2 62.8 Including Cheddar And Colby 060290 Live Plants, Cuttings & 18 23 32 1.0 1.1 1.1 37.6 Slips,Nesoi;Mushroom Spawn Other not listed 671 863 967 34.7 39.6 34.4 -13.3 Source: State Statistics Committee of Ukraine The development of the food industry in Ukraine has led to a significant increase in the use of raw materials and additives for foodstuff production and comprises the majority of Ukrainian imports. In 2007-2012, imports of the following commodities experienced the highest rates of growth: Food additives (stabilizers, emulsifiers, flavorings, proteins, pigments, ferments, albumin, oil-and-fat mixes, modified starch etc.) Fish Swine, live except purebred breeding Grape wines Cocoa powder Spirits Some imported soya products are used as ingredients in food and compound feed industries (such as soya meal and flour, soya protein concentrates, lecithin, vegetable oil mixes and isolates on soya base for confectionery, dairy and meat industries). Food products imported from EU and CIS countries are now the major competitors for U.S. commodities in Ukraine and will continue to be in the foreseeable future. Below is a list of the top 10 U.S. export commodities experiencing the highest import growth rate in Ukraine (for 2007- 2012 with turnover over $5 million): Meat (predominately poultry) Seeds for Planting (Corn Hybrids) Miscellaneous food Edible Fruits and Nuts Preserved Food (mostly Juice Concentrates) Tobacco Pet Food Fish and Seafood (Whiting and Hake) For many staple products, domestic production meets demand. Imported food and agricultural products have difficulty competing with domestic products due to the high cost of foreign exchange high import duties and generally efficient production of unsophisticated food products. Imports add to the variety of foods available on the market and also include products that are either not grown in the country or for which domestic production is insufficient to meet domestic demand. Retail Food Sector Due to the quickly growing number of super- and hypermarkets in 2001-2012, experts estimate their market share at 43 percent, and it will continue to grow in the future. Traditional retailers in big cities are losing their clientele due to new and improved services that are provided by big retailers. Open-air markets and kiosks cannot compete due to low quality products (this is a major channel for uncertified and counterfeit goods), while traditional grocery stores cannot offer a wide assortment of products at low prices. Supermarkets are not completely driving out open- air wholesale markets and Soviet-type grocery stores, but forcing them to modernize equipment and marketing techniques. Supermarkets, Hypermarkets Staff of these entities privatized the majority of retail outlets during the first wave of Ukrainian privatization in the early 1990’s. Large trade centers with a self-service system (the Soviet counterpart to supermarkets) built in the time of the Soviet Union ceased to exist after the first year of Ukraine’s independence. Later, individuals or businesses purchased these food stores. In order to survive, the overwhelming majority of these stores sold both non-food and food products. The stabilization of the national economy helped to create the current retail structure. The first domestic supermarket chains emerged to satisfy the new and growing demand in early 2000s. These stores began to emulate western standards on floor space, product assortment, and quality of service. The average floor space of a Ukrainian supermarket grew from 822 square meters in 2005 to 914 square meters in 2007 and 1200 square meters in 2009. The first Ukrainian mall – “Karavan” (is still classified as hypermarket by the State Statistics Committee) was built in Ukraine in 2004 with a total area of 13,000 square meters and total floor space of 8,000 square meters. The small floor space of many Ukrainian supermarkets is a result of limited capital and limited availability of buildings or land plots in proper locations suitable for such operations. Only Western investors and very few Ukrainian companies are capable of full-scale construction projects from the ground up. According to supermarket owners, stock lists of smaller stores include 30–50,000 items. 80-90 percent of these items are of Ukrainian origin. Dairy and fish products, meat, bakery and spirits are widely represented. Supermarkets often cut their margins to attract as many customers as possible. The largest chain supermarkets use over 1,000 different suppliers represented by large wholesale companies, producers and importers. Local chains are adopting foreign practices and standards, and introducing production quality control departments and distribution centers. Many supermarkets are open around-the-clock. There are several factors contributing to the rapid success of hypermarkets and supermarkets in Ukraine. First, retail chains guarantee higher quality goods. Second, the majority of chains offer attractive prices through improved logistics and substantial supplier discounts in return for guaranteed large procurements. These advantages attract customers from traditional wholesale open-air markets and grocery stores. Third, supermarkets guarantee comfortable shopping conditions (free parking, etc.), additional discounts for regular customers (discount cards), and additional services for goods purchased (home deliveries, Internet shopping, etc.). Due to the rapid market development and abundance of retail formats, local retail chains have had little competition from foreign companies. Today, Kyiv commands approximately one-fifth of all retail trade in food products conducted by specialized and non-specialized stores, as reported by official statistics. Meanwhile, according to some retailers these supermarket chains are only satisfying 45-50 percent of all demand. Operators agree that the market for larger stores will continue to develop in the near-term despite the economic slow-down. Now supermarkets do not compete with each other, but with traditional open-air markets. The latest trend in supermarket development is to locate these trade outlets in shopping malls, which reduces construction costs and attracts additional customers. Construction of movie theaters also opens new possibilities for supplying the “American way of life” (popcorn, soft drinks and different snacks). Kiosks and Gas Marts The number of kiosks, which were popular trade outlets in the early 1990’s, has gradually diminished. The typical kiosk operates 24 hours a day and sells cheap alcohol, cigarettes and a limited number of food products. Limited floor space (usually 8-25 square meters) and a relatively wide stock list (about 100-200 kinds of goods), as well as minimal required capital and operation costs ensures their existence. Competition from larger private stores and supermarkets that offered lower prices resulted in a reduction in the number of kiosks. They survive at road intersections, bus stops, underground stations, near open-air markets, in bedroom communities, and in rural areas. Kiosks offer a variety of the cheapest living essentials including food products. Lately, kiosks are becoming more specialized. For example, producers of meat and bakery products have opened kiosks to sell their own products near public transportation stops. The number of modern gas stations continues to grow rapidly in Ukraine. Approximately 10-15 percent of all Ukrainian gas stations have stores that sell packaged food products. This includes mainly soft drinks, cookies, chocolates, and various snacks. These gas station stores account for 1-2 percent of all food stores. The service-store network is under development and is not viewed as a major revenue source by gas station managers. The developing network has good prospects and may increase its share of retail sales. Chain Convenience Stores and Self-service Groceries Chain grocery stores are not yet very common in Ukraine, although they are becoming more so. The shortage of suitable land plots makes many retailers consider smaller formats. The Fozzy Group is developing a network of Fora and Bumi-market grocery stores. According to management, the chain may slow down development of its Silpo supermarkets chain, but will not cut back on its Fora chain despite economic downturn. Their competitor in the Dnipropetrivsk region, ATB Corporation, has a network of over four hundred stores, although these stores are quite close to supermarkets in size. Usually groceries are located in suburbs, offer a narrow product range and have limited floor space. These new groceries are quickly replacing the Soviet- style food stores. The average floor space varies from 300 to 500 square meters. Stock lists include a range of 1,500 to 3,500 items. Grocery outlets have became rather popular among pension-age consumers who prefer to shop close to home. Retirees often make small purchases throughout the week. These outlets also target consumers with below average incomes and who generally purchase goods daily. These products tend to have a short shelf life (bread, dairy products, fruits and vegetables, etc.). Market analysts note that convenience stores lack regular customers and their market share is small. Nevertheless, grocery stores are very successful in small Ukrainian towns. Traditional Outlets: Independent Grocery Stores and Open-Air Markets Soviet-style stores with behind-the-counter sales (traditional groceries) are quite common in Ukraine. Some of these groceries are situated in central districts selling food products to office employees during the workweek and to a small number of urbanites. These stores have often been taken over by chain convenience store companies and converted into modern self-service convenience stores. Other traditional grocery stores survived in suburban communities in large cities. These stores are likely to leave the market due to fierce competition with supermarkets and modern convenience stores. They are losing clientele due to their limited product line, higher prices, poor customer service, and unprofessional vendors. In order to survive, many offer round- the-clock operations and lease some floor space to sellers of industrial goods (DVD and CD sales) and services (photo development). Some are operating successfully in distant small districts of large cities and small provincial towns where the construction of supermarkets or modern chain convenience stores is economically unjustified. Grocery stores, especially those operating 24 hours a day, can be of certain interest to potential U.S. exporters. These may become outlets for less expensive food products, manufactured abroad with a long shelf life: alcohol drinks, assorted snacks, confectionery products, meat goods, canned goods, goods for elderly people. The overwhelming majority of these stores (except small ones with 150-200 square meter floor space) procure products through wholesale companies. Smaller ones buy products in Cash&Carry stores or from large wholesale open-air markets. According to experts’ estimates, in 2011, approximately 20 percent of food products in Ukraine were sold through this channel. For meat products this indicator reached 90 percent. These trade outlets are leading sellers of vegetables, fruits, meat, honey, and dried fruits. At the same time, sales of dairy products, sunflower oil, and alcoholic drinks are gradually moving from open-air markets to outlets of other types. Open-air markets provide poor customer service, lack storage equipment and often sell low quality products for a price that is often higher than in supermarkets. HRI Food Service The HRI sector in Ukraine remains small, but is developing quite rapidly. In 2012, the number of restaurants, cafes, bars and other HRI institutions in Ukraine exceeded 30,000. New fast food outlets and restaurants with international-style cuisines have begun to alter the structure of the food service sector. The market niche for expensive and elite restaurants is saturated, so the lower cost mass market is developing. Existing restaurants are divided into three categories: fast food, canteens and cafés, mid-level restaurants, and restaurants with “high-quality cuisine.” The majority of outlets belong to the first group. With over 21 million visitors in 2011, tourists have become the major driving force behind the success of the HRI sector and the introduction of new food products to the Ukrainian market. In 2012 the total number of tourists is expected to be higher due to this summer’s Euro-2012 soccer Championship. In addition to fast food establishments that offer pizzas, hot dogs and hamburgers, outlets of various ethnic cuisines, such as Mexican, Chinese, Vietnamese, Japanese, Italian, Indian and others, have entered the food service industry. However, the majority of customers prefer family- style menus featuring traditional Ukrainian food. In addition to McDonald’s (with over 80 restaurants in 21 cities of Ukraine), there are other fast-food restaurant chains like Mr. Smak, “Pizza Chelentano” and “Kartoplyana khata” (Potato house), “Shvydko”, etc. In 2012 Yum! Brands opened the first KFC restaurant. HRI Prospects: The HRI sector will continue to grow. The number of customers is expected to increase as “eating out” habits become popular among the middle class and wealthy Ukrainians. Restaurant chains consisting of coffee bars, healthy food restaurants (separate eating, healthy food), and a fast-food fish chains, are not developed in Ukraine. These are good prospect areas for new restaurants, but the middle class is currently at the mercy of the economic crisis. Food Processing Sector The food-processing sector in Ukraine has developed rapidly in the past five years (up until late 2008) with an average growth rate of 10-15 percent. The food industry’s share in manufacturing is almost 20 percent. In 2012, the industry’s total output of exceeded $14 billion dollars (FAS/Kyiv estimates). Over 20,000 enterprises operate in the food processing sector of Ukraine. The fastest growth rate is found in fruit and vegetable processing, edible oils production, pastry and biscuits, baby food, and alcoholic beverages production. Imports of food ingredients are estimated at $1.8 billion for 2012 (including products for further re-packing). Major imported products for the processing industries included poultry, fish, palm oil, cocoa products, juice concentrates, spices and seasonings, vegetables, additives, tobacco and others. The development of the food processing industry is currently impeded by inadequate domestic supply of raw agricultural products and limited export possibilities. Only a few food processors comply with EU quality requirements and packaging standards (mainly dairy, meat, confectionery, and beverages). Large food processors purchase raw materials and food ingredients directly from foreign exporters. Large wholesalers and distributors also supply the sector. Sector trends: The Ukrainian food processing industry will be driven mainly by domestic demand, through production of dairy products, especially hard cheese and whole milk products. Production of beef will be driven by demand in Russia and some Former Soviet Union countries. SECTION IV. BEST HIGH VALUE PRODUCT PROSPECTS Given the potential of the Ukrainian agricultural industry and relatively low incomes, U.S. high value added products will penetrate some niche markets, especially for those products that are not produced in Ukraine or are produced in limited quantities. In many cases, Ukrainian agriculture is not capable of producing products of consistently high quality (e.g. high quality beef steaks and pork medallions). There are markets for specialty products including low-fat, low-salt and sugar- free products, cake & bread mixes, corn meal, Graham Crackers and chocolate chips. U.S. suppliers could also supply new market segments that are just beginning to develop. This includes microwaveable and semi-prepared food as well as TV-dinners. Potential importers must be aware that promotion of innovative or new to market products is expensive. Other potential U.S. export items include snack foods, raisins, dried foods, nuts, spices, peanut butter, frozen and dried yogurt, soft drinks, frozen juices, fruit & vegetable pure and concentrates, fresh fruits and vegetables, wine, frozen foods, meat (especially chicken and turkey), pasta preparations, frozen and canned seafood, frozen and canned vegetables and fruits, soft cheese, soya sauces, salad dressings and breakfast cereals, baking improvers and bread mixes, and dry gluten. Quick-to-prepare main and side dishes as well as ethnic international foods are all gaining popularity. Products with Best Sales Prospects in Ukraine Category A: Products Present on the Market With Good Sales Potential Product 2011 2011 Average Import Main factors Attractiveness Market Import growth taxes hindering of the market volume volume of import for the USA import development over the last 3 years Beef 408 8 ths. No 15 percent Consumer Insignificant ths. tons change unawareness specialized beef tons of U.S. high production; quality beef; Constantly Sizable growing beef domestic prices; Niche production, markets for Complicated meat delicacies import (steak, etc.) procedures. and meat offal; Fast HRI development. Pork 821 119 12 10-12 Competition Shortage of ths. ths. percent percent from Brazilian, pork in the tons tons Decline German and country; Polish pork, declining complicated production; import high prices; procedures. Demand for stable deliveries of both cheap and high quality product. Fish ~570 390 10-20 0 – 5 Regular Growing and ths. ths. percent percent for deliveries of demand for Seafood tons Tons all frozen high quality higher quality fish; 10 product from seafood from percent for Norway; consumers; prepared Shortage of Significant fish, live suitable demand from fish, equipment at supermarkets Mackerel, retail trade and HRI sector. Trout, some outlets; Deficit Crustaceous, of proper Anchovy, storage Salmon and facilities with Lobsters. below –20C temperature. Dried 50 ths. 10.6 30 From 0 Sharp Intensive fruits tons ths. percent percent to competition development of tons 20 percent with CIS confectionery countries and industry and Turkey. Desire start of retail of packers to sales of rare save on raw dried fruits. stock, High quality of procuring low U.S. product; quality stock Development of from Iran, premium-class Uzbekistan confectionery and Tajikistan products * All imported products are subject to 20 percent VAT tax. SECTION V. KEY CONTACTS AND FURTHER INFORMATION Sanitary and Hygiene Issues Related to All Food Products, MRLs. Anatoliy Ponomarenko, MD, Department Head State Department of Sanitary and Epidemiological Service of the Ministry of Health Care of Ukraine 19/22, Voloska St., Kyiv 01601 Ukraine tel. +380-44-253-3900 fax: +380-44-253-6975 e-mail: glavgos@moz.gov.ua Homepage: http://www.dsesu.gov.ua/wses/dsesu.nsf/prSljNe?OpenView (Ukrainian version only) Prof. Mykola Produnchyuk, Director Institute of Ecohygiene and Toxicology of Ministry of Health Care of Ukraine (responsible for state sanitary and hygiene expert examination, Head of Ukrainian CODEX Commission) 6, Heroiv Oborony St., Kyiv 03680 Ukraine tel.: +38-044-251-9700 fax: +38-044-251-9643 E-mail: office@medved.kiev.ua Homepage: http://www.medved.kiev.ua/home/index_en.htm (English version) Codex Alimentarius Commission Point of contact: National Codex Alimentarius Commission 6 Geroiv Oborony Street, 03680 Kyiv, Ukraine E-mail: secretar@codex.co.ua Homepage: http://codex.co.ua/eng/ tel.: +380 44 -526-95-53 fax: +380 44 -526-96-43 Animal Health Issues and Safety of All Animal Products and Seafood. Dr. Volodymyr Horzheyev, Head State Veterinary and Phytosanitary Service of Ukraine Ministry of Agricultural Policy of Ukraine 1 Grynchenko St., Kyiv 01001 Ukraine Tel: +38-044-229-1270 Fax: +38-044-229-4883 Homepage: http://www.vet.gov.ua/ (Ukrainian version only) Plant Health Issues Mr. Vadym Simonov, Chief State Inspector of Plant Quarantine First Deputy Head of State Veterinary and Phytosanitary Service of Ukraine Ministry of Agricultural Policy of Ukraine 7, Koloskova St. Kyiv, 03138 Ukraine Tel. +380-44-524-7707 Fax: +380-44-524-3107 Homepage: http://golovderzhkarantyn.gov.ua (Ukrainian version only) Certification and Conformity Sergiy Orehov, Head State Inspection for Consumer Rights Protection Tel.: +380-44-226-2971 Homepage: http://www.dssu.gov.ua/control/en/index (English/Ukrainian) Ecological Inspection of Animals, Birds and Radiological Inspection of Food Products State Ecological Inspection Service Ministry of Environment and Natural Resources of Ukraine Tel: +380-44-244-5472 Fax: +380-44-206-3107 E-mail: dei.@skif.com.ua Pet Food and Feed Additives Registration Dr. Igor Kotsiumbas, Director State Scientific and Control Institute of Veterinary Drugs and Feed Additives 11 Donetska St 79019 Lviv, Ukraine Tel.: +380-0322-523-372 Fax: +380-0322-521-193 e-mail: dndki@scivp.lviv.ua Homepage: http://www.scivp.lviv.ua/en.html (Ukrainian/English) Plant Variety Registration Sergiy Melnyk, Chairman State Service on Right Protection for Plant Varieties / State Veterinary and Phytosanitary Service Ministry of Agricultural Policy of Ukraine 15, Henerala Rodimtseva vul., 03041 Kyiv, Ukraine Tel: +380-44-257-9933 Fax: +380-44-257-9963 Homepage: http://sops.gov.ua/index.en.htm (English/Ukrainian version) Seed Certification Mr. Serhiy Lunochkin, Department Head State Seed Inspection Service Ministry of Agricultural Policy of Ukraine Suite 408, Solomyanska Ploshcha 2 03035 Kyiv Ukraine Phone: +38-044-528-8587 Fax: +38-044-257-9963 Email: seeds@cantata.kiev.ua Registration of Trade Marks Mr. Mykola Kovinia, Head State Intellectual Property Service 8 Lvivska Ploscha, 04655 Kyiv-53, Ukraine Tel: +380-44-212-5080, 212-5082 Homepage: http://www.sdip.gov.ua/ (Ukrainian only) American Embassy Kyiv, Ukraine Office of Agricultural Affairs U.S. Embassy in Ukraine 4 A.I. Sikorsky St. (formerly Tankova) 04112 Kyiv, Ukraine Tel. +38-044-521 5496 Fax: +38-044-521 5038 E-mail: agkiev@usda.gov http://ukraine.usembassy.gov/fas.html ATTACHMENTS Annual Foodstuffs Sales in Retail Trade (1000 Tones) 2005 2006 2007 2008 2009 2010 Meat and products 325 389 443 453 420 452 Butter 32 35 36 36 31 31 Vegetable oil 66 77 91 102 109 122 Cheese and soft cheese 42 51 63 71 67 67 Eggs, million 1341 1649 1791 2194 1986 2233 Sugar 129 130 155 177 190 143 Conditerey 225 252 275 288 254 268 Tea 7 9 12 13 12 11 Bear and products 933 845 807 (in wheat flour equivalent) 953 952 948 Potato 78 76 91 101 99 93 Vegetables 151 183 205 210 247 253 Fruits and berries and nuts 148 203 230 237 254 332 Source: State Statistics Service of Ukraine Table A. Sales of Major Food Product in Ukraine in 2009-11 2011 Volume Sales % to Food Product 2010 2009 2010 2011 Meat, poultry and fresh frozen 1000 T 716 805 895 111 Meat, smoked and salted meats " 734 827 951 115 Canned, prepared meat products " 105 114 140 123 including semi-finished meat " 8 6 4 74 Fish and seafood " 339 409 463 113 Canned, ready to eat fish products " 140 161 194 121 including semi-finished " 521 675 770 114 Ice cream " 72 94 118 125 Hard cheese, foft and melted cheese " 324 403 491 122 Butter " 135 176 213 121 Eggs and egg products Million pcs. 144 165 196 118 Oils and Fats 1000 T 152 183 250 137 Margarine " 47 42 43 102 Sugar " 124 154 172 112 Confectionery sugar " 852 1049 1274 121 Flour " 67 67 80 118 Bakery products (except " 338 373 438 117 confectionery) Groats and Beans " 131 167 208 124 Noodles " 126 131 166 127 Potatoes " 59 68 88 130 Vegetable " 204 277 355 128 Fruits, berries, grapes, nuts " 335 450 569 127 Watermelons and Melons " 135 142 163 115 Canned vegetables " 42 44 51 117 Canned fruit and juice " 2213 2459 2929 119 Vodka and other spirits products 1000 852 955 1170 122 decalitres Alcopops decalitres 101 108 128 119 Wines " 385 402 448 111 Brandy " 236 272 334 123 Sparkling wine (champagne) " 151 162 188 116 Beer " 487 560 661 118 Tea 1000 tones 142 162 184 113 Coffee " 211 255 314 123 Sault " 10 9 11 118 Soft drinks decalitres 393 424 472 111 Mineral water " 192 228 259 114 Tobacco million pcs 1205 1551 2192 141 Other food Products 608 716 976 136 Total Food Products 11863 13983 17049 122 Food Products in Stores and 10823 12784 15627 122 Supermarkets Source: State Statistics Committee of Ukraine Table B. Ukraine’s Agricultural and Food Imports from the U.S. (January - September), Million USD Com- Description Million % modit United States % Share Chang y Dollars e 201 201 201 201 201 201 2012/ 0 1 2 0 1 2 2011 Total 136 54 102 100 100 100 86.6 020714 Chicken Cuts And Edible Offal (Inc 90 4 38 66.1 7.0 37.8 908.5 Livers), Frozen 210690 Food Preparations Nesoi 9 10 15 6.6 19.2 14.6 41.6 040700 Birds' Eggs, In The Shell, Fresh, 8 9 11 5.6 15.8 10.5 23.7 Preserv Or Cookd 080211 Almonds, Fresh Or Dried, In Shell 2 4 7 1.3 7.7 7.3 76.6 040210 Mlk & 0 0 7 0.0 0.7 7.0 1879.9 Crm,Cntd,Swt,Powdr,Gran/Solids, Nov 1.5% Fat 350510 Dextrins And Other Modified 4 6 6 3.3 10.4 5.8 3.9 Starches 080212 Almonds, Fresh Or Dried, Shelled 2 1 2 1.5 2.2 1.7 42.3 020329 Meat Of Swine, Nesoi, Frozen 9 2 2 6.7 4.3 1.6 -31.1 080620 Grapes, Dried (Including Raisins) 1 2 2 0.4 3.8 1.5 -23.9 230910 Dog And Cat Food, Put Up For 2 2 1 1.4 2.9 1.5 -7.1 Retail Sale 020322 Meat, Swine, Hams, Shoulders 2 1 1 1.7 2.5 1.4 8.3 Etc, Bone In, Frozen 020622 Livers Of Bovine Animals, Edible, 2 2 1 1.6 2.8 1.3 -12.5 Frozen 071290 Vegetables Nesoi & Mixtures, 1 1 1 0.4 1.2 1.0 50.5 Dried, No Furth Prep 080250 Pistachios, Fresh Or Dried, Shelled 0 1 1 0.2 1.9 0.7 -34.3 Or Not 200819 Nuts (Exc Peanuts) And Seeds, 0 0 1 0.1 0.6 0.6 110.8 Prepared Etc. Nesoi 020727 Turkey Cuts And Edible Offal 0 0 1 0.1 0.1 0.6 745.1 (Includ Liver) Frozen 200899 Fruit & Edible Plant Parts Nesoi, 0 1 0 0.1 1.4 0.4 -43.1 Prep Etc. Nesoi 020130 Meat Of Bovine Animals, 0 0 0 0.1 0.4 0.4 93.1 Boneless, Fresh Or Chilled Other no Listed 4 8 4 2.7 15.2 4.3 -71.4 Source: State Statistic Committee of Ukraine/GTI (trade data from UN Statistics Division for Ukraine is not available); TABLE C. TOP 15 SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS to Ukraine (January-October) Partner Million United States Dollars % Share % Change Country 2010 2011 2012 2010 2011 2012 2012/2011 World 2202 2452 3203 100 100 100 31 Russia 259 349 344 12 14 11 -1 Germany 192 251 334 9 10 10 33 Brazil 123 124 284 6 5 9 129 Poland 253 199 263 12 8 8 32 Turkey 159 168 223 7 7 7 33 Ecuador 132 129 217 6 5 7 69 Netherlands 114 143 167 5 6 5 17 Italy 79 120 154 4 5 5 29 Spain 55 87 126 3 4 4 45 United States 146 60 115 7 2 4 91 France 66 77 83 3 3 3 7 Hungary 59 52 72 3 2 2 37 Greece 35 29 65 2 1 2 120 Egypt 56 51 62 3 2 2 22 Belgium 36 40 47 2 2 1 18 Others Total 436 571 648 20 23 20 31 Source: State Statistic Committee of Ukraine/GTI
Posted: 11 January 2013

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