Companies with largest capacities and sales by segments. Industry Overview & Competitive Positioning

Industry Overview & Competitive Positioning

Ukraine is a noticeable exporter in the region. According to forecasts of the USDA Ukraine will provide more than 50% of the world’s sunflower oil exports, 14% of maize, 12% of barley and 5% of wheat in 2012/2013 MY. Ukraine produces one third of the sunflower output in the region and combined with Russia – above 25% of grains. Nevertheless we assume that the Ukrainian agricultural market will only grow qualitatively in the midterm outlook.

Table. Ukraine and Russia play a significant part in the world’s exports

Год???) Table 5: The main oil-processing companies, Ukraine

Companies with largest capacities and sales by segments

Bulk oil (by crushing capacity)	Bottled oil (by share of total sales)
Kernel 36%	Kernel 32%
Cargill 14%	Bunge 22%
Bunge 6%	Korolivsky smak 7%
Other 44%	Other 39%

	Rank in the world / Share
Ukraine	Russia
Sunflower oil	I (54%)	III (13%)
Corn	IV (14%)	VII (3%)
Barley	IV (12%)	V (12%)
Wheat	VIII (5%)	V (8%)

Source: ISI Emerging Markets, APK Inform, KNU estimates

Source: USDA, KNU estimates

Strengthening regional positioning. Favorable climate, access to the Black Sea, good transport infrastructure in the country, low prime cost and prices of agricultural products guarantees sales of excess output abroad. Sunflower oil and grains of the Ukrainian origin are exported to Egypt, Algeria, Turkey, Iran, EU, India and China. A geographic location of developing countries, expected growth of their population and diet changes will promote further geographic expansion of sales of Ukrainian products to the developing countries taking into account relatively higher prime cost of goods produces by powerful rivals in the region, namely Russia, France and Germany.