Upload
oecd-global-relations
View
222
Download
0
Embed Size (px)
Citation preview
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
1/20
key findings
Cpss
d P Sc Dp
UkraineSeCtor ComPetitiveneSS Strategy
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
2/20
The OECD Eurasia Competitiveness Programme was launched in 2008 to support Eurasian economies
in developing more vibrant and competitive markets. It includes seven countries rom Central Asia
(Aghanistan, Kazakhstan, the Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan) and six
countries rom Eastern Europe and the South Caucasus (Armenia, Azerbaijan, Belarus, Georgia, the Republic
o Moldova and Ukraine).
The Programmes approach leverages OECD instruments and tools in order to assess where and how
to enhance the competiveness o countries, sectors and regions to generate sustainable growth. Since
its inception, the Programme has developed and implemented several regional and country specifc
competitiveness strategies, complemented by capacity building seminars and coaching or policy makers.
This document has been fnanced by the Swedish International Development Cooperation Agency, Sida. Sida does
not necessarily share the views expressed in this material. Responsibility or its contents rests entirely with the author.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
3/20
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
4/20
nuus cp ds
abUnDant
natUralreSoUrCeSUkraine has 311 000
square kilometres o arable
land, the largest such area
in Europe. It has the largest
manganese-ore felds
and the second-largestmercury deposits in the
world. It also has access
to other abundant mineral
resources, such as coal,
iron, nickel, uranium.
StrategiC
loCationThe country has access
to the Black Sea and is a
key energy transit country
or Russian gas exports to
Western Europe.
a well
qUaliieDlaboUr
orCe
Ukraine has universal
literacy and high general
school enrolment: the
combined gross enrolment
ratio in education o bothsexes was 90% in 2009,
higher than in some OECD
countries.
riSing
inComeSSince 2000 per capita
income has increased
by more than 60% (in
purchase power parity),
accelerating domestic
consumption.
4
ukraine: sector competitiveness strategy
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
5/20
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
6/20
6
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
7/20
7
a-usssUkraine has ore arabe and (over 31 iion hectares) than
any other European country, an abundance o rich, back soi and
avourabe ciatic conditions. Other sources o copetitiveness
incude a ong tradition in agricuture and ow abour costs.
The country has a signifcant opportunity to urther strengthen its
aready iportant roe in agribusiness, by addressing the oowing
-w :
Difculty in accessing short and long-term fnancing, resulting in
the continued use o obsolete technologies and low investment inchemical inputs such as ertilisers and pesticides
Lack of knowledge, skills, and abilities in the elds of agronomy and
agro-management
Difculties in accessing land
Low productivity
Product quality below the standards of neighbouring markets,
hindering the development of high-quality exports
The expected rise in deand or basic and processed agricutura
products coud ake this sector ore attractive to private investors,
-
. tw - w
identifed: grain and dairy.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
8/20
sector strengthsUkraine is well-positioned to consolidate its leading role as
a grain producer and exporter and to increase the share o
processed goods in overall output. Its production costs are
estimated to be about 50% lower than those o European
producers. Its geographic position guarantees low reightcosts or exports to neighbouring Western Europe and to
growing importers such as Middle-Eastern and Arican
countries. Finally, considerable potential to increase
productivity and the availability o unused arable land
could contribute to the signifcant growth o Ukrainian grain
commodities output and processed goods production.
a-usss sc:
sector challengesDfcu ccss fc is a main concern or
small and medium-sized armers, limiting their ability to
invest in operational activities and fxed assets.
l pducis the result o a limited use o high
quality inputs (e.g. ertilisers, seeds), especially by small
and medium-sized arms, and a lack o investment in fxed
assets, such as machinery and storage acilities.
a s-psd u d ss has
prevented ree competition and hindered investment and
productivity gains. It has also had an adverse impact on
access to fnance since land is rarely owned and as
a result cannot be used as collateral and on oreigninvestments, as land cannot be purchased by oreign
individuals or oreign companies.
Updc d pcs sometimes run counter
to market conditions, penalising armers. For example,
restrictions on exports were temporarily implemented
during the global grain price rise in 2010.
l u also adversely aects the ability to
process it and, ultimately, overall sector competitiveness.
Facts:
a Grain production akes upore than 40% o Ukraines
agricuture production.
a Wheat accounts or around50% o tota grain production(in vaue).
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
9/20
9
0
2
4
6
8
France UK
Germ
any EUChina USA
Ukr
aine Canada
Arge
ntina Brazil
Russia
Austr
alia
Wheat yield Barley yield
Ukraine has the potential to improve relatively low grain yields
Average wheat (let) and barley (right) yields, tonnes per ha, 2005-2010
Source: Investment Capital Ukraine, Sector Primer Agriculture, December 2010.
g a hu cp ss with the needs o the
sector. Entrepreneurship know-how, technical skills, and
fnancial literacy must be tailored to the requirements o
Ukrainian armers.
g c ccss fc through policies to
support supply-chain fnancing, leasing, and insurance to
cover against risk.
g r d pcs attract investors and enable
the ull usage o land assets as collateral.
recommendations for sector reform
g uh dp su scs, such as credit
inormation services, collateral registration, and market
inormation services.
g es scs d such as quotas to
improve predictability and the attractiveness o the sector
to domestic and oreign investors.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
10/20
10
a-usss sc: d
Facts:
a Doestic deand inUkraine or processed dairyproducts is expected toincrease by 25% over thecoing decade, according toOECD/FAO projections.
a cis m-ecountries are aready keyiporters o Ukrainian dairyproducts.
a Ukraines raw ik is sortedinto three quaity grades.
Its highest quaity categoryis ower than the singe EUstandard grade.
sector strengthsUkraine is traditionally a dairy producer, although its
herd sizes and output have been decreasing since
independence. Production costs in the sector are
comparable to those o New Zealand and signifcantly
lower than most o Eurasian countries. The domestic
market is expected to grow strongly in the coming years.
Moreover, Ukraine enjoys proximity to a number o large
or developing markets, such as the European Union (EU),
Russia and the Commonwealth o Independent States
(CIS) countries.
sector challengesqu sdds o milk or ood production do not
match those o the EU, and even the highest-quality
Ukrainian milk is not exportable to Western Europe.
m ds, although improving, are still 50% less than in
other key producing countries.
Pduc sucu: the production o raw milk isstill scattered, with 80% o production coming rom
households that own ewer than fve cows.
th s h sc s , preventing
necessary technological upgrades.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
11/20
11
the Ukrainiandairy indUstry
already exportssignificantvolUmes of itsprodUction
Dairy consumption/export
ratio o Ukraine,
thousands o tonnes, 2009
recommendations for sector reform
g b hu cp h cp
ds to improve both productivity and quality o raw milk
output.
grs u sdds to meet EU standards.
gc ccss fc, which would allow an
increase in the number o cows per household, in order
to reduce the number o contact points or processors.
Possible approaches include, or example, micro-fnance
institutions, supply-chain fnancing, efcient credit
guarantee schemes, and cooperative banks.
gac j ss to the dairy
processing sector by creating a long-term strategy
around two priorities: i) improving both the quality and
productivity o raw milk production and ii) targeting frst
Ukraines domestic market beore moving on to the CIS
countries, and fnally to the EU.
Source: OECD/FAO, 2010.
0
100
200
300
400
Chee
seBu
tter
Whole
milk
powd
er
Skim
milk
powd
er
Consumption
1 0.43
0.630.431
Exports Imports
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
12/20
12
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
13/20
1313
e-fcc d
sucs s:
bss
The use o bioass to produce energy was pioneered by the United
s n , d, f
sw, - . s
the 1980s, bioass has aso been increasingy used or oca heating
purposes. In 2006, about 10% o goba priary energy deand was
et through energy produced based on bioass.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
14/20
Wind 1%
Hydro 17.7%
Solar, tide 0.6%
Geothermal 3.3%
Solid biomass/charcoal 72.9%
Liquid biomass 2.4%
Renewable 0,9%
Gas from biomass 1.1%
18.63
14.01
Biomassrepresents asignificant share
of the worldsrenewaBle energyprodUction
Structure o world renewable
energy sources supply, 2007
Source: IEA, 2009.
sector strengthsUkraines abundant agricultural and orestry waste could
provide the basis or the uture development o energy
production based on biomass. The expected convergence
o natural gas import prices in Ukraine to Western
European levels should urther increase the attractiveness
o renewable energy sources.
sector challengesads s substantially limit investment
opportunities in the sector, and a credible national plandefning the role and objectives o biomass in the energy
landscape is still needed.
ld cuc u d ss
h pss uss ss among armers, industrial
companies and utilities brake the sectors development.
a c ccss cp, ddss c
us d s ps csusalsohinder sector growth.
Facts:
a The econoic potentiao crop waste per year isestiated at the equivaento 14 iion tonnes o coa.
a b
econoica when consuedon site or transported overdistances under 80 k,depending on transportationcosts.
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
15/20
15
gis pc d p is a priority area
or reorm, or example, by streamlining administrative
processes (e.g. permits) or implementing a single-window
approach or investors.
ga sc-spcfc p should be defned by the
government, spelling out a long-term strategy or
development o biomass-based energy production, and a
mid-term action plan.
recommendations for sector reform
goh s d h
sc, including alignment o prices, market
regulation, solving the problem o payment arrears by
consumers and privatisation o the utilities sector.
the Breadth of the Biomass waste sUpply chain represents
mUltiple opportUnities for BUsiness development
Collection oresidues and wastes
TransportProcessing orpreparation
Transport Storage TransormationSale o power, heat
or hot water
biomass supply
PRODUCTS
typicaloptio
ns
production SAlE
Agriculturalby-products
Truck Pressing Truck Tank BurningElectrical
power
Forestryby-products
Tractor Drying Tractor StorehouseGasifcation and
burning
District orindustrialheating
Municipalby-products
Conveyor belt
Residues and wastes
Mixing Conveyor belt Silo
Pile
Fuel
Power, heat or hot water
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
16/20
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
17/20
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
18/20
18
0
5000
10000
15000
20000
25000
30000
35000
40000
total =19,410
2010
current fleet
2030
expected fleet
total = 39,530
the civilian
aircraft sector
is set to grow
significantly
Total expected
demand or civilian
aircrat by segment
over 2011-30
sector strengthsThe Ukrainian civilian aircrat industry is renowned,
thanks to the countrys long-standing presence in the
sector, its engineering skills and capabilities, and its cost
competitiveness. Ukraine inherited a signifcant part o
the ormer USSRs capabilities in the aerospace sector,
starting with Antonov, its national aircrat manuacturer.
sector challengeso-d c s-d cps
d sc s pcs prevent the
implementation o business strategies based on global best
practice and limit integration into the global supply-chain.
U ucus c fc ch,
due to the size o their market, the restricted government
budget and a lack o advanced fnancing schemes or
manuacturers and customers.
Dd s s . As a result o all
these challenges, the majority o demand or Ukrainianproducts is currently concentrated in Ukraine and other CIS
countries, while most o the demand or civilian aircrat in
uture years is expected to come rom non-CIS countries.
Source: Boeing Current
Market Outlook, 2011.
Africa
Middle East
CIS
Latin America
Europe
Asia Pacific
North America
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
19/20
Facts:
a Ukraine enjoys a strongreputation in aerodynaics, orexape in wing design.
a The goba aircrat arketis divided into three distinct
duopoies or regionaturboprops, regiona jets and orarge aircrat. The European ATR c bdoinate the regiona turboprop, w b bz e j . b Airbus doinate the arket oraircrat over 100 passengers.
recommendationsFOR SECTOR REFORmg
s d c h h sus dh c c-d cps. The
civilian aircrat manuacturing industry should be ully
separated rom the military industry, thus enabling it to
interact with global suppliers and partners. This would
oster closer industry partnerships and would help solve
fnancing issues.
g is s pc d p s
to showcase reorms which make the sector moreattractive to oreign investors and other industrial partners.
g ip c ss to remain competitive in
this high value-added sector. To preserve and enhance
workorce skills, action could be taken to improve initial,
vocational and continuing education.
however, antonov has difficUlties competing in the gloBal marketof regional jets that are dominated By other leading firmsNumber o aircrat deliveries in 2009 by market player
Source: Company annual reports, press reports
498 477 123 122 54
7/28/2019 Ukraine Sector Competitiveness Strategy - Key Findings
20/20
www.oecd.org/da/psd/eurasia
key contact information
m. a S
Acting Head, OECD Eurasia Competitiveness Programme
For general enquiries
Media Contact
Ms. Vanessa Valle
Communications Manager