ukrainian agribusiness

Ukrainian Agribusiness

Infographic report

HOW TO READ THIS REPORT

AGRIBUSINESS IN 2017/18 MY

PAGES 3-9

CROP PRODUCTION

PAGES 10-33

ANIMAL PRODUCTS

PAGES 34-41

PROCESSED FOOD

PAGES 42-47

INFRASTRUCTURE AND SERVICES

PAGES 48-62

The aim of this report is to show the scale of the agricultural sector in Ukraine by analyzing market trends and highlighting potential areas of its growth.

WHY INFOGRAPHICS

Infographics does not take much time for reading and shows large volumes of data on Ukrainian and world market in an easy and understandable format.

Each type of agricultural production has its color and graphics. Throughout the report, the yellow color indicates crop production, green shades represent oil crops, and blues standfor animal production.

DATA SOURCES:

● Baker Tilly● Latifundist Media (Latifundist.com, Elevatorist.com,

AgroPolit.com) ● Ministry of Agrarian Policy and Food of Ukraine (Minagroprod)● State Statistics Service of Ukraine (State Statistics)● Food And Agriculture Organization (FAO) ● United States Department of Agriculture (USDA) ● AgroChart.com● CFTS Consulting● State Enterprise “Ukrainian Sea Ports Authority” (USPA)● Ministry of Finance of Ukraine (MinFin)● Ministry of Infrastructure of Ukraine (MinInfrastructure)● The State Service of Ukraine for Geodesy, Cartography and

Cadastre (StateGeoCadastre)● AEQUO● Eurostat● National Bank of Ukraine (NBU)● International Finance Corporation (IFC)

Please note that data may vary due to different estimation methods each company uses.

Potato

Nuts

Sugar Beet

Corn

Barley

Crop Production

Wheat

Soybean

Rapeseed

Grapes

Sunflowerseeds

Animal Products

Milk

Pork

Fish

Lamb

Eggs

Honey

Beef

Poultry

Other typesof meat

Processed Food

Processed Meat

Beer

Soy oil

DairyProducts

Cheese

Flour

Confectionery

Sunflower oil

Rapeseed oil

Butter andmargarine

Sugar

CannedVegetables

Juice

Vodka

Bread

ABOUT THIS REPORT

2

UKRAINIAN AGRIBUSINESS

AGRIBUSINESSIN 2017/18 MY

Ukraine's place in the world food market1

Taxes paid by the agriculturalindustry, bln UAH

41% of the totalexports

Export of agriculturaland food products, $ bln

17,8

18,2

$19 bln in 2017

Agricultural production andprocessing, % of GDP

Profitability ofagricultural production

Government subsidiesused in agriculture, mln UAH

9,1%

17,0%

20,5%

31,6%

399

540

7,4

43,5

2012 201220172017

2012

2017

2012

2017

20172013

1

3

5

7

Productionof sunflower

seeds

Productionof sunflower

oil

Export ofsunflower

oil

Exportof wheat

Productionof barley

Exportof barley

4

Exportof corn

Export ofhoney

Export ofrapeseed

Productionof honey

Productionof rapeseed

Exportof soybean

THE ROLE OF AGRIBUSINESS IN UKRAINE’S AND WORLD ECONOMY

Source: State Statistics, USDA, FAO ¹ The data is provided for 2017/18 MY


4

8,7 Barley

27,0 Wheat 24,1 Corn

1,3 Other

61,1Grains and legumes 33,9Fruit and vegetables

Processed food3

22,2 Potato 9,3 Vegetables (other)

2,0 Fruit, berries

0,4 Grapes

5,2 Sunflower oil

1,8 Beer

1,9 Flour

2,1 Sugar

0,85 Eggs2

0,07 Honey

13,7 Sunflower seeds14,5 Sugar beet

13,5Animal products

34,3Industrial crops

10,3 Milk 2,3 Meat1

3,9 Soybean

Bread and bakeryproducts

2,2 Rapeseed

1,0

The summary does not include the data fromthe temporarily occupied territories of the Crimeaand the United forces operation

BASIC ITEMS OF AGRICULTURAL PRODUCTION, MLN T

Source: State Statistics, Minagroprod,USDA, Ukrsugar

1 Live weight2 For the calculation used the average total weight of an egg — 55 g3 The total amount of processed food is usually not calculated


5

2,0Vinnytsia

0,76Volyn

1,3Donetsk

0,75Zhytomyr

1,3Zakarpattia

0,43Ivano-

Frankivsk

2,0Kyiv

1,0Luhansk

1,1Lviv

0,82Sumy

1,4Ternopil

1,5Kharkiv

1,3Khmelnytskyi

1,5Cherkasy

0,08Chernivtsi

1,2Chernihiv

0,64Rivne

Vinnytsia

Eggs

18%

Kyiv

Zhytomyr

Honey

12%

Wheat

17%

Oat

17%

Odessa

Milk

8%

Wheat

9%

Potato

9%

Rapeseed

12%

Buckwheat

14%

Sumy

Khmelnytskyi

Beet

19%

Grapes

62%

Soybean

12%

Meat

14%

Barley

15%

Nuts

10%

Corn

12%

Poltava

Kherson

Mustard

24%

Vegetables

14%

Sunflower seeds

10%

Berries

10%

Donetsk

Dnipropetrovsk

2,5Kirovohrad

2,4Kherson

4,1Dnipropetrovsk

2,0Poltava

7,3Odessa

5,3Mykolaiv

2,3Zaporizhia

up to 1thou.

1–2 2-4 > 4thou.

Number of farms, thou.2,0

Top producing regions

Share in the nationalproduction

Zaporizhia

Legumes

11%

FARMS AND SPECIALISATION OF UKRAINIAN REGIONS

Source: State Statistics, StateGeoCadastre


6

Export,thou. tons

5 350

4 289

2 500

2 236

328

136

31

89

4 026

2 832

1 003

876

642

282

531

134

101

16

2 678

69

17 775

Corn2 18 500

Wheat2

Sunflower oil

Soybean2

Rapeseed2

Meat and edible subproducts

Milk and dairy products

Eggs1

68Honey

Nuts

35Sunflower seeds2

Barley2

Export income,$ mln

SHARE OF AGRICULTURAL PRODUCTS FOR EXPORT AND INCOMES

Source: Calculated based on State Statistics and USDA data1 For the calculation used the average total weight

of an egg — 55 g

2 Based on the data of 2017/18 MY: June/August 2017/18 MY forwheat, barley, and rapeseed; September/August 2017/18 for corn,sunflower seeds and soybean.


7

ExportImport Balance-5,0Agriculture trade dynamics, $ bln

0

5

10

15

20

25

30

35

40

‘12 ‘13 ‘14 ‘15 ‘16 ‘17

CIS countries

-9,2

-5,9

-2,4

-2,7-2,5

-4,6

Europe

-10,1 -11,5

-5,3

-3,4 -4,7

-5,0

Asia

0,5 1,64,5

5,1 2,9 2,3

Africa

4,3 4,43,2 3,3

4,83,3

America

-1,8 -2,2-1,6 -1,6 -1,9 -2,4

-54

-159 -156-102 -80

0

100

200

mln $

bln $ Australia and Oceania, mln $

-145

344Bangladesh

994Egypt

336India

337Indonesia

365Iran

496Spain

424Italy

455China

778Netherlands

577Turkey

50,3Belarus

84,3Egypt

37,1Moldova

53,6UAE

63,8Iraq

60,2Azerbaijan

62,7Kazakhstan

92,4Netherlands

64,3Germany

39,6Turkey

Main importers of Ukrainianagricultural products, $ mln

Cropproduction

$9,2 bln

Animalproducts

$1,1 bln

INTERNATIONAL TRADE

Source: State Statistics


8

1,2Other2,4

Hayfields

5,6Pasture

33,5Arableland

Structureof agricultural

lands

42,7mln ha

Number of land plots

Up to 50 ha Up to 100 ha Up to 500 ha Over 500 ha

Ownership 34 119 35 508 35 845 8

Right to lease 19 688 20 905 21 213 3

Right ofpermanent use 1 079 1 129 1 129 0

Emphyteusis

Up to 20 ha

28 892

15 525

533

546 574 582 582 0

296621

800 8941 134

1 944

1 699

86

15

Total areaby plot size,

thou. ha

Total area by landownership rights,thou. ha

As of March 21, 2018

Top 10 Ukrainian Agroholdings Financial indicators, mln $ or mln €

The dynamics of land bank changes, thou. ha

570560

430

370

250

165130120117110

UkrLandFarming

Agroprosperis (NCH)

Kernel

Myronivsky Hliboproduct

ІМC

Astarta-Kyiv

Mriya Agroholding

AgroGeneration

UKRPROMINVEST�AGRO

Agroton

100

200

300

400

500

600

700

2014 2015 2016 2017 2018

EBITDA

91

319

n/a

459

120

8

n/a

39

17

9

Net income

11

176

n/a

230

62

115

18

13

n/a

8

LAND BANK AND TOP 10 AGROHOLDINGS OF UKRAINE

Source: Latifundist.com, StateGeoCadastre


9


CROP PRODUCTION

400

8001000thou. ha

20050

Grainsand legumes

Potato andvegetables

Industrialcrops

524Lviv

Area of crop production,thou. ha

1 350Vinnytsia

436Volyn

953Donetsk

661Zhytomyr

138Zakarpattia

281Ivano-Frankivsk

919Kyiv

1 479Kirovohrad

778Luhansk

524Lviv

1 375Poltava

906Sumy

687Ternopil 1 608

Kharkiv

1 223Kherson

861Khmelnytskyi

953Cherkasy

1 887Dnipropetrovsk199

Chernivtsi

1 013Chernihiv405

Rivne

1 482Mykolaiv

1 812Odessa

1 592Zaporizhia

Crops structure, mln ha

2016

Compared with 2016

6,1Sunflower seeds 0%

6,4Wheat +3%

4,5Corn +5%

2,0Soybean +7%

1,3Potato +1%

0,8Rapeseed +75%

0,3Sugar beet +8%

0,2Rye +19% +19%

2,5Barley -13%

0,2Oat -5%

CROP PRODUCTION

11

REGIONAL SPECIALIZATION IN CROP PRODUCTION


CROP PRODUCTION

Potato and vegetables

Wheat Corn Potato Sugar beet Sunflowerseeds

Vegetables Barley Soybean Rapeseed Fruit and berries Rye Oat

Production of major crops from 2013 to 2017, mln t30

,9

22,3

22,3

10,8

11,0

9,9

7,6

2,82,4 2,3

0,6 0,5

Grains and legumes

<2 mln t

2-3,4

3,4-4

>4 mln t

4,9

3,92,8

2,3

2,9

3,1

3,0

2,7

2,8

2,9

4,1

4,5

3,9

3,9

3,6

4,2

0,4

1,5

1,2

0,8

1,4

0,7

1,3

1,9

Industrial crops

<1 mln t

1-1,5

1,5-3

>3 mln t

3,7

2,62,1

1,0

1,5

1,3

1,7

1,0

0,6

0,8

0,8

2,2

0,8

2,0

1,4

1,2

0,01

1,1

0,8

0,2

0,8

0,07

0,6

0,6

<1 mln t

1-1,5

1,5-1,8

>1,8 mln t

2,4

1,71,3

2,0

2,3

1,0

0,8

0,7

1,5

0,6

1,6

1,4

1,3

1,8

1,3

0,7

0,8

2,2

1,4

1,2

1,6

0,8

0,5

0,7

14,5

13,7

9,3 8,7

3,9

2,2 2,00,5 0,5

22,2

27,0

24,1

499 mln t

501 mln t

— 2013

— 2017

12

REGIONAL DISTRIBUTION OF CROP PRODUCTION РОСЛИННИЦТВО

Source: State Statistics, USDA, Ukrsugar

CROP PRODUCTION

758 Wheat

1 034 Corn

489 Rice

144 Barley

58 Sorghum24 Oat12 Rye

1

EU

2

India

3

Russia

4

Brazil

5

Ukraine

6

Argentina

7

Canada

8

Australia

9 10

296 30

5

240

144

114 12

711

799

66 61 67 58 57 56 53 34

Top 10 grain producers in the world, mln t 499 mln t

501 mln t

— 2016/17 MY

— 2017/18 MY

200

400

600

800

1 000

1 200

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 2016 2017

Corn has been remaining the top crop in the global grain production for over 20 years.

China

501

353

USA

473

431

13

GRAIN PRODUCTION WORLDWIDE, MLN T РОСЛИННИЦТВО

Source: USDA

CROP PRODUCTION

The slant indicates the percentage changein 2017/18 MY compared with 2016/17 MYTop 10

producersTop 10exporters

Top 10importers

USA USA EU371 62 17-4%-4% +12%+12% +10%+10%

+10%+10%

Brazil Argentina Japan83 24 15-16% 0%0%+4%+4%

EU Ukraine South Korea62 19 9,8+1% +7%+7%-11%-11%

Argentina Russia Vietnam33 5,3 9,5-20%

+20%

+12%+12%

India SAR Egypt27 2,1 9,2+4% +5%+5%+17%+17%

Mexico EU Iran27 2,0 8,0-3% +3%+3%-9%-9%

Ukraine Paraguay Colombia24 2,0 5,0

-11%-11%

-14% +6%+6%+11%+11%

Canada Canada Algeria14 1,8 4,4+1% +13%+13%

SAR Mexico Saudi Arabia14 1,3 4,0-22% +18%+18%-13%-13%

China Brazil Mexico216 25 16+11%+11%+26%+26%

-2%

14

BIGGEST CORN PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

2,6

0,16

0,21

1,1

0,270,29

1,6

0,18

0,27

2,4

0,860,95

1,5 1,9

0,31

2,90,41

1,6

0,3

1,0

2,9

0,510,38 0,14

up to0,6

0,6–1.2 1.2-2 > 2up to4,5

4,5–6,5 6,5-7,5 > 7,5

Yield,t/ha

7,2

7,8

2,9

7,3

5,46,6

6,0

2,2

6,8

7,5

7,93,5

8,0 5,5

5,2

7,56,8

4,0

6,6

3,2

5,0

3,33,1 3,2

24,1 1 mln t

Corn productionin 2017

5,5 t/ha

Average corn yield

Grain corn yield, t/ha

3,9

5,5

2,5

5,0

7,5

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

4,5

Ukrainian corn exports by country, mln $2

444

383

308

251

236

1 056

China

Egypt

Netherlands

Italy

Spain

Other

Harvest,mln t

$ 2,7 bln

Total exportrevenues

15

CORN PRODUCTION IN UKRAINE

Source: State Statistics 1 According to USDA 2 For the first 10 months of 2017/18 MY

CROP PRODUCTION

EU Russia Egypt

China EU Indonesia

India USA Algeria

Russia Canada Brazil

USA Ukraine Bangladesh

Canada Australia Turkey

Ukraine Argentina Japan

Pakistan Kazakhstan Philippines

Australia Turkey EU

152

130

99

85

47

30

27

27

21

21

42

24

23

22

18

16

14

8,5

6,2

1,0

12

11

8,2

6,7

6,4

6,4

6,0

6,0

5,6

5,3Turkey China Mexico



Top 10importers

+10%+10%

+5%

+1%

+13%

+16%

-25%

-6%

0%

+3%

-39%

+24%

+51%

-14%

-21%

+9%

-3%

-27%

+11%

+16%

0%

+43%

+7%

+3%

-2%

-14%

+14%

+42%

+2%

+5%

+6%

-2%

16

BIGGEST WHEAT PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

Wheat yield, t/ha

1

2

3

4

5

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

up to0,6

0,6–1.2 1.2-1,7 > 1,7up to4

4–4,5 4,6-5,4 > 5,4

1,7

1,2

0,55

0,090,29

0,73

0,94

0,78

1,0

1,12,2

1,3 0,74

0,20

0,900,470,69

0,90

1,6

1,8

0,97

2,31,4 2,1

5,13,3

5,2

3,5

3,9

4,9

5,1

5,54,7

5,9 3,7

5,1

4,74,6

3,4

3,5

3,6

3,93,5 3,3

4,5

4,0

4,3

4,0

Ukrainian wheat exports by country, 2017/18 MY, $ mln

375

334

246

173

171

1 532

Indonesia

Egypt

Bangladesh

Spain

Philippines

Other

4,04,1

2,7

Yield,t/ha

Harvest,mln t

27,0 1 mln t

Wheat productionin 2017

4,1 t/ha

Average wheat yield

$ 2,8 bln

Total export revenues

17

WHEAT PRODUCTION IN UKRAINE

Source: State Statistics 1 According to USDA

CROP PRODUCTION



Top 10importers

+10%+10%

59,1

20,2

8,9

8,7

7,9

6,4

3,7

3,3

3,1

2,1

6,5

5,7

5,6

4,3

2,5

1,3

1,2

0,2

0,1

0,1

8,2

7,7

3,0

1,2

0,7

0,5

EU

Russia

Australia

Ukraine

Canada

Turkey

Argentina

Kazakhstan

USA

Ethiopia

Australia

EU

Russia

Ukraine

Argentina

Canada

Kazakhstan

Moldova

USA

Uruguay

China

SaudiArabia

Iran

Japan

Jordan

EU

+1%

-9%

+27%

0%

-14%

+20%

-1%

+13%

-52%

-14%

-11%

+27%

+11%

+3%

-39%

+5%

-42%

0%

+36%

-23%

-8%

+10%

+31%

+7%

+8%

0%

0,5

0,5

Algeria

Libya

-100%

0,6

0,6

Tunisia

Brazil

+17%

-17%

0%

18

BIGGEST BARLEY PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

Wheat yield, t/ha

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

up to350

350–600 600-1000 >1000up to3

3,1–3,5 3,6-4,5 > 4,5

469

354

103

12122

220

114

256

144

533489

456 190

78

80194106

323

488

682

305

1 268770 530

4,4

3,4

3,0

3,5

2,84,6

3,5

2,5

4,9

3,9

5,13,5

5,1 3,5

4,0

4,24,1

2,7

2,6

2,7

3,3

3,52,7 2,6

Ukrainian barley exports by country, 2017/18 МY, mln $

264

43

25

21

16

273

Saudi Arabia

Libya

Turkey

Israel

Algeria

Other

Yield,t/ha

Harvest,thou. t

8,7 1 mln t

Barley productionin 2017

3,3 t/ha

Average barley yield

$ 641 mln


3,4 3,3

19,7

1

2

3

4

19

BARLEY PRODUCTION IN UKRAINE

Source: State Statistics 1 Accordingto USDA

CROP PRODUCTION

1 2 3 4 5 1 2 3 4 5

Top 5 oilseed crops producers, mln t Top 5 oilseed crops exporters, mln t116,0 mln t

116,1 mln t

— 2016/17 MY

— 2017/18 MY

7663 5859

17166,1 6,3 4,94,1

Brazil USA Canada Paraguay Ukraine

131

127

123

118

3437

USA Brazil

6057

China

4260

Argentina India

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 2016 2017

19 Palm kernel45 Cotton seeds45 Peanut

337 Soybean

47 Sunflower seeds50

100

150

200

250

300

350

400

The world has witnessedthe continuous increasein soybean production overthe past 50 years.

OILSEED CROPS PRODUCTION WORLDWIDE, MLN T

20Source: USDA

CROP PRODUCTION

What is high-oleic sunflower

Fat composition in cooking oils, g per 100 g

High-oleic (HO) sunflower is a type a sunflower which contains over 82% of Omega-9 oleic acid (monounsaturated fatty acid) and a low concentration of Omega-6 linoleic acid(polyunsaturated fatty acid). The concentration of oleic acidin HO sunflower oil exceeds that of olive oil.

HO sunflower oil consumption lowers the riskof cardiovascular disease through reductionin the ration of trans fats and saturated food.

The oil has higher resistance to heatand does not require extra hydrogenation.

The shelf life of HO sunflower oil is 5 timeslonger than that of other oils.

HO sunflower oil is resistant to oxidation, whichmakes it suitable for cooking at high temperatures.

Benefits of HO sunflower oil

HO sunflower oil productionin Ukraine, thou. t

255

315

630

490

2014/15 2015/16 2016/17 2017/18

HO sunflower oil exportsby country in 2016/17 МY, %

HO sunflower seeds yield in Ukraine, t/ha

2014/15 2015/16 2016/17 2017/18

2,6

2,32,5 2,4

10%Other

16%Netherlands

16%Great Britain

13%Italy

12%Spain

8%France

7%Malaysia

6%Iran

4%China

2%UAE

6%India

Ukrainian HO sunflower oil export,thou. t

Exportsto Europe73%

2017/18

180

2016/17

226

2015/162014/15

6180

70%73%93%73%

100 g

201169 Sunflower oil

84124 HO sunflower oil

731411 Olive oil

63728 Canola oil

461732 Peanut oil

301555 Corn oil

231658 Soybean oil

Monounsaturated fats (including oleic oil) Saturated fatsPolyunsaturated fats

21

MARKET OF HIGH-OLEIC SUNFLOWER

Source: High-Oleic Club, USDA

CROP PRODUCTION



Top 10importers

+10%+10%

Russia China EU

Ukraine EU Turkey

EU Moldova Pakistan

Argentina Kazakhstan Iran

China Serbia USA

Turkey Ukraine Bosnia andHerzegovina

USA Russia China

Kazakhstan USA Egypt

SAR Argentina SAR

10,4

13,7

9,7

3,5

3,1

1,5

1,0

0,9

0,8

0,7Serbia

0,3

0,6

0,2

0,2

0,2

0,1

0,1

0,07

0,07

0,06Turkey

0,5

0,7

0,1

0,1

0,09

0,08

0,07

0,07

0,07

0,05Russia

-10%

-5%

+13%

0%

+3%

+15%

-17%

+13%

-11%

0%

+50%

0%

-20%

0%

0%

-50%

-75%

-13%

0%

+20%

-29%

+17%

-33%

0%

+13%

0%

-30%

+17%

+75%

-50%

22

BIGGEST SUNFLOWER SEEDS PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

Sunflower seeds yield, t/ha

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

up to300

300–600 600-900 >900up to1,8

1,8–2,2 2,3-2,6 > 2,6

726

556

248

777

397

566

74

516

2341 103

456 505

44

4686740

1 092

499

1 203

731

904876 866

2,9

2,5

1,7

2,3

2,22,4

2,4

1,6

2,1

2,6

2,92,3

3,0 2,5

2,5

2,42,7

2,0

1,4

1,9

2,4

2,01,6 1,5

Ukrainian exports by country, for the first 10 months of 2017/18 МY, mln $

Sunflowerseeds Sunflower meal, press cake and other solid waste

Yield,t/ha

Harvest,thou. t

13,7 1 mln t

Sunflower seedsproduction in 2017

2,0 t/ha

Average sunflowerseeds yield

4,5

2,3

1,3

1,3

0,8

5,7

Italy

Netherlands

Germany

Romania

Georgia

Other

113

103

75

75

70

369

France

Belarus

Poland

Spain

Turkey

Other

1,6

2,0

1,5

0,5

1,0

1,5

2,0

2,5 16 mln$ 804 mln

$

23

SUNFLOWER SEEDS PRODUCTION IN UKRAINE

Source: State Statistics 1 According to USDA

CROP PRODUCTION

The slant indicates the percentagechange in 2017/18 MY comparedwith 2016/17 MY

Top 10producers

Top 10exporters

Top 10importers

-10%-10%

USА 76 96

Brazil 57 14

Argentina 6,2 4,6

China 5,5 3,3

Paraguay 3,1 3,2

India 2,8 3,1

Canada 2,5 2,7

Ukraine 0,5 2,6

Russia 0,3 2,6

120

120

37

14

10

8,4

8,0

3,9

3,6

2,6EU 0,2

Brazil

USА

Paraguay

Canada

Argentina

Uruguay

Ukraine

Russia

India

EU 2,3

China

EU

Mexicо

Japan

Thailand

Egypt

Indonesia

Turkey

Taiwan

Iran

+2%

+4%

-33%

+10%

-2%

-23%

+21%

-9%

+16%

+8%

+20%

-2%

+2%

+20%

-56%

-10%

-14%

+25%

0%

0%

+3%

+5%

+12%

+7%

+48%

+4%

+13%

-0%

+21%

+3%

24

BIGGEST SOYBEAN PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

291

82

0,45

356

2765

294

0,26

133

272

20964

472 207

109

225161

179

348

8

316

2219 41

up to120

120–250 250-350 > 350up to1,5

1,5–2 2,1-2,8 > 2,8

Yield,t/ha

2,0

2,2

0,4

2,4

3,72,5

1,7

0,5

2,3

1,9

2,61,1

2,5 1,6

1,8

2,12,5

1,1

3,0

1,2

5,0

2,11,1 2,6

3,9mln t

Soybean productionin 2017

2,0 t/ha

Average soybeanyield

Soybean yield, t/ha

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

Ukrainian soybean exports by country, mln $1

273

127

103

100

84

315

Turkey

Iran

Egypt

Belarus

Netherlands

Other

Harvest,thou. t

$ 1,0 bln


0,5

1,0

1,5

2,0

2,5

1,1

2,01,6

25

SOYBEAN PRODUCTION IN UKRAINE

Source: State Statistics 1 For the first 10 months of 2017/18 MY

CROP PRODUCTION

The slant indicates the percentagechange in 2017/18 MY comparedwith 2016/17 MY

Top 10producers

Top 10exporters

Top 10importers

-10%-10%

EU

Japan

Mexicо

Pakistan

USА

UAE

Turkey

Bangladesh

22,1

0,6Belarus

11,0

2,3

2,0

0,3

0,1

0,08

0,06

0,05

0,04

0,03

Canada

Australia

Ukraine

Russia

EU

USА

Kazakhastan

Moldova

Argentina

Paraguay

2,5

1,9

1,2

0,9

0,8

0,2

0,1

0,1Iran

+8%

Australia 3,7-10%

Ukraine 2,2+83%

Russia 1,5+50%

USА 1,40%

Japan 4,00%

+100%

-1%

-56%

+100%

329%

-75%

-20%

+20%

+25%

0%

0%

+4%

+27%

0%

EU 4,20%

+29%

0%

0%

-33%

0%

China 14,4-1%

Canada 21,5+10%

India 5,8-18%

China 4,7+12%

26

BIGGEST RAPESEED PRODUCERS, IMPORTERS, EXPORTERS, MLN T

Source: USDA

CROP PRODUCTION

187

99

40

68

099

76

0

176

46

15646

161 82

25

9861

86

129

128

30

26171 58

up to65

65–150 150-250 > 250up to2,5

2,6–2,9 3-3,2 > 3,2

Yield,t/ha

3,1

3,5

2,7

2,9

03,0

2,7

0

3,1

3,5

3,12,5

3,1 2,7

2,6

3,23,6

2,4

2,5

2,5

3,3

2,32,3 2,3

2,2 mln t

Rapeseed productionin 2017

2,8 t/ha

Average rapeseed yield

Rapeseed yield, t/ha

1990 1995 2000 2005 ‘10 ‘11 ‘12 ‘13 ‘14¹ ‘15 ‘16 2017

Harvest,thou. t

Ukrainian rapeseed exports by country, 2017/18 MY, mln $

238

191

177

72

45

153

Netherlands

Germany

Belgium

Pakistan

France

Other

$ 876 mln

Total export revenues0,5

1,0

1,5

2,0

2,5

3,0

1,5

2,8

1,7

27

RAPESEED PRODUCTION IN UKRAINE


CROP PRODUCTION

Top 10 organic agricultural companiesof Ukraine, thou. ha

15,8

8,8

7,5

6,0

5,6

4,0

3,5

3,2

2,8

2,7

Arnika

Galeks Agro

Agroekologia

AgroInvest —Natural products

UkrBioLand

EthnoProduct

Ritter Bio Agro

Zhiva Niva

Cepheus Group

Svarog West Group

57,8 mln haThe total areaof organic landin the world

≈1%of Ukrainian landis covered by organicfarming

426operators in the organicmarket, 294 of them areagricultural enterprises

20Ukrainian companies took partin the world's leading Trade Fairfor Organic Food BioFach 2018

381 thou. haThe total areaof organic landin Ukraine

11th placeThe place of Ukrainein Europe basedon the area of organicfarmlands

up to 5 5–10 1-30 > 30

Certified organic farms

Farms owning landsin the transition period

Organic land, thou. ha8

The total number of operatorsof organic production

0Luhansk

36Kyiv

28Odessa

17Kherson

14Zhytomyr

13Vinnytsia

13Khmelnytskyi

12Chernihiv

11Kirovograd

10Poltava

3Sumy

6Cherkasy

5Mykolaiv

11Lviv

3Zakarpattia

3Іvano-Frankivsk

3Ternopil

3Chernivtsi

8Rivne

7Dnipropetrovsk

7Zaporizhia

2Donetsk

6Volyn

18Kharkiv

28

ORGANIC PRODUCTION IN UKRAINE

Source: Latifundist.com

CROP PRODUCTION

PlumApple Nuts Apricot Sweet cherry Peach Other

201

184

1 07

6

1 21

1

172

201

165

169

10911

6

87

135

71815571

2037

197

217

Fruit and berries production from 2013 to 2017, thou. t 499 mln t

501 mln t

— 2013

— 2017

Area,thou. ha

Production,mln t

Yield,t/ha

1995

Cucurbits

1995 2000 2005 2010 2017

8970

6,3

5,6

434497

434mln t

Fruit and berries

2000 2005 2010 2017

637

199

3,0

10,3

1,92,0

2,0mln t

Grapes

1990 2000 2010 2017

41

143

410

836

9,9

5,8

410mln t

Sourcherry

Pear Garden andwild strawberry

Nichecrops

29

FRUIT AND BERRY PRODUCTION IN UKRAINE

Source: State Statistics + our own calculations2014-2017 — excluding data from the temporarily occupiedterritories of the Crimea and the United forces operation

CROP PRODUCTION

Onion BeetCucumberTomato

Vegetable and niche crops production, mln t 499 mln t

501 mln t

— 2013Nichecrops — 2017

2,3

2,1

22,2

22,3

1,7

2,1

1,0

1,0

0,91,0

0,80,9

0,8

0,6

0,9

0,6

0,5

Vegatable production, thou. tPrivatefarms

Agriculturalenterprises26

2,9

26

23 7,6

6

29

61,5

179163

521 311

246278

168,3

6 77

7

56 339

499

679

22

81

12

0,3

184

213

113

604

5

388

547

207206

230

234

214465

255224

477

3,61,4

227164258

258

Potato Courgette

0,5

21 t/haAverage yieldin 2017

Vegetable exports, mln $

3,23,0

0,90,6

0,3

0,8

Belaru

s

Polan

d

Lithu

ania

Germ

any

Roman

iaOth

er

1,1

0,3

Cabbage Pea Carrot Pumpkin

VEGETABLE PRODUCTION IN UKRAINE

30Source: State Statistics + our own calculations

CROP PRODUCTION

Niche crops production, thou. tContinued

499 thou. t

501 thou. t

— 2013

— 2017

Exports and imports of niche crops in 2017, mln $

1,01,0

2,82,8

1,11,1

0,070,07

0,060,06

0,40,4361,91,9

21,6

1,51,5 2,72,7

0,060,06

0,010,012,22,2

0,270,27 0,020,02

0,0010,001

1,81,8

0,380,38

19,4

360,130,13

16,5

1,21,2

5,7

0,200,20

0,090,09

0,030,03

1,11,1

0,480,48

Export

Import

CabbagePeasCarrot

and turnipPumpkinSorghum Garlic CherryPear BeansWild andgarden

strawberryMushroomsFlax Mustard Chickpea CurrantLentil

0,0010,001

0,480,48 0,410,41 0,400,40

820 thou. ha

Niche crops area

199

354

Sorghum

186

186

Garlic

17220

1

Sourcherry

16516

9

Pear

6426

Beans

5571

Garden andwild strawberry

24 46

Сrownflax

3130

Mustard

4 30

Chickpea

2727

Currant

51

Lentil

31

NICHE CROP PRODUCTION IN UKRAINE

Source: State Statistics + our own calculations

CROP PRODUCTION

HTC1 change in 1991-2017 compared to 1961-1990

1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017

Irrigated area, mln ha

0,5

1

1,5

2

2,5

3

Planned

Irrigated

2,5

2,3

2,5

1,9

2,4

0,9

2,2

0,6

2,2

0,6

2,2

0,5

Causes of irrigation decrease in Ukraine

Low energyefficiency

Flawedlegislation

Fragmentationof land plots

No guaranteesin inviolabilityof property rights

60%of arable landneed irrigation

Rates and reasons of irrigation decreaseby area in Ukraine since 1992, thou. ha

4,5

1,5

The sum required to increasethe irrigation area to 1,2 mln hаaccording to the project for irrigationand drainage improvement by 2030

Annual losses Ukraine suffers frominsufficient irrigation

Lack of sprinklerirrigation technology

Poor machineryconditions

Area irrigatedin 2017

Completely ruinedirrigation systems

Violated technologicalintegrity of irrigationsystems

used to beirrigatedin 1992

2,6mln ha

925

660

400

122

475 18%

1 Hydro-thermal Coefficient of Selyaninov — shows what partof evaporation is compensated by precipitation. The lowerthe HTC is, the drier the area is.

Some improvements

No change

Minor deterioration

Considerable deterioration

$bln

$bln

32

IRRIGATION IN UKRAINE

Source: Latifundist.com, AgroPolit.com2014-2017 — excluding data from the temporarily occupiedterritories of the Crimea and the United forces operation

CROP PRODUCTION

The geographic zones will change, extreme weather will hit moreoften with sever cold followed by sudden thaw in winter and increasednumber of extra hot days in summer. Droughts and floods will beoccurring more often and become more intense in nature.

The number of the major1 natural disasters in the world

●Geological events:earthquake, tsunami,volcanic activity

●Hydrological events:floods, landslides

●Meteorological events:cyclones, storms

●Climate phenomena:extreme temperatures,droughts, wildfires

By 2100, the sea levels of the Black Sea and the Sea of Azovare expected to rise by 0,22-1,15 m. If the sea level increasesby a meter, around 10 thou. ha of land will be destroyedand 19 thou. ha will be covered by water.

Sea level changes, mm

Reconstructedsea level

Mean sea level(measured via satelites)

-2001880 1900 1920 1940 1960 1980 2000 2020

-160

-120

-80

80

-40

40

01990

Despite the general increase in precipitation, there will be a minorincrease in precipitation in the southern parts with fewer but moreintensive rains. As a result, precipitation deficiency will become moreacute and spread to northern and central regions.

1 Hydro-thermal Coefficientof Selyaninov — shows what part of evaporation is compensated by precipitation.

HTC1 forecast for 2031–2050 0,4–0,7

0,7–1,0

1,0–1,2

1,2–1,8

> 1,8

Natural disasters Sea level rise

100

200

300

400

500

600

700

800

2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17

Precipitation

Semidesert

Steppe

SemisteppeTemperateforest

30-100% accelerated photosynthesis. Worsened crop qualitydue to lower content of nitrogen and protein.

CO2 impact on crop yields

Wheat Barley

Sunflower seeds Rice

Soybean

Corn Sorghum

Sugar beet Millet

Increasedyields

Decreasedyields

Wheat

+0,5 ˚С

+1,0 ˚С

Sunflower seeds Rapeseed

-25% -15% -5% 5% 15% 25%

The effect of warmingon agriculture is manifold.A minimal temperature increase may improve yields in the places with a temperate climate, whileextreme increase may resultin poor yields.

Expected yieldchange comparedto 2010

Weather impacton crop yields

33

EFFECTS OF CLIMATE CHANGE

Source: Vulnerability of Ukrainian Forests to Climate Change Sustainability 2017, Munich Re NatCatSERVICE,Impact of Climate Change on Wheat Production in Ukraine, European Environment Agency,Ukrainian Journal of Remote Sensing (Ukrainskyi zhurnal dystantsiinogo zonduvannia Zemli) 8 (2016) 51-85

CROP PRODUCTION


ANIMALPRODUCTS

Regional livestock structure in 2017

Goatsand sheep

<50 50-80 141 344 thou. head

1,3 mlnhead

280-450<150 150-280 >450 thou. head

Rabbits

4,8 mlnhead

Cows

2,0 mlnhead

<55 55-80 80-120 >120 thou. head

Cattle

3,5 mlnhead

<120 120-180 180-220 >220 thou. head

<8,0 8,5 18,5 >20,0 mln head

Poultry

204,8mlnhead

<150 150-280 280-450 >450 thou. head

Pigs

6,1 mlnhead

Livestock by farm types,mln head

0% 0%25% 25%50%

1,2 2,4Cattle

3,3 2,8Pigs

0,19 1,1Sheep and goats

112 92Poultry

Agriculturalenterprises

Privatefarms

Production of major animalproducts per capita

1990

472

84

314

2000

257

34

179

52mln

49mln

451

mln

2017

Milk, kg

Population of Ukraine

Meat, kg

Eggs, pcs

242

55

365

5

10

15

20

25

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2017

3,7 Cattle

6,7 Pigs

1,3

Total number of livestock, mln head

Goatsand sheep

35

ANIMAL HUSBANDRY IN UKRAINE


ANIMAL PRODUCTS

Regional breakdown of meetproducts in 2017, thou. t

Horsemeat

<0,4 0,4-1,0 1,0-1,9 >1,9 thou. t

8,4 thou.t

1,0-2,0<0,4 0,4-1,0 >2,0 thou. t

Mutton andgoat meat

13,5 thou.t

Rabbitmeat

12,2 thou.t

<0,4 0,4-0,6 0,6-0,9 >0,9 thou. t

<20 20-35 35-50 >50 thou. t

Pork

736 thou.t

Pork

Production, imports and exports, thou. t

Beefand veal

0,2 12,3

364

5,6 4,9

736 Mutton andgoat meat

0,01 0,2

14 Production

Export

Import

16-20<10 10-16 >20 thou. t

Beefand veal

363 thou.t

Top 10 meat producing companies

45,5% 57,4MyronivskyHliboproduct APK-Invest

8,6% 53,4Agromars Complex Danosha

5,1%APK-Invest

30,7Niva Pereiaslivshyny4,0%

34,0Globyno PigBreeding Complex

Agro-Oven

4,0% 26,8AgroprodservicePoultry Complex

Dniprovskiy

2,8%

15,6BahmutAgrarian Union

Volodymyr-VolynskaPoultry Farm

2,6%

20,0Halychyna Zahid

Globyno MeatProcessing Plant

1,5%

10,2AgroindustrialCompany

Pan Kurchak

1,1%

11,0Barkom

Ular

1% 5,1EcomeatAgroRos

Meat producers,market share, %

Pork producers,thou. t, liveweight

36

MEAT PRODUCTION IN UKRAINE

Source: State Statistics, Latifundist.com

ANIMAL PRODUCTS

up to 600 600–1000 1000-2000 >2000

946

202

588

88

688

359353

2 833556

383

483555

1 308 642

320

289616

440

1 025

845

746

306253 682

Eggs,mln units

up to 50 50–120 120-250 >250

277

12,2

9,7

5,714,3

14646,5

14,7

8,335,6

1,511,8 255

11,7

2,521,9

10,0

3,3

206

5,9

2,46,2 12,2

Poultry meat,thou. t

64,8

Top 10 importers of eggs by country, thou. t

UAE Iraq Qatar SierraLeone

Liberia Moldova Libya Turkey Latvia Oman

38,5

16,56,8 4,3 3,9 3,7 2,7 1,7 1,6 1,5

Top 10 importers of poultry meat by country, thou. t49,6

Egypt

39,1

Netherlands

28,9

Iraq

16,9

Azerbaijan

13,9

UAE

12,4

Hong Kong

10,1

Georgia

10,0

Slovakia

9,3

Germany

8,6

Vietnam

Production, exports, and importsof poultry products, thou. t

Eggs

5,7 89

850Poultrymeat

118 271

1 185Production

Export

Import

Poultry statistics by breed variety,mln heads

10,9 Ducks

4,1 Geese

1,9 Turkey

1,1 Other

187Hens and roosters

Exports of poultry products, thou. t

271

89

3,52011 2012

50

100

150

200

250

300

2013 2014 2015 2016 2017

Poultry meatand edible subproducts

Without shells

Poutry eggswith shells

POULTRY PRODUCTION IN UKRAINE

37Source: State Statistics, State Fiscal Service of Ukraine

ANIMAL PRODUCTS

Top 10 milk producing companies by market share, %

Milkprocessingcompanies

Producers of dairyand milk-containingproducts

2,8%PrydniprovskyiCombine 2,6%Ternopil Dairy

Factory

3,5% 2,7%PrydniprovskyiCombine

Alliance

Wimm-Bill-DannUkraine 3,9% 3,7%Lactalis Ukraine

4,4%ZhytomyrButter Plant 4,4%Wimm-Bill-Dann

Ukraine

5,1%Lustdorf 4,5%Alliance AndrushivskyiDairy Plant

5,9%Almira 4,9%Danone Ukraine

6,1%Danone Ukraine 5,2%Lustdorf

7,1%Milk Alliance 7,7%Milk Alliance

8,6%Roshen 9,2%TERRA FOOD

10,2%TERRA FOOD 9,6%Roshen VinnytsiaDairy Plant

125851

413

206

125

575

324463

437529

416

451530

597 507

282

548433

305

293

300

793

349342 261

up to 320 320–500 500-600 > 600

Milk production,thou. t

Milk andcream

0,8 14

Dry andcondensedmilk

1,7 47

96Milkwhey

1,4 32

62

Other

3,9 16

533

Production, exports, and importsdairy products, thou. t

Production Export Import

10

Cheese

9

190

0,8

Butter

30

108

1 00010,4 mln t

Total productionof raw milk

38

MILK AND DAIRY PRODUCTION IN UKRAINE

Source: State Statistics, Ukrmolprom

ANIMAL PRODUCTS

ExportImport

Export of fish and fish products, thou. t Structure of water bioresourcesproduction by types of reservoirs, thou. t

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014¹ 2015¹ 2016¹ 2017¹

Otherbioresources

Fish

Types of water bioresources, thou. t

39,5Freshwater fish

43Maritime economiczone of Ukraine

15Reservoirs

8Maritimeeconomic zoneof other countriesand the open sea

4Riversand lakes

24Ponds andother waterresources

13,9Migratoryfish

10,8Other waterbioresources

28,5Ocean and sea fish

Water resources production, thou. t

Annual consumption of fish and seafood in Ukraine,kg per capita

81,9

10,8

8,4

14,4 14,5 14,6

11,1

8,6 9,6

10,8

2000 2005 2010 ’13 ’14 ’15 ’16 2017

Top 5 bioresources by volume of production, thou. t

23,0

13,29,4 9,1 9,0

Goby Sprat Carp Silver carp European carp

253 0,7

Frozenfish

21 3,0

Fish filletand otherfish meat

3,6 0,5

Dried, salted,or smoked fish

0,005 0,23,1 0,5

ShellfishLive fish

3,2 0,02

Crustaceans

12 0,5

Fresh orchilled fish

FISHING INDUSTRY OF UKRAINE

39Source: State Statistics

ANIMAL PRODUCTS

Top 10 Ukrainian feed producersin 2017, market share, %

57,4%Other

25,3%MyronivskyHliboproduct

6,5%UkrLandFarming

6,4%UkrainianGrain

2,2%Poultry ComplexDniprovskiy

2,0%Volodymyr-VolynskaPoultry Farm

1,7%NivaPereyaslavshchiny

4,8%OvostarUnion

3,4%AgromarsComplex

2,9%APK-Invest

2,2%Agro-Oven

5,2

12,3

4,1

7,4

5,6

3,8

13,6

6,3

15,0

7,4

14,3

8,7

13,6

3,0

5,4

5,1

12,7

15,2

4,3

4,5

5,7

15,1

14,214,2

4,6

5,2

4,9

5,2

14,4

6,0

16,6

3,0

3,3

11,9

4,6

13,43,9

4,7

15,214,1

13,8

14,4

14,9

14,5

12,0

14,4 15,4

13,6

Amount of feed neededto produce a centnerof livestock, centner

Cattle Pigs

Centner

121416

108

6

4

3

Vinnytsia

Volyn

Donetsk

Zhytomyr

Zakarpattia

Ivano-Frankivsk

Kyiv

Kirovograd

Luhansk

LvivPoltava

Sumy

Ternopil

Kharkiv

Kherson

Khmelnytskyi

Cherkasy

Dnipropetrovsk

Chernivtsi

Chernihiv

Odessa

Mykolaiv Zaporizhia

Rivne

6 mln tons of feed wasproduced in 2017. Pig feed production droppedby 13%, poultry feed —by 0,5%. Cattle feedproduction increasedby 3,5%

40

PRODUCTION AND USE OF COMPOUND FEEDSTUFF

Source: State Statistics, Latifundist.com

ANIMAL PRODUCTS

Top 10 importers of Ukrainian honey, thou. t

4,2Vinnytsia

0,3Volyn

7,9Zhytomyr

0,9Zakarpattia

2,0Ivano-Frankivsk

1,2Kyiv

3,9Kirovograd

2,3Luhansk

1,0Lviv 3,1

Poltava

3,1Sumy

1,3Ternopil

3,1Kharkiv

3,6Khmelnytskyi

1,9Cherkasy

4,5Dnipropetrovsk

0,8Chernivtsi

1,2Chernihiv

0,8Rivne

4,5Zaporizhia

1,3Kherson

5,1Donetsk

2,0Odessa

5,8Mykolaiv

— 20 thou. colonies

Honey production, thou. t

Dynamics of honey production, thou. t

271 269

183146 134 121 110 105 90 77

China New Zealand Argentina Germany Ukraine Brazil Spain Mexico Hungary Belgium

TOP-10 honey exporters worldwide, mln $

1960 ‘70 ‘80 ‘90 ‘95 2000 ‘10 ‘17

4236 33

51

6352

71 66

16,6Germany

10,7Poland

3,8Belgium

3,2Spain

2,7Turkey

5,4France

14,9USA

1,6Denmark

1,4Italy

1,0Hungary

6,4Other

up to 2,2 2,2–4.0 4,0-6,0 >6,0

1 2 3 4 5 6 7 8 9 10

BEEKEEPING IN UKRAINE

41Source: State Statistics, Minagroprod, Worldstopexporters

ANIMAL PRODUCTS


PROCESSEDFOODS

1 00014

Milkand cream

2480

Sausageproducts

13746

Vodka, mln l

Margarine 14117

284140Confectionery 108

30Butter

Cheese 1909

1 000101

Bread andbakery products

1 900444Flour

42977Juice

86—

Cognac, brandy,liqueurs, mln l

7365Pork

2 1002

680 Sugar

1688

Tinnedvegetables

15230

Soucesand spices

43

Fruit preserves,jam, marmalade

1 818113Beer

3 7153 939 — Export, thou. t

— Production, thou. t

Export,50 thou. t

Production,50 thou. t

—

—

Sunflower oil 5 9001

5 300

43

BASIC FOOD PRODUCTION, THOU. T


1 USDA2 Ukrsugar

Excluding data from the temporarily occupied territoriesof the Crimea and the United forces operation

PROCESSED FOODS

71

2316 15 14 12 10

6,9 6,4 6,1

Major importers of Ukrainian sugar, mln $Top 10 producers of sugar in Ukraine 2017, thou. t

Astarta-Kyiv

3 100463

RadekhivSugar

3 000433

UKRPROM�INVEST�AGRO

1 600241

AspikGroup

53086

53086

GnidavaSugar

Refinery

52166

Teofipol SugarRefinery

50965

Panda

40556

Illinets SugarRefinery

27039

Svitanok

4421

103

Gals Agro

1951

49

Number of sugarprocessing plants

Production of sugar

Production of sugar beet

up to 30 30–45 45-60 >60

Sugar beetyield, t/ha

Sugar productionper 1 mln tonsof beet, thou. t

Numberof sugarprocessingplants

2011 2012 2013 2014 2015 2016 2017

3646

Sugar beet yieldand sugar production,mln t

147123

18,7

14,5

2,3 2,1

769thou. t

560thou. t

2017/182016/17

Sugar exports,2017/18 MY,thou. t

92017

17

42

67

47

76

4147

42

54

68

37

22

10 11 12 12018

2 3 4 5 6 7 8

Sugar beet yield,t/ha

Sugar content, %

16,0

17,018,0

74 16,6%

36 16,9%

4117,7%

— yield, t/ha— sugar content, %

4117,7%

3816,0%

4115,7% 42

16,7%

49 16,6%

40 16,6%48

17,2%

51 16,6%

54 16,4%

55 17,7%

56 16,7%

36 16,1%

50—

52—

41—

40—

21—

40—

77

46

Uzbekistan Turkey Libya Azerbaijan Sri Lanka Great Britain Switzerland Georgia Tajikistan Armenia

September/July 2017/2018 MY

SUGAR PRODUCTION IN UKRAINE

44Source: Latifundist.com 1 Produced by one refinery

PROCESSED FOODS

1,2

1,92,1

1,7

2,6 2,62,9

4,3

3,6

4,84,4

5,0

6,45,9

2004/0

5

2005

/06

2006/

07

2007

/08

2008/

09

2009/

10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2000 2005 2010 2013 2014 2015 2016 2017

9,4

13,514,8

13,3 13,112,3

11,7 11,7

Annual oil consumption in Ukraine, kg per capita

Refinedsunfloweroil

Top oil producers by market share, %

Production of sunflower oil, mln t

18,1%

17,4%

14,6%

9,3%

9,1%

5,0%

8,6%

Kernel

Dnipropetrovsk Oil Extraction Plant

Delta Wilmar CIS

Stavchansk Refiningand Deodorization Plant

Svetlovodsk oil extractionplants (Viktor & K and Hydrosend)

Ukroilproduct

Zaporizhia OFP

ВВВВ

Pology Oil Extraction Plant

Vinnytsia IndustrialCompany

Other

5,5%

5,1%

4,2%

3,1%

23,7%

23,4%

11,7%

6,0%

5,9%

2,8%

13,7%

Astrta-KyivSoybean processing plant in Globyno

MHPKaterynopilsky Elevator

Pology Oil Extraction Plant

Oliyar, Stavchansk Refiningand Deodorization Plant

Greenstone ProteinProduction

PromTechAgroTorg

Thegra Ukraine LTD

Vidrodzhennia

YukonAgro

ViOil, Vinnytsia OFP

5,9%

4,3%

1,3%

1,3%

Rapeseed oil

Other

Soybean oil

33,8%

33,4%

19,1%

6,7%

2,3%

2,1%

0,8%

0,7%

1,2%

Oliyar, StavchanskRefining and Deodorization Plant

ADM Illichivsk

Oil Extraction PlantGradolit

Zahid-Agroinvest

Nizhyn Fat Combine

Yasensvit

Krasnogirskyi OilExtration Plant

Other

ViOil, Vinnytsia OFP

OIL PRODUCTION IN UKRAINE

45Source: Latifundist.com, State Statistics, USDA, Agrochart

PROCESSED FOODS

177

1 80

0

229

7870

53 51 41

23 19 19

8812

314

7

65

4737

Sweetcookies

Wafers andwaffles

Chocolate barsChocolatesweets

Boiled sweetsHard candy,toffy

Confectionary made ofsugar or sugar substitute

and cacao

Chewing gums,fruit jelly andpâte de fruits

Bread andbakery

499 thou. t

501 thou. t

— 2011

— 2017

1 10

0

Export and import of bread and confectionery, mln $Annual bread and confectioneryconsumption, kg per capita

101Bread and pasta

6,5 Waffles andhard candy 6,0 Pastry 2,5

Candies

Rusk,crouton etc

Cacao-freeconfectionery Pryanik CrispbreadBiscuits Other

Wafers andwaffles

Chocolate andother productscontaining cacao

Export

Import

152

92

113

36

68

8,48,43636 6,16,1

2525 8,78,7 3,53,5 0,020,02 3434

3,03,0 0,50,5 0,20,2 2222

Production of breadand confectionery, thou. t

BREAD AND CONFECTIONERY

46Source: State Statistics

PROCESSED FOODS

Correspondence between actual daily consumptionin 2017 and consumption rates, g per capita

Ukraine's ranking in GlobalFood Security Index

Advantages85,6Ireland

84,6USA

84,2Great Britain

54,1Ukraine

54,0Vietnam

25,1Burundi

1 place Points

Points

2 place

3 place

63 place

27 place

46 place

45 place

64 place

62 place

113 place

74,1

63,0

63,7

Poland

Belarus

China

Low proportion of populationunder global poverty line

Food safety

Food loss

Agricultural import tariffs

Volatility of agriculturalproduction

Presence of food safety netprogrammes

99,9

96,8

90,4

86,4

83,6

75,0

Disadvantages

Corruption

Gross domestic product per capita(US$ PPP)

Public expenditureon agricultural R&D

Political stability risk

0,0

$ 5,3

12,5

23,5

54,8DominicanRepublic

2 659 Household with children

2 871 Urban families

2 994 All families

3 231 Farming families

3 476 Families having no children

2 338

2 558

2 721

3 875

Daily food energy in Ukraine in 2017, kcal per capita

2 073 — Accepted norm forpeople with incapacity for work

2 791 — Accepted norm forable-bodied people

Families with income lower than 1 603.7 UAH/month

Families with income lower than 2 941.5 UAH/month

Single-parent families

Families consisting only of people of non-working age

Daily food energy in Ukraine1, kcal per capita

2 400

2 500

2 600

2 700

2 800

2 707

2 900

3 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

The OrangeRevolution

Financialcrisis The beginning

of war

Affordability59points

78points

51points

Availability Qualityand safety

100%

200 g 400 g 600 g 800 g 1 kg

Consumption in 2017 Rational norm accordingto the Ministry of Health of Ukraine

62%644 / 1 041Milk and dairyproducts

72%38 / 55Fish and fishproducts

79%34 / 44Eggs

71%153 / 219Meat and meatproducts

65%219 / 340Potato

69%301 / 441Vegetablesand melons

44%110 / 247Fruit, berries,nuts, grapes

138%49 / 36Oil and othervegetable fats

85%88 / 104Sugar

99%274 / 277Breadand bakery

47

FOOD SAFETY IN UKRAINE

Source: State Statstics, edclub.com.ua,foodsecurityindex.eiu.com 1 Including alcohol and tonic substances

PROCESSED FOODS


Infrastructureand Services

Number of equipment, units / thou. ha Import and sales of machinery, mln $

Imports of machinery, thou. units

Combines

0,8 Russia

1,8 Ukraine

2,3 Belarus

2,3 Poland

6,2 Italy

11,2 Sweden

16,6 Finland

Tractors

6 Russia

9 Ukraine

12 Belarus

86 Germany

88 Great Britain

91 Poland

148 Italy

Machinery by regions, units

3,0-4,5<1,5 1,5-3,0 >4,5 thou. units

Seeders

66 thou.units

Combines

<1,0 1,0-1,5 1,5-2,5 >2,5 thou. units

36 thou.units

<2,5 2,5-5,0 5,0-7,5 >7,5 thou. units

Tractors

128 thou.units

<5 5-10 10-20 >20 thou. units

Tillagemachinery

301 thou.units

229

518

693

131

245

177

408480

288 30

0 348

Import of tractors Import of tillagemachinery

Imports of harvestingand threshing machinery

Sales of agricultural machineryof Ukrainian production

231

40 415159 6060

86

2015 2016 2017 2015 2016 2017 2015 2016 2017

122

96908 mln $908 mln $

— 2016

908 mln $ — 2015

— 2017

49

AGRICULTURAL MACHINERY



up to 10 10–20

The volume of certified seeds, mln t

20-35 35-40 415

6 3004 0002 000

40 The numberof issuedcertificates

The volume ofcertified seeds,

mln t

9,4 / 501

Exporters

0,45 KWS UKRAINE

0,42 Synelnykiv research station

0,30 Agrocenter

0,21 Euralis Semens Ukraine

0,16 DuPont Pioneer

2,7 thou. t

of seed exportedin 2017

Importers

TOP 5 seed tradingcompanies, thou. t

16 Syngenta

3,5 DuPont Pioneer

3,3 Limagrain Ukraine

2,9 Monsanto Ukraine

2,0 Agrozahyst Donbas

72 thou. t

of seeds importedin 2017

415 / 6 318Kyiv

11 / 434Zhytomyr

2,9 / 181Rivne

2,2 / 101Volyn

9,1 / 483Lviv

0 / 53Zakarpattia

0,6 /45Ivano-Frankivsk

0,3 / 41Chernivtsi

26 / 765Ternopil 18 / 729

Khmelnytskyi

9,4 / 501Vinnytsia

11 / 726Mykolaiv15 / 1 143

Odessa 4,9 / 628Kherson

11 / 050Zaporizhia

28 / 2 358Dnipropetrovsk

5,1 / 363Donetsk

1,6 / 144Luhansk

40 / 3 437Cherkasy

7,6 / 853Kirovohrad

11 / 550Chernihiv

4,5 / 307Sumy

36 / 2 422Poltava

20 / 2 051Kharkiv

The volume of certified seedsand the number of issuedcertificatesThe number of issuedcertificates

50

SEEDS

Source: State Statistics, State Center of Certification and Examination of Agricultural Products


139

177

73

105

127136

129

67

155

128

171107

134 118

90

140137

93

66

84

103

11689 82

Fertilizer applicationin growing crop, kg/ha

up to 100 100–120 120-150 >150

Fertilizer applicationin crop production, mln t

0,30Potassium

0,36Phosphate

1,37Nitrogen

0,93Organic

Fertilizers applied for 1 ha, t

Cornsilage

6,1

3,7

Sugarbeets

1,6

Potato

0,7

Corn forseeds

0,8

Sagegrasses

0,4

Vegetablesand

melons

0,5

Rapeseed

0,3

Wheat

0,2

Sunflowerseeds

0,2

Soybean

Fertilizer use per 1 ha, kg

Fertilized land, %

693

223

749100

200

300

400

500

600

700

20%

40%

60%

80%

100%

2000 ‘01 ‘02 ‘03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘’12 ’13 ‘14 ‘15 ‘16 ‘17

2000 ‘01 ‘02 ‘03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘’12 ’13 ‘14 ‘15 ‘16 ‘17

2000 ‘01 ‘02 ‘03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘’12 ’13 ‘14 ‘15 ‘16 ‘17

2%

4%

6%

8%

Organic

Mineral

Corn for seed

Corn for seed

Other grains and legumes

Other grains and legumes

Industrial crops

Industrial crops

Fodder crops

Fodder crops

Mineral fertilizers

Organic fertilizers

51

FERTILIZERS

Excluding data from the temporarily occupied territoriesof the Crimea and the United forces operationSource: State Sttistics


Top 8 importers of CP products, %No glyphosate and desiccant

Syngenta BASF Bayer Adama DuPont Dow Avgust Stefes Others

Herbicides

Fungicides

Chemical agents

Insecticides

Others

585662

794

2015 2016 2017

The market of CPP, mln $excluding VATNo glyphosate and desiccant

Countries-suppliers of CPP, %

28%China

15%France

7%Israel

17%Other

4%Spain

3%Poland

10%Belgium

16%Germany

Production of CPP, t

Herbicides

64

74

Herbicides

Fungicides

1821

Fungicides

908 95

1

Insecticides

8,8

9,2

Insecticides

252

265

Desiccants

4,0

4,3

Desiccants

161

161

Rodenticides

Rodenticides

80 96

Growthregulators

Growthregulators

94

243

908 t908 t

— 2016

— 2017

18%16%

14%

9% 9%

4%2% 2%

26%

Other

0,7 0,9

Other

4 51

7

7 09

9

Import of CPP, thou. t64 thou. t64 thou. t

— 2016

— 2017

52

CROP PROTECTION PRODUCTS

Source: State Statistics, Internal analysis


Poltava and Odessa regions havethe biggest grain storage capacities.

State Food and Grain Corporationhas the greatest elevator facilitiesin Ukraine.

Ukraine has the total numberof 1 161 elevators with the total grain storage capacity of 47 mln t.

3,2Vinnytsia

1,0Donetsk

1,0Zhytomyr

0,1Zakarpattia

0,5Ivano-Frankivsk

2,0Kyiv

3,5Kirovohrad

0,8Luhansk

0,6Lviv 4,2

Poltava

2,1Sumy

1,6Ternopil

2,5Kharkiv

1,9Kherson

2,3Khmelnytskyi 2,3

Cherkasy

2,8Dnipropetrovsk

0,2Chernivtsi

2,0Chernihiv

0,7Rivne

1,9Zaporizhia

3,7Mykolaiv4,2

Odessa

0,5Volyn

— 5 elevators

Grain storagecapacity, mln t

up to 1,0 1,0–2,2 2,2-3,0 >3,0

Top 10 Ukrainian companies by grainstorage capacity in 2017, mln t

1 2 3 4 5 6 7 8 9 10

3,7

2,92,7

2,0

1,2 1,2 1,1 1,00,8 0,7

SFGCU Kernel UkrLandFarming NIBULON State Reserve MHP Optimus Agro Prometey Minagroprod TESSLAGROUP

53

QUANTITY AND LOCATION OF GRAIN STORAGES

Source: Elevatorist.com


Odessa Sea Port 7 650-7%

Yuzhny Sea Port 8 684+6%

Mykolaiv Sea Port 9 097+0,3%

Izmailsky Sea Port

Kherson Sea Port592-32%

Chornomorsk Sea Port

Bilhorod-DnistrovskyiSea Port

8 059+1%

33+143%

1,3-93%

Skladovsk Sea Port

3-17%

Ust-Dunaisk Sea Port

Mariupol Sea Port

Berdiansk Sea Port 640-33%

499-18%

Reni Sea Port553+18%

StevedoringCompany “Olvia”

3 316+9%

27+800%

Port grain transshipment volumes, thou. t

Top 10 river elevators by storage capacity, thou. t

77,077,0

Khortytsia

77,077,0

Holoprystan

94,094,0

Svetlovodskwater terminal

76,076,0

Kosatska

76,076,0

Voznesenska

75,675,6

Kremen-chuk

75,675,6

Kamianka-Dniprovska

75,675,6

Pereya-slav

75,675,6

Novoodessa

75,275,2

Vitovo

Top 10 sea port terminals by transshipment capacity, mln t

5,4

3,12,8 2,7 2,6 2,5 2,5 2,4 2,2

1,8

TIS-Grain SeaSpecialized

Port Nika-Tera

OlimpexCoupe

Int.

TransBulk-Terminal

NIBULON1 IllichivskGrain Terminal

Brooklyn-Kiev

TIS-MineralFertilizers2

Greentour-Ex DSSC

10200

1 000

2 500

5 000

9 000 33+143%

— Transshipment in 2017, thou. t

— Transshipment increase

— Transshipment decrease

— Compared to 2016

18,5 thou.

Total numberof grain hopper cars

Grain delivery and transshipment, mln t

32,836,8

39,4 39,2

11,9 10,8 12,0 13,1

2014 2015 2016 2017

Sea ports

Motortransport

Railway

25,228,7

31,2

35,7

Branches of NIBULON

54

AGROLOGISTICS IN UKRAINE

Source: USPA, CFTS Consulting, State Statistics

1 Excluding raid transshipment2 Not a specialized grain terminal


Normative monetary evaluation of agricultural land, thou. UAH/ha

Arable landfrom 17 to 33 thou. UAH per ha

<20

20–25

25,1–30

>30

Perennial plantationsfrom 16 to 108 thou. UAH per ha

<35

35–55

55–75

>75

Hayfieldsfrom 2,6 to 11,9 thou. UAH per ha

<3,9

4–5,9

6–8,9

>9

Pasturesfrom 2,6 to 9,5 thou. UAH per ha

<3,9

4–5,9

6–8,9

>9

Arableland

Perennialplantations

Hayfields Pastures

33

Maximum

MinimumAverage

26

49

4916

6 5

108108

17 16

12

2,6

6,5

2,6

Land price increase in the neighbouring countries afterthe opening of the land market and predictions for Ukraine2

Land rental rates, €/haBased on the 2016 data

4246768196

144160202

229

348

536

791

UkraineLatviaCroatiaLithuaniaCzechRepublic

SpainSwedenFranceFinlandAustriaDenmarkNetherlands

4%

Since the beginning of liberalization

Price per 1 ha of land

0 1 2 3 4 5 6

2 580€ 2 000

€ 3 000

€ 4 000

2 557 Czech Republic

4 083 Poland

1 256 Slovakia

Ukraine€ 8911

2 403 Hungary

2 182 Romania

of agricultural landin Ukraine is not subjectto the moratoriumon farmland sale

55

LAND MARKET IN UKRAINE AND THE WORLD

Source: IMF group of UkraineDerzhheokadastr, Eurostatistics

1 At an exchange rate of 30.877 on 01/01/20182 Based on an average price in neighbouring countries


Capital investmentsin Ukraine's agricultural sector, bln UAHCosts for the acquisitionof long-term assets: the initial value of buildings and structures, new machines and mechanisms, intangible assets (patents, licenses, know-how, etc.)

Capital investmentdynamics

11,116,5

18,9 18,6 18,8

30,2

50,5

64,2

10,7

2010 2011 2012 2013 2014 2015 2016 2017

Capitalinvestmentdynamics

Annual and biennialcrop production

54,2

Animal production 7,0

Postharvest handling andauxiliary agricultural

activities0,91

Perennial cropproduction

0,86

Other 0,41

Capital investments by type of activity

Capitalinvestmentsin Ukraine'sagriculturalsector

<2 2–3 3–4

2,62,7

2,6 2,9

1,3

1,2

3,9

3,52,72,5

1,41,1

1,3

0,10,8

0,3

4,6

4,7

4,8

3,4

3,2

3,4

3,53,2

>4

Direct investmentsin Ukraine's agricultural sector, mln $The total amount of direct investments (share capital) made by non-Ukraine residents and residents living abroad

669 720 725 718777

617

502586

2010 2011 2012 2013 2014 2015 2016 2017

Direct investment dynamicsAs of January 1, 2017

Direct investments by type of activityAs of December 31, 2017

10Other

183Animal production

311Annual and biennialcrop production

94Postharvest handling and

auxiliary agriculturalactivities

19Perennial cropproduction

Origin countries of direct investmentsAs of December 31, 2017

182Cyprus

92British Virgin Islands

85Germany

53Danmark

47GreatBritain

31Poland

29France

20USA

14Sweden 59

Other13Slovakia

13Netherlands

56

INVESTMENT IN UKRAINE'S AGRICULTURAL SECTOR

Source: State Statstics, Latifundist.com2014-2017 — excluding data from the temporarily occupiedterritories of the Crimea and the United forces operation


100%

18% 26% 33%

46% 39% 37%

36% 35% 30%

2015 2016 2017

Up to1 year

From1 to 5years

Over5 years

Dynamics of agriculturalsector financing, bln UAHAs of the end of the year

Hryvnia loan termsfor agriculture, %As of the end of the year

The share of agricultural loansin the loan portfolio of the

banking system

4855 60

2015 2016 2017

6,1% 6,9% 7,4%

0,9Vinnytsia

0,1Donetsk

0,4Zhytomyr

0,1Zakarpattia

0,2Ivano-Frankivsk

30,1Kyiv

1,4Kirovohrad

0,1Luhansk

1,5Lviv 1,7

Poltava

1,0Sumy

1,2Ternopil 4,0

Kharkiv

0,7Kherson

1,1Khmelnytskyi

1,3Cherkasy

7,0Dnipropetrovsk

0,2Chernivtsi

0,9Chernihiv

0,4Rivne

1,6Zaporizhia

1,0Mykolaiv

2,2Odessa

0,7Volyn

1,5 — Granted loans, bln UAH

Loans granted to agribusinessby deposit-taking corporations(except for the NBU),bln UAH

Up to 1 year

Granted loans

15,5

10

5

1,5

From 1 to 5 years

bln UAH

Over 5 years

57

AGRICULTURAL FINACING

Source: NBU


Agricultural insurance in 2017 underwriting1

year divided by crops, %

63%Winter wheat

15%Winterrapeseed

6%Sunflowerseeds

6%Other

11%Corn

Leaders in agricultural insurance in 2017underwriting1 year, thou. ha

148Ingo Ukraine

128Aska

49,7АХА

85,5Other

119PZU

132Universalna

2007

9,1%

4 397

1 637 1 980

1 217

2 710

1 9361 722

1 3921 062

793 957

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

661

4,3%

1,9% 2,1%2,8% 2,6%

3,1% 2,7% 2,6% 2,6% 2,4%

The number of insurance deals in Ukraine

Insured lands, thou. ha

Insured lands, %

2 360

1 171

510 553786 727

869732 689 700

The first increase in agricultural insurance

since 2011

58

INSURANCE OF AGRICULTURAL RISKSPartnerof the page

1 Underwriting year in agricultural insurance includes 2 agricultural seasons.In this case it lasts from sowing campaign in autumn of 2016 to harvesting in 2017

Source:International Finance Corporation


The volume of funds attracted, mln $

LondonStock

Exchange

LSE's AIM

New YorkStock Exchange

WarsawStock

Exchange

MHP

Avangard

Continental Farmers Group

UkrProduct

Landkom

AgroGeneration

Astarta-Kyiv

Kernel

Agroliga

Agroton

Milkiland

Ovostar Union

KSG Agro

Cereal Planet

12

111616

121

748

798

24303133445478

110

188

525

536

StockExchange

Company

IMC

1 block = 100 IPOs

994$ 95 mln

The number of IPOsThe averagetransaction amount

Widths of blocks is theaverage transaction amount

$ 116 mlnfrom

to $ 213 mln

Capital raised,$ bln

The quantity of blocksis the number of deals

50

100

150

200

250

300

2008 2009 2010 2011 2012 2013

Capital raised,$ bln

2014 2015

1 241$ 137 mln

756$ 134 mln

World IPO market

2016 2017

1 055$ 126 mln

1 624$ 116 mln1 367

$ 208 mln 1 206$ 213 mln

566$ 212 mln

1 218$ 160 mln

864$ 189 mln

837$ 154 mln

Indicators of Ukrainian agro companies listed on the Warsaw Stock Exchange

Prices within52 weeks, PLN

Current priceof shares, PLN

Share pricechanges, % per 1 year

Capitalization,mln PLN

Company,in order or preparingthe IPO

MaxMin (09.08.2017) (08.2016 – 08.2017)

Share price /Income per share

P/E

Astarta-Kyiv 825 32 63 33,5 -39% 7,2

Kernel 4052 46 62 49,5 -15% 10,4

Agroliga, UAH 759 11 20 14,8 -6% —

Agroton 88 3 6 4,1 -34% 2,9

Milkiland 27 1 2 0,9 -49% —

Ovostar Union 588 88 117 98,0 -11% 5,5

KSG Agro 15 1 3 1,0 -59% —

IMC 413 11 14 12,5 20% 7,5

Cereal Planet, UAH 3 0 12 10,3 10% —

59

IPO OF UKRAINIAN COMPANIES

Source: International Finance Corporation


Listed onexchange

Investor'stitle to shares

of the companyInterestTermFundingprojects

Fundingproviders

Maximumamount

of fundingTypical

security Intermediaries

Trade finance Production equipment,machinery, goods BanksCash cover,

pledge Bank

Bank

Bank

$ X0 000 000

Warehouse certificatesDepending on

the structure ofthe agreement

CommodityBuyer-trader,

bankCommodity $ X0 000 000

Agrarian receiptsDepending on

the structure ofthe agreement

Further yieldBuyer-trader,

bankFurther yield $ X 000 000

Bills of exchange Production equipment,machinery, goods

Counterparties,domestic suppliersSurety for a bill $ X 000 000

Leasing Production equipment,machinery

LeasingcompanyPledge Leasing

company $ X 000 000

Long term

Domestic bonds The company as a whole Investors-bondholders

Pledges, corporateguarantees

Underwriter(optional) $ X0 000 000

Eurobonds The company as a whole Investors-bondholders

Pledges, corporateguarantees Investment banks $ X00 000 000

IPOPerpetual

The company as a whole Investors-shareholders Investment banks $ X00 000 000

Bilateral Loans Possible in caseof foreclosure

Trading operations,investment projects BankPledge, mortgage,

rights of claim, guarantee $ X0 000 000

Export lending Production equipment,machinery, goods

Exportingcontractors

Export-creditagency

Pledge, mortgage, guarantee,export insurance by credit

agencies$ X0 000 000

Commercialloans Short term

Production equipment,machinery, goods

Exporting contractorsor domestic suppliersGuarantee $ X0 000 000

Syndicated loans Possible in caseof foreclosure

Trading operations,investment projects The group of banksPledge, mortgage,

rights of claim, guarantee Bank-agent $ X00 000 000

Any

60

FINANCIAL INSTRUMENTS

Source: AEQUO


How to get on a state trial program and register your crop protection product (CPP)

Registeringinstitutions State R&D Institutes Ministry of Ecology and Natural Resources of Ukraine

Documentsto submit

Scientific approvalon the number of CPP samples

Certificate of the CPP registration in the country of origin (Obligatory!)

Results of the state trials

Register CPP for a statetrial program

Get permissionfor importing the testsamples of CPP

Import the samples andget state trials of theproduct

Get the certificateof state registrationof CPP

Application for the state registration of CPP

Comprehensivedossier

Incomplete dossier

Get scientific opinionon a minimal number of CPPsamples needed for statetrials

Why are intellectual propertyrights important? How to protect intellectual property rights in agriculture

Petition for inclusion intoan trial schedule

Application for a state trial program

Detailed informationon the product (dossier)

Application expressingscientific approval on thenumber of CPP samples

Protect your brandfrom intellectualproperty the�

Protect yourtechnologies

Help to monetizeyour product

Trademarks

What itprotects

Meansof IPR

protection

Names of agrochemicalproducts, design,

services

Design Patents

Packaging of theagrochemical product

Patents on an inventionor improved model

Ingredients,production process

1 2 3 4 5

Long-time registration

years10Short-term registration(experimental)

years3

validfor

validfor

61

REGISTRATION OF CROP PROTECTION PRODUCTS

Source: AEQUO


Mandatory provisions:· LLC name· governing bodies and their competence · procedure of joining and exit from LLC

Not mandatory:· the share capital amount· name of participants· their shares

The State Register is now the only source of information about the LLC

Changes in the charter

The Law does not establisha minimum thresholdCan be 1 UAH

The number of participants is notlimited

Required % of votes to makea decision at a general meetingis calculated based on the total shareof all participants of LLC

Number of participants

No need to convene general meetingto reflect the change of participants

Change of LLC’s participants is done by making the respective entry in the State Register

No quasi-judicial control of the notary over shares disposal

The participant may use sharetransfer instrument to registerthe change of participant with the State Register

Instead of certifying agreementby notary, it is possible now to certifya share transfer instrument or certifythe signature on the shares purchase agreement

Prevention of hostiletakeovers

The director and members of the supervisory board may act on the basis of a labor or civil law contract

Non-compete rules for LLC's management.

Officials should act in good faithand reasonably in the interest of LLC

Regulation of LLC’smanagement

If the value of net assets of LLC has decreased for more than 50% compared to the previous year, the executive body shall call general meeting

It is not required to adjustthe value of LLC’s net assetsto the amount of share capital

The amount of LLC’s net assetsis a criterion to determine whethera certain contract is material and requires approval of general meeting

LLC’s Net Assets

Tailor-made rules for enteringinto material and related-partytransactions

Criteria for such transactionsand procedures for their approval may be established at the discretionof participants in the charter

LLC’s transactions

Impossible, except for two caseson the basis of a decision of the general meeting

First: if the participant did not makea contribution to share capital in time

Second: if the heir of the participant that holds less than 50% of shares did not make an application to enter into LLC within one year aster the termof the acceptance of inheritance had expired

Excluded participants are entitled to receive the value of their paid shares determined at the market value

Exclusion of a participant

Participant that holds less than 50% of LLC's shares may exit from LLC without consent of other participants

Participant with a larger share requires consent of other participantsto exit from LLC

Participant may not exit LLCif no participants will be lest

Participant that exits is entitledto receive the value of the paid shares determined at the market value

The date of exit is determinedas a date of the relevant entryin the State Register

The procedure of exitof an LLC’s participant

LLC participants may enter into shareholders agreement (SHA) which establishes the procedure for exerciseof rights and powers by the participants

Participants do not need to notify LLC about the existence of an SHA, unless they agreed otherwise

The participants may issuean irrevocable power of attorneyif required under an SHA

Corporate agreement

If LLC enters into a commercial contract in breach of an SHA, such contract is void, provided that other party knew or should have known about such breach

The breach of an SHA shall have result in payment of damages or fine but not in declaration of LLC’s resolution as null and void

Share capital

2275-VIIIBecame effectiveon June 17 2018

62

THE LAW OF UKRAINE “ON LIMITED LIABILITY AND ADDITIONAL LIABILITY COMPANIES”

Source: AEQUO


PLANNING AND DESIGN

LATIFUNDIST.COM, TOP LEAD

PRODUCTION

LATIFUNDIST.COM

AUTHORS

LATIFUNDIST.COM, TOP LEAD

DISCLAIMER

COPYRIGHT INFORMATION

This guide is designed exclusively to inform users. We have 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 a general idea of the subject discussed in it.Do not use the information contained in the report, as professional advice on a particular issue or passing a professional judgment. The data wascollected and prepared for publication in 2018 based on the results of 2017/18 marketing period and calendar year 2017.

CREDIT AGRICOLEPushkinska str, 42/4Kyiv, 01004, UkraineTel.: +38 (044) 393-76-37

BAKER TILLYAlexander Pochkun, managing partner28 Fizkultury St.,Kyiv, UkraineTel.: +38 (044) 284-18-65

credit-agricole.ua www.bakertilly.ua

AEQUODenis Lysenko,managing partner,[email protected] Business CenterMoskovska str., 32/215th floorKyiv, 01010, UkraineTel: +38 (044) 490-91-00

TOP LEADNyzhnii Val str. 15office 202Kyiv, [email protected]

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