position of ukraine in the world food...
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POSITION OF UKRAINE IN THE WORLD FOOD MARKET
Agricultural sector activity covers
of Ukraine’s territory
Sunflower production
Sunflower oil production
Sunflower oil export
Barley export
Rapeseed export
Corn export
Barley production Wheat
exportCorn
production Honey production
Soybean export Wheat
production
AGROBUSINESS IN UKRAINE’S ECONOMY
70.8% 42.7mln ha
Export of agricultural products accounts
of the total export turnover
42.5% $15.5 billion
LAND MARKET IN UKRAINE
The land reserve of Ukraine
Belongs to agricultural land
Structure of Ukraine’s
agricultural land, million ha
The structure of land owners under the
moratorium, million ha
On the territory of Ukraine
of the territory of Europe
of Ukraine's territory
of the world's black soil
42.7mln ha
5.7% 70.8% 28%
Arable32.5
Land plots (land shares) 28
Pastures5.4
State and communal agricultural land 10.5
Unsolicited plots 0.02For commercial agricultural production (except for shares) 1.5Other state and communal lands 1.3
Others2.3
Hayfield 2,4
MANUFACTURERS OF AGRICULTURAL PRODUCTS
TOP-10 latifundists of Ukraine, thousand ha Ukraine
8.3
Others Wheat Sunflower Corn Barley Soybean Potato Rapeseedand colza
Vegetables Sugar beet Fruits and berries
6.2 6.14.3
2.9 1.9 1.3 0.5 0.5 0.3 0.2
World
The total area of land is 58 million ha
The total area of land is 14 900 million ha
605
603
430
370
250
185
151
137
127
122
UkrLandFarming
Kernel Group
Agroprosperis Group
MHP SE
ASTARTA Holding
Mriya Agroholding
Agroton
IMC
Agrain
Ukrprominvest-Agro
131.7 ha are on average processed by one farm
<80% of farms have 500 ha of land
Others 15.3 million ha Others
10 150 million ha
Agricultural land 4 750 million ha
Agricultural land 42.7 million ha
including crop area (arable land) 32.5 million ha
including crop area (arable land) 1 900 million ha
Planted acreage for basic crops, million ha
MANUFACTURING OF MAJOR AGRICULTURAL PRODUCTS, MILLION TONS
66.1
33.5
33.3
Cereals and legumes
28.0 Corn
21.8 Potato
14.0 Sugar beet 13.8 Sunflower 4.3 Soybean 1.2 Rapeseed
9.3 Vegetables (others) 2.0 Fruits, berries 0.4 Grape
26.8 Wheat 9.9 Barley 1.4 Others
Vegetables and Fruits
Industrial crops
DEMAND FOR GRAINS’ AND OIL-PLANTS’ CROP SEEDS, THOUSAND TONS
13901280 126020
15
2016
2017
Wheat
120120 120
2015
2016
2017
Corn
237206 219
2015
2016
2017
Soybean
570630
550
2015
2016
2017
Barley
7 68
2015
2016
2017
Rapeseed
2632 31
2015
2016
2017
Sunflower
12.1
23.7 21.4
2015
2016
2017
Sunflower
CROP SEEDS IMPORT, THOUSAND TONS
31.4
25.230.1
2015
2016
2017
Corn
2.52 1.4
2015
2016
2017
Soybean
2.1 2.12.8
2015
2016
2017
Rapeseed
1.8 thousand tons volume of wheat and barley imports on average over the last 5 years,
this is > 1% of the need
Only 1% share of imported crop seeds for soybeans
64% sunflower31% rapeseed share of imported sowing materialon average over the past 5 years
Among grain crops, only corn is marked by a high proportion of imported crop seeds:
31% on average over the past 5 years, although in 2014 this share was 42%
~ up to 40% reduction in imports over the past 5 years2017 2017 201730% 69% 37%
26% 75% 37%
21% 46% 29%
2016
2015
2016 2016
2015 2015
The share of imported crop seeds of the required volume
STRUCTURE OF CORN PRODUCTION IN UKRAINE
30%percentage of major importers
List of major importers, tons12 398.1 DuPont Pioneer
11 960.1 Monsanto Company
7 320.6 Syngenta AG
1 607.5 RAGT-Semences
933.7 EURALIS SEMENS
750.7 Dow AgroSciences
725.5 Limagrain
658.9 CAUSSADE SEMENCES
644.2 KWS SAAT
566.4 Maisadour-Semences
539.8 SAATBAU LINZ
495.2 Strube GmbH & Co.KG
204.3 Novi Sad
65.7 Saaten-Union
STRUCTURE OF CORN PRODUCTION IN UKRAINE
produced on the territory of Ukraine
Monsanto Company + DuPont Pioneer outsource up to 25% of the Ukrainian seed producers production capacity
up to 30% is held by domestic producers with their own Ukrainian selection
more than 10% of seeds produced in Ukraine are exported to neighboring countries: Belarus, Moldova, Georgia and others.
4.9 thousand tons 8 thousand tons +63%
70%Export dynamics since 2015-2016
SEED PROCESSING FACILITIES/PLANTS
Vinnytsia Region
Волынская
Donetsk Region
Житомирская
ЗакарпатскаяИвано-Франковская
Kiev Region
Kirovohrad Region
Luhansk Region
Львовская Poltava Region
Sumy Region
Тернопольская
Kharkiv Region
Kherson Region
Хмельницкая
CherkasyRegion
Dnipropetrovsk RegionЧерновецкая
Chernihiv Region
Odesa Region Mykolaiv RegionZaporizhia Region
Ровенская
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List of farms, tons10 000 Maisadour-Semences
3 500 Stepova
5 000 Company Maize
1 000 Selecta
1 000 Institute of Grain Cultures
10 000 Monsanto Company
6 000 Rost Agro
5 000 DuPont Pioneer
500 Institute of Horticulture
6 000 KWS SAAT
8 000 Cherlis
12 000 Mais Cherkassy
6 000 LNZ
10 000 Rise-Maksymko
TRENDS
Trends in the corn market of Ukraine in 2015-2016• Gradual improvement of production technology• Increased domestic consumption• Entry into the corn market of new foreign players• Increase in prices on the world market
Trends in the corn seeds market of Ukraine in 2015-2016• Increase of the share of imports in the consumption structure in 2016 compared to 2015• Increase of the supply of seeds produced in Ukraine• Orientation of domestic agrarians to seeds with low cost• Active development of seeds production in Ukraine by international companies
Main factors influencing the success of the product:• Product cost • National currency exchange rate (for imported seeds)• Yield and moisture output during maturation• Resistance to adverse weather conditions• Resistance to diseases and pests
DYNAMICS OF CROP YIELD FOR BASIC CROPS, CENTNER/HA
Yield of rapeseed, sugar beet and corn has increased over the past 15 years
EBITDA indicator
384.8 322.2
509.6 423
301.2 105.9
10
29,2 29,7
21,8
66
42,1
27,3
20,0
33
20
30
40
50
60
205,0
481,5
13,023
50
100
150
200
250
300
350
400
450
8,525,7 14,3
22,4
70
500
2010 20161995 2000 2005
2010 20161995 2000 2005
MAX UP TO 150
MAX UP TO 110
Corn
Sugar beet
Wheat
Rapeseed
Rye
Sunflower
Barley
Soybean
MARKET OF DISTRIBUTORS IN UKRAINE
Sales through distributors
Seed producers
distributors
240have offices in more than two regions
The best have a full service package
TOP 10 control > 80% of the market
95 - 98%corn, sunflower, rapeseed
> 50% soybeans
>30%wheat, barley
>2000
>2000
Own needs
Direct Sales
Informational and consulting service center
Seeds
Plant protection products
Micronutrient fertilizers
Basic fertilizers
Laboratory
Precision farming
Purchase and export of agricultural products
Machinery
AGROSOLUTIONS OF A NEW GENERATION
Vinnytsia Region
Volyn Region
Donetsk Region
Zhytomyr Region
ZakarpattiaRegion
Ivano-Frankivsk Region
Kiev Region
Kirovohrad Region
Luhansk Region
Lviv Region Poltava Region
Sumy Region
TernopilRegion
Kharkiv Region
Kherson Region
Khmelnytskyi Region
CherkasyRegion
Dnipropetrovsk RegionChernivtsi Region
Chernihiv Region
Odesa Region Mykolaiv RegionZaporizhia Region
Rivne Region
Number of managers
18008 Ukraine, Cherkasy, 144/1 Smilyanska str.+38 (050) 100-30-01 +38 (0472) 63-59-46+38 (0800) 307-001