TITLE of Training

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Plan of the presentation1. Cargill in
Ukraine 2. Consequences of isolation on
Ukrainian grain market in 2006-2008 years3.
Infrastructure of export logistics of Ukrainian
grain market
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Cargill in Ukraine
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Oil processing plant of Cargill
Donetsk sunflower seeds processing plant Put
into operation in 2000 157 employees, 68.6 mln.
of investments 1800MT/day of sunflower seeds
Kiev head office Established in 1992 139
employees 7 business subdivisions
Plant Kakhovka Put into operation in 2005 185
employees, 39.5 mln. of investments 1200 MT /day
of sunflower seeds
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Network of Cargill silos
Silos Capacity, thousand tons,
employees Korystovka 41 53 Kutsovka
93 86 Stepnoy 89 69 Khashchuvatskiy
40 48 Balakleya 52 37 Konstantinovka
7 11 Donetsk 60 Total 382 304
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Total amount of investments in Ukraine, mln. USD

• Cargill plant 68.6
• Kakhovka plant 39.5
• Grain Silos 17.6
• Other 2.9
• Additional capital 220.0
• Total 348.6

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Consequences of isolation of Ukrainian grain
market in 2006-2008 years
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Ban of export 01 Jul 2007
Ban of export 02 Oct. 2006
Cancellation of export ban 08 Jul. 2007
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Ban of export 02 Oct. 2006
Ban of export. 01 July 2007
Cancellation of export ban 25 Feb. 2007
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Ban of export, 01 Jul 2007
Cancellation of export ban, 25 Feb. 2007
Ban of export 02 Oct. 2006
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Losses only of Ukrainian agrarian as a result of
difference in prices in domestic and world
market, appeared because introducing of quotas
for export of crops in 2006/2007
About 50 of surplus had been bought by traders
befote the introduction of export restrictions.
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Losses only of Ukrainian agrarian as a result of
difference in prices in domestic and world
market, appeared because introducing of quotas
for export of crops in 2006/2007
Total losses of Ukrainian economics are greatly
higher
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The main negative factors of influence of quotas
introduction of grain export on Ukrainian
agrarian sector

• Regime of quotas results in huge losses of
  Ukrainian agricultural products producers and
  agroindustrial complex in general. They slow down
  the development of agricultural sector and reduce
  investments into this sector of economics.
• Quotas reduce currency earnest from export and
  make worse the trading balance of the country.
• It is short-term measure, but not the long-term
  solving of problem about high prices for bread in
  domestic market.
• It is not according to WTO principles.

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Ukraine Monthly Market Overview
January 2008

• Economic Outlook

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Ukrainian export capacities Ports Panamax Ports
Handy Ports Coaster
Byelorussia
Russia
Poland
Kiev
Ukraine
Donetsk
Nikolaev
Moldova
Mariupol
South
Berdyansk
Odessa
Kherson
Ilichevsk
Romania
Kerch
Krasnodar
Ust-Dunaisk
Reni
Feodosia
Sevastopol
Bulgaria
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Development of infrastructure of export terminals
Capacities of simultaneous storage, thousand tons

• In 2001-2002
• In coaster ports - 106
• In handy ports - 210
• In Panamax ports 570
• Total 886

• In 2005-2007
• In coaster ports - 160-170
• In handy ports - 400-450
• In Panamax ports 1,100-1,200
• Total 1,660-1,820

Theoretical monthly terminal capacity of
Ukrainian export terminals In Panamax ports
4.6-4.8 mil mt In handy ports 1.8-2.1 mil
mt In coaster ports 0.8-0.9 mil mt
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Development of infrastructure of export terminals

• Introduction of new export capacities has been
  continuing in the seasons of 2005 - 2008 years.
  About 400-550 thousand tons of additional
  capacities are under construction and design
• Burring construction of new objects existent
  capacities of storage were updated. Improving of
  logistic effectiveness of terminals.
• Total theoretical export capacity of terminals
  7,2-7,8 mln. tons a month (theoretical capacity
  number of ports ? number of berths x number of
  loadings x 30 days). It has been increased by 3
  mln. tons from 2004.
• Taking into account actual development of
  transport capacities and turnover ratio of
  rolling equipment (2-3,5 max.) share of
  trucking 40-45, actual effectiveness of work of
  inbound logistics and ports, the total practical
  export capacity of terminals amount to 2,8-3,2
  mln. tons a month
• Existent port capacities solve export necessities
  of the country for short-term and medium-term
  outlook

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