1. Black Sea region: Development of sunseed production and crushing Sergey Feofilov UkrAgroConsult Prepared for the Second Seminar “Policy Options for the Ukrainian Sunflower Sector” April 2005

2. GDP growth rates (Persentage change in real terms) 2

3. Black Sea Region: Sunflower Yields, MT/ha 3

4. Black Sea Region: total sunseed production and crushing, KMT 4

5. Black Sea Region: sunseed production, KMT 5

6. Black Sea Region: sunoil exports, MT 6

7. Sunoil production and export, MMT 7

8. * forecast Ukraine: Forecast of the 2005 grain and sunseed production 2005*2004 UkrAgroConsultOfficial statistics Wheat17 25016 52917 518 Barley8 34010 61511 069 Corn5 1505 3008 793 Rye 1 135 1 3981 592 Oats 920 9971 006 Feed peas 827 603600 Other 1 543 8651 140 Total grain 35 165 36 30741 718 Sunseed3 800 – 4 0003 3953 052 8

9. New drivers in ag production in the Black Sea countries 9  Investments in the agrarian sector  Behavior of farmers was modified  Development of export aimed infrastructure of the market  Currency exchange factor  Increase in the government support

10. Investments in the agrarian sector 10  Growth of input usage  Lower dependence on weather  Stabilization of production  Increase in grain export potential

11. Ukraine: Wholesale prices for heavy fuel 11

12. Black Sea Region: Main operators of sunseed/sunoil market Ukraine / УкраинаRussia / Россия Зерноторговая компанияРусагро КаргиллСолнечные продукты БунгеАстон ЕвротекЮг Руси Запорожский МЖКОГО Одесский МЖК Нижегородский МЖК Пологовский МЭЗWJ Кернел ГруппЭфко 12

13. BULGARIA StockholderEdible oil producers Bunge – 40% of the market Unirea SA in Iasi (Eastern Romania) Muntenia SA in Buchapest Interoil SA in Oradea (Western Romania) Argus (Romanian) – 20% of the marketAgrus factory in Constanta Cargill – 17% of the market Olpo Ulei SA in Podari Olpo Ulei SA in Craiova Suntory Agrochemical Agricover SA ROMANIA StockholderEdible oil producers Bunge – 30% of the marketKaliakra in Dobrich Papas Olio – 23% of the marketOil plant in Yambol Biser Oliva – 18% of the marketOil plant in Balchik Niva – 10% of the marketPlant in Stara Zagora Zlatna Trakia – 3% of the marketPlant in Kostinbrod 13

14. Government support to the Ag Sector 14  Cheaper credits and insurance  Direct payments per hectare  Large investment in export logistics

15. Exchange rate of USD to UAH 15

16. Exchange rate of USD to RUR 16

17. New markets 17  WTO joining  Closer to consumers and lower freight rates

18. Ukraine: Sunoil export in 2003/04 season 18

19. Ukraine: Sunoil export in 2004/05 season (September – January) 19

20. Ukraine: Sunoil export in 2003/04 season 20

21. Argentina: Sunoil export in 2003/04 season 21

22. Argentina: Sunoil export in 2004/05 season (September - January) 22

23. Ukraine: Crushing margins, $/T 23