Chart 1

Legal Uncertainty and Logistics – Major Obstacles for Agricultural Sector Development

Klaus SchumacherToepfer International GmbH, Hamburg

Chart 2

Hamburg

LondonWarsaw

Paris

Madrid

Basle

Milan

RotterdamAntwerp

Bucharest

Winnipeg

New Orleans

Minneapolis

Tampa

AthensMoscow

Kiev

AmmanCairo

Mumbai

Visakhapatnam

Tokyo

Manila

Jakarta

Adelaide

Singapore

Kuala Lumpur

Dalian

BeijingShanghai

Taipei

Ho Chi Minh City

Bangkok

Santos

Sao Paulo

Rosario

Buenos Aires

Budapest

Toepfer International-

A Good Address Worldwide

Seoul

Dublin

Montevideo

Sofia

Offices: 48 Employees: 1,600Trade: 40 mln t Founded in 1919www.acti.de

Chart 3

ACTI´S Investments in Ukraine:8 inland evlevators / 535,000 tons – 2 port elevators / 210,000 tons

1

2

34

5+6

7

8

9/10

Chart 4

Ukraine’s Position in World Grain Markets

47

36 35

42

32 32

23

34

25 24 23

38 38

19

41

37

2.2%

1.1%0.9%

1.7%1.4%

2.1% 2.0%2.4%

4.4%

2.3%

1.9%

5.2%

5.9%6.1%

6.5%

2.3%

0

10

20

30

40

50

60

1990

/91

1991

/92

1992

/93

1993

/94

1994

/95

1995

/96

1996

/97

1997

/98

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

in m

ln t

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%Ukrainian grain production

Ukraine's share in global grain trade

Trend

Chart 5

Ukraine’s Position on World Grain Markets Import Price Calculation for Bangladesh

0

50

100

150

200

250O

kt.

00

Ja

n. 0

1

Ap

r. 0

1

Ju

l. 0

1

Ok

t. 0

1

Ja

n. 0

2

Ap

r. 0

2

Ju

l. 0

2

Ok

t. 0

2

Ja

n. 0

3

Ap

r. 0

3

Ju

l. 0

3

Ok

t. 0

3

Ja

n. 0

4

Ap

r. 0

4

Ju

l. 0

4

Ok

t. 0

4

Ja

n. 0

5

Ap

r. 0

5

Ju

l. 0

5

Ok

t. 0

5

Ja

n. 0

6

Ap

r. 0

6

in U

S$

/t

CIF Bangladesh

FOB Ukraine

EXW Ukraine

Chart 6

The Importance of Logistics Share of Logistic Cost as a percentage of the import value

in Spain and Bangladesh

29%

33%

27%

37% 37%38%

24%

35%37%

32%

50% 50%49%

37%

0%

10%

20%

30%

40%

50%

60%

August 02 February 03 March 03 August 04 February 05 August 05 February 06

in p

erce

nt

EXW Ukraine - CIF Spain

EXW Ukraine - CIF Bangladesh

Chart 7

Political and Legal Issues / Challenges

1. Legal security / legal stability2. Frequent changes in export policy, often right

before harvest• 2006 “Export Certificates”• Increases uncertainty and causes substantial risk• The calculated risk premium increases marketing

costs

3. VAT Reimbursement 4. Import tax and import needs5. Poor official statistics and inconsistent,

politically motivated crop forecasts6. Quality standards still incompatible with

international standards

Chart 8

Key Issue: Improvements in Logistics

1. System improving but far from being internationally competitive

2. River transport still plays a minor role, thus lack of competition for rail transport

3. Non-fulfilment of contracts

4. Contract enforcement

5. Arbitration

6. Quality issues