THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: 2015 FACTS AND FIGURES

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: 2015 FACTS AND FIGURES

2016, April. Russian Direct Investment Fund

TABLE OF CONTENTS 4 18 32 RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: LARGEST PRIVATE COMPANIES

I RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE THIRD LARGEST GLOBAL WHEAT PRODUCER Top-5 largest global wheat producers 2015, mln tonnes 126.1 95.8 59.1 55.1 40.4 1. China 2. India 3. Russia 4. USA 5. France Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 6 WWW.INVESTINRUSSIA.COM

RUSSIA ACCOUNTS FOR 8% OF GLOBAL WHEAT PRODUCTION IN 2015 China 17,3% India 13,2% Russia 8,2% USA 7,5% 725.8 mln tonnes France 5,6% Oters 48,2% Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 7

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS AMONG TOP-3 MAJOR GLOBAL GRAIN PRODUCERS Top-3 largest global barley producers 2014/2015, mln tonnes Top-3 largest global oat producers 2014/2015, mln tonnes 20.0 13.2 9.4 5.3 1.2 1.1 1. Russia 2. France 3. Germany 1. Russia 2. France 3. Germany Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 8 WWW.INVESTINRUSSIA.COM

RUSSIA IS THE SIXTH LARGEST GLOBAL COARSE GRAIN PRODUCER Top 6 global coarse grain producers 2014/2015, mln tonnes 377.2 222.7 170.5 87.6 43.1 40.4 1. USA 2. China 3. EU 4. Brazil 5. India 6. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 9

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE SECOND LARGEST GLOBAL SUNFLOWER SEED PRODUCER Top-5 largest global sunflower seed producers 2014/2015, mln tonnes 10.2 8.3 3.2 2.5 1.6 1. Ukraine 2. Russia 3. Argentina 4. China 5. France Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 10 WWW.INVESTINRUSSIA.COM

RUSSIA IS AMONG TOP-10 MAJOR GLOBAL CENTRIFUGAL SUGAR PRODUCERS IN 2015 4.4 mln tonnes Russia 2,5% Brazil 20,7% India 17,4% EU 9,6% China 6,3% Thailand 6,2% USA 4,5% Mexico 3,1% Pakistan 2,7% Australia 2,6% Others 24,4% Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 11

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE FIFTH LARGEST GLOBAL COW S MILK PRODUCER Top-5 largest global cow s milk producers 2015, mln tonnes 148.1 94.5 64.0 37.2 30.8 1. EU 2. USA 3. India 4. China 5. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 12 WWW.INVESTINRUSSIA.COM

RUSSIA IS AMONG TOP-3 MAJOR GLOBAL CHEESE PRODUCERS IN 2015 Russia 4,5% EU 51,1% USA 28,2% 0.9 mln tonnes Others 16,2% Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 13

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA HAS THE EIGHTH LARGEST CATTLE HERD GLOBALLY Largest cattle herds globally 2015, total cattle beginning stocks, thousand heads 301.1 213.0 103.0 89.8 19.2 1. India 2. Brazil 3. China 4. USA... 8. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 14 WWW.INVESTINRUSSIA.COM

RUSSIA IS AMONG TOP-10 MAJOR GLOBAL BEEF AND VEAL PRODUCERS Largest global beef and veal producers 2015, mln tonnes 10.9 9.7 7.5 6.7 1.3 1. USA 2. Brazil 3. EU 4. China... 10. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 15

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE FIFTH LARGEST GLOBAL SWINE PRODUCER Top-5 largest global swine producers 2015, mln tonnes 56.4 23.0 11.2 3.4 2.6 1. China 2. EU 3. USA 4. Brazil 5. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 16 WWW.INVESTINRUSSIA.COM

RUSSIA IS THE SIXTH LARGEST GLOBAL BROILER MEAT PRODUCER Top-6 largest broiler meat producers 2015, mln tonnes 17.9 13.1 13.0 10.6 3.9 3.5 1. USA 2. Brazil 3. China 4. EU 5. India 6. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat WWW.RDIF.RU 17

II THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS RUSSIAN CROPPING AREAS Crop distribution by surface area 2015, % Cereals and pulses 58,8 Forage crops 21,3 Others 19,9 +1,2% compared to 2014-2,3% compared to 2014-0,9% compared to 2014 79.3 mln Ha +1,1% compared to 2014 Source: Russian Federal State Statistics Service 20 WWW.INVESTINRUSSIA.COM

RUSSIAN PERENNIALS AREAS Perennials* distribution by surface area 2015,% 0.6 mln Ha -0,6% compared to 2014 Fruits and berries Grapes 14,2 Others 85,4 0,4 +0,3% compared to 2014-0,1% compared to 2014 +0,2% compared to 2014 * perennial fruit trees, grapes, berries, tea, hop plant Source: Russian Federal State Statistics Service WWW.RDIF.RU 21

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS AGRICULTURAL COMMODITIES PRODUCTION Russian cereals and pulses production 2012-2015, mln tonnes 70.9 92.4 105.3 104.8-24.7 +30.3 +13.9-0.47 2012 2013 2014 2015 CAGR 13.91% xx % change year-on-year Source: Russian Federal State Statistics Service 22 WWW.INVESTINRUSSIA.COM

AGRICULTURAL COMMODITIES PRODUCTION Russian field vegetables production 2012-2015, mln tonnes 13.5 13.5 14.2 14.7-3.97 +0.01 +5.18 +3.52 2012 2013 2014 2015 CAGR 2.88% xx % change year-on-year Source: Russian Federal State Statistics Service WWW.RDIF.RU 23

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS AGRICULTURAL COMMODITIES PRODUCTION Russian cereals and pulses yields 2012-2015, centner* per hectare 18.3 22.0 24.1 23.7-18.3 +20.2 +9.54-1.66 2012 2013 2014 2015 CAGR 9.00% * 1 centner = 0.1 tonne xx % change year-on-year Source: Russian Federal State Statistics Service 24 WWW.INVESTINRUSSIA.COM

AGRICULTURAL COMMODITIES PRODUCTION Russian field vegetables yields 2012-2015, centner* per hectare 211 214 218 225 +1.44 +1.42 +1.87 +3.21 2012 2013 2014 2015 CAGR 2.16% * 1 centner = 0.1 tonne xx % change year-on-year Source: Russian Federal State Statistics Service WWW.RDIF.RU 25

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS AGRICULTURAL COMMODITIES PRODUCTION Russian livestock and poultry 2013-2015, mln heads Cattle stock... Pigs Sheep 2013 19.6 2015 19.2 2013 19.1 2015 21.4 2013 2015 22.1 22.6 2013 8.7 2015 8.4...of which cows Poultry 2013 494.6 2015 547.2 Goats 2013 1.37 2015 1.37 Source: Russian Federal State Statistics Service 26 WWW.INVESTINRUSSIA.COM

AGRICULTURAL COMMODITIES PRODUCTION Livestock and poultry for slaughter 2012-2015, slaughter weight, mln tonnes 8.1 8.6 9.0 9.1 2012 2013 2014 2015 Egg production 2010-2013, bln units 42.0 41.3 41.8 42.5 2012 2013 2014 2015 Cow s milk production 2010-2013, mln tonnes 31.8 30.5 30.7 30.8 2012 2013 2014 2015 Source: Russian Federal State Statistics Service WWW.RDIF.RU 27

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS KEY FOOD PRODUCTS: DOMESTIC MARKET SALES MEAT mln tonnes CHEESE mln tonnes FLOUR mln tonnes 5.5 6.4 0.8 0.8 3.0 3.2 2010 2014 CAGR 3.86% 2010 2014 2010 2014 CAGR 0.0% CAGR 1.63% VEGETABLE OILS mln tonnes SUGAR mln tonnes CEREALS mln tonnes 1.6 1.8 2.9 3.1 1.3 1.4 2010 2014 2010 2014 2010 2014 CAGR 2.99% CAGR 1.68% CAGR 1.87% Source: Russian Federal State Statistics Service 28 WWW.INVESTINRUSSIA.COM

KEY AGRICULTURAL COMMODITIES: DOMESTIC MARKET SALES CEREALS AND PULSES mln tonnes 49.4 73.6 5.5 POTATOES mln tonnes 7.9 MILK AND DAIRY PRODUCTS mln tonnes 19.1 19.7 2010 2014 CAGR 10.48% 2010 2014 2010 2014 CAGR 9.48% CAGR 0.78% 6.0 OILSEEDS mln tonnes 10.6 30.0 30.9 EGG bln units 8.4 LIVESTOCK AND POULTRY live weight, mln tonnes 11.1 2010 2014 2010 2014 2010 2014 CAGR 15.29% CAGR 0.74% CAGR 7.22% Source: Russian Federal State Statistics Service WWW.RDIF.RU 29

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS RUSSIAN AGRICULTURAL COMMODITIES: CEREALS EXPORT Key importers 2014/2015, % Turkey 19,7 Azerbaijan 5.6 Egypt 12,2 Others 44,0 Iran 9,5 Saudi Arabia 9,0 Source: Russian Federal State Statistics Service, Federal Customs Service 30 WWW.INVESTINRUSSIA.COM

RUSSIAN EXPORT OF KEY AGRICULTURAL COMMODITIES Cereals Meat and meat products 19,0 21,2 5,4 5,5 0,06 0,09 0,07 0,1 2013 2015 CAGR 5.63% 2013 2015 CAGR 0.92% 2013 2015 CAGR 22.7% 2013 2015 CAGR 35.1% xx xx xx xx - Russian export, mln tonnes - Russian export, USD bln Source: Russian Federal State Statistics Service, Federal Customs Service WWW.RDIF.RU 31

III THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: LARGEST PRIVATE COMPANIES

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: LARGEST PRIVATE COMPANIES THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: LARGEST PRIVATE COMPANIES Top-3 Russian agriculture companies 2015, Revenue, bln USD* 1. Miratorg 2. Cherkizovo 3. Rusagro (meat production and processing, animal feed, logistics, food distribution) (poultry and swine production and processing, animal feed) (sugar, meat, margarine, mayonnaise, cereals production) 2013** 1.64 1.61 1.12 2014 1.31 1.22 1.04 2015 1.33 1.06 0.99 СAGR 34.44% СAGR 20.76% СAGR 40.84% * Converted from RuR into USD at the Russian Central Bank s year-end exchange rates. СAGR is calculated basing on RuR revenue ** Top 2010-2013 agriculture companies - Yug Rusi, Efko, Prodo Source: Forbes 34 WWW.INVESTINRUSSIA.COM

NOTES WWW.RDIF.RU 35

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