Ukraine: New Fields of Investment Opportunities

new fields of investment opportunities

Ministry of Agrarian Policy and Food of Ukraine

UKRAINE:


OVER 7 BILLION PEOPLE LIVE ON THE PLANET THESE DAYS

UKRAINE CAN BE A BIG PART OF MEETING THE PLANET’S FOOD NEED


3+5 REFORM STRATEGY PROVIDESFOR SUCCESSFUL INVESTMENT

Transparent rules for land lease title

LAND REFORM

REFORM IN STATE SUPPORT

Direct support for SMEs

REFORM OF STATE-OWNED ENTITIES

Privatization of unprofitable plants


WHAT IS TO BE DONE?

Increase production of agriproducts with high added value

Provide for organic farming

Certify Ukrainian agricultural produce under EU standards

Expand the variety of products to be exported

Attract foreign investment into small farms

Bring foreign capital into state-owned agribusiness

Build up markets for Ukrainian agricultural exports


of the world’s black soil

UKRAINIAN SECTORS WITH ATTRACTIVERETURNS FOR INVESTORS

hectares of farmland

1/3

OVER 41 MLN

UKRAINE: farmer’s paradise – largest arable land bank in Europe



working capitalfor small farmers

INVESTMENT NEEDS

infrastructure

value-added production

precision technology and equipment lease finance

billion is the annual demand in renovating of technical machinery park

$1.6



UKRAINE’S INFRASTRUCTURE MUST BE TRANSFORMED.WE NEED:

PORTS

TRACTORS>110 THOUSANDS UNITS

HARVESTERS75 THOUSANDS UNITS

SILOS70% of existing ones are obsolete

RAILCARS


SECTORS IN UKRAINIAN AGRIBUSINESS ATTRACTIVE FOR INVESTORS (WITH ADDED VALUE)

As our “low hanging fruit” are the most well developed food processing areasCEREALS & OILSEEDS PROCESSING

has great export potentialMEAT PRODUCTION

Especially attractive with our low cost of production and considerable capacity to build upCHICKEN

We need to can and jar this foodSPECIALTY FRUITS & VEGETABLES

Development of confectionary, baked goods and other foodstuffsof all kinds

FINISHED GOODS AND FOOD BRANDS

Produce of meat and fish basis and specialized nutritionCHILDREN NUTRITION PRODUCTION

BIO-ETHANOL PRODUCTION Important element of environmentally friendly fuel


PROSPECTS FOR ORGANIC FARMINGIN UKRAINE

Over 300 organic producers

400,000 HECTARES (1% of all arable lands) allocated for organic farming

Organic products include:

fruits, vegetables, crops;meat and diary;cereals and bread;child food;flour;juices, syrups, jams, honey, vegetable oil;tea, medical plants.

Export potential of the sector valued at over €100 MLN

Vinnytsa

Odesa

Poltava

ZhytomyrLviv

Zakarpattya

Kherson

Ternopil


Ukraine is the world's leader in production of sunflower oil taking 25% of overall world market

Up to 20% of all arable lands allocated to sunflower

In 2015, 11,2 MLN TONNES of sunflower seed harvested

Processing capacities available allow all produce of sunflower seeds to be processed locally

INVESTMENT OPPORTUNITIES IN VEGETABLE OIL PRODUCTION. SUNFLOWER


INVESTMENT OPPORTUNITIES IN VEGETABLEOIL PRODUCTION. FLAX

Average crop yield 12.3 QUINTAL per hectare

Average wholesale price $420.5 per tone

Flax oil is used in:

production of natural drying oils, varnishes, enamels, paints;production of soaps and in medicine;electric industries, car production, ship-building

Belgium, Poland, Lithuania, Germany and Italy are principal buyers of Ukrainian flax

Annual demand in flax among EU countries amounts to 650 thousand tones

Ukrainian flax is attractive as it is GM-free. Close proximity to customers reduce transportation costs


INVESTMENT OPPORTUNITIES IN BIO-ETHANOL PRODUCTION

Fuel with added bio-ethanol is required under EU policies

2015 output reached 28,598.1 TONNES

EU standards allow 10% of bio-ethanol to be added to fuel

BIO-ETHANOL


NEW MARKETS FOR AGRIBUSINESS PRODUCE

Israel

Saudi Arabia

Uzbekistan

UAE

KazakhstanArmenia

Moldova

EU

Japan

Vietnam

Cuba

SAR

Costa-Rico

Belarus

Switzerland

- Managed to open in 2015-2016 - To be opened in 2016-2017

China

Kyrgyzstan

Azerbaijan


PLANNED PRIVATIZATION OF STATE-OWNEDENTERPRISES

86 ENTERPRISES with allocated land of 120,000 hectares to be privatized

In 2015, 11 ENTERPRISES transferred for privatization authorities

3+5 Strategy stipulates gradual privatization: 25% in initial offering, followed by 50% stake and the final 25% stake

We look forward to having your support!


Ukraine: New Fields of Investment Opportunities

Business

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