Ukrainian Agriculture: Infographic Report 2014

Page 1

2014

PROFESSIONAL EDITION

40

PAGES OF INFOGRAPHICS

INFOGRAPHIC REPORT

UKRAINIAN AGRICULTURE YEARBOOK

Financial sponsor:


ABOUT THIS REPORT

CONTENTS HOW TO READ THIS REPORT PAGES 6-9

PAGES 10-15

LAND

YIELD

ENVIRONMENT RESOURCES SOILS .... 6

CLIMATE .... 7

The main purpose of this report is to demonstrate the powerful potential of the Ukrainian agriculture and its important role as a major force in the Ukrainian economy. Why is it made of infographics?

MAIN ECONOMIC INDICATORS

HARVESTED AREAS .... 8

PRODUCTION .... 11 CROP YIELD .... 13

VALUE .... 12

PRODUCTION AND EXPORT .... 15

PAGES 16-33

PAGES 34-42

MARKETS

BUSINESS

PRODUCERS AND EXPORTERS

GRAIN CROPS .... 17

OIL CROPS .... 24

MEAT AND EGGS .... 32

SUGAR .... 30

Infographics is the best way to highlight the position of Ukraine in the global agriculture and food markets. Infographics helps to understand the basic trends and paves the way through piles of data. We used color and graphical indications for each type of agricultural products. For example, corn is always displayed in the graphs in yellow and marked with this icon: Which types of data are used? We utilized data provided by Food and Agriculture Organization (FAO) in order to define the positions of Ukraine in the global market.

COMPANIES AND INFRASTRUCTURE

DAIRY PRODUCTS .... 31

BIGGEST AGROHOLDINGS .... 35

EXPORT OF LIVESTOCK PRODUCTS .... 33

GRAIN STORAGE .... 38

PORTS .... 39

GOVERNMENT SUBSIDIES .... 39

Symbols used in this report

Data sources:

grain crops

barley

oil crops and sunflower oil

soy

sugar

wheat

corn

sunflower

colza

milk and diary

●● Baker Tilly ●● Latifundist.com ●● Minagro ●● State Statistics Service of Ukraine ●● FAO ●● EBRD

eggs

meat and by-products

2

At the same time the infographics on domestic agricultural production are based on data provided by State Statistics Service of Ukraine. Please keep in mind that the data may differ as every organization has its own estimation methods. A little bit of oil

●● USDA ●● UN Stats ●● European Commission (EC) ●● AgroChart.com ●● Pigua.info ●● Headway Magazine ●● Fixygen.ua

This report includes data on the production and export of sunflower oil, which is a product of the food industry. These data are included to demonstrate great economic potential of exports of processed agriculture products instead of raw agricultural commodities.


THE ROLE OF AGRICULTURE IN THE UKRAINIAN ECONOMY

$17

254

billion

billion UAH

70%

26,8%

17,4%

OF THE TERRITORY

OF EXPORT

OF GDP

agriculture lands constitute 41,5 million hectares – 70% of the territory of Ukraine

In 2013, agricultural exports equaled 26.8 % of total Ukraine’s exports

Agricultural production is 254 billion UAH., representing 17% of GDP.

FORBES 26

Ukrainian agriculture companies are represented in the FORBES list

EVERY 5-TH

IPO 13 26

Ukrainian works in agriculture

of

Ukrainian IPOs were made by agriculture companies

Position of Ukraine in the global food market

№1

№1

№7

№5

№8

№4

№10

№8

producer of sunflower in the world.: 10,5 million tons

exporter of sunflower oil in the world: 3,3 million tons

in the word in barley production: 9,1 million tons

in the barley export in the world: 2,3 million tons

in the world in corn production: 22,8 million tons

in the world in the corn export: 16,7 million tons

in the world in wheat production: 22,3 million tons

8 in the world in wheat export: 7,8 million tons

3


MIND-BLOWING FACTS ABOUT UKRAINIAN AGRICULTURE

1560 OLYMPIC SWIMMING POOLS MAY BE FILLED WITH ALL SUNFLOWER OIL PRODUCED IN 2013.

ALL THE CORN PRODUCED IN 2013 CAN BE FITTED IN 43 OLYMPIC STADIUMS.

HARVEST 2013 MAY BE FITTED IN THE TRAIN AS LONG AS DISTANCE FROM UKRAINE TO BRAZIL In order to fit the 2013 harvest of grain crops and leguminous crops (62,3 million tons) in the train of grain carriers, you’ll need 923,5 thousand of carriers. The length of such train will be 11 681 km.

In order to fill the bowl of the Olympic Stadium in Kyiv with corn, you’ll just need the harvest collected in Mykolaiv oblast alone (0,72 million tons). At the same time you’ll need 43 stadiums in order to store all the corn produced in Ukraine in 2013.

UKRAINE PRODUCES PRACTICALLY AS MUCH WHEAT AS ALL AFRICAN COUNTRIES COMBINED.

UKRAINE IS THE SECOND COUNTRY IN THE WORLD IN THE SHARE OF ARABLE LAND OF THE OF THE COUNTRY.

Wheat harvest in Ukraine in 2013 is 22,3 million tons. All African countries grow around 25 million tons of wheat per year (2012 data).

56% of Ukrainian land is arable. It’s the second biggest figure in the world. Only one country have the bigger ratio – Denmark, where 58,9% of the country’s territory is arable.

It’s almost as far as the distance between Kyiv and Rio de Janeiro.

4

3,9 million tons of sunflower seed oil were produced in Ukraine. This volume will be enough to fill in 1560 Olympic swimming pools. Interesting that only 1/7 of oil is consumed in the domestic market. The major volume of ukrainian sunflower oil is exported to other countries.

UKRAINE IS THE LARGEST COUNTRY IN EUROPE BY AREA OF ARABLE LAND PER CAPITA. In Ukraine the scope of arable lands is 7 189 hectares per person – the biggest figure in Europe. Under this criteria Ukraine ranks sixth in the world after Australia, Kazakhstan, Canada, Argentina and Russia.


UKRAINIAN AGRICULTURE 2014

LAND SOILS

CLIMATE

5

HARVESTED AREAS


LAND

SOILS

BLACK SOILS OF UKRAINE BLACK SOILS OF UKRAINE WORLD BLACK SOILS

Rich black soils stock – is the key driver of agribusiness growth in Ukraine

BLACK SOILS AREA The scope of Ukrainian black soils equals the territory of Great Britain

The most valuable soils (% of the general scope of arable lands) 10,1 — 20,0 20,1 — 30,0 30,1 — 45,0 45,1 — 50,0

6

Data: «Map of black soil of the Ukrainian SSR», 1977


LAND

CLIMATE

CLIMATE ZONES AND SOILS FERTILITY AGROCLIMATIC ZONING

USDA HARDINESS ZONES (minimum annual temperatures °С)

Humid, mildly warm zone Poorly humid warm zone

Subzone of sufficient moistening of soils

Arid, very warm zone

-28.9 to -26.2 Carpathian region of vertical climate zone

-20.5 to -17.8

-26.1 to -23.4 -23.3 to -20.6

-17.7 to -15.0

Donetsk poorly humid, very warm region

Sub montane Crimean arid, very warm region with mild winter

Transсarpathian humid warm region with mild winter

Crimean region of vertical climate zone

Ciscarpathian humid warm region Very arid mildly hot zone with warm winter

-15.0 to -12.3

SNOWSTORMS

SOILS FERTILITY

(number of snowstorm days per year)

HOT DRY WINDS

(number of days with hot dry winds per year) 1—5

>20 15 — 20 10 — 15

<5 High Above average Average

5 — 10 <1

10 — 15 15 — 20 >20

Below average Mountain areas

Low 5 — 10

7

Data: USDA, “Atlas of agriculture of the Ukrainian SSR, 1958”


LAND

HARVESTED AREAS

STRUCTURE OF UKRAINIAN ARABLE LANDS Dynamics of changes in the structure of agricultural crops in the total agriculture land 100%

2 410,5 Grasslands

80%

5 459,6 Pastures

Forage crops Sunower

60%

Other crops and leguminous Corn and grain

40%

1 147,8 Other

Melon crops and vegetables Potato Other industrial crops Sugar-beet Soybean

Barley

20%

Wheat 0% 1990

1995

2000

LAND BANK OF UKRAINE

32 518,4 Arable lands

million ha

2010

2013

Top-5 agricultural land owners in the world, million ha

Other

73%

data for 2013

2005

18 818,6 Non-agricultural lands

5/BEIDAHUANG GROUP 5,6

Structure of Ukrainian arable lands

4/TERRA FIRMA 16%

670 UKRLANDFARMING

400

369 422 KERNEL

400 NCH

320 MHP

5,8 7,2

2/AACO (AUSTRALIAN AGRICULTURAL COMPANY)

Dec -2012

Dec -2013 295

280

10,7 3/NAPCO (THE NORTH AUSTRALIAN PASTORAL)

Big private farms

532

1/S. KIDMAN & CO

Top-100 agriholdings

11%

Landbanks of the Top-10 agriholdings in Ukraine, thousand ha

5,4

298

260 261

MRIYA

UAI

8

245 245 ASTARTA

197 HARVEAST

220

151

209

AGROTON

Data: State Statistics Service of Ukraine, Latifundist.com

150

150

SINTAL


LAND

HARVESTED AREAS

REGIONAL CROPPING MAP Sumy Oblast Volyn Oblast

wheat rye barley corn sunflower colza soy sugar-beet potato other vegetables fruits/berries

1105,5 527,6

Rivne Oblast

Zhytomyr Oblast

1160,7

818,2

540,2

Kharkiv Oblast

Kyiv Oblast

1758,5

1162,5

Chernihiv Oblast 621

Lugansk Oblast

1720

797,7 1137,8

Lviv Oblast

1203

Ternopil Oblast 192,6

Khmelnitsky Oblast

363,7

Zakarpattia Oblast Ivano-Frankivsk Oblast

1030,3

Poltava Oblast 1940,2

Cherkasy Oblast

1621,9

307

1672,7

Chernivtsi Oblast

Dnipropetrovsk Oblast

1431,8

Vinnytsia Oblast Kirovohrad Oblast

Areas planted with main agricultural crops million ha

1852,5

1625,7 1565,1 1416,9

30

Odessa Oblast

Forage crops Field vegetables

25

Mykolaiv Oblast Kherson Oblast

Potato 20

Sunflower

754,6

Sugar-beet

15

Grain crops and leguminous crops

10

Area planted with sunflower

Territory of Bosnia and Herzegovina

Area planted with wheat

Territory of Lithuania

5

1990

2013

9

Donetsk Oblast

Crimea

Zaporizhia Oblast

In 2013 the areas planted with corn was practically equal to the area planted with sunflower Wheat ramains the most widely spread crop in Ukraine Barley was the forth biggest crop by planted area.

Data: State Statistics Service of Ukraine


UKRAINIAN AGRICULTURE 2014

YIELD PRODUCTION CROP YIELD

VALUE PRODUCTION AND EXPORT

10


YIELD

PRODUCTION

YIELD OF VARIOUS AGRICULTURAL CROPS, MILLION TONS

11,0 Sunflower

The 2013 harvest of grain crops was the record-breaking one.

10,7 Sugar-beet 22,3 Potato

Meanwhile Ukraine, which was always called “the bread basket of Europe”, today produces more corn than wheat.

2,8 Soy

30,9

Corn

9,9 Vegetables

Fo

ra

ge

cr

op

s

2 3 6 5 ,9 ,1

2,4 Colza

11,5

2,3 Fruits & Berries

Milk and dairy products

0,6 Grapes

22,3 Wheat

ve

ge

ta

bl

es

1,2 Meat and by-products

Industrial production of milk products

Fr

ui

ts

an

d

1,2 Eggs

3,9 Sunflower oil

7,6 Barley

an

d

le g

um G r in ain ou c s ro cr p op s s

6 2 ,3

1,5 Other

11

State Statistics Service of Ukraine, Ministry of Agricultural Policy and Food of Ukraine


YIELD

VALUE

GROSS OUTPUT OF AGRICULTURAL PRODUCTS, IN MILLIONS USD

4 686,8

3 605,5

Corn

Sunflower oil

4 127,7 Sunflower

1 568,9 Eggs

1 369,0 Barley

12

3 813,4

1 202,9 Soy

Wheat

904,8 Colza

Data: Baker Tilly’s estimate based on statistics of State Statistics Service of Ukraine and 2013 NBU exchange rate


YIELD

PRODUCTION IN REGIONS

CROPS PRODUCTION IN DIFFERENT REGIONS OF UKRAINE, THOUSAND TONS Grain crops and leguminous crops are majorly produced in central and eastern regions of Ukraine Sugar-beet is majorly cultivated in Western Ukraine as well as in some central regions

Kyiv Oblast Volyn Oblast

Rivne Oblast

Chernihiv Oblast

Sumy Oblast

Zhytomyr Oblast

Lviv Oblast Ternopil Oblast

Zakarpattia Oblast

Khmelnitsky Oblast

Ivano-Frankivsk Oblast

Cherkasy Oblast

Poltava Oblast

Kharkiv Oblast Lugansk Oblast

Vinnytsia Oblast Dnipropetrovsk Oblast

Kirovohrad Oblast Chernivtsi Oblast

Donetsk Oblast

Grain crops and leguminous crops Sugar-beet Sunower Potato Other vegetables

6000

Odessa Oblast

Sunflower is majorly produced in southeastern regions of Ukraine

Zaporizhia Oblast

Mykolaiv Oblast Kherson Oblast

The production of potato is widely spread in western and northern regions, while the production of other vegetables is equally spread in all regions of Ukraine

4000 2000

1000

Crimea

500

13

Data: State Statistics Service of Ukraine


YIELD

YIELD DYNAMICS OF MAIN AGRICULTURAL CROPS IN 1990-2013

CROP YIELD

161,0 159,7

8,6 7,3

The production of wheat and barley didn’t increase since 1990

2013

Grapes

Potato

Vegatebles

Fruits and berries

60

fiber-flax

17,1 20,5 Soy

Sunflower

22,0 23,6 Colza

Sugar-beet

16,5 21,7

89,9 103,8

2012

67,2 85,8

199,2 200

410,8 397,4 8,7 10,6 Buckwheat

10,3 13,1 Millet

20,9 19,4 Oats

22,7 22,8 Rye

21,1 23,4 Barley

Wheat

Rice

Corn

28,0 33,9

62,1 60,0

47,9

64,0

During last 20 years the production of corn increased in 50%

50

Hundredweights per 1 hectare

The production of oil crops (colza, sunflower, soy) demonstrates the uptrend during last 5 years

40

CORN

WHEAT 30

20

BARLEY

In general the production of key agricultural crops substantially differs from year to year, as it depends on weather conditions.

10

SOYBEAN SUNFLOWER COLZA 1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004 14

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

Data: State Statistics Service of Ukraine/USDA


EXPORT OF AGRICULTURAL PRODUCTS AND CORRESPONDING REVENUES 3833,3

PRODUCTION AND EXPORT

3281,3

YIELD

1891,5

EXPORT

49,0

HUNDRED TONS

73,6 348,0 489,8 1197,2 742,3

HUNDRED TONS

575,7

PRODUCTION

Export revenue million USD

1 176,9 37,5 1 186,2 175,6

Production and export of grain crops is the major sphere of Ukrainian agribusiness

2 092,0 121,7 2 353,0 2 346,7 2 774,3 1 492,5 3 856,2 3 209,4

Eggs Milk and dairy products Meat and by-products

7 561,6

11 037,4 70,2

Colza Soy

2 339,5

Though, the revenues from export of sunflower oil indicate that export of products is more profitable than the export of raw materials.

22 279,3

Sunflower oil

7 762,3

Barley

Sunflower

30 949,6 16 729,5

Wheat

Corn

15

Data: State Statistics Service of Ukraine/ Ministry of Agrarian Policy of Ukraine/ USAD/ AgroChart/ Baker Tilly assessment


UKRAINIAN AGRICULTURE 2014

MARKETS GLOBAL MARKET GRAIN CROPS

OIL CROPS

UKRAINIAN MARKET SUGAR

DAIRY PRODUCTS

16

EGGS AND MEAT


GLOBAL MARKET

GRAIN CROPS

LARGEST GRAIN CROPS PRODUCING COUNRIES

%

in

,0

Ot

3

,0%

he

rs

21

6

7

Ch

19

a

Top-10 grain crops producing countries

8

2

1 4

9

a ndi

% ,0

10,6

-28

EU

%I

19

5%

41 39 6,2 3 7 5 35 84 ,89 4, ,01 01 43 29 3, 51 28 9, 1, 44 29 67 0, 17 30 3, 20 60 3, 22 66 0 23 ,15 4 24 ,43 230,0 9, 6 35

1,4 43 7 5,9 45 5 7,4 47 0 6, 48 22 8,3 3

SA

12, 43 42,27 ,3 45 0 45,35 46,05 ,4 6

,9 51 4 46 ,58 , 47 61 44 ,56 ,9 7

42

45 38 ,14 ,4 55 4 45 ,91 ,3 62 9 ,2 9

5894, ,6 20 1 90 67 ,0 ,0 0 88 6 ,4 3 49 45 ,73 , 48 97 , 51 21 ,6 66 3 ,2 4

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

71 , 75 14 ,5 89 8 , 96 57 89 ,62 ,0 1

42

%U

World grain production structure in 2012-2013

Br

Dynamics of grain crops production by TOP-10 grain producing countries, million tons

15,6

il

ntina 2,1% Arge nesia Indo % 0 , 2 ne krai U 2,0% ad Can % 0 3, a ssi Ru % 4,3

az

10

5

CHINA

USA

EU-28

INDIA

BRAZIL

RUSSIA

CANADA

UKRAINE

ARGENTINA

INDONESIA

1

2

3

4

5

6

7

8

9

10

17

Data: FAO


GLOBAL MARKET

GRAIN CROPS

THE DYNAMICS OF GLOBAL GRAIN CROPS PRODUCTION GROWTH DURING LAST 50 YEARS

0,6% 0,7% 0,9% 1,3% 2,5% 5,7%

3000

Grain mixtures Rye Oats Millet Sorghum Barley

Grain crops production structure in the world, 2012-2013 (provisional data)

During last 50 years grain crops production in the world increased by 2.5 times.

Other grain crops Grain mixture Rye Millet Oats Sorghum

Dynamics of changes in the structure of world production of grain crops 1961-2012, million tons

38,3% Corn 20,8% Rice (rough) 2500

Barley

Corn is the most widely spread grain crop in the world (over 38% of total grain crops production), and its popularity continues to increase.

2000

RICE (ROUGH) 29,0% Wheat

1500

Wheat (29%) and rice (21%) are the next most popular grain crops in the world. The share of other grain crops is 12%..

CORN

1000

18

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

1977

1976

1975

1974

1973

1972

1971

1970

1969

1968

1967

1966

1965

1964

1963

1962

1961

WHEAT

Data: FAO, USDA, AgroChart.com


Top-10 wheat producing countries

9

10

4 3

7

1 2

8

Production dynamics, million tons 2011-2012 2012-2013

sta

ada

ki

Pa

Can

3 70

21 2 ,3 4, 8

2 56 ,

CHINA

INDIA

USA

FRANCE

RUSSIA

CANADA

PAKISTAN

AUSTRALIA

GERMANY

UKRAINE

1

2

3

4

5

6

7

8

9

10

19

Data: FAO, USDA, AgroChart.com

28 33 ,0 ,5 6 5, ,7 6

8

15 ,

22 ,3

3, 3 3, 1

22 ,8 22 ,4

1 12 3,9 ,8 2 17 1,5 ,6

22 ,5

29 ,9

8, 9 8, 7 28 26 ,1 ,9

23 ,3

0 25 ,

5 29 28 ,6 ,6

27 ,

8, 6 9,

25

,3 5, 4 5, 3

17 22, ,7 7

29

2

37 ,

36 ,0 37 ,9

7

,5 19 ,

18

,4 31 ,2

8 29 , 319 ,

,1 73 ,

,5 66

4 54 ,

,6 71

7

29

,1 29 ,9

5,9% Russia

4,3

%

3,

,9 ,9 24 24 ,3 ,3 48 49,4 ,9

% 9,7 A US

Crop yield, cwt per ha 2011-2012 2012-2013

86

2012-2013

7%

12

11

7,

4

0

Crop area, million ha 2011-2012 2012-2013

14,9% India

Global wheat production structure

n

Dynamics of wheat production by TOP-10 global wheat producers, million tons

e Ukrain 2,5% y an m r Ge % ia 3,5 al r st Au 5% 3,

6,0% France

Therefore Ukraine will have substantial potential to increase the production of wheat if it increases the output per hectare.

5

6

% ,0 a 9 1 hin C

% ,0 r 27 the O

In Ukraine there are more arable lands than in France and Germany (4th and 9th places accordingly). Though, the yield per hectare is 2,5 times lower.

8

Ukraine is ranked 10th in production volume of wheat.

LARGEST WHEAT PRODUCING COUNTRIES

61 ,

WHEAT

94

GRAIN CROPS

1,

GLOBAL MARKET


GLOBAL MARKET

GRAIN CROPS

CORN

LARGEST CORN PRODUCING COUNTRIES Ukraine is the 8th largest producer of corn in the world with 2,3% share in world production.

Top-10 corn producing countries ,2% 18 r he

Ot

10

8

94

1

1,4%

1,7%

2

ada ce

Fran

2,4% Mexico

3

dia 2,5% In

5

Global corn production structure 2012-2013

a 3,0% ntin e g Ar

% B raz il 9,0

0 4, 31 3,

8

Crop area, million ha 2011-2012 2012-2013 0

Crop yield, cwt per ha 2011-2012 2012-2013

BRAZIL 3

EU-28 4

8

INDIA 6

7

20

8

FRANCE 9

,1 13

1, 3 1, 4

,4 11

1, 5 1, 6

15 ,7 15 ,1

4, 6, 4 8

9

UKRAINE

3, 5 4, 4

20 ,

22 ,

8

3, 1 3, 1

MEXICO

6, 1 6, 9

18

,7 21 ,6

8, 8 8, 9 2, 5 2, 5

,3

22

21

,8

6,

5, 8

ARGENTINA 5

0

6

4,

3,

,0 27 ,0

21

2

8, 9 9, 2

5 7, 1 6,

9, 1 9, 7

5,

68 ,1 58 ,9

15 ,2 2 15 ,8 4, 8

0 73 ,

5, 8 5, 9

81 ,5

7,

7

9,

9,

2

10 , 2 2

33

,5 35 ,

19 2

,8 20 5

,6

27 4 ,0 35 ,

,7%

Production dynamics, million tons 2011-2012 2012-2013

22

34

ina

1

CHINA

As for the yield per hectare indicator Ukraine is similar to Brazil. Though we are far away from USA, France and Canada, but we are ahead of India and Mexico.

Ch

5% 8 6, U-2 E

Dynamics of corn production by TOP-10 global corn producers, million tons

USA

Ukraine is situated between Mexico and India in the list of the largest producers of corn.

30

2,3% Uk raine

6

7

,3%

Can

A

US

CANADA 10

Data: FAO


GLOBAL MARKET

GRAIN CROPS

BARLEY

LARGEST BARLEY PRODUCING COUNTRIES

5

2

9 4 3 1 8

Ukraine is the 8th biggest barley producer with 4% share of general output.

4% 27,her Ot

Топ-10 barley producing countries

3,1

%

7 10

3,1%

Tu

rke

y

Ukrainian barley production volume equals to Australian and Canadian output.

UK

3,3% S

pain

6

30,6% EU-28

3,9% Ukraine

lia

Dynamics of corn production by TOP-10 global corn producers, million tons

6,3% Franc e

51

54

,8

Crop area, million ha 2011-2012 2012-2013 Crop yield, cwt per ha 2011-2012 2012-2013

1

RUSSIA 2

FRANCE 3

4

1 3,

7

21

3, 2 3, 3 1, 2, 7 2

2,

8

9

5 5,

5 1, 0 1, 0

5

UK

5,

5,

6,

SPAIN

7,

0

2, 7 2, 7

0

8,

9

UKRAINE

6

3

1 9,

AUSTRALIA

6,

5

2 8,

7,

4 2, 2,

2

3 3, ,7 3 2 2, ,5 1

3, 7 3, 6 2, 2, 2 1

5

8,

9 7,

CANADA

0

8

,4

GERMANY

1, 6 1, 7

8,

1, 6 1, 7

EU-28

10

7

11

8,

8

1,

8

2,

,3

2

,0

14

16

,9

3 2, ,3 9

4, 3 4, 4

7, 7 7, 6

5,

5

5,

7

5 5, ,7 5

6, 2

6,

7

12 , 12 0 ,5

7,8% a Russi

,9

5% da 4, ana C

Production dynamics, million tons 2011-2012 2012-2013

However Ukrainian barley crop area is twice as many as in French and German (3rd and 4th place respectively), where crop yield capacity of cultivated area is three times as large.

Global barley production structure 2012-2013

5 Ge ,8% rm an y

%

4,2

tra Aus

TURKEY 10

Data: FAO


GRAIN CROPS

GLOBAL TRADE

THE WORLD’S GRAIN CROPS BIGGEST EXPORTERS AND IMPORTERS

EXPORTERS

million tons

IMPORTERS JAPAN

14,40

USA

24,19

63,52

CORN

24,56

6,20

33,20

2 1,3 9 6 0,

0,1

1,9

9

4

GLOBAL MARKET

74 3, 0 2,2

ARGENTINA

16,12

17,86

36,23

EGYPT

0,12 0,02

11,52 3,45

0,

4

17

WHEAT

0,6

18,26

2

1,8

6

2,7 8,72

26,62

KOREA

4,68

1,19

Ukraine is the 4th biggest world crops exporter.

28,77

0,92

0,0

1

BARLEY

16,73

3,6

9

6

7,7

2,53

2,34

27,10

0,03

CHINA

2,34

0,2

4

13,94

19,78

7

1,7

7

0,1 1,27

5

1,82

91 1,

2,2

0,01

8,32

RICE

1,22

0,01

SAUDI ARABIA* 13,71

9 3,1

CANADA 24,64

6,

1

74

0,1

Over 60% of Ukrainian crops export consists of corn, 30% belongs to wheat.

4

0,0

5,2

1

UKRAINE

Crops export from Ukraine exceeds export volume from such large area countries like Canada and Australia.

2

0,6

0,03

BRAZIL

14,13

0,06

18,01

AUSTRALIA 24,57

0,47

2

5,1

7

0,4

OTHER GRAIN CROPS

0,86

22

INDONESIA 0,03

Data: USDA, AgroChart, UN Stats

10,43


GRAIN CROPS

GLOBAL TRADE

UKRAINIAN GRAIN CROPS EXPORT AND IMPORT NIB ULO

N

GLOBAL MARKET

49,600 tons $255,1 million

1,800 tons

11,3

%

IMPORT TO UKRAINE

$1,9 million

10,100 tons

ps Cro ion e t t Sta pora r o % C 9,7

$3,8 million

8%

ТОП-10 grain exporters in Ukraine

Other 40,8%

Export revenue

7,9

%

3,7% Bunge

2,3 % a 2 ,9%

rt

Sern

xpo

ill

Ag

rot

rad

eE

Corn

Ca

l

e

Barley

rne

Ris

$3 833,3 MILLION

Ke

rg

%

$575,7 MILLION

epfer 3,9% To

Wheat and mix of wheat and rye

4,5

$1 891,5 MILLION

5%

Louis Dreyfus Ukraine

3,7

Export volume

233

,4 54 24

5,1

Other

148

13

88 ,0 6,7

104

,5

457,7

,6

48

505,9

,0

61

12

100 000 tons

Other

,2

1 million tons

14

1308

4 million tons

,5

23

,9

0

5,

,8 595 1955,4

Spain Iспанiя

275

24

38

38

Other

79

9,4

4

, 62

Jordan Israel Syria Iran Kuwait Iран Лівія Saudi Libya Єгипет Саудiвська Egypt Аравiя Arabia

South Korea

Japan

Thailand TOTAL

Kenya

26 831,3

Key importers of Ukrainian corn are Spain, Egypt, Iran, Japan, and Korea. Main barley importer is Saudi Arabia. 10 biggest Ukrainian exporters cover 60% of total export volume.

‘000 tons

$6 300,5 million

South Africa

23

Data: State Statistics Agency, USDA, Agrochart


OIL CROPS

THE WORLD’S LARGEST OIL CROPS PRODUCING COUNTRIES

,8% 13

Топ-10 oil crops producers

6%

Ot rs

he

6

2,3

%

2,3

9

7 1

%

8

Ru

In

do

ssi

2,7

a

A

5

US

4

ne

sia

Braz

8

EU-2 5,8%

Dynamics of oil crops production by TOP-10 global producers, million tons

il

Structure of world oil crop production 2012-2013

dia

57 44 54 ,88 ,7 ,23 8 53 ,6 6 32 57 ,9 ,7 8 35 3 ,6 36 5 , 36 33 ,7 37 9 ,6 1 29 29 ,92 , 29 33 27 ,44 ,6 8 31 ,5 16 6 ,5 8 17 ,3 18 0 , 19 93 ,0 4 23 ,2 10 7 ,5 11 2 ,5 14 5 12 ,20 ,6 1 17 ,6 2 8, 0 7, 3 24 12 10 ,43 ,8 13 7 ,5 8

84

6%

11,3

12,

,7 6 90 ,9 4

%

na

57 , 58 84 ,0 59 6 , 59 60 , 58 88 ,5 9

17,9

Chi

71 ,4 2 7 70 9 ,2 ,04 4

In

%A rgen tina

%

7,8

,9 0 1 92 00 ,3 , 93 35 8 ,1 5 97 ,3 2

For the 5 last years the production of oil crop in Ukraine has increased by 67% - up to 18 million tons.

4,0% Cana da

10

2

98

, 19

%U kra ine

3

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Ukraine is one of the top-10 biggest oil crop producers in the world with share of 2,7%.

9, 4 9, 4 57 10 , 10 18 ,8 11 0 ,5 1

GLOBAL MARKET

USA

BRAZIL

CHINA

ARGENTINA

INDIA

EU-28

CANADA

UKRAINE

RUSSIA

INDONESIA

1

2

3

4

5

6

7

8

9

10

24

Data: FAO


THE DYNAMICS OF GLOBAL OIL SEEDS PRODUCTION GROWTH DURING LAST 50 YEARS 3,1% Palm copra

For the last 50 years world oil seeds production increased by 5 times

8,5% Peanuts 7,7% Sunflower seeds

9,8% Cotton seeds

Structure of world oil crops production, 2012-13, million tons

300

Soy beans

13,3% Colza

200

Palm copra Green olives Peanuts

25

Data: FAO, USDA, AgroChart.com

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1979

1978

1977

1976

1975

1974

1973

1972

1971

1970

1969

1968

1967

1966

1965

1964

1963

1962

Cotton seeds 1961

The other widely spread oil crops are colza, cotton, peanuts and sunflower.

Sunflower seeds

56,5% Soy beans

400

1982

Soy covers over 56% of general oil seeds production volume.

1,2% Copra

1981

OIL CROPS

1980

GLOBAL MARKET


GLOBAL MARKET

OIL CROPS

SUNFLOWER

THE WORLD’S LARGEST PRODUCERS OF SUNFLOWER Ukraine is a world leading producer of sunflower with share exceeding 27% of gross world production.

Топ-10 sunflower producing countries 4% 11,

5

7

6

1%

2,

4%

1 8

4 10

er Oth

2,

2

3,4

%

9

3,8%

Bu

di

rm

Tu

%

In

a

,2 27

e

in

a kr

U

a

rke

y

USA

3

3,9% Hungary ce

Fran 4,8%

Dynamics of sunflower production by TOP-10 global sunflower producers, million tons

Global sunflower production structure 2012-2013 na

ia

ss

Ru

9,

6

Arg

10

Crop area, million ha 2011-2012 2012-2013

8,

0

9,4

9,

%

0

Production dynamics, million tons 2011-2012 2012-2013

,1%

ent

,5

ina

7,

24

3%

i Ch

1

1,

8 0, 9

7 0, 7 0, 8

0,

0,

6

0,

0, 9 0, 9

8 0, 9 0, 9

0,

0,

0,

0,

0,

6

5

8

1,

9 0,

6 0,

8

1

3 1,

0,

9

3

1,

0, 6 0, 6

0,

0, 7 0, 7

1,

4

6 1,

9 1, 0

1, 8 1, 6

1,

9

4

2,

2,

3

6 1, 7

1, 9 1, 9

2,

9 1, 8

1,

1

3 3

1,

3

3,

3,

5

1,

2,

3 2,

6,

5,

8 1, 1,

4

2,

5 2,

2,

1

8 6, 0

5

7,

6

2

Crop yield, cwt per ha 2011-2012 2012-2013

UKRAINE

RUSSIA

AGENTINA

CHINA

FRANCE

HUNGARY

USA

TURKEY

BURMA

INDIA

1

2

3

4

5

6

7

8

9

10

26

Data: FAO


GLOBAL MARKET

OIL CROPS

THE WORLD’S LARGEST PRODUCERS OF SOY

SOY

Ukraine is among the top 10 world soy producing countries with a market share of 1%

Топ-10 soy producing countries

4,9

%

4

5

3,0% Other ne Ukrai a 0,9% Bolivi ay 1,0% rugu 1,4% U nada y Ca ua

1

,7%

r ag

di

10

9

In

Pa

3%

7

1,9%

% 3,1

4,

a

A

US

30

USA, Brazil and Argentina produce 80% of the soybeans in the world.

Ch

ina

2

6 38

tina

4%

Global soybean production structure 2012-2013 Bra

3

4

4

INDIA

1 2, 2,

1, 2,0 7

8 2,

2,

CHINA

5

6 27

1

4, 3

BOLIVIA

UKRAINE

8

9

10

7

8

2,

2, 3 2, 4 1, 1,1 4

URUGUAY

3 2, 7 1, 1, 1 1

CANADA

1, 1,6 7

3, 3,0 0

PARAGUAY

2, 7 3, 7 1, 1,1 3

2

ARGENTINA

5,

1 1

BRAZIL

8, 3

4, 0

1,

4

10 1, 10,3 1,1 ,8 1

11

,0 11 ,5

1 1,,8 8 ,1 7, 7, 9 2

,5

13

14

USA

8

49 17 2, 1,6 5 9 2, ,4 3

40 ,

1

Crop yield, cwt per ha 2011-2012 2012-2013

2, 3,8 0

Crop area, million ha 2011-2012 2012-2013

,3

,7 25 , 207 0 7 3, 2,

2 2, ,8 7

29 30,9 ,8

66

,5

5%

30,

82

,0

Production dynamics, million tons 2011-2012 2012-2013

zil

84 82 ,2 ,6

Dynamics of soy production by TOP-10 global soy producers, million tons

5 2,

18,

en Arg

Data: FAO


GLOBAL MARKET

OIL CROPS

THE WORLD’S OIL SEEDS BIGGEST EXPORTERS AND IMPORTERS

GLOBAL TRADE

Ukraine is ranked 6th in the world by oil seeds export

IMPORTERS

EXPORTERS million tons

BRAZIL

42,9

42,79

CHINA

58,38

62,30

3

99

8

0,0

2,9

0,

SOY 39,18

3,62

USA

40,1

GERMANY

4,59

0,13

9,08

0,8

0

7

0,8

9

3,2

2,7

6

3

CANADA

11,0

COLZA

2,5

4

1,81

0,22

NETHERLANDS

0,19

6,8

5,26

0,04

6,16

ARGENTINA

JAPAN

2,46

6,98 0,7

0,85 3, 39

0,0

3

5,08

0,04

OTHER OIL CROPS

1,4

6

5

2,3

UKRAINE

0,17

0,10

5,20

SPAIN 3,88

55

5,1

49

1,

Thus there is the biggest share of colza (60%) and soy (38%) in the structure of Ukrainian export.

1,

PARAGUAY

0,46

2

0,0

Notice that at the core of Ukrainian market strategy on the global food market is promotion the export of processed oil crop products (sunflower oil) and restrictions on export of raw materials - sunflower seeds.

MEXICO 3,18

3,9

28

Data: USDA, AgroChart, UN Stats


UKRAINIAN EXPORTS AND IMPORTS OF OILSEEDS

GLOBAL TRADE

11,200 tons

$211,8 million $34,1 million

$21,7 million

19,800 tons

2,600 tons

IMPORT TO UKRAINE

Ot

he

Seeds and fruits of other oil crops Peanuts

362,000 tons

1%

6,

Ag ro ko sm

$49,0 million Sunflower seeds

$3 281,3 million

$788,5 million

Sunflower oil

Cattle cake or solid wastes 178,2

4,8

355,2

51

3,0

4,6 39,3

4,8 5,4

13,2

4,2

3,8

53

971,3

,2

10

53,

4

165

206

9,8 42 1,8 20

Other

Other

,0

Other

Sunflower oil holds the biggest share in export of Ukrainian oil seeds. Export is quite diversified. Key importing countries: India, China and Egypt.

300

,3

372,0

,7

9

6,

15 ,1

104

180

242,8

457,4

,0

1�076,0

435

Export volume

0

53

22

4

7,

65

3,9

6,

,3

156

e

Soy beans

Colza seeds

tiv

$1 197,2 million

ea Cr

$742,3 million

ViOil

100 ‘000 tons

6,9%

1 million tons

% ,5

Export revenue

11

,3% ge 2 ,3% Bun 2 na 4% Ser 2, e in ra k U M D A

%

12,1% Cargill

September 2013 – March 2014

Oil and vegetable oil

r Ke

,8

20 Top 10 Ukrainian sunflower oil exporters

$399,1 million

43

26

$52,2 million

2,100 tons

l

ne

,2%

32,400 tons

$3,9 million

r

6,1%

OIL CROPS

MHP

GLOBAL MARKET

Росiйська Федерацiя Russia Netherlands Belgium Францiя France

Нiмеччина Germany

Бiлорусь Belarus

Польща Poland Switzerland

Italy Iталiя

Bulgaria Azerbaijan

Туреччина Turkey

TOTAL

Greece Israel

Лівія

Єгипет Egypt

Кувейт

Китай

Iran Пакистан Pakistan

10 012,9

Китай

10 biggest Ukrainian exporters cover 75% of total export volume with “Kernel” as a market leader with a share of 20%.

‘000 tons

Iндiя India

$6 058,2 million Таїланд

29

Data: State Statistics Agency, USDA, AgroChart


UKRAINIAN MARKET

SUGAR

PRODUCTION DYNAMICS AND KEY SUGAR PRODUCERS 2008

2009

2010

2011

2012

2013

1,6

1,3

1,5

2,3

2,2

1,2

Sugar beet yield million tons

13,4

10,0

13,7

18,7

18,3

11,2

Sugar beet crop area ‘000 ha

377

320

492

516

449

270

Number of functioning sugar factories

70

56

73

77

63

38

Production volume million tons

Top 10 sugar producers in Ukraine Production volume 2013, ‘000 tons

7,96

34,6

8

36,3

Crop area and production of sugar beet have dramatically decreased for the last years in Ukraine. In 2013 there were produced 1,2 million tons of sugar beets that is almost half as twice as in 2012. The biggest Ukrainian sugar producer is “Astarta-Kyiv” with market share of 25%. In general the top 10 sugar producers control 84% of the market.

47,7 PODILSKI TSUKROVARNI

7,21

305,3 ASTARTA-KYIV

30

TEOFIPOLSKY SUGAR FACTORY

7,76

PANDA

8,25

Sugar production cost efficiency indicator, 2013

40,9

GALS-AGRO

7,06

7,3

75,1

GNIDAVSKIY SUGAR FACTORY

45,4

SVITANOK

7,02

7,45

182,5

160,2

RADEKHIVSKYI TSUKOR

PODILLYA

7,74

80,8 Т-TSUKOR

Data:: Latifundist.com, based on materials of National association of Ukrainian sugar producers “UkrSugar”


UKRAINIAN MARKET

DIARY PRODUCTS

PRODUCTION DYNAMICS AND KEY PRODUCERS OF DAIRY PRODUCTS Cow livestock and milk production in Ukraine decreased significantly from 2004 to 2008.

8,38 Gross milk production (milk yield), million tons

Cow livestock at year end, million animal units

7,53 Total milk sales by all categories of households and dairy farms, million tons

24,51

The last 5 years, these figures hardly changed.

4,96

Today, the number of dairy cows in Ukraine is 2.55 millions.

3,64 18,05

17,27 2,63

2,56

2,59

2,55

13,71

12,66

11,25

6,07

5,69

11,50

11,39

11,09

4,57

4,69

4,55

4,74

In 2013 produced 11.5 million tons of milk, of which 4.6 million tons sold to production companies.

3,34

1990

1995

MILK Danone Milk Alliance Тerra Food Lustdorf Almira Wim-Bill-Dann Galichina Milkyland GK Formula Pridnyprovskiy

2000

2005

Fermented dairy products

49271

52429

46870

31230

13702

19101

2010

2011

Yoghurt

2012

Cottage cheese

39065 5777 2034

Cream

5487

2013

Butter

5996

700

490

5290 12747

642 6097

5477

38766

28724

33474

18428

13684

19315

18651

21067

21917

17349

8737 13068 1326 2753 11860

30885

4294

26741

2611

11617

35650

37252

2269

773

2435

3900

25180

3315

3756

2893

31

3618

1010

1753

4406

Condenced milk

238

9986 34209

Dairy mixes

437

2279

106249 27725

Cheese

Spread

Processed cheese

828

5 1118

11367

984 Data: Minagro, Latifundist.com


EXPORT AND IMPORT OF UKRAINIAN MEAT AND EGGS, MAJOR PRODUCERS

TOP 10 BROILER MEAT PRODUCERS IN UKRAINE

EXPORT

2013, ‘000 tons

179

219,05 Pork

867,20 Poultry meat

65

Dniprovskiy

43

16,73 Ready-to-eat meat products

427,80 Beef

Agromars

44

37,49

145,46

MHP

61

11 month 2013, ‘000 tons

‘000 tons

619

Agro-Oven

TOP 10 PORK MEAT PRODUCERS IN UKRAINE

4,62

MEAT AND EGGS

23,66

UKRAINIAN MARKET

APK-Invest

27 Globino pig farms

18,70 Mutton, goat meat

25 Danosha

839,93 Other meat and animal by-products

1176,89 Shell eggs (60 g — 1 pc)

‘000 tons

20 Niva Pereyaslavschiny

Volodymir-Volynsk poultry farm

15 Agropromyslova Company

29

Ular

14

18

Bakhmutskiy Agrarniy Soyuz

Gubn poultry farm

13

16

AgroProdServis

13

Argo Ukr Ptakha

143

4,14

150,22

Bershad’ poultry farm

3,72

14

71,08

ArtBudInvest

12 Galichyna-Zakhid

8 ‘000 tons

Slobozhansky Agrokombinat

IMPORT

8 Belgrankorm-Poltavshchina

Other 32

Data: State Statistics Agency, pigua.info, Latifundist.com (based on materials Alliance of Ukrainian poultry producers)


UKRAINIAN MARKET

ANIMAL HUSBANDRY

UKRAINIAN EXPORTS AND IMPORTS OF MEAT, EGGS AND DIARY PRODUCTS $20,5 million 4,100 tons

301,700 tons

IMPORT TO UKRAINE

$241,5 million

$627,3 million

63,100 tons

Export revenue

$489,8 million

$73,6 million

Milk products

$348,0 million

Poultry eggs

Meat and by-products

12,3

4,7

7

21,3

12,

1 000 tons

65, 1

1,4

5,5

19,8

100 000 tons

Other

Other

Other

7,8

,3

5,7

13

10

Russia

,7

The biggest challenge for the Ukrainian animal husbandry is to to improve product quality standards in order to increase demand for meat and diary products beyond borders of former USSR.

7,2

2,3

71,4

Russia and other CIS countries were the main buyers of Ukrainian dairy products in 2013.

1,4

11

,7

,5

60

Export volume

Kazakhstan Moldova Turkey

Azerbaijan

Turkmenistan

Iraq

Uzbekistan

TOTAL

Лівія

UAE

334,8 ‘000 tons

$911,4 million Liberia

33

Data: Baker Tilly, Headway Magazine, fixygen.ua, Latifundist.com

Таїланд


UKRAINIAN AGRICULTURE 2014

BUSINESS

COMPANIES AND INFRASTRUCTURE AGRIHOLDINGS

GRAIN STORAGE

PORTS CRIMEA

34

GOVERNMENT SUBSIDIES

LENDING


COMPANIES AND INFRASTRUCTURE

AGRIHOLDINGS

LANDBANKS AND REVENUES OF LARGEST UKRAINIAN AGRIHOLDINGS Total land bank of top 10 Ukrainian agrarian holdings consists of around 3 million ha. In 2012 their combined income was 93 billion UAH.

17,2 15,1 13,7

13,9

7,6

land bank, thousand ha 2012 revenues, billion UAH

6,2

KERNEL 4,5

70

2,8

3,7

422 320

SERNA

MRIYA

UKRLANDFARMING

245

670

NIBULON

2,5

81 61 60

AGROTRADE ROSTOK GROUP HOLDING

MHP 2,3

Kernel and Ukrlandfarming are leaders of Ukrainian agriculture market due to land bank and revenue volume.

NCH

2,1

320 35 23 GLOBINO

1,3

261

400

AGROMARS GROUP

ASTARTA

UKRAINIAN AGRARIAN INVESTMENTS 35

Data: companies official websites


COMPANIES AND INFRASTRUCTURE

AGRIHOLDINGS

THE STRUCTURE OF VERTICALLY INTEGRATED UKRAINIAN AGRIHOLDINGS

КERNEL

UKRLANDFARMING

405

650

thousand ha

40

LOGISTICS

TRADE

2.8

million tons

1.6

million tons

thousand ha

5 poultry farms 4 pig farms

12 dairy-products farms 4 pig farms

2 Animal husbandry farms 2 breeding farms

1.7

9

million tons

320

thousand ha

8 regional affiliates 16 Animal husbandry farms

20

MRIYA

320

1.1

million tons

1 oil terminal 2 grain terminals

500 trucs Logistics & distribution unit: «Rise»

1 transshipment oil and grain terminal 35 ships Shipbuilding yard

450 refrigerated trucks

Trading company: «Kernel-Trade»

Trading company: ULF Trade AG 25 distribution centres 53 storage depots

Trading company: Nibulon Trading BV

11 distribution centres 2600 franchised stores

10 oil extraction plants

6 sugar plants 19 meat-processing plants 19 laying farms 6 feed mills Breaker plant Imperovo Foods 2 leather factories 5 seed factories

1 feed mill 1 workshop with sausage-production line

3 meat-processing plants 4 feed mills 1 biogas station

Bottled sunflower oil: «Schedry Dar», «Stozhar», «Chumak Zolota»

Shell eggs: «Kvochka», Organic Eggs Dried egg products: Imperovo Foods

PROCESSING

OWNED BRANDS

17

MHP

81

thousand ha 12 clusters 125 animal farms Egg production unit — Avangardco Animal husbandry unit — Ukrmyaso

PRODUCTION

NIBULON

thousand ha

7

1.1

million tons

Potato terminals with 146 thsd tons volume capacity

2 starch production factory 1 seed factory

Vertical integration is a type of organizational structure of the holding company aimed to to improve the profitability of the company and diversify risks through development of its own infrastructure, starting from production to processing of agriculture products and developing of owned consumer brands.

Packaged chicken meat: «Nasha Riaba» Frozen packaged meat: «Lehko» Sausage and meat products: «Baschinsky» — grain silos capacity

36

— land bank size

Data: companies official websites


COMPANIES AND INFRASTRUCTURE

IPO/M&A

AGRIHILDINGS

5 BIGGEST AGRI DEALS IN UKRAINE, 2013 Buyer: MHP

The largest IPO of Ukrainian agriculture companies millions USD

$100 million

Avangard

229

Landkom International

Voronezh Agro Holding

111

Independent auditor:

Buyer: UkrLandFarming

Baker Tilly Deloitte&Touche

Milkiland

BDO

78

Ernst&Young Saffery Champness

Continental Farmers

Kernel

24

220

Ukrproduct Group

11

1,4

Astarta Holding

32

Ovostar Union

33

Agroton

53

KSG Agro

MHP

Druzhba-Nova

$39.8 million Industrial Milk Company

30 NOV 2007

$68 million Buyer: ІМК

39

368

AUG 2006

Valinor

Buyer: KERNEL

Agroliga

FEB 2005

$75 million

MAY 2008

MAY 2010

NOV 2010

FEB APR JUN 2011

Agroprogres

Acquirer AgroGeneration Stock-for-stock merger Harmelia

37

Data: Baker Tilly, Headway Magazine, fixygen.ua, Latifundist.com


COMPANIES AND INFRASTRUCTURE

GRAIN STORAGE

GRAIN ELEVATORS CAPACITY IN COMPARISON WITH GRAIN CROPS STORAGE NEEDS

Number of CGEs

There is a lack of certified grain silos (CGSs) capacity virtually in every Ukrainian region. The majority of CGSs is located in Poltava, Vynnitsa and Kharkiv regions. But existing CGSs don`t meet total demand.

Volume capacity of CGEs

35 13

Surplus/DeďŹ cit

31 9

24

35 1 63

18

59

28

28

23

29 5 1

60

50

51

5

39 3 million tons 1,4 million tons

45

20 000 tons

38

39 36

18

2 38

Data: Ukrainian grain association


COMPANIES AND INFRASTRUCTURE

PORTS

THE VOLUME OF TRANSPORTATION OF AGRICULTURAL GOODS THROUGH THE PORTS OF UKRAINE, MILLION TONS Grain holds the biggest share (73%) in export structure of agriculture and food products via Ukrainian ports.

MYKOLAYIV 9,32

1,99

OKTYABRSK

1,28

YUZHNIY

KHERSON

6,49

ODESSA

Most of agriculture products are exported through Mykolaiv, Odessa, The Southern and Illychivsk ports.

6,55

ILLICHIVSK 6,29 0,01

SKADOVSK

EX

0,01

RENI

0,11

IZMAIL

0,01

UST-DUNAISK

P PR ORT OD ST UC RU TS CT VIA URE UK OF RA FO INI OD GR AN A PO ND 72 AIN RT AG ,6 S I RA % N 2 RIA 01 N 3 O 8, IL 2%

SEVASTOPOL

O 19 THE ,2 R %

0,0

0,9

2

1

MAR

1,41

KER

CH

IUP

39

OL

Data: Association “Ukrport”, “Administration of Sea Ports of Ukraine”


COMPANIES AND INFRASTRUCTURE

GOVERNMENT SUBSIDIES

Despite huge share of agriculture in national GDP, Ukraine lags behind EU states in volume of government subsidies per hectare.

STATE SUPPORT OF AGRICULTURE IN EUROPE Dynamics of agrarian fringe beneďŹ ts at expense of VAT accumulation and budget loans, billion UAH

Role of agriculture in the economies of European countries

20

Sum of VAT subsidies 10

Government subsidies in European states in 2013, â‚Ź/ha

333

375

Ukrainian agri companies and farms obtain 25 EURO per hectare subsidies in average. To put this in perspective, neighboring Romania and Bulgaria receive 191 and 320 EURO/ha respectively, while farmers in Greece gets next to 709 EURO/ha. Over the past 5 years, the main source of state support for Ukrainian farmers was the VAT exemption.

over 10%

Finland

Sweden

3%-10% 2-3% 237

Estonia

168

Latvia

529 Netherlands

409

294

Mining and agriculture subsidies volume comparison, million UAH

Czech Republic

25

Slovakia

366

Ukraine

403 450 Hungary

State support of agriculture

Romania 0

526

456 Italy

6000

191

Austria

France

State support of coal mines

12000

Germany

357

Portugal

n/a

Lithuania

Luxembourg

350

less than 0,5%

Poland 384

2013

316

428 504 Belgium

Ireland

2008

0,5-1%

239

UK

0

1-2%

Denmark 434

Subsidies from government budget

GDP share:

320

2003

Bulgaria

Slovenia 258 709 Greece

Spain

1526 Malta

40

511 Cyprus

Data: EU, agroua.net

2012


COMPANIES AND INFRASTRUCTURE

CRIMEA

CRIMEA IN THE STRUCTURE OF THE AGRIBUSINESS OF UKRAINE IN 2013 Ukraine

In 2013 Crimea accounts for 2% of the total wheat production in Ukraine and 3.7% of total barley production.

Share of Crimea, %

1065,00 95%

452,5

92,60 8%

WOOL

2%

Wheat 8,3

0,7% 30,8

6,3%

Colza

391,3

Stone fruits

1,6%

3,9%

Soy

11,52 13%

Barley

280,80 90%

255,7

3,7% 50,9

0,2%

73,7

0,9% Sunflower

Grapes

44,40 49%

6,1%

PORK

94

20,6%

3,40 23%

11,50 77%

BEEF

41

77,10 87%

EGGS

44,76 51%

9,20 25%

27,50 75%

123,1

POULTRY MEAT

31,20 10%

MILK

Fruits and berries

Grain corn

57% Private farms

‘000 TONS

SHARE OF CRIMEA IN UKRAINIAN AGRICULTURAL PRODUCTION ‘000 TONS, %

37,4

LIVESTOCK PRODUCTION IN CRIMEA

43% Agricultural companies

Vegetables

5,10 96%

0,20 4%

LAMB AND GOAT MEAT

Data: Latifundist.com, baced on the materials of Ukrainian Agrarian Confederation)


COMPANIES AND INFRASTRUCTURE

FINANCING

LENDING TO AGRICULTURAL COMPANIES Volume of new credits provided for agricultural companies and interest rates, monthly

In foreign currency

In national currency

22,5

5

10

2,0

20,0

4

9

1,5

17,5

3

8

1,0

15,0

2

7

0,5

12,5

1

6

0,0

10,0

0

2013

Annual interest rates, %

42

Provided credits, billion UAH

Data: National Bank of Ukraine

2013

2,5

2012

11

2011

6

2010

25,0

2012

3,0

2011

12

2010

According to various estimates the total annual demand in the agricultural sector lending is between 90 to 250 billion UAH, including annual demand for working capital - 7.8 billion UAH, The rest is for replacement of fixed assets.


CREDENTIALS IDEA OF INFOGRAPHIC REPORT DMITRY DRAGUN, Head of the department of Corporate Services, Baker Tilly

AUTHORS TOP LEAD LATIFUNDIST MEDIA

INFOGRAPHICS PLANNING, DESIGN AND PRODUCTION TOP LEAD

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