1. With support from:

2. Investment opportunity
in UKRAINE

3. Problem 1: Access to the market for SME potato growers to maximize profit per hectare
Many small producers.
Wide home production
Producer-driven
Extensive hand labour
Low yields
High production cost
Limited storage
Unpredictable supply
Price-fluctuations
Small commercial market
Mostly unpacked
Not traceable
Many sales points
Small quantity per sales point
Inefficiency in distribution
Hardly any communication in the chain

4. Problem 2: Sourcing for Supermarkets A-quality table potatoes
Few, but professional producers
Little home production
Demand-driven
Limited mechanisation
Low production cost
Bulk handling
Storage, sorting and packing (mostly in origin)
Uneven supply
Mostly offer in consumer packs
Traceable and can be tracked
Clean, well sorted product
Exact packing weight
Limited number of sales points
Inefficient distribution
Communication within value chain

5. From challenges to opportunities
Scope of the potato project
Project background
The potato project integrates collection, sorting, storing, brushing, packaging and transporting activities
A study executed by Larive Consultants demonstrates the technical and commercial feasibility of the project.
Objective
In the context of the project Agrico Ukraine is seeking financing to add to its own equity
Opportunity
The investment opportunity concerns a large scale potato processing and storage facility near Kyiv, Ukraine
Expertise
Agrico Ukraine has over 10 years of experience in the potato value chain. Since 2007 Agrico Ukraine is the official distributor of Dutch potato cooperative in Ukraine
Culimer Case - Larive International

6. Retail market Trends & opportunities
250,000 MT of potatoes are being traded within retail chains, of which an estimated volume of 57,500 MT is packaged
Demand in Ukraine shifting towards A-class potatoes; volume of retail trade is expected to reach 1 million MT in 5 years
Currently, only 23% of potatoes sold by retail chains are clean and packaged; expected to reach 35% within 5 years.
Most clean and packaged potatoes are imported and prices are 5 times higher than local offerings
Culimer Case - Larive International

7. Agrico today Import, sales & production of high quality seed potatoes
Local multiplication of seed potatoes, class А
Technology transfer, events & trainings

8. Expansion plan Culimer Case - Larive International
Agrico Ukraine aims to supply retail chains with A-class packaged potatoes through its own processing and storage facility
The proposed cooperation with retail chains demands a stable year-round supply of A- class potatoes. This requires an investment in:
Specialised storage
Climate control
Innovative equipment
High-level of operational expertise
To start with a storage volume of 3,000 tons and sales capacity of 5,000 tons of potatoes to supply retail chains with A-class packaged potatoes at competitive prices
Culimer Case - Larive International

9. Capital need Overview Culimer Case - Larive International
Building & equipment $830,000
Working capital $100,000
Total financing $930,000
Overview
Building and equipment
Equity provided by Agrico $ 100,000
Investment opportunity $ 730,000
Type of investment
Participation in the company of up to 50 %
Loan
Type of investor
Equity investor with international potato chain experience
Commercial investor
Working capital
Investment opportunity $100,000
Type of investment
Credit, loan
Type of investor
Commercial investor
Culimer Case - Larive International

10. Financial projections
Metrics
2017
2018
2019
2020
2021
Sales (T)
2,500,000
3,125,000
3,906,250
4,882,810
6,103,520
Margin / Kg
0.03
0.04
0.05

11. Expected social impact
Farmer training
We will train 150 farmers/suppliers in appropriate use of pesticides and crop protection chemicals to meet Food safety standards in 3 rural regions of Ukraine
Farmer incomes
We will provide service of collecting, grading and packing of potatoes and pay a 10% premium for collected potatoes to partner farmers
Community
We currently support 1 kindergarten in the village where the facility is located; and we plan to add 2 more kindergartens from areas where we collect potatoes from local farmers

12. AGRICO team Current staff Culimer Case - Larive International
Agrico Ukraine team consists of
9 specialists in the Kiev office:
Sales
Marketing
Clients support/sourcing
Accounting and administration
Total team of 12 includes: tractor drivers, fork lift operator, grading line operator & field workers
To launch the new Project, Agrico will appoint a Project Manager from existing staff and hire an operator for the new line.
Culimer Case - Larive International

13. Our goal- connect farmers & retailers
Happy Farmer
Happy Retailer

14. Feed the Future Partnering for Innovation