Ukrainian agribusiness 2015 ENG

Page 1


ABOUT THIS REPORT

CONTENTS HOW TO READ THIS REPORT PAGES 3-10

PAGES 11-27

PAGES 28-33

AGRIBUSINESS IN 2014

CROP HUSBANDRY

ANIMAL HUSBANDRY

PAGES 34-38

PAGES 39-44

FOOD INDUSTRY

COMPANIES AND INFRASTRUCTURE

The main purpose of this report is to demonstrate how the Ukrainian agriculture works and to show opportunities for Ukrainian agricultural products existing on international markets. WHY IS IT MADE OF INFOGRAPHICS? Infographics demonstrates trends in of agriculture by using informative data visualization, avoiding unnecessary detail. We used color and graphical indications for each type of agricultural products. For example, grain crops are always displayed in the graphs in yellow and orange colors, oil crops - in shades of green. WHAT’S NEW This year we have added new sections and made structure more comfortable. There are 4 main sections: crop husbandry, animal husbandry, food industry, companies ans infrastructure.

Symbols used in this report

sunflower oil

sugar-beet

grain crops

nuts

beef and veal

soy

honey

flour

milk

potato

bread & bakery products

fruits

juices

sausages

vegetables

wheat

colza

sugar

poultry meat

liqueur and vodka

pork

beer

meat

eggs

corn

barley

sunflowe

cheese

buckwheat

Data sources: ●● Baker Tilly ●● Latifundist Media (Latifundist.com) ●● AEQUO ●● Ministry of Agrarian Policy and Food of Ukraine (Minagro) ●● State Statistics Service of Ukraine ●● Food And Agriculture Organization (FAO) ●● United States Department of Agriculture (USDA) ●● European Commission (EC) ●● AgroChart.com ●● Agronovator.ua ●● AR-group Agency ●● State Enterprise «Ukrainian Sea Ports Authority» ●● United Nations Statistics (UN Stat) ●● United Nations Comtrade (UN Comtrade)

The information about external markets of agricultural products added to the relevant sections so you can see Ukraine’s place in each of the key segments of the global food market. We have added data on food industry - from production and sales of raw materials to processing of agricultural raw materials - because this is an important direction of development of Ukrainian agribusiness. WHICH TYPES OF DATA ARE USED? To show the successful growth of Ukraine in the global food market, we used data of international organizations Food and Agriculture Organization (FAO) and United States Department of Agriculture (USDA). Infographics about economic results of agricultural business in the domestic market based on data from the State Statistics Service of Ukraine and Agrochart.com Please keep in mind that the data may differ as every organization has its own estimation methods.

2


UKRAINIAN AGRIBUSINESS

AGRIBUSINESS IN 2014


AGRIBUSINESS IN 2014

THE ROLE OF AGRICULTURE IN THE UKRAINIAN ECONOMY

$16,6 billion

252 16%

billion UAH

70%

30,2%

OF THE TERRITORY

OF EXPORT

OF GDP

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

In 2014 agricultural exports amounted to 16,6 billion USD

Agricultural production in 2014 amounted to 252 billion UAH

POSITION OF UKRAINE IN THE GLOBAL FOOD MARKET

Producer of sunflower

Producer of sunflower oil

Exporter of sunflower oil

№1 №2

in the export in the export of nuts of grains in the export of corn

in barley production

in the export of colza

№3 №4

in nut in the export production of barley in honey production

№5

in honey production in the export of wheat

№6 №8

in soy in the export production of poultry meat in wheat production

№9 Data: State Statistics Service of Ukraine, The Ministry of Finance, AgroChart.com

4


YIELD OF MAJOR AGRICULTURAL CROPS, MILLION TONS

AGRIBUSINESS IN 2014

In 2014 we collected a record harvest of grain crops in the past 20 years. This allowed Ukraine to take second place in the world grain exports for the first time. More grains in the world was sold only by USA.

Record-breaking also was the yield of sunflower.

2,11 Sugar

4,23 Sunflower oil

28,5 Corn

5,60 Beer 2,24 Flour

23,7 Potato 1,34 Bread&Bakery products

15,6 Sugar-beet 24,1 Wheat

0,2 Buckwheat

9,6 Vegetables

0,2 Millet

2,0 Fruits & Berries

0,1 Rice

9,0 Barley

8 , 3 6 and

0,5 Rye 0,6 Oats

l

s rop ps c in ro Gra ous c in m u eg

10,1 Sunflower

1 , 4 7 , 3 1 3 0,4 Grapes

2,2 Colza

s ble

ta

ts

i Fru

and

e veg

3,9 Soy

ag

For

ps

ro ec

11,23 Milk

2,36 Meat (in live weight) 1,19 Eggs

Data: State Statistics Service of Ukraine

5


AGRIBUSINESS IN 2014

UKRAINIAN FOOD MARKET, MILLION TONS

PRODUCTION Millet

0,2

Rice

Sugar-beet

0,1

15,6

Fruits&berries

0,3

0,04

Meat (in live weight)

Colza

2,2

3,34

Soy

3,9

0,6

Dairy products

9,6

2,6

2,6

Sunflower

Fish & Seafood

Meat products

1,7

Grapes

0,4

Wheat

Sugar

24,1

0,01 Eggs

Milk

0,064

10,1

Other vegetables

0,6

0,7

18,4

Bread & bakery products

Vegetable oils

4,9

6,2

Eggs

0,06

7,4

Vegetables Fruits&berries

Potato

IMPORTS

Eggs Buckwheat

28,5

0,2 Barley

9,0

0,04

Corn

0,5 Corn

Potato

10,8

Rye

1,19

0,05 Wheat

data for 2013

Oats

4,5

Sunflower

0,03

CONSUMPTION Soy

0,03 1,9

Barley Rye

11,23

Colza

Rice

0,001 Milk

0,01

0,01

Grapes

23,7

Oats

Millet

2

Potato

10,1

EXPORTS

Meat (in live weight)

Ukraine is lucky with rich black soil lands and favorable climate. Thanks to this most of agrarian raw materials, that consumed by ukrainians, are produced in Ukraine. And are produced so much grain that we may boldly sell half for export!

Meat (in live weight)

Milk

Corn

0,218

0,282

0,066

Grapes

Wheat

Sunflower

0,03

0,05

0,015

Eggs

Barley

Soy

Colza

0,01

0,005

0,005

0,002 Data: AgroChart.com, FAO

6


2 293 44

845

703

873

381

158 323

Revenues from exports of sunflower oil showed the vulnerability of exports of raw materials and economic benefits of processing: in 2014 oil was the export commodity number one.

PRODUCTION, EXPORT, THOUSAND TONS THOUSAND TONS

3 356

EXPORT OF AGRICULTURAL PRODUCTS AND CORRESPONDING REVENUES 4 800

AGRIBUSINESS IN 2014

Export revenue million USD

1 190 59 1 988 113 2 357 40 2 199 2 037

Eggs Milk and dairy products

3 871 1 675 4 284 3 700

Meat and by-products Colza Soy

9 043 4 166

10 102 74

Sunflower oil Barley

24 102 10 544

Sunflower 28 452 17 557

Wheat

Corn

Revenues from exports of corn and wheat - the leaders of Ukrainian exports in the past - for the first time were lower than revenues from export of of sunflower oil. Data: Ministry of Agrarian Policy of Ukraine

7


AGRIBUSINESS IN 2014

PRODUCTION DYNAMICS OF MAIN AGRICULTURAL PRODUCTS Crops production in different regions of Ukraine, thousand tons

Correlation between crop and animal husbandry in 2014

Grain crops and leguminous crops Sugar-beet Sunflower Potato Vegetables

ANIMAL HUSBANDRY CROP HUSBANDRY 6 144 million USD

14 809 million USD

Chernihiv Oblast Volyn Oblast

Annual average rate in 2014 was 12 UAH = 1 USD

14 572 thousand tons 24 301 thousand tons

Rivne Oblast

Sumy Oblast

Kirovohrad Oblast Chernivtsi Oblast

Kharkiv Oblast

Odessa Oblast

ANIMAL HUSBANDRY

Mykolaiv Oblast

Zaporizhia Oblast Kherson Oblast

1077,30

1051,08

Shell eggs, million tons 1078,81

2,60

3,72

Wool 3,52

11 378

Dnipropetrovsk Oblast Donetsk Oblast

11 488 11 133

Milk

10 017

2 209

2 389 2 360

Meat

Vegetables

Potato

CROP HUSBANDRY

Poltava Oblast

Vinnytsia Oblast

ОДЕСЬКА

2012 2013 2014

2 000 1 000 500

Lugansk Oblast

9 873 9 638

23 250

Khmelnitsky Oblast

22 259 23 693

11 051 10 134

8 387

Sunflower

10 789 15 734

18 439

Grain crops and leguminous crops

Cherkasy Oblast

Ivano-Frankivsk Oblast

Dynamics of major products production, thousand tons

Sugar-beet

63 051 63 859 46 216

Zakarpattia Oblast

Ternopil Oblast

4 000

Kyiv Oblast

Zhytomyr Oblast

Lviv Oblast

6 000

АР КРИМ

Leaders for the production of grain crops in Ukraine - Vinnytsia, Kharkiv and Poltava oblast. One third of all sugar beets grown in Khmelnytsky and Vinnitsa oblast.

Production of sunflower in Ukraine is concentrated in the central part of the country. There biggest potato yields in areas adjacent to the border with Belarus and Poland Data: State Statistics Service of Ukraine

8


AGRIBUSINESS IN 2014

MAJOR TENDENCIES OF FOREIGN TRADE

Over the past 14 years exports to the EU increased by 10 times. However the most profitable is export of Ukrainian agricultural products to Asia. The largest consumer of Ukrainian products in 2014 was India.

Dynamics of trade with EU, billion USD Turnover

Export

Import

Balance

5,08 1,90

3,51 2,08

0,49 0,12 0,37

1,58

0,95

0,71 0,30 0,41

0,50

0,79 0,08

0,46

0,71

0,97 0,23 0,74

0,83

1,12 0,05

0,86

1,12

1,41

2001

2002

1,50

1,72

2003

2004

4,76

2,24

3,40 2,25

1,43 2,12

0,74

0,26

0,51 0,27

-0,19 1,07

1,31

1,57

1,99 2,68

2000

4,97

2,19

2005

2,88

2006

3,65

2007

6,18

2008

2,31

2,66 3,18

4,24

2009

4,43

2010

6,06

2011

8,26

2012

2,72 3,33 8,09

2013

7,69

2014

SPAIN 1,00

Major importers of Ukrainian production, billion USD

NETHERLANDS 0,80

ITALY 0,70

EU

CIS 2,30

RUSSIAN FEDERATION 1,00

4,90

POLAND 0,61

INDIA 1,40

AFRICA 2,00

CHINA ASIA 5,20

EGYPT 1,40

0,80

TURKEY 0,70

SAUDI ARABIA 0,63 Data: State Statistics Service of Ukraine, Ministry of Agrarian Policy of Ukraine

9


AGRIBUSINESS IN 2014

WHAT EACH COUNTRY CULTIVATES THE MOST (BY TOP PLANTED CROP)

The most planted crops worldwide are wheat and corn. The least widespread are cinnamon, sweet potatoes, cabbage, peanuts and nuts. Considering that the favorable conditions for nuts growth have only a few countries, Ukraine has great prospects for growing this crop.

Peanuts Bananas Sweet potato Beans Cashew nuts Grains Green coee Cocoa beans

Cabbage Potato Coconut Cinnamon Corn Manioc Vegetables Olives Oil palm fruits

Millet Wheat Rice Sorghum Soy Dates Fruits Sugar cane Barley

Data: State Statistics Service of Ukraine, FAO

10


UKRAINIAN AGRIBUSINESS

CROP HUSBANDRY


CROP HUSBANDRY

LAND BANK OF UKRAINE Areas planted with main agricultural crops, million ha 893 Permanent cropland

2 407 Grasslands

35

30

25

239 Fallow lands

5 441 Pastures

Forage crops Field vegetables Potato Sunflower

20

Sugar-beet

15

32 531 Arable lands

1 220 Other

Grain crops and leguminous crops

10

5

LAND BANK OF UKRAINE

0 1990 1991 1992 1993 1994 1995 1996 1997 1998

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Structure of Ukrainian arable lands

thousand ha

17 623 Non-agricultural lands

12% 72,7%

15,30%

Other

Big private farms

Top-100 agriholdings

Landbanks of the Top-10 agriholdings in Ukraine, thousand ha 13.04.2015

670 UKRLANDFARMING

430 NCH

390 KERNEL

320 MHP

261 UAI

245 ASTARTA

210 MRIYA

197 HARVEAST

151

150

AGROTON

SINTAL AGRICULTURE

Data: State Statistics Service of Ukraine, Latifundist.сom

12


CROP HUSBANDRY РОСЛИННИЦТВО

REGIONAL CROPPING MAP Sumy Oblast

Wheat Barley Corn Sugar-beet Sunflower Soy Colza Potato Vegetables Fruits/berries

70% of Poltava Oblast is occupied by sowing areas.

Volyn Oblast

Sugar-beet takes only 1% of the total cultivated area - 330 thousand ha.

951 394

Rivne Oblast

Zhytomyr Oblast

Kharkiv Oblast

Kyiv Oblast 774

640

498

1 590

1 094

Chernihiv Oblast 593

The largest sown area in Ukraine is located in Dnipropetrovsk Oblast, and the least cultivated is Zakarpattia Oblast.

1 109

Lviv Oblast

652

1 097

Ternopil Oblast

Poltava Oblast

Khmelnitsky Oblast

271

Zakarpattia Oblast

321

1 968

Cherkasy Oblast

1 614

419

Ivano-Frankivsk Oblast

Lugansk Oblast

1 529

764

1 610

Dnipropetrovsk Oblast

Chernivtsi Oblast Vinnytsia Oblast

1 110

Kirovohrad Oblast

The general structure of crops sowing in Ukraine 1 764

1 492 1 325

22% Wheat

19% Sunflower

17% Corn

7% 5%

Donetsk Oblast

1 567

Odessa Oblast

Zaporizhia Oblast

Mykolaiv Oblast Kherson Oblast

11% Barley

3% Colza

Soy

13% Fruits/berries

Potato

2% 1%

Sugar-beet

Vegetables

The areas planted with sugar-beet in Ukraine in 2014 (3,3 thousand sq.km) is more than the territory of Luxembourg (country) (2,8 thousand sq.km)

The areas planted with potato in Ukraine in 2014 (13,4 thousand sq.km) is more than the total territory of Jamaica (10, 9 thousand sq.km)

The areas planted with grains in Ukraine in 2014 (148 thousand sq.km) is more than the total territory of England (130 thousand sq.km) Data: State Statistics Service of Ukraine, Ministry of Agrarian Policy of Ukraine

13


РОСЛИННИЦТВО CROP HUSBANDRY

REGIONAL SPECIALIZATION OF UKRAINIAN AGRICULTURE

The TOP crop in each region

The TOP animal product in each region

Volume, thousand tons

Volume, thousand tons

1132,1 VOLYN OBLAST

1708,7 LVIV OBLAST

1304,1 RIVNE OBLAST

2655,2 CHERNIHIV OBLAST

2690,0 SUMY OBLAST

1304,0 ZHYTOMYR OBLAST

2326,4 1282,7 TERNOPIL KHMELNITSKY OBLAST 2997,0 OBLAST VINNYTSIA OBLAST 915,3 IVANO-FRANKIVSK OBLAST 610,9 617,0 ZAKARPATTIA OBLAST CHERNIVTSI OBLAST

2041,9 KYIV OBLAST

3379,0 POLTAVA OBLAST

2286,1 CHERKASY OBLAST 1826,8 KIROVOHRAD OBLAST

1842,9 ODESSA OBLAST

0,6 VOLYN OBLAST

1351,7 MYKOLAIV OBLAST

29,0 LVIV OBLAST

2003,4 KHARKIV OBLAST

1656,0 DNIPROPETROVSK OBLAST

0,6 RIVNE OBLAST

729,1 LUGANSK OBLAST 1399,2 DONETSK OBLAST

CRIMEA

162,7 KYIV OBLAST

Milk

Potato

Rabbit meat

Wheat

Pork

Corn

Horsemeat

Maps are for informational purposes only, as designed to reflect trends of areas of specialization of each oblast of Ukraine. The product shown in the region, is not always the leader, however, is the one that differentiates oblast among others.

814,1 POLTAVA OBLAST

267,5 CHERKASY OBLAST 27,0 KIROVOHRAD OBLAST

1,4 ODESSA OBLAST

Sugar-beet

0,7 SUMY OBLAST

1,8 ZHYTOMYR OBLAST

115,7 0,8 KHMELNITSKY TERNOPIL OBLAST 852,0 OBLAST 27,7 VINNYTSIA OBLAST IVANO-FRANKIVSK OBLAST 2,9 0,5 ZAKARPATTIA OBLAST CHERNIVTSI OBLAST

1696,3 ZAPORIZHIA OBLAST

1382,1 KHERSON OBLAST

1,2 CHERNIHIV OBLAST

26,0 KHARKIV OBLAST

49,1 DNIPROPETROVSK OBLAST

5,1 MYKOLAIV OBLAST

2,6 LUGANSK OBLAST 65,5 DONETSK OBLAST

4,6 ZAPORIZHIA OBLAST

108,3 KHERSON OBLAST

CRIMEA

Mutton, goat meat Honey Beef Shell eggs Wool

Data: State Statistics Service of Ukraine, Ministry of Agrarian Policy of Ukraine

14


YIELD DYNAMICS OF MAIN AGRICULTURAL CROPS IN 1990-2013 Yields of sugar beet for the past 20 years has doubled. Curious that during this period beet sown areas decreased by 5 times! In 2014 yield of all grains except corn and rice has increased (in compliance with 2013).

476,5

391,9

РОСЛИННИЦТВО CROP HUSBANDRY

27,7

6,8

Other

25,4

23,6

Colza

21,6

20,5

Soy

21,9

Sunflower

19,4

59,9 49,9 Rice

12,2

10,6

Buckwheat

18,0

13,1

Millet

61,6

64,1

Corn

25,1

19,4

Oats

30,1

23,4

Barley

25,8

22,8

Rye

Wheat

40,1

33,9

98,6

85,8

2013 2014 Hundredweights per 1 hectare

Grapes

103,5 95,2

199,9 207,8 Fruits and berries

350

Vegatebles

400

Sugar-beet

450

Potato

159,7 176,4

500

The yield of grain and oil crops varies, but retains the long positive trend.

300

250

SUGAR-BEET 200

WHEAT

150

BARLEY

POTATO

100

COLZA

CORN

50

SOY SUNFLOWER

0 1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 Data: State Statistics Service of Ukraine, Ministry of Agrarian Policy of Ukraine

15


THE DYNAMICS OF GLOBAL GRAIN CROPS PRODUCTION, MILLION TONS

РОСЛИННИЦТВО CROP HUSBANDRY

Other grain crops Grain mixture Rye

3000

Millet Oats Sorghum Barley

2500

2000

RICE 1500

CORN 1000

500

WHEAT

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

425,19 432,25 347,00 348,34

2013\2014

326,18

303,43

136,72 126,24

99,47

87,83

92,60

64,10

62,20

66,28

51,22

2014

2013

2012

2011

482,89 487,74

2014\2015

87,90

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

0

46,17

46,03

37,46

35,01

USA

CHINA

EU

INDIA

RUSSIAN FEDERATION

BRAZIL

UKRAINE

CANADA

ARGENTINA

AUSTRALIA

1

2

3

4

5

6

7

8

9

10

OTHER Data: FAO, AgroChart.com

16


РОСЛИННИЦТВО CROP HUSBANDRY

LARGEST CORN PRODUCING COUNTRIES IN 2014

12 .62 % r

he Ot

1,1

10

5

4

1

1,1 7% 5% Ca 2,5 S na 9% outh da Me A xic fric 2,28 o a % In dia

2 7

8

USA

4%

6 36,

2,69% Arge

ntina

3

ine

2,89% Ukra

9

6

% ,62

7

Global corn production structure, 2013-2014

EU

Corn production by TOP-10 global corn producers, million tons

il

z ra

B

14\15

,88% a 21

5

8,

361

351

218

Ukraine is the 8th largest producer of corn in the world.

Chin

13\14

2%

215 80

84

65

75

31

29

26

27

24

23

23

25

15

11

14

12

USA

CHINA

BRAZIL

EU

UKRAINE

ARGENTINA

INDIA

MEXICO

SOUTH AFRICA

CANADA

1

2

3

4

5

6

7

8

9

10

Ukraine produces as much corn as Canada and South Africa together.

Джерело: AgroChart.com

17


РОСЛИННИЦТВО CROP HUSBANDRY

LARGEST WHEAT PRODUCING COUNTRIES IN 2014

% 16 r he Ot EU

2,09

%T

5 4

10

urke

3,40% U

y

kraine

9

1

8

2

3,50% Pakistan

3

%

3,25

7

lia

ra Aust

a ad

an

C

2%

4,0

Global wheat production structure, 2013-2014

32%

Ukraine is ranked th in production volume of wheat.

11

US

A

8,

7%

95,9 58,1

55,2

6%

7,5

3,1

14\15

93,5

17,

ia 1

13\14

121,9 126,2

na

Ind

156,5

Chi

%

Wheat production by TOP-10 global wheat producers, million tons 144,4

2

R Fe uss de ian ra tio n

6

8%

4 1,

59,1

52,1

37,5

29,3

25,3

24

25,5

24

24,7

22,3

18,8

15,3

EU

CHINA

INDIA

USA

RUSSIAN FEDERATION

CANADA

AUSTRALIA

PAKISTAN

UKRAINE

TURKEY

1

2

3

4

5

6

7

8

9

10

The harvest of wheat in 2014 compared to the year 2013, increased by 2 million tons. Data: AgroChart.com

18


РОСЛИННИЦТВО CROP HUSBANDRY

LARGEST BARLEY PRODUCING COUNTRIES IN 2014

14 % he Ot r

1,2 2,27

% Ir

2

4

9

roc

an

co

Argent

ina

%

EU42,76

2,73% USA

ine

kra 1% U

6,7

3 8

4%

Tu

da

2,8

Global barley production structure, 2013-2014

y rke

Ca %

str

71

Au

6,

9%

13\14

tion Federa 14,22%

60,2

59,7

5,6

14\15

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

Russian

na

Barley production by TOP-10 global barley producers, million tons

a

10

Mo

ali

7

2,06%

6 5

1

1%

20,03

15,4

9,2

8,01

10,2

7,1

7,3

4

9,5

7,6

4,7

3,8

4,7

3

2,8

3,2

2,7

1,7

EU

RUSSIAN FEDERATION

AUSTRALIA

CANADA

TURKEY

UKRAINE

USA

ARGENTINA

IRAN

MOROCCO

1

2

3

4

5

6

7

8

9

10

Ukraine produces as much corn as Argentina and Morocco together. Data: AgroChart.com

19


РОСЛИННИЦТВО CROP HUSBANDRY

THE WORLD’S GRAIN CROPS BIGGEST EXPORTERS AND IMPORTERS, MILLION TONS

IMPORTERS

EXPORTERS 15,03

USA

49,8

CORN

JAPAN

5,76 2,9 3

25,6

,2 11

UKRAINE

2,6

17,6 10,5

2,97

5

4,

WHEAT 5,8

20,4

FRANCE

0,4

5,4 6 2,5 4 1 0,

CHINA

3,5 3,55

5,1

SAUDI ARABIA

8 5

BARLEY 1 24,

CANADA

,41

MEXICO

4 1,1 4,

,9

68

15

RICE

1,9 2,7 1,7

7,5

3

ITALY

1,11

3,6

4, 2

7 0,9 ,1 5

4

INDIA

10

1,5

5,8

ARGENTINA

0,1

11,2

0,7

OTHER GRAINS

0,015

ALGERIA

Data: USDA, FAO, UN Stat

20


EXPORT OF GRAIN CROPS AND CORRESPONDING REVENUES

РОСЛИННИЦТВО CROP HUSBANDRY

8

29 1

24

1

2

33

48

69

651 38

NETHERLANDS 49

ITALY TURKEY

CHINA

yp

t

TUNISIA EGYPT PAKISTAN

00

0

60

Eg

l2

ae

Ita

IRAN

64

MOROCCO

12

Isr

sia 2

Tuni

SPAIN

SAUDI ARABIA

1

ly2

92

The main importers of Ukrainian corn and wheat were the Mediterranean countries: Spain and Egypt.

1

TOP-10 importers of Ukrainian grains

113

16 ds 3

an

herl

62

1S

4

0

93

39

109

WHEAT I MIXTURE OF WHEAT AND RYE (MESLIN)

pai

n 1 190

1

369

CORN

BARLEY

5

1

60

79

o

7S 54 i aud

p Re

u

ic bl

na

a

re

o fK

Moreover Egypt can be considered as the main buyer of Ukrainian agricultural products.

100

32

Chi

Net

19

129

Iran 2

bia

Ara

OTHER

Data: USDA, FAO, UN Stat

21


РОСЛИННИЦТВО CROP HUSBANDRY

THE DYNAMICS OF GLOBAL OIL SEEDS PRODUCTION, MILLION TONS Sunflower seeds Palm copra Green olives

500

400

300

SOY BEANS 200

100

PEANUTS

2014

2013

2012

2011

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

1965

1964

1963

1962

1961

1966

Oil crops production by TOP-10 oil seeds producing countries, million tons

117,17

99,02

2010

COTTON SEEDS

0

2013\2014

97,62

90,24

65,45

57,02

58,88

57,56

35,43

36,80

2014\2015

35,50

32,05

66,73 23,38

21,66

16,30

16,73

13,58

12,98

11,50

65,40

12,06

USA

BRAZIL

ARGENTINA

CHINA

INDIA

EU

CANADA

UKRAINE

RUSSIAN FEDERATION

INDONESIA

1

2

3

4

5

6

7

8

9

10

OTHER Data: FAO, AgroChart.com

22


РОСЛИННИЦТВО CROP HUSBANDRY

THE WORLD’S LARGEST PRODUCERS OF SUNFLOWER

2,8

8%

2 3

7

1

6,02%

10

6

5

er n Ot h 7% sta kh za n ica Ka sta fr % aki h A 25 P out 1, % 28 % S 1,

85

94 1,

2,

%

7%

0 5,

US

A

Tu

r

Uk

rke

e2

n ai

y

China

9

rgentina

6,52% A 8

4

Global sunflower production structure, 2013-2014 Fe Rus de sia 23 ratio n ,5 n 6%

31

%

EU

Sunflower production by TOP-10 global sunflower producers, million tons

10,2

10,5

21 ,

13\14

11,6

14\15

8,9

9

Ukraine is a world leading producer of sunflower.

8,9

2,7

2,1

2,4

2,3

1,4

1,2

1

0,9

0,8

0,5

0,6

0,5

0,5

0,5

UKRAINE

RUSSIAN FEDERATION

EU

AGENTINA

CHINA

TURKEY

USA

SOUTH AFRICA

PAKISTAN

KAZAKHSTAN

1

2

3

4

5

6

7

8

9

10

Ukraine produces nearly as many sunflower as the EU and China.

Data: AgroChart.com

23


THE WORLD’S LARGEST PRODUCERS OF SOY IN 2014

РОСЛИННИЦТВО CROP HUSBANDRY

07

%

In

di

3,8

7%

r 3% Othe ivia Bol вай 3% р у г y 0,8 0% У rugua 1,1 2% U ada n a ay 1,2 C gu 9% ra 1,8 Pa

% 63 2,

3,

a

A US

Chi

na

2%

3

8 3,

7 8

1

4 5

10

tina

rgen 04% A

2

19,

6 3 9

Global soybean production structure, 2013-2014

Soy production by TOP-10 global soy producers, million tons 13\14

94,5

86,7

29,59

91,4

Brazil

108

14\15

%

60,8

53,5

12,4

12,2

9,8

9,5

8,4

8,2

6

5,4

3,9

2,8

3,5

3,4

2,7

2,4

USA

BRAZIL

ARGENTINA

CHINA

INDIA

PARAGUAY

CANADA

UKRAINE

URUGUAY

BOLIVIA

1

2

3

4

5

6

7

8

9

10

Ukraine is the 8th biggest soy producer. Onethird of Ukrainian soybean is sold abroad. Data: AgroChart.com

24


РОСЛИННИЦТВО CROP HUSBANDRY

THE WORLD’S OIL SEEDS BIGGEST EXPORTERS AND IMPORTERS, MILLION TONS

IMPORTERS

EXPORTERS

50,17

USA

SOY 41

3,

73,5

CHINA

4,1

КИТАЙ 4

0,

05

0,0

69

45,

BRAZIL

0,1

12,

4

7

COLZA CANADA

ARGENTINA

PARAGUAY

UKRAINE

9 9,77 3,4 0,8 8 4 7,4 0,37

EU

4,0

SUNFLOWER

4 4,8 0,08 68 4 1, 2,0 0,07 0,05

2,5 0,25 2 0,8

3 1,54 0,016 0,17 2,8 5 2,45 0,11

MEXICO

JAPAN

2,3

5 0,08

OTHER OIL CROPS

TAIWAN

2,

15 0,34

INDONESIA

Data: AgroChart.com

25


EXPORT OF OIL CROPS AND CORRESPONDING REVENUES

BELGIUM

4

3

14

12

2

52

69

97

7

IRAN

ur 4T

y 74

ke

y

171

PAKISTAN

EGYPT

INDIA

1 355

22

CHINA

83

Portug

al 84

SOY BEANS

TOP-10 importers of Ukrainian oil crops

184 Pakistan

215

00

OTHER

1303

15 m

iu

Netherla

lg Be

nds 136

4

e1

nc

a Fr

COLZA SEEDS

28

207

pt 1

Egy

330

GREECE

3

184

69

TURKEY

227

ITALY

German 4

ly

61

GEORGIA

169

SPAIN

8

199

3 80

d7

lan

Po

Ita

POLAND BELARUS

GERMANY

15

PORTUGAL

NIDERLANDY

FRANCE

120

153

129

8

79

РОСЛИННИЦТВО CROP HUSBANDRY

15

1

37

SUNFLOWER SEEDS

SUNFLOWER OIL

India - the main buyer of Ukrainian oil. France - the main buyer of oil cake and meal. In 2014b sunflower oil became the main Ukrainian export product.

CATTLE CAKE OR SOLID WASTES Data: USDA, FAO, UN Stat

26


FRUITS AND VEGETABLES PRODUCTION IN UKRAINE raspbe 0,8 rries 3

2,8

Ukrainian fruits&berries production, 2014, thousand tons

pear 157,7

e1

le

app

TOTAL 1 999 ry

bag

5 1 08

877

er

cab

m

plu

,2

163

18

ch

89

6,8 gooseberry

s 10

15000

et 7 be

7,5 quince

,9

,3

nut

Ukrainian vegatebles production, 2014, thousand tons

TOTAL 9 638

67

22,5 peach

4, 5

891 carrot

y

66

to

in

rr

t6

pk

to ma

he

ico

m

8

4 21

apr

pu

tc

ry er

3

ee

b aw

1c

57

str

87 aubergine per 188 pep ic garl 191 tte rge ou

53

sw

25,8 currant

2,9

РОСЛИННИЦТВО CROP HUSBANDRY

9000

so

ion 1 109 on

94

1c

uc

um

be

ur

r

12000

FRUITS & BERRIES

6000

VEGETABLES 3000

Dynamics of vegetables and fruits production, thousand tons 0 1995

2000

2005

2010

2011

2012

2013

2014

2015 Data: State Statistics Service of Ukraine

27


UKRAINIAN AGRIBUSINESS

ANIMAL HUSBANDRY


ANIMAL HUSBANDRY IN UKRAINE

ANIMAL HUSBANDRY

11, 5

2,0 turkeys 4,9 geese

ks duc

1,0 20 ns cks he co

Chernihiv Oblast

Volyn Oblast

d

an

Rivne Oblast

Kyiv Oblast

Structure of poultry breeding in 2014, million heads

Sumy Oblast

Regional structure of animal husbandry production in 2014, thousand tons

Zhytomyr Oblast

TOTAL 220,6

Ternopil Oblast

Lviv Oblast

Cherkasy Oblast

Poltava Oblast Kharkiv Oblast

Khmelnitsky Oblast Lugansk Oblast

Dynamics of livestock, million heads

Ivano-Frankivsk Zakarpattia Oblast Oblast

50

Kirovohrad Oblast

Vinnytsia Oblast

Dnipropetrovsk Oblast

Chernivtsi Oblast

Donetsk Oblast

GOATS AND SHEEP 40

Zaporizhia Oblast

Mykolaiv Oblast

SWINE

Kherson Oblast

30

Odessa Oblast 20

Crimea

CATTLE

Milk Beef and veal Pork Mutton, goat meat Poultry meat Rabbit meat Horsemeat Wool Honey Shell eggs

10

850 600 400 01.01.15

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

200 100 50

Data: State Statistics Service of Ukraine

29


ANIMAL HUSBANDRY ТВАРИННИЦТВО

PRODUCTION OF DAIRY PRODUCTS IN UKRAINE

Production dynamics and key producers of dairy products in Ukraine

459,3

Cow livestock at year end, million animal units

572,2

458,3

589,7

Gross milk production (milk yield), million tons

601,0

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

480,6

8,38

852,0

7,53

24,51

529,8

369,3 Vinnytsia Oblast - the leader of the 405,9 dairy industry of Ukraine.

4,96

525,5 251,6

357,2 283,0 267,5 302,9

CRIMEA

3,64 18,05

814,1

324,3

299,3

409,6

427,1

467,0

602,3

483,3

Crops production in different regions of Ukraine, thousand tons

17,27 2,63

2,59

2,56

2,55

2,26

13,71

12,66

11,25

6,07

5,69

11,13

4,62

4,57

4,69

4,55

4,74

11,50

11,38

11,09

3,34

1990

1995

2000

2005

2010

2011

2012

2013

2014 Data: State Statistics Service of Ukraine, Latifundist. com

30


MEAT AND MEAT PRODUCTS MARKET IN UKRAIN

IM

4 AgroProdServis

7 10

8

Agropromyslova Company

RT

Barkom

Bakhmutskiy Agrarniy Soyuz

PO

Kalita agricultural complex

3 Danosha

9

Niva Pereyaslavschiny

64 OTHER MEAT

EX

4 852

6

1,1

7 135 6 711

POULTRY MEAT

17

5 500

8 409

4,7

12 642 12 320 12 000

21

8 500

PORK

9,4

21 926

,5

BEEF AND VEAL

,02

11

Slobozhansky Agrokombinat

T

5,0

5

Globino pig farms

10

APK-Invest

1

1 2

R PO

Export\import of meat in 2014, thousand tons (by the types of meat)

Top 10 pork meat producers in ukraine in 2014 The volume of sold\transmitted to processing pork in live weight, tons

16

ANIMAL HUSBANDRY ТВАРИННИЦТВО

Data: State Statistics Service of Ukraine, Latifundist. com

31


ANIMAL HUSBANDRY ТВАРИННИЦТВО

THE UKRAINIAN FISHING INDUSTRY

20,3

Marine exclu sive economic zo ne of other cou ntries

400

FISH

Structure of fish and seafood production by types of bodies of water in Ukraine in 2014, thousand tons

es

nd lak

ivers a 39,6 R

Consumption rate of fish and seafood is 20 kg per year. In 2014 with domestic product Ukraine could feed

ONLY 4.6 MILLION PEOPLE

Mar in eco e exclu 22,2 nom sive ic of U zone krai ne

350

1 0 ,0

Dynamics of fish and seafood production, thousand tons

s ea

450

n Ope

500

300

250

Temporary loss of control on Crimean households has increased deficits of fish and seafood

200

TO 818,5 THOUSAND TONS

TOTAL 150

100

50

The largest fishing volumes n Ukrainian inland waters is carried out in Cherkasy oblast -

6,5 THOUSAND TONS

0 1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 Data: State Statistics Service of Ukraine

32


ANIMAL HUSBANDRY ТВАРИННИЦТВО

BEEKEEPING IN UKRAINE

80

2013

73,71 2010

70,87

70

2011

70,31 70,13 2012

66,52 2014

1995

62,73 60

1990

50,86

50

52,44 2000

Dynamics of honey production, thousand tons 1960

42,20 40 0

35,60 1970

30

33,41 1980

8,1

= 30 thousand families

Regional structure of honey production in 2014, thousand tons Number and regional location of bee families

Data: State Statistics Service of Ukraine

33


UKRAINIAN AGRIBUSINESS

FOOD

INDUSTRY


FOOD INDUSTRY

FOOD PROCESSING IN UKRAINE: PRODUCTION FACILITIES

LEADING COMPANIES IN MAJOR FOOD PROCESSING INDUSTRIES % share of the Ukrainian market

9%

OIL AND FATS CREATIVE PRJSC

7%

ZAPORІZKY OLІYAZHIRKOMBІNAT PJSC

6%

VINNYTS'KYI OZHK PRJSC

5%

BANDURSKYY OIL EXTRACTION PLANT PLANT LLC.

5%

UKRAINIAN BLACK SEA INDUSTRY LLC

DAIRY PROCESSING

6%

"VINNYTS'KYI MOLOCHNIY ZAVOD ROSHEN" PRJSC

5%

LOOSTDORF LTD.

4%

TULCHIN BUTTER AND CHEESE FACTORY, TERRA FOOD LLC.

4% 4%

“ZHYTOMYR BUTTER PLANT” PJSC KRYZHOPOL CHEESE FACTORY, TERRA FOOD LLC.

CONFECTIONERY

14% 12% Sugar factories Oil factories Meat processing plants Confectionery factories

VINNITSA CONFECTIONERY FACTORY PJSC PRODUCTION ASSOCIATION “KIEV-KONTI” CJSC

5%

KREMENCHUK CONFECTIONERY FACTORY "ROSHEN" PJSC

5%

ZHL ALC

4%

KIEV CONFECTIONERY FACTORY "ROSHEN" PJSC

Dairy processing plants

10%

MEAT PROCESSING GLOBINO MEAT PROCESSING PLANT, LLC

9%

FAVORIT PLUS MEAT FACTORY, LLC

7% 7%

MYRONIVSKY MEAT PROCESSING PLANT “LEHKO” PJSC

6%

APK-INVEST PRJSC

UKRAINIAN BACON PRJSC

Data: Agronovator.ua, AR-group Agency

35


ХАРЧОВА ПРОМИСЛОВІСТЬ

FOOD INDUSTRY OF UKRAINE, PRODUCTION OF MAJOR PRODUCTS, THOUSAND TONS

103,4 Liqueurs

200,0 Vodka

258,2 Sausages

31,7 Tobacco products

24,10 Cognac &brandy

14,5 Pork

203 Cheese

453,0 Juices

5 603 Beer

191,7 Other meat products

4,5 Canned poultry meat 5209 Meal &Cake

67 Powdered milk and cream 238,0 Confectionery

PRODUCTION

9 Canned meat 114,3 Butter

140,0 Canned vegetables

1 335 Bread&Bakery products

269 Margarine

2 235 Flour

469,8 Sour milk products

2 105 Sugar

53,9 Spread

184 Soybean oil

1 080 Milk

4 725 Sunflower oil

EXPORT 19,5

11,0

32,0

25,3

4,0

8,0

3 916

110 Rapeseed oil

135,0

4 342 Data: State Statistics Service of Ukraine, UN Comtrade

36


ХАРЧОВА ПРОМИСЛОВІСТЬ

PRODUCTION DYNAMICS AND KEY UKRAINIAN SUGAR PRODUCERS 2010

2011

2012

2013

2014

1,5

2,3

2,2

1,2

2,1

Sugar beet production million tons

13,7

18,7

18,3

11,2

15,6

Sugar beet crop area thousand ha

492

516

449

270

329,6

Number of functioning sugar factories

73

Production volume million tons

77

63

38

48

GNIDAVSKIY SUGAR FACTORY Sugar beet yield, Hundredweights per 1 hectare

TEOFIPOLSKYY SUGAR FACTORY

71,5

500

471,9

The volume of sugar production in Ukraine in 2014 has doubled in comparison with 2013.

The largest producer of sugar on the market has remained «AstartaKyiv». Yields of sugar beet in 2014 exceeded the same indicator of 2010 by 200 kg / ha.

Top 10 sugar producers in Ukraine Production volume, thousand tons

55,8

49,2

STAROKOSTIANTYNIV SUGAR PLANT

72,5 56,2 104,1 PANDA GALS-AGRO SVITANOK

407,6

400

414,8

466,4

362,4 300

ASTARTA-KYIV

278,5

278,3 220,3 173,4 RADEKHIVSKYI TSUKOR

AGROPRODINVEST

Т-TSUKOR

200 2010

2011

2012

2013

2014 Data: State Statistics Service of Ukraine, Latifundist.com

37


PRODUCTION DYNAMICS AND KEY UKRAINIAN PRODUCERS OF SUNFLOWER OIL

el

,3 76

65 1,1

V iaab

Ke rn

r ssa

5000

Be

Top 10 Ukrainian sunflower oil producers

76,2 Agrointer

ХАРЧОВА ПРОМИСЛОВІСТЬ

4500

Se

rna

4000

Noble Group Glencore Pologivsky Oil Extraction Plant Bunge

Top 10 Ukrainian sunflower oil exporters

7% 7,10%

ution

vol D&A E

8,10% 9,30% 10,30%

33

rgi

ll

FS

PG

pla at vf ko Kh ar

ky

ivs

ron

My

FOZZY-FOOD 175,3

0,3

26,10%

Kernel

1500

Ca

4,0

5,1

19

Creative Group

83,8

13

Cargill

2000

36

4,90%

Zaporіzky olіyazhirkombіnat 2500

reativ 5,8 C

3,70%

MHP

up

e Gro

2,50%

2,80%

Vioil 3000

,0

nt

3500

78

1000

500

Dynamics of sunflower oil production, thousand tons 0 1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015 (forecast)

Data: State Statistics Service of Ukraine, Latifundist. com

38


UKRAINIAN AGRIBUSINESS

COMPANIES AND INFRASTRUCTURE


COMPANIES AND FRASTRUCTURE

GRAIN ELEVATORS CAPACITY IN COMPARISON WITH GRAIN CROPS STORAGE NEEDS Quantity and capacity of grain elevators in regions in 2014 1 671 1 698

487

14

540,5

211,7 46

Top 10 grain elevators operators in 2014 by volume capacity

5

1

35 3 508

21

437,4

14

35

717,7

10

1 987

30

2 276

1 143

1 500

21

26

52

59

1 858

765,4

2 600

29 230,7

21

2100

2 437 466,48

57

39

53

5

35

567,9 3 170

2 016

38

42

1 586

40

38 1 671

30

3 770

State Food and Grain Corporation of Ukraine

3 000 Kernel

2 500

Ukrlandfarming

1 700

Nibulon

1 100

State Reserve Agency of Ukraine

1 069 MHP

722

Bunge

615

Mriya

611

ADM Trading

Volume capacity of CGEs Number of CGEs

559,1

Agrotrade

Data: Latifundist.com, AgroChart.com

40


COMPANIES AND FRASTRUCTURE

THE VOLUME OF TRANSPORTATION OF AGRICULTURAL GOODS THROUGH THE PORTS OF UKRAINE, THOUSAND TONS

834,57

OKTYABRSK 2 242

YUZHNIY 9 140

17,98

1 541

MYKOLAYIV 80,62

MARIUPOL

6 654

BERDYANSK

34,71 9,24

ODESSA ILLICHIVSK 9,1

KHERSON

1 022

620,98 16,95 476,72

6 618

116,47 477,85 270,24

14,1

SKADOVSK

1492

4,28

4 593

UST-DUNAISK IZMAIL

RENI 24,49

2,8 39,8

40,45 18,13 64,13

KERCH

32 933 Grain

20,3

SKADOVSK 1 413

TOTAL

4 065 Oil 910,3 Other Data: State Enterprise «Ukrainian Sea Ports Authority»

41


COMPANIES AND FRASTRUCTURE

THE STRUCTURE OF VERTICALLY INTEGRATED UKRAINIAN AGRIHOLDINGS

LANDBANK,

thousand ha (as of 12.04.2015)

KERNEL

UKRLANDFARMING

NIBULON

MHP

MRIYA

390,0

670,0

81

320,0

210,0

12 clusters 125 animal farms

PRODUCTION

16 animal farms

2 animal farms

8 affiliates

4 pig farms

12 dairy farms

5 poultry farms

4 pig farms

LOGISTICS

2 hatching farms

40 grain elevators, capacity: 2,8 million tons

17 grain elevators, capacity: 1,6 million tons

20 grain elevators, capacity: 1,7 million tons

9 grain elevators, capacity: 1,1 million tons

7 grain elevators, capacity: 1,1 million tons

1 oil terminal in Mykolaiv

500 trucks

1 port terminal in Mykolaiv

450 trucks

Potato terminals with 146 thsd tons volume capacity

1 grain terminal

33 ship 1 Shipbuilding yard

Trading company: «Kernel-Trade»

TRADE

Trading company: ULF Trade AG

Trading company: Nibulon Trading BV

11 distribution centres

1 feed mill

3 meat-processing plants

1 workshop with sausage-production line

4 feed mills

25 distribution centres

2600 franchised stores

33 storage depots 7 oil extraction plants 3 oil extraction plants in Russian Federation

PROCESSING

6 sugar plants 19 meat-processing plants 19 poultry farms

1 seed factory 2 starch production factories

1 biogas stations

6 feed mills 3 seed factory 2 leather factories

OWN BRANDS

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

Own brands:

Own brands: Packaged chicken meat: «Nasha Riaba»

Shell eggs: «Kvochka», Organic Eggs

Frozen packaged meat: «Lehko»

Dried egg products: Imperovo Food

Sausage and meat products: «Baschinsky» Data: Latifundist.com

EBITDA PER HECTARE,

UDS

115

311

225

231

42


COMPANIES AND FRASTRUCTURE

WHAT THE CORPORATE STRUCTURE OF AGRICULTURAL HOLDING SHOULD BE RECOMMENDED CORPORATE STRUCTURE ULTIMATE HOLDING COMPANY (LUXEMBOURG, NETHERLANDS)

NON-RECOMMENDED CORPORATE STRUCTURE

To attract foreign investors or make public offering on leading European stock exchanges reputable jurisdictions are used: Luxembourg and/or the Netherlands.

INDIVIDUAL 1

INDIVIDUAL 2

100% 47,83 %

INTERMEDIATE HOLDING (CYPRUS, UK)

99%

52,17 %

17,36 %

HOLDING COMPANY (PANAMA)

1%

AGRICULTURAL PRODUCERS (UKRAINE) 1%

1%

HOLDING COMPANY 1 (UKRAINE)

99%

1%

HOLDING COMPANY 2 (UKRAINE)

AGRICULTURE TRANSPORT COMPANIES (UKRAINE) 99%

1%

GRAIN ELEVATORS. STORAGE OF AGRICULTURAL PRODUCTS (UKRAINE) 99%

97,33%

0,1 %

92,7%

2,66%

92,7%

4,24%

99,9%

0,01%

100%

TRADING COMPANY (SWITZERLAND, HONG KONG) 1%

99%

TRADING COMPANY (BELIZE)

5,64% 2,66 %

99%

100%

HOLDING COMPANY (CYPRUS)

100%

AGRICULTURAL LAND TENANTS (UKRAINE) 99%

82,64 %

Agricultural products are distributed via Ukrainian procurement and distribution companies and international trading companies of the Group (primarily Switzerland, Hong Kong).

To comply with Ukrainian corporate and land legislation, ownership of participation interests of Ukrainian companies of the Group is usually structured through two Ukrainian holding companies.

PRIVATE ENTERPRISE (UKRAINE)

60 %

COMPANY OWNER OF ELEVATOR (UKRAINE)

COMPANY OWNER OF PORT TERMINAL (UKRAINE)

40 %

TRANSPORT COMPANY (UKRAINE)

100 %

AGRICULTURAL LAND TENANTS (UKRAINE)

70 %

AGRICULTURAL LAND TENANTS (UKRAINE)

SUPPLY COMPANY (UKRAINE)

30 %

AGRICULTURAL PRODUCERS (UKRAINE)

TRANSPORT COMPANY (UKRAINE)

100 %

AGRICULTURAL PRODUCERS (UKRAINE)

1%

PORT GRAIN ELEVATOR STORAGE OF AGRICULTURAL PRODUCTS IN PORTS (UKRAINE)

To effectively attract potential investors and reduce risks of losing key assets, the Group is structured according to specialization of each company (production, holding key assets, trade, transportation, storage, etc.).

50 %

50 %

COMPANY OWNER OF ELEVATOR (UKRAINE)

60 %

40 %

AGRICULTURAL PRODUCERS (UKRAINE)

Analytics provided by AEQUO Law Firm

43


COMPANIES AND FRASTRUCTURE

FINANCIAL INSTRUMENTS FOR UKRAINIAN AGRIBUSINESS

EUROBONDS TYPICAL COLLATERAL

TERM

IPO

Suretyship/ corporate guarantee / pledge

Long-term

Unlimited

BILATERAL LOANS

SYNDICATED LOANS

EXPORT FINANCING

WAREHOUSE CERTIFICATES

FCR

AGRICULTURAL RECEIPTS

Pledge, mortgage, claims, suretyship

Pledge, mortgage, claims, suretyship

Mortgage, pledge, guarantee, export credit agency insurance, suretyship

Goods

Goods

Future harvest

Pledge, cash coverage of guarantee / letter of credit

Any

Any

Long-term

Short-term

Short-term

Short-term

Any

Depends on the structure of the transaction

Depends on the structure of the transaction

Depends on the structure of the transaction

INTEREST RATES

INTERMEDIARIES

OBJECTS OF FINANCING

SUBJECTS OF FINANCING

TRADE FINANCE BANKING INSTRUMENTS

Investment banks

Investment banks

The company as a whole

The company as a whole

Trading operations, investment projects

Trading operations, investment projects

Machinery, industrial equipment

Goods

Goods

Future harvest

Investors-bondholders

Investors

Bank

Syndicate of banks

Bank

Bank, offtaker

Bank, offtaker

Bank, offtaker

Possible in case of foreclosure

Possible in case of foreclosure

Tens of millions $

Hundreds of millions $

Tens of millions $

Tens of millions $

Tens of millions $

Millions $

Agent bank

(GUARANTEES / LETTERS OF CREDIT)

Bank

Goods, machinery, industrial equipment

Bank, syndicate of banks

LISTING ON THE STOCK EXCHANGE OWNERSHIP RIGHTS OF INVESTORS TO COMPANY'S SHARES

MAXIMUM FINANCING AMOUNT

Hundreds of millions $

Hundreds of millions $

Tens of millions $

IN UKRAINE

AGRICULTURAL PRODUCERS; TEND TO HAVE THEIR OWN LAND FUND

TRADERS, EXPORTERS OF AGRICULTURAL PRODUCTS

IMPORTERS OF AGRICULTURAL MACHINERY, EQUIPMENT Analytics provided by AEQUO Law Firm

44


CREDENTIALS

INFOGRAPHICS PLANNING, DESIGN AND PRODUCTION TOP LEAD

AUTHORS TOP LEAD, LATIFUNDIST MEDIA

DISCLAIMER This report has been prepared in good faith on the basis of information available at the date of publication without any independent verification. Top Lead has made every effort to ensure the accuracy of the information contained in this report. Despite the fact that this information has been carefully prepared by experts, it can only be used to get an overview of the subject discussed in it. Top Lead does not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this publication nor its usefulness in achieving any purpose. Readers are responsible for assessing the relevance and accuracy of the content of this publication. Top Lead, Baker Tilly and partners and sponsors of this report will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication. Please do not use the information contained in it, as professional advice on a specific issue or passing judgment.

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BAKER TILLY

CREDIT AGRICOLE

AEQUO

TOP LEAD

Alexander Pochkun, Managing partner 28 Fizkultury St., Kyiv, 03680 Ukraine Tel.: + 380 (44) 284 18 65

Pushkinskaya str, 42/4 Kyiv, 01004 Ukraine Tel.: +38 (044) 393-76-37

Denis Lysenko, Managing Partner Lysenko@aequo.com.ua Vector Business Centre, 52 Bohdana Khmelnytskogo St, Kyiv, 01030 Ukraine Tel.: +38 (044) 233 65 99

Business centre Horizon Office Towers Shovkovychna St., 42-44 3rd floor Kyiv, 01601 Ukraine marina.budnik@toplead.com.ua

www.bakertilly.ua

credit-agricole.ua

aequo.com.ua

toplead.com.ua

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