Investment project(idea start – up)

Deep processing products from agricultural raw materials produced in Ukraine

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Ukraine is one of the world’s leaders in grain production.Its export potential accounts for almost half of the available resources of

grain and leguminous cultures

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Balance of grain and leguminous cultures (including grain products), thous. tons

Year 2000 2005 2008 2009 2010 2011 2012

Production 24459 38016 53290 46028 39271 56747 46216

Stock changes at the year-end

1329 -314 9952 -6079 -2054 12784 -10052

Import 1010 226 222 136 175 273 228

Total resources 24140 38556 43560 52243 41500 44236 56496

Export 1330 12650 16668 26160 14239 14825 27798

Spendings on seeding

3597 3294 3489 3558 3222 3226 2953

Spendings on nutririon

11056 13817 13580 13997 14787 16334 16147

Losses 309 375 1177 752 794 1570 1491

Non-food recycling 100 670 1625 916 1650 1551 1454

Spendings of grain for consumptionr

7748 7750 7021 6860 6808 6730 6653

Consumption of bread products (1

kg/person)

124,9 123,5 115,4 111,7 111,3 110,4 109,4

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The worldwide market of deep processing of grain products in 2013 is estimated of about 22.8 mlrd USD (more than 31 mln. tons)

Product Total import, USD Total import, kg Total export, USD Total export, kg

Wheat gluten 1 387 463 348 1 382 447 729 956 541 712 595 196 630

Bran, sharps 1 798 225 485 6 656 723 360 1 902 340 335 8 803 408 614

Citric acid 1 514 728 860 1 140 281 465 1 068 121 864 966 988 009

Lysine 1 996 765 042 1 180 893 328 1 603 197 939 984 262 586

Starch 3 687 744 969 7 005 409 466 3 933 613 589 6 860 422 224

Wheat starch 332 778 968 597 145 901 305 984 783 535 718 901

Lactic acid 631 205 817 300 854 456 609 514 548 282 692 842

Modified starch 3 933 263 659 3 636 294 935 3 436 684 787 3 371 168 623

Glucose, fructose,

fructose syrup 7 600 790 099 9 412 795 538 6 166 957 958 7 571 064 872

Total 22 882 966 247 31 312 846 178 19 982 957 515 29 970 923 301

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Grain can be produced into a wide range of deep processing products

Grain: bran, molasses, flour

Flour: gluten, starch, modified starches Starch: syrup, alcohol, organic acids (citric acid, cuccinic acid, lactic acid)

Syrups: glucose, aminoacids (lysin etc.), glucose-fructose syrups

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Nowadays the production of a biodegradable plastic, which can be produced from lactic acid or succinic acid, is highly developping. Biodegradable plastic market is

growing, since it displaces non-biodegradable plastic

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World’s production of bioplastics by region in 2010 (in percentage)

The growth of production of bioplastics (in thousands. tons)

Biodegradable plastics are made from natural material as well as from fossil hydrocarbons

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Import market of deep processing products in Ukraine exceeds 137 million USD (2013)

Export market of deep processing products in Ukraine exceeds 193 million USD (2013)

ProductExport from

Ukraine 2013, mln UAH

Export from Ukraine

2013, mln UAH

Bran 1 317 264 979 952

Glucose (20%) 114 867 31 661

Starch 88 255 19 921Citric acid 14 896 1 566

Glucose (20-50%) 1 043 257

Modified starch 5 656 247Lysine 4 153 46Lactic acid 301 23Fructose 50% 11 0Fructose 0 0Клейковина 0 0Gluten 0 0Total 1 546 446 1 033 673

Export 2013

ProductImport to Ukraine

2013, mln UAH

Import to Ukraine

2013, mln tons

Modified starch 537 235 46 171

Lysine 221 716 14 349

Glucose (20%) 62 606 11 025

Citric acid 73 779 9 462

Fructose 6 902 5 565

Lactic acid 78 118 1 910

Gluten 15 707 1 218

Wheat starch 1 507 227

Fructose (50%) 868 47

Glucose (20-50%) 579 23

Bran 3 536 241

Total 1 096 523 108 235

Import 2013

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Ukraine is among the five countries-leaders (5th place) on bran export and is the third largest wheat bran exporter in the world

Exporter Total amount, USD Total amount, kg

Argentina 336 788 330 2 004 147 011

USA 269 946 491 1 213 872 008

Germany 128 978 753 508 282 022

France 104 029 595 461 222 059

Ukraine 78 196 621 460 143 596

Leading countries in export of cereals bran in 2013

Exporter Total amount, USD Total amount, kg

Indonesia 105 762 160 431 629 125

Germany 106 889 800 431 432 404

Ukraine 68 375 200 415 652 082

France 57 295 832 293 414 697

Russian Federation 54 345 641 279 460 979

Leading countries in export of wheat bran in 2013

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Statements from the deep processing of grain analysis

● Analysis of Ukraine domestic market shows that the inner demand for modified starches, lysine, glucose and fructose is not satisfied.

● Location of deep processing production in Ukraine has an advantage due to the presence of various agricultural raw materials and cheap labor.

● Analysis of the global market shows that there is a growing demand for biodegradable plastic.

● As Ukraine is one of the leading exporters of bran and it imports the goods and end-use products based on bran, it has the opportunity to create its own production of finished products based on bran, which can be claimed not only domestically but also in the global market.

● The most interesting and highly profitable deep processing products include organic acids and amino acids obtained by using specific strains of microorganisms. The nutrient environment for their production may be not only a syrup, but also, for example, molasses.

Ukraine is an agricultural country with great potential, so it is possible to build a strong enterprise for deep processing of various raw materials: oil, milk,

meat, poultry, wool, etc.

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Benefits for potentional investors

● Investments in construction of the plant ranges from 60 mln USD (depending on the configuration and products)

● The return on investment occurs in approximately 5 years● IRR is not less than 20%● Palma Group may act as a reliable local partner for foreign investors

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Благодарим за внимание!

Инвестиционно – девелоперская компания «ТИТУЛ»

Президент компании Тельман АббасовТел. +380674899222Email: abbasovtelman@gmail.comСайт: www.titul.net.ua