Commercial director of Astarta: “We should focus on valuable human needs”
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– The war and the uncertainty caused by it prompted Ukrainian businesses to transform and quickly adapt to new circumstances. Let’s go back to February 2022, how did the full scale war phase begin for Astarte?
– It all started with an alarm… But seriously, all businesses were preparing for war in one way or another. Everyone worked out a plan of action in accordance with the possible scenarios of the development of the situation. Everyone understood that the sea or any other ways could be blocked.
Where was “Astarte” in all this? We knew for sure that there was an internal consumer who needed our products. In the first days of the war, sugar and livestock products were very actively consumed on the Ukrainian market. We handed over part of the products as humanitarian aid, realizing that we must do everything to prevent a threat to food security.
And when the markets of the European Union opened for us in June 2022, new partners were found there quite quickly. Especially since we already had certain experiences that helped us along this path.
Commercial director of “Astarta” Vyacheslav Chuk
– What exactly are the achievements?
– Western partners attach great importance to financial reporting and compliance by companies with the principles of sustainable development. And we were already ready for that.
Astarta has been a public company since 2006, so we have been publishing both our financial and non-financial reports on our sustainability achievements for a long time, which are analyzed on the basis of environmental, social and governance (ESG) indicators.
We are convinced that we need to produce and sell more than just products, we must focus on the valuable needs of people and their desire to preserve the planet for future generations. That is, Astarta’s efforts to solve social and environmental problems are as important as the production of high-quality and safe products. All this forms a reputation.
Thanks to the fact that we do everything publicly, we were already known. In addition, they partially knew our product. For example, we have been selling soy products to Europe since 2015. We also worked with sugar – within the framework of the limited quota (20,000 tons) that existed earlier. Therefore, they were already ready to do business with us. We found logistics through the western borders, found a buyer – sometimes it happened the other way around – and immediately started selling.
– Since the beginning of the war, quotas for agricultural products were canceled and Europe had the opportunity to get to know Ukrainian products more widely. How interested do you think the European buyer is in it? Will he be interested in maintaining intensive trade relations even after the end of the war?
– In order for this interest to be preserved, we ourselves must support it. First of all, conduct a predictable state policy regarding exports and domestic consumption. We are trying to convey to everyone that while there is a springboard of opportunities for the export of agricultural products and processed products to the EU, it should be used to the maximum.
Today, sugar production in Ukraine has increased. This year, we plan to return beet crops and sugar production to the level that existed before 2022. We form a full-fledged ecosystem around us and involve small farmers and other smaller companies in cooperation. We go to them and say: grow beets, and we will process, increase our exports. In general, the country plans to produce 1.6 – 1.7 million tons of sugar, while last year it was slightly more than 1.3 million tons. As of now, the domestic market does not need more than 1 million tons.
Sugar production
Europe, for its part, consumes a lot of sugar, 17 million tons per year. At the same time, a significant part of the products is imported. Based on its capabilities, Ukraine can cover approximately 20% of European sugar imports.
In this way, we can become one of the key players in the EU supply chain, replacing the existing Brazilian imports, which are not quite in line with the principles of sustainable development. It is worth talking about: this is a good chance for us, and for Europe – an opportunity to get a good stable partner that produces quality products and cares for the environment.
Instead, we have a situation with sugar exports, when Ukraine itself introduced restrictions on European markets (this is a zero quota for sugar exports, established by the government from June 5 to September 15, 2023 – ed.) and isolated the access of Ukrainian producers to this key market.
The state should consider the issues of its regulatory policy regarding export markets, especially during the period of martial law. At the same time, the business is ready to increase the volume of product processing, to invest in ensuring that we do not export only raw materials. The business is ready to ensure predictability, sustainability of exports, and demonstrate a reliable partnership. The government should do the same. This is the main wish.
– What else can we offer to Europe, besides sugar?
– Soy products. The European Union is a net importer of soybean processing products. And we – a country that grows up to 4 million tons of soybeans per year – just have to process it and become a key supplier for the countries of Central Europe! We have soybean processing plants as well as facilities that can process all oilseeds. This is enough to process all soybeans grown in Ukraine. “Astarta” has been supplying Europe with Ukrainian soybeans since 2015 and will continue to do so.
Soy
In general, most of what Astarta grows can be processed in Ukraine, and we are actively working on this – we plan to build a new technological line for advanced soybean processing.
But it is also worth working out the appropriate state policy to “get involved” more in the markets with the philosophy of transparency, honesty, openness, sustainability in order to protect the interests of the national producer both in Ukraine and abroad.
– There is a demand for organic products in Europe. What can Ukrainian businesses offer for this market?
– In Ukraine, there are still very few people engaged in organic production. But there is organic matter in “Astarta” crop rotation. Every year we sow 2,000 hectares with it. These are mustard, flax, soy, millet, wheat, corn and sunflower. We also have experience in cultivation and supply, relevant certifications and “clean” infrastructure. Equipment, transport, warehouses, warehouses, etc. – all this should not contain chemical traces of those substances that are used for ordinary inorganic production. Simply put, the entire infrastructure should not have any contact with products that have undergone any kind of processing. And it is constantly checked.
Organic products are mainly exported to the European market, because there is really a demand for them there. But we grow such products, including because it meets the goals of sustainable business development.
If we want to do something, follow the trends of the future, then we need to start now. To understand, organic grain certification alone takes three years.
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