Workshop “Challenges & Opportunities for Capitalization and Growth of Ukrainian Agricultural Companies”

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On May 12, the American Chamber of Commerce in Ukraine in cooperation with Representative Office of Warsaw Stock Exchange in Ukraine organized a workshop “Challenges & Opportunities for Capitalization and Growth of Ukrainian Agricultural Companies” devoted to discussion of financing of agricultural business in Ukraine, tools provided by international financial donors, major issues and priorities agro companies are facing in the light of IPOs, corporate governance and strategy for further agricultural market growth.




Among the key speakers were:

  • - Vladyslava Rutytska, Deputy Minister of Agrarian Policy and Food of Ukraine;
  • - Olena Voloshina, Head of IFC Operations in Ukraine;
  • - Alexey Rashchupkin, Partner of Atlas Advisors;
  • - Nikolai Kovalski, Director for Development and Investor Relations of Astarta;
  • - Alexander Pochkun, Managing Partner of Baker Tilly;
  • - Ulyana Shtybel, Executive Director of the Warsaw Stock Exchange Representative Office in Ukraine.

 

Describing current potential of agricultural market of Ukraine and prospects for further development, Deputy Minister of Agrarian Policy and Food of Ukraine highlighted the following:

  • - Ukraine is in top-5 largest global exporters of grains/oilseeds and processed products;
  • - Share of agro export is 43% in overall exports from Ukraine;
  • - Every 5th Ukrainian is occupied in agriculture;
  • - 26 out of 100 largest companies in Ukraine are agricultural companies;
  • - “3+5” development strategy recently announced by the new Minister of Agrarian Policy and Food of Ukraine is about 3 basis priorities: state support reform with the focus on small and medium sized farms, land reform and rural development in 5 related directions: opening of new markets, organic farming and niche crops, state enterprises, irrigation and food safety issues;  
  • - Main purpose of the Ministry is to create favorable conditions for the development of small- and medium-sized farms and establish transparent and clear rules for the large players on the agrarian market.

 

Olena Voloshyna pointed out that currently IFC supports largest companies which strictly comply with financial control rules and best business practices in their economic activities via such instruments as financing of a working capital, granting of 2-3 year credit lines, provision of partial credit guarantees. Also, Ms. Voloshina mentioned that IFC will continue financing the development of infrastructure (sea ports, in particular), develop agrarian receipts market implementing successful Brazil’s experience as well as elaborate instruments of financing of smaller agrarian companies.

Financial experts Alexey Rashchupkin and Alexander Pochkun stressed on the importance for Ukrainian agro companies to build their strategy for growth, ensure proper audit and corporate governance over three years, transparent structure of the company and sustainability of their business to meet the criteria of IFIs financing and successful capitalization through the IPO. Those agro companies which can ensure good risk management, stable cash flow and extension of their capacities as well as proper communication of their problems-solving strategies with investor will keep the good record and trust.