Toepfer International GmbH, Hamburg LAGERKAPAZITÄT 170000 MTS PLUS HINTERGELAGERTES LKWEMPFANGSSILO TTK VON 50000 MTS DAMIT SIND WIR IN DER LAGE KURZFRISTIG HINTERNANDER VERSCHIEDENE WAREN ABZUFAHREN JEWEILS PANAMAXGROESSEN Legal Uncertainty and Logistics – Major Obstacles for Agricultural Sector Development Klaus Schumacher Toepfer International GmbH, Hamburg

Toepfer International- A Good Address Worldwide Hamburg Dublin Offices: 48 Employees: 1,600 Trade: 40 mln t Founded in 1919 www.acti.de Warsaw London Rotterdam Antwerp Budapest Paris Bucharest Basle Sofia Milan Moscow Winnipeg Madrid Athens Shanghai Kiev Beijing Dalian Seoul Minneapolis Tokyo Amman Bangkok New Orleans Tampa Cairo Taipei Mumbai Visakhapatnam Manila Ho Chi Minh City Kuala Lumpur Singapore Sao Paulo Jakarta Rosario Santos Montevideo Adelaide Buenos Aires

ACTI´S Investments in Ukraine: 8 inland evlevators / 535,000 tons – 2 port elevators / 210,000 tons 1 3 4 8 2 UM DER WACHSENDEN BEDEUTUNG DES OSTENS GERECHT ZU WERDEN, HAT SICH ACTI STARK IN DIESER REGION, INSBESONDERE IN DER UKRAINE, AUFGESTELLT DAS SEHEN WIR HIER Büros Vinnitsa Kirovograd Odessa Nikolayev Kahovka Dnepropetrovsk Silos Khmelnyk Vapnyarka Kamyanka Nova kahovka Tavros Soviestky Varvarovka Uep TTK 5+6 9/10 7

Ukraine’s Position in World Grain Markets Trend

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

The Importance of Logistics Share of Logistic Cost as a percentage of the import value in Spain and Bangladesh

Political and Legal Issues / Challenges Legal security / legal stability 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 VAT Reimbursement Import tax and import needs Poor official statistics and inconsistent, politically motivated crop forecasts Quality standards still incompatible with international standards

Key Issue: Improvements in Logistics System improving but far from being internationally competitive River transport still plays a minor role, thus lack of competition for rail transport Non-fulfilment of contracts Contract enforcement Arbitration Quality issues