The study "Largest Crop Holdings in Ukraine" conducted by "AgriSurvey" Agency of the Association "Ukrainian Agribusiness Club" (UCAB) shows that about 28% of Ukrainian agroholdings do not possess storage facilities for crop preservation in their structure. However, many agricultural holdings, which have their own granaries, still do not fully match the needs in grain storage facilities.

Roman Slastyon, UCAB adviser on agricultural markets, claims that TOP-10 largest holdings (in terms of land areas) are not provided with own granaries and grain elevators to the full extent. Overall, 22 companies (28%) out of 77 holdings (with a land bank over 10 thousand ha) experience lack of own storage facilities.

"11 companies in this list export their products. Under the conditions of lack of own storage facilities, these enterprises use services of large trading companies. However, a number of companies are not integrated neither with the processing nor with the exports of their products ", - Mr. Slaston says.

Thus, despite the widespread belief in fairly high degree of vertical integration of domestic agroholdings, more than a quarter of them cannot boast with the sufficient capacities to diversify marketing risks. Even in spite of the announced plans to expand areas of agricultural lands in use, more and more holdings have to invest in the infrastructure development. Therefore, further large-scale expansion scenarios for Ukrainian agroholdings seem rather doubtful.

Note. "Largest Crop Holdings in Ukraine" - is an annual study of the Association "Ukrainian Agribusiness Club", devoted to the analysis of structural changes and corporate governance in grain, oil and fat, sugar and beat, and vegetable industries. The study provides information on TOP-producers and exporters of crop products, cost and profitability analysis of crop production with calculations on optimum yield capacities, technical and economic efficiency; comparative analysis of expenses, as well as analysis of macroeconomic issues, such as the impact of the accession of the Russian Federation to the WTO and the conclusion of agreements by Ukraine on free trade zones. The structure of the study is available here.

Association "Ukrainian Agribusiness Club"
Velyka Zhytomyrska str., 20 А, office 53, Kyiv, 01001
Phone: +380 44 201-4950
Fax: +380 44 201-4951
099 272 59 30
[email protected]
Tetiana Kotyk
www.agribusiness.kiev.ua

The Association "Ukrainian Agribusiness Club" (UCAB) http://agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.