ECONOMIC REVIEW1
AGRICULTURE
Kherson province is a region of a high developed agricultural production. Its natural and climatic conditions, fertile soils favor growth of various agricultural crops.
Of other regions of Ukraine the province stands out with a high level of the production of grain crops, vegetables, fruit, and a developed diary and meat complex. Besides, the region contains 431.1 thousand hectares of irrigated land which takes up 22 per cent of the total agricultural area of Ukraine.
The agricultural branch has a considerable scientific and technical support represented by four scientific and industrial institutions: the Kherson State Industrial University, the Kherson State Agricultural University, the Institute of Cattle-breeding Askania Nova named for M.F. Ivanov, and four scientific Research Stations.
There are 430 agricultural farms and 3,634 farmsteads in the region. In the gross output of the region's agriculture the main role belongs to the plant-growing. The total area of agricultural land constitutes 2,033.2 thousand hectares, of which 1,970.5 thousand hectares are arable land, and pastures take up 155.6 thousand hectares.
The main directions of the plant- growing development are the growing of grain crops, oil-bearing crops, and vegetables. Grain crops are represented by a large variety of them- wheat, including winter wheat, rye, barley, oats, millet. Also sown and provide good yields corn, buckwheat, rape, mustard , coriander, legumes and fodder grasses of the legume-type .
An important place among the oil-bearing crops is taken up by sunflowers. Last year a complex for receiving and processing of 20,000 cu.m. Vegetable oil (four tanks of 5,000 cu.m each) has been set up and put into operation in Kherson.
Kherson region is rich in fruit orchards with their sweet cherries, apricots, peaches, apples, plums. Famed well beyond its boundaries for their taste are our water melons. Grapes grown on vast vineyards in our steppes add delicious savor and saturated color to the wines and cognacs of Kherson region.
Animal husbandry of the region is based primarily on breeding cattle, pigs, sheep, and poultry. Of new developing directions of this branch worth mentioning are some new and unusual, such as breeding of quails and ostriches. Dietetic meat and eggs of these birds are valued highly, and they are in demand.
The potential of the food and food processing branches of industry is represented by enterprises of various forms of property. Of them there are poultry factories, meat and dairy processing plants, butter making factories, and also factories for production of flour, groats, cheeses, catch-ups, mayonnaises, juices, canned vegetables and fruit, complexes for bread-baking. In the last time the factories are exploring new activities, and namely production of fresh frozen vegetables and fruits
The production made by the factories and plants busy in the sphere of agriculture and food processing, is in popular demand and successfully exported to many countries of the world.
.
Kherson region is characterized by an industrial complex which embraces many branches- food and food processing industries, machine building, electrical power generation, metalworking, chemical, fuel, pulp-and -paper, and light industries.
The machine building branch embraces plants specialized in ship building, the production of equipment for electrical engineering and materials handling, agricultural machinery, and automotive industry, the latter starting from 2001. The commodities of Kherson region enterprises are well known in the Ukraine and beyond. The plants of the region manufacture agricultural machinery, ocean-going ships and river vessels, tankers and passenger motor ships, technological equipment for processing plastics, equipment for electrical engineering, hydraulic- engineering structures, metal structures, and many other products.
Ship building has priority among machine building industries of the region. The Kherson shipbuilding yard carries out orders for building ships and installation of shipboard equipment not only from ship-owners but it also meets demands of many other industries regarding technically complicated articles. In the same branch operates one more enterprise, which enjoys high reputation not only on Ukraine but also beyond its borders. The enterprise called The Pallada is specialized in production of reinforced concrete pontoon- moorings and mooring lines. Reinforced concrete pontoons of its make are able to serve as the base for floating hotels, granaries, power stations. Floating docks made at this enterprise perform successfully their duties in many countries of the world including Russia, Japan, South Korea, Vietnam, Bulgaria, and other countries.
In accordance with the agricultural specialization of the region, an outstanding place in the industrial structure is taken up by the agricultural machinery. The "Khersonskiye kombainy (Kherson combines)" Ltd is a huge manufacturing complex which specializes in output of complicated agricultural machinery for corn harvesting, water- sprinkling and other needs. It has brought into production the output of driving axles for trolley -buses being the first in the CIS in this branch.
A series of enterprises successfully represent the electrical engineering industry of the region.
The "Kakhovsky zavod elektosvarochnogo oborudivaniya" Ltd. (Kakhovka plant of electric welding equipment) is the leader in production of high efficiency electric welding equipment, automatic lines and complexes for electric arc welding, as well as a new generation of machines for welding of bars and tubes. The processes of management and execution at this plant are based on best world achievements in the branch. That is why the entire production stands the world competition and compare favorably with imported analogs.
The "Elektromash" (Electrical machines) Ltd. manufactures electrical equipment and spare parts to automobiles and tractors. The factory cooperates successfully with Russian and inland companies.
The "Zavod Karddannykh valov" (Cardan shaft factory) Ltd. is specialized in production of cardan shafts and spare parts to them for trucks, buses, trolley-buses of all kinds, and tractors. Besides, the factory manufactures filter elements for trucks, cardan joints, tie- rods, etc.
The "Berislav mashinostroitelny zavod" Ltd. (Berislav machine building factory) is specialized in production of mounted equipment for diesel engines used on ships, diesel locomotives, automobiles, tractors, and stationary units.
The "Yuzhelektromash" (Southern electrical machines) Ltd. produces machines which correspond to the highest technical requirements in the world,, and it was awarded the International Brilliant Quality Star two times. In 1996 the factory was awarded an international prize for the best trade mark.
Immersible pumps of the Kherson electromechanical factory are in great demand not only with inland consumers but also with foreign ones. The Nova Kakhovka "Ukrgidromech" (Ukraine Hydromechanics) factory delivers its nonstandard hydro-technical equipment for building of nuclear-, thermal- and hydraulic power stations.
It is only a relatively short time since the "Mekhanichesky zavod" (Mechanical factory) Ltd. has begun its work in the region, but it works already with success producing and exporting high quality secondary aluminum alloys with a high degree of purity in accordance with European standards.
The fuel branch of the region is represented by the "Khersonneftepererabotka" (Kherson oil refining) Open Joint- Stock Company which is one of the biggest refineries in Ukraine. Structurally it is a ramified technological complex embracing two plants for the primary oil refining of various outputs, a plant for the secondary oil refining (reforming, coking), and some bitumen plants.
The light industry is represented by factories producing textile, clothing and shoes. The "Khersonsky khlopchatobumashnyi kombinat" (Kherson Cotton Textile Manufacturing Complex) Open Joint- Stock Company is one of the biggest of its kind in Europe. It produces cotton fabrics and fabrics with combined cotton and flax fibers, cotton and other fibers (over 100 denominations).
The produce of the "Krasen" Closed Joint- Stock Company are suits, jackets, and trousers which are known for their excellent quality and a fine cut which favor their high demand not only in Ukraine but also beyond the Ukrainian borders.
In the last time a considerable development has attained the cellulose and paper branch. The "Cellulozno-bumazhnyi kombinat" (Cellulose and Paper Manufacturing Complex) Open Joint- Stock Company has been developing production of paper for technical purposes on a wide range, their quality being in no way lower than that of famous world brands.
The "Prombiznes" (Industrial Business) Open Joint-Stock Company uses the abovementioned technical papers for production of various filters and filter elements for cleaning oils, air and fuel in automobiles, agricultural machines and in special machines.
The biological factory works with stability in the sphere of chemical industry. It produces vaccines, serum, solutions for injections, which are necessary for diagnostics, treatment and prophylaxis diseases in animals and poultry in agriculture.
The glass industry is represented by the "Ukrskloprom " (Ukrainian Glass Industry) Open Joint- Stock Company which manufactures ornamental articles of glass, glass bottles and glass jars with the "twist- off" neck and other articles.
The food industry comprises 96 enterprises (45.3 per cent of the industrial potential of Kherson region). Among their branches prevailing industries are the milk industry, production of juices, processing of grain, fish industry, vegetable and fruit canning..
The volume of foreign trade turnover of goods of enterprises of Kherson region during January-September 2009 amounted to 341,2 million USD against the corresponding period in 2008 decreased by 1,6 times (to 182,2 million USD).
The volumes of goods exports in January-September 2009 amounted to 251,8 million USD and decreased comparing with the corresponding period last year to 17,1%, of goods imports — 89,4 million USD and decreased in 2,6 times. The positive balance of foreign trade of 162,4 million USD (in January-September 2008 — 66,9 million USD).
During the reporting period the company carried out the field of foreign trade in goods with partners from 99 countries worldwide. In the CIS countries have been exported 22,0% of all goods in the EU countries - 27,2% (in January-September 2008 - respectively 32,5% and 31,4%).
Basic indicators of foreign economic activity of the
Kherson region during 2005 - January-September 2009
|
Years |
Foreign turnover of |
Export |
Import |
Balance |
|
2005 |
399,2 |
292,5 |
106,6 |
185,9 |
|
2006 |
453,5 |
294,0 |
159,44 |
134,7 |
|
2007 |
562,7 |
371,7 |
191,0 |
180,7 |
|
2008 |
783,6 |
471,6 |
312,04 |
159,6 |
|
January-September 2009 |
392,4 |
299,9 |
93,0 |
207,0 |
The largest volumes of goods exports deliveries were carried out in Turkey - 12% of total exports, Norway - 11,3%, Russia - 9,7%, Georgia - 8,8%, Bulgaria - 7,6% and Germany - 6,1%. Among major trading partners of the CIS in January-September 2009 decreased exports volumes to Kyrgyzstan. Among the EU countries substantially increased exports volumes to Bulgaria, and among other countries - Georgia, Norway and the British Virgin Islands. While reducing the volume of goods exports to Belarus, Kazakhstan, Moldova, Russia, Greece, the Netherlands, Germany, United Kingdom, Israel, India, United Arab Emirates, Turkey, Egypt and others.
The largest share in the total import was: Turkey - 17,4%, China - 14,3%, Germany - 12%, Russian Federation - 10,8% and the Netherlands - 8,1%. Comparing with January-September 2008 import rose from the Netherlands and Georgia. While reducing the volume of goods imports in accordance with groups of countries from Kazakhstan, Russia, Austria, Italy, Germany, Poland, China, United Arab Emirates, Turkey, etc.
The structure of goods exports accounted for a significant proportion of the supply of plant products - 29,8% of total exports of the region (including seeds and fruits of oil plants - 14,8%, cereals - 11,4%), vehicles and road equipment - 24,7 (including floating sea and river - 22,4%), prepared foodstuffs - 9,9%, mechanical and electrical equipment - 10,2% (including electrical machinery and equipment - 7,7%, boilers, machinery and vehicles - 2,5%), base metals and products there of - 12,0% (including ferrous metals - 4,5%, products from them - 5,7%), etc.
The growth rate of goods exported from the region was due to increase in the number of shipments for export crops to 39,3%, floating sea or river to 426,5%, seeds and fruits of vegetable origin to 54,8%.
In total imports accounted for 27,9% of delivery of mechanical and electrical equipment (including boilers, machines and equipment - 19,2%, electric machines and equipment - 8,7%), polymer materials, plastics and rubber - 12,8%, ready foods - 11,3%, products of vegetable origin - 4,6 %.
In the structure of imports compared with the corresponding period in 2008, have increased the supply of seeds and fruits of oil plants - by 91,6% and ready foods - by 90,5%.
The reasons for the reduction of goods imports against the backdrop of the global financial crisis and reduce the solvency of the population is to introduce 13% tax on imported goods, which operated during the first half of 2009 and continues to act for individual commodities in present time.
The main feature of economic-geographical region - its seaside location and the border, the yield on the Azov-Black Sea basin and the Dnieper River highway. Kherson is a transit area with a powerful transport system, which consists of rail, sea, river, road and air transport. All this allows the Kherson region to play an important role in establishing international and interregional transport linkages.
In the region are two of the international transport corridor: the first - this is the Black Sea Economic Cooperation (BSEC) - 114 km, which forms the traffic flows in the Middle East and the Balkans in the direction of Mariupol and Novoazovsk. Second - Euro and Asian traffic flow from Europe through the Black Sea ports in the Crimea, Russia, the Caucasus and the East - 226 km.
The transport sector is an important component in the structure of the regional economy. In this industry are currently working on 88 companies and organizations. There is 1 airport, 3 commercial sea port, 2 river ports, 1 railway company, 5 of shipping companies of various forms of ownership, 77 companies operating in the market for road transport in the region. The transport system includes the seaways, 452,3 thousand km of railways, 4 934.1 km of roads that connect the Kherson region with other regions of Ukraine, CIS countries, Southeast Europe, the Caucasus and the Middle East.
Kherson sea port - the oldest port of Ukraine and the Black Sea Fleet in Ukraine and Russia in general. It arose in connection with the base Kherson more than 200 years ago. Today it is a powerful maritime enterprise. In the future - expanding transshipment complexes, which will enable to increase the volume of the port.Also provides for the participation in port investment project of building a deep cargo complex at the mouth of the Dnieper - Bug estuary. The introduction of this complex will accept large ships.The leading role in the implementation of the Kherson international transport project for a water-transport corridor North - South or the Daugava - Dnieper. In this corridor will play a significant role Kherson sea port.
Actively declares itself Skadovsk sea port. Founded over 100 years ago by Count Boris Skadovsky, which gave the name of the city, which is located in the port, he surely gets international status. There are already a ferry to the Turkish city of Zonguldak. Port is actively looking for new cargo for the development of international corridors to the countries of the Middle East and Central Asia. Now the port annually recycles hundreds of thousands of tons of various cargoes. Great prospects and in the Kherson river port, which is part of the joint-stock shipping company Ukrrechflot. This much has been done to enhance the capacity of cargo handling and improve passenger service. Annually Kherson boatman processed over one million tons of cargo. Important role in the provision of transport services is Kherson management of rail transport. In the area of its action is not only sea and river ports in the region, but also the pipeline Kremenchug - Kherson - Odessa. Kherson railway providing freight and passenger the Kherson and Mykolaiv regions and in part of the Autonomous Republic of Crimea. Annual rail transported more than 5 million tons of cargo and more than 3 million passengers. Transport enterprises for January - March 2007 carried 34.9 million passengers transportation, which is 19% less than during the same period last year, passenger traffic declined by 3.5% to $ 707 million passengers kilometers. During January - March 2007 carried 1,777.9 thousand tons of cargo, which is 22,1% more than last year. Turnover rose by 20,7% and amounted to 1,069.3 million ton kilometers.
Existing transport complex of the Kherson region allows us to take their
rightful place, both in domestic and international distribution of transport services.
Foreign Economic Activities of Kherson region January – July, 2010
In January – July, 2010 the total volume of foreign trade of Kherson region enterprises amounted to USD 268.74 million, and increased by USD 12.9 million (5.04%) against the relevant period in 2009. Herewith, export volume of foreign trade amounted to USD 186.17 million, import volume amounted to USD 82.57 million. Export decreased by 2.3% and import increased by 22.6% if compared with the previous reporting period. The debit balance of foreign trade amounted to USD 103.6 million (in January – July, 2009 to USD 123.3 million).
Thus, Kherson region remains export-oriented.
Representatives of 88 countries became partners of regional enterprises in foreign trade transactions in January – July, 2010.
Most of the goods were exported to the CIS – 30.25% of total exports. Export to the Russian Federation and the Republic of Belarus possessed the highest rates (16.28% and 6.76% respectively).
Also, equally important is the development of foreign trade with the EU – 22.11% of the total volume. The largest goods deliveries were carried out to the UK (4%), Germany (3.69%), Poland (3.49%), the Netherlands (2.18%) and Czech Republic (2.01%).
Among the other countries, Norway (17% of total turnover) and Turkey (16.65%) should be noted.
As to the EU countries, exports to Slovakia, Lithuania, Poland and Cyprus significantly increased. Exports to Turkey, Iran and Algeria increased as well. Simultaneously, exports to Uzbekistan, Kyrgyzstan, Greece, Denmark, Germany, Italy etc. decreased.
For many years Kherson region remains the main center of agricultural development in Ukraine. However, due to inclement weather, which prevented harvesting in time, a part of agricultural production was lost. In the first half of 2010, exports of plant products decreased by half compared to the relevant period last year. Thus, export of plant products makes about 16.2% of total regional export volume (including oil seeds – 8.5%, corn – 5.5%).
Manufacture is one of the leading industries in Kherson region. Industrial complex of Kherson region includes food and processing industry, engineering, chemical and petroleum-refining industry, pulp-and-paper and polygraphic industries, consumer goods industry, metallurgy and metal-working industry, non-metallic products manufacturing, electric-power production and distribution.
Food industry (production of foodstuffs, alcoholic beverages and soft drinks) makes about 17% of the total exports of the region.
Export of transport equipment (ships, boats and aircraft) is one of the main export articles, which amounted to 19.1% of the total export volume in the region.
A significant share of the regional export belongs to metallurgy and metal-working industry (18%), as well as to mechanical engineering (11.6%).
Main export structure
Main partner countries to import
Main commodity composition of imports
