Gardening is a purely European business by mentality as it means long-term investments and a completely transparent process. Walnut is a financial pearl of this industry. A walnut garden of only 1 hectare yields more than 1.2 million UAH per year.
A walnut garden is an investment in the future and long-term well-being, as one tree lives around 400 years and its yield is constantly increasing up to 60 years.
Walnut in Ukraine
Ukrainians have been actively planting walnuts during the last 15 years.
Ukraine is lucky with climate and soils since only 7% of the world’s land is favorable for cultivating walnut trees. According to the statistics, our country has almost 500 thousand hectares of free land suitable for growing walnut trees.
This business area has been actively developing during the last decade, nevertheless, Ukraine has already taken the third place as a world’s walnut exporter.
The annual harvest has reached 113 thousand tons lately, and if we take into account undeclared harvests, the numbers can reach even 150 thousand tons.
Therefore, we confidently occupy the fifth place in the world in the gross collection of this culture.
As for the consumption of walnut in Ukraine, our citizens consume only 0.5 – 1kg annually regardless of the average rate of 3kg per year.
Due to this, the walnut industry needs to grow almost twice – by 25 thousand hectares – in order to meet both domestic and external demand.
The area of Ukrainian walnut trees gardens is 16.3 thousand hectares. Note, walnut was growing on 40 thousand hectares in 1995.
Another mistake of Ukrainian walnut breeders is an insufficient processing level. It is possible to produce nut butter, jam, tinctures, medicines, but this field of activity is in its infancy today.
Another problem gardeners face is the lack of acclimatized seedlings. Part of the planting material is imported from Poland, Moldova, Italy, France. No one knows how these “foreigners” will feel in our country. No one knows whether they will be able to withstand lasting frosts, whether they will bear fruit actively and for how long they will live.
The Main Players are a Usual Anomaly
The walnut industry rules in Ukraine don’t differ from the rules of doing business in other sectors, they are semi-mafioso. All cash flows are controlled by oligarchs who influence both private structures and all power structures of the highest level.
However, there are silver linings in this sad story. The experience shows that ordinary citizens can also conduct business if it is not very large. In particular, land tyrants are tolerant towards existing 10-15 hectares gardens. However, you will have to sell your crop to their structures at a price by 5 times lower than their selling price.
Most of such companies have a base company that manufactures the product and a selling firm for exporting it in order to bring out their money without any problems. So, there are no exporting companies which exist for more than a year. Such a company disappears without paying any taxes after receiving the first profit. Another company with a new name takes its place. For instance, according to international analysts, 30 thousand tons of walnut were illegally sold to Turkey during the last marketing year. A transporting convoy with such cargo would stretch for 30 kilometers. It appears that such great volumes can also become invisible if being covered with dollar bills.
Firms that will be named below belong to wealthy people. They work for power structures or can be associated with senior officials through family relationships. For example, there is a deputy of 5, 6, 7 convocations, whose son used to head the Customs Service of Ukraine; his niece was a deputy of the Supreme Council. He is also a first-rate official who used to work for the administration of V.Yushchenko, an acting deputy, a member of the parliamentary group headed by one of the main controllers of walnut smuggling…
Ukraine has imported 250 thousand walnut seedlings during the last marketing year. According to the customs, the “Ukrainian Walnut” company bought the largest amount of trees – 129.8 thousand pcs, followed by “Global Invest” with 59 thousand pcs, “Alcor C, “Alcor-Service” with 20.3 thousand pcs, “Zhashkiv Equestrian Sports School” – 10 thousand pcs, “YAFK-Viton” – 9.2 thousand pcs, “Krokus Promservice” – 8.7 thousand pcs, “First fruit and vegetable company” – 4.9 thousand units, “Svitanok Agrofirm” – 2.9 thousand pcs, “Orex Ukraine” “- 2.8 thousand pcs.
In order not to make this negative topic an obstacle to the way of your mental initiatives, remember the History of empires. Solomon said that some oligarchs are just vanity on its way.
Plant trees. By the time they begin to bear fruit, the Ukrainian market will become transparent, and market players will work according to European rules.
The walnut deficit in the EU market reaches 100 thousand tons and the needs are growing further. While observing the external and internal demand, entrepreneurs can double the walnut production.
The main purchasers of walnut in Europe are France – 1523 tons, Greece – 539 tons, Hungary – 461 tons, Austria – 320 tons.
As for the Asian direction, exports are directed to Iraq – 1981 tons, Turkey – 793 tons, Iran – 540 tons, and Georgia – 452 tons.
As for the CIS countries, Ukrainian walnuts were bought by Belarus – 1535 tons, and Azerbaijan – 1407 tons, during the last year.
The total volume of Ukrainian exports for last year appeared to be 75% of the whole harvest.
The World Walnut Market
Foreign experts forecast that the 2017-2018 marketing year will end with a decline in the world walnut production of 2 million tons (with shells).
The main walnut producers are China – 1 million 60 tons, and the USA – 620 thousand tons in the last marketing year. Their share in the world walnut production is 76.8%. Although, the United States produced 450 thousand tons, and China – 720 thousand tons five years ago.
The largest share of walnut exports is taken by the USA – almost 63% or 475 thousand tons.
The second largest exporter of walnuts is Chile – 15.6% or 118 thousand tons.
The EU countries are the largest importers of walnut. They purchase almost 260 thousand tons of walnuts in foreign markets.
Turkey imports 110 thousand tons. Despite the huge production of its own walnut, China purchases around thousand tons of foreign walnut. Japan imports 50 thousand tons and South Korea – 35 thousand tons.
Is producing walnut profitable? People specify numbers that are by X times greater than the profit from any other agro-culture (except poppy). That’s why it’s interesting to do some calculations. Surely, there can be assumptions and deviations, but they will be not more than 10-15%.
So, let’s take 4 thousand kilograms per hectare as the average harvest of a young garden. Then we take the percentage of pure walnut, which is 50% after cleaning. Thus, we get 2 thousand kilos of pure nuts from 4 thousand kilos. We multiply this amount by the average selling price – 150 UAH per kilo. We get 300 thousand UAH. We take away 10 thousand UAH for expenses and 4-5 thousand UAH for other costs. This way, we get 290 thousand UAH per hectare.
These calculations are fair for young gardens. One hectare of walnut trees can bring up to 10 tons in 20 years, that means almost 750 thousand UAH of profit per hectare.
Note that these calculations are fair for a garden of 120 trees, although some gardens contain up to 200-250 trees. With such a density your harvest will amount to 8 tons of walnut from 1 hectare and the profit will exceed 1.2 million UAH.
Pay attention to the fact that the calculations are made according to the current wholesale prices, and this will not last forever.
The European wholesale price of walnuts is 11 EUR per kilo, the retail price is 25 EUR per kilo. Consequently, a European manufacturer receives almost 3 million UAH per hectare in case of wholesale sales (8000 kg multiplied by 11 EUR, which equals 88 thousand EUR or 2 million 816 thousand UAH) from a garden of 240 trees.
They are about 10 thousand UAH per hectare. This is pretty much the same as the costs of cultivating grain crops. The average harvest of grain in Ukraine is 4.5 tons per hectare, and the average price per ton is 5 thousand UAH.
We have already mentioned that there are about 500 thousand hectares of free Ukrainian land suitable for growing walnut. If you turn it into a walnut garden, you will be able to receive 5 million tons of walnut each year, which is by 5 times more than the record of China. 2 million tons of walnut cores will remain after clearing. It will be around 300 000 000 000 UAH – half of the budget of Ukraine, or the entire external debt of the country.
Apple has intensified work on its own search service, which will become a competitor to Google, writes the Financial Times, citing interlocutors in the mobile industry. One of the signs of this, the interlocutors called the fact that after updating the iOS operating system, Apple began to show its own search results and provide direct […]
American chipmaker Advanced Micro Devices Inc (AMD) is buying rival Xilinx Inc for $ 35 billion under a deal that it will be paid for in full by AMD shares. According to a press release from AMD, the operation will create a company worth about $ 135 billion. “The acquisition of Xilinx will allow AMD […]
Oil becomes cheaper due to a sharp increase of reserves in the US and an increase in the number of coronavirus cases, which has raised fears of oversupply and weakening demand. This is evidenced by the data of stock trading on the site Investing.com published on Wednesday, October 28. In particular, the price of December […]
In the last week of October, investors expect a lot of news, as more than one-third of the components of the S&P 500 index, or 186 companies, must report financial results for the third quarter. The information field is even richer given the election race in the United States, the situation with the pandemic and […]
Shares of Zoom Video Communications, which rose 716% over the past 12 months, rose 5.8% during trading on Monday, but closed with an increase of 1.23%. This is very different from the general decline in the market on Monday – major US stock indexes closed lower: the S&P 500 by 1.86%, the Dow Jones by […]
Shares of Pfizer decreased by 3.2% since the beginning of the year, fell by 1.65% on Tuesday after the company announced the results of the third quarter, which ended on September 30. Pfizer reported a 4% drop in earnings per share (compared to the same quarter in 2019) to $ 0.72, but this was slightly […]
The President’s Office stated that the decision of the Kyiv District Administrative Court (KDAC) to dismiss NABU Director Artem Sytnyk could not be considered final, as it would be appealed. This was announced on Tuesday, October 27 by the press service of the President’s Office. The President also noted that any differences over anti-corruption bodies […]
Next year, only a small proportion of people in the European Union will be able to get the coronavirus vaccine. Officials in European countries have not yet decided on the vaccination of citizens. This was announced by Reuters on Tuesday, October 27. “By the end of 2021, there will not be enough doses of the […]
Chief State Sanitary Doctor, Viktor Liashko, said that the drug “Remdesivir”, which was planned to treat patients from the coronavirus, have already been purchased, and the party is taken to Ukraine. He said the news in the interview with Radio Svoboda on Sunday, October 18. “And now it is being transported to the territory of […]Next
Gerard Adams, who is also called Mentor of Millenials is an American entrepreneur, an expert in the field of branding, philanthropist. He came to millionaire status in the age of 24 years. Edition Entrepreneur published Gerard reflections that represent the social significance and the role it plays in building a business for him. Knowing your […]Next
BMW has agreed to pay 18 million dollars fine for distortion of sales data for five years. About it with reference to the Commission on securities and stock exchanges of the USA. According to the commission, from 2015 to 2019, BMW maintained a reserve of unaccounted for car retail sales, which it used to achieve […]Next
The American corporation Amazon has received permission from the Federal Aviation Administration of the United States to use drones to deliver cargo. This was reported by TASS. As reported, on August 29, management allowed the “use of unmanned aerial systems” service Prime Air, owned by Amazon. The relevant inquiry Corporation sent in 2019. Representatives of […]Next
The US stock market came out in the plus on Monday, сontinuing to rise in the previous two sessions, while the S & P 500 and Nasdaq updated a high record due to the investor`s optimism about the prospects of treatment of coronavirus infection COVID-19. The news that the US Food and Drug Administration (FDA) […]Next
The famous Italian fashion house Prada has decided to make adjustments of the management of its business because of the fact that the company’s sales began to fall. General Director of Prada Patrizio Bertelli is going to re-equip production and hold a business restructuring. At the end of 2013 the company’s revenues declined, while management […]Next
The company plans to raise $ 2.1 billion of investments in a new round of funding. All the necessary documents have been drawn up and passed in Delaware. The world’s largest taxi service Uber, which head office is based in San Francisco, plans to spend the funds on its expansion, service development in Asia and […]Next
The capacity of installed solar energy facilities in Ukraine will increase up to 3 GW by 2020. Vitaliy Daviy, CEO of IB Center Europe, made such forecast for the development of the industry at CISOLAR 2019 the 8th Solar Energy Conference in Kiev. As of April 1, 2019, more than 2.2 GW of solar energy […]Next
The computer system of the American medical company Universal Health Services, which has a membership of over 400 medical institutions, has become the object of attack by hackers that demand the ransom. This was reported by CNBC, citing sources from the company’s employees. According to the TV channel, computers in the various institutions of the […]Next
US Employees of Facebook were allowed to work in a remote location by June next year. Most Facebook personnel were switched to remote mode in late March, and in April, CEO Mark Zuckerberg said that it is the last among of those to resume working in the office at the end of a pandemic of […]Next
In Ukraine it may soon be a new bank, whose founders will be the Arab leaders of business – community. About this initiative, which sounded Ukrainian-Arab Business Council, informs UNIAN source. This proposal of Council was strongly supported by the authorized persons of the National Bank and the Cabinet. The ofmeeting of business circles of […]Next
The criminal case against the owner of VAB Bank is closed. It is reported by news agency Interfax-Ukraine, referring to the statement of the press service of the Ukrainian company Ukrlandfarming, co-owner of which is also above mentioned businessman Oleh Bakhmatiuk. According to the original source, in the course of an investigation initiated by representatives […]Next
The Ukrainian insurance company TAS Group, belonging to Sergey Tigipko,has absorbed the Netherlands private joint-stock company Aegon Life Ukraine which management made the decision to abandon the Ukrainian market. For shareholders of Aegon Life Ukraine 2015, it has ended with the net loss in the amount of 3,6 million hryvnias. Total receivables of insurers from […]Next
Stocks Boeing, which fell by 47.5% since the beginning of the year fell by 1.6% before the opening of trading on Tuesday amid news of a new FAA investigation. The US airline is going through the most difficult period in its history, continuing to expect recertification of the most profitable passenger`s aircraft Boeing 737 Max, […]Next
The Ukrainian “KVV group” put in dead storage its Liepajas KVV metalurgs plant in Latvia because of the crisis in the steel industry and the failure of the negotiations with the Latvian government. “The management of the ” KVV group” forced to take this decision in view of the continuing long-term negative factors, that impede […]Next
Representatives of the Antimonopoly Committee of Ukraine approved the deal between the German company Robert Bosch GmbH and the Chinese home appliance manufacturer Guangdong Vanward New Electric. It is about creating a joint venture on the territory of Ukraine. It is expected that production will specialize in the production of components for cars, gas appliances […]Next