THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: 2016 FACTS AND FIGURES

THE AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: 2016 FACTS AND FIGURES

4 18 26 32 42 RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY CEREALS AND PULSES IN RUSSIA: CURRENT ISSUES AND TRENDS GREENHOUSE VEGETABLES IN RUSSIA: CURRENT ISSUES AND TRENDS MEAT AND POULTRY INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS AGRICULTURE AND FOOD INDUSTRY IN RUSSIA: LARGEST PRIVATE COMPANIES 2017. Russian Direct Investment Fund

I RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS AMONG TOP-5 MAJOR GLOBAL GRAINS PRODUCERS Top-5 largest global grains producers 2016/2017, mln tonnes RUSSIA IS THE SIXTH LARGEST GLOBAL COARSE GRAIN PRODUCER Top 6 global coarse grain producers 2016/2017, mln tonnes 501.1 472.6 239.2 114.8 114.0 402.6 227.4 99.8 48.7 44.2 40.8 1. China 2. USA 3. India 4. Brazil 5. Russia 1. USA 2. China 3. Brazil 4. Argentina 5. India 6. Russia Source: Foreign Agricultural Service, USDA Source: Foreign Agricultural Service, USDA 6 WWW.INVESTINRUSSIA.COM 7

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE THIRD LARGEST GLOBAL WHEAT PRODUCER Top-5 largest global wheat producers 2016/2017, mln tonnes China 17.1% RUSSIA ACCOUNTS FOR OVER 9% OF GLOBAL WHEAT PRODUCTION IN 2016 India 11.5% Russia 9.6% USA 8,3% 754.3 mln tonnes 128.8 1. China 87.0 2. India 73.3 3. Russia 62.9 4. USA 35.1 5. Australia Australia 4,6% Others 48,9% Source: Foreign Agricultural Service, USDA Source: Foreign Agricultural Service, USDA 8 WWW.INVESTINRUSSIA.COM 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 2016/2017, mln tonnes RUSSIA IS THE FIFTH LARGEST GLOBAL COW S MILK PRODUCER Top-5 largest global cow s milk producers 2016, mln tonnes 14.2 10.9 8.3 3.3 2.8 96.3 68.8 36.0 32.7 30.7 1. Ukraine 2. Russia 3. EU 4. Argentina 5. China 1. USA 2. India 3. China 4. Germany 5. Russia Source: Foreign Agricultural Service, USDA Source: Foreign Agricultural Service, USDA, Eurostat 10 WWW.INVESTINRUSSIA.COM 11

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS AMONG TOP-3 MAJOR GLOBAL CHEESE PRODUCERS Top-3 largest global cheese producers 2016, % of total world production RUSSIA IS AMONG TOP-10 MAJOR GLOBAL CENTRIFUGAL SUGAR PRODUCERS Top-10 largest global centrifugal sugar producers 2016, % of total world production Russia 4,5% EU 50,6% USA 28,3% 19.4 mln tonnes 170.8 mln tonnes Others 16,6% Russia 3.5% Brazil 22.9% India 12.8% EU 9.6% China 5.5% Thailand 5.8% USA 4.6% Mexico 3.8% Pakistan 3.5% Australia 3.0% Others 25% Source: Foreign Agricultural Service, USDA Source: Foreign Agricultural Service, USDA 12 WWW.INVESTINRUSSIA.COM 13

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA HAS THE EIGHTH LARGEST CATTLE HERD GLOBALLY Largest cattle herds globally 2016, total beginning stocks, mln heads RUSSIA HAS THE SIXTH LARGEST SWINE STOCK GLOBALLY Largest swine stocks globally 2016, total beginning stocks, mln heads 302.6 219.2 100.3 91.9 18.9 451.1 68.9 39.4 28.4 27.7 22.0 1. India 2. Brazil 3. China 4. USA 8. Russia 1. China 2. USA 3. Brazil 4. Spain 5. Germany 6. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat 14 WWW.INVESTINRUSSIA.COM 15

RUSSIA IN THE GLOBAL AGRICULTURE AND FOOD INDUSTRY RUSSIA IS THE FIFTH LARGEST GLOBAL BROILER MEAT PRODUCER Top-5 largest global broiler meat producers 2016, mln tonnes (Carcass Weight Equivalent) RUSSIA IS THE SIXTH LARGEST GLOBAL SWINE PRODUCER Top-5 largest global swine producers 2016, mln tonnes (Carcass Weight Equivalent) 18.3 12.9 12.3 4.2 3.7 53.0 11.3 5.6 3.9 3.7 3.4 1. USA 2. Brazil 3. China 4. India 5. Russia 1. China 2. USA 3. Germany 4. Spain 5. Brazil 6. Russia Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat, Russian Federal State Statistics Service 16 WWW.INVESTINRUSSIA.COM 17

II CEREALS AND PULSES IN RUSSIA: CURRENT ISSUES AND TRENDS

CEREALS AND PULSES IN RUSSIA: CURRENT ISSUES AND TRENDS RUSSIA S CEREALS AND PULSES HARVEST SET A RECORD IN 2016 ALMOST 40% OF CEREALS AND PULSES IS PRODUCED BY TOP 5 REGIONS Russian cereals and pulses production mln tonnes Top 5 cereals and pulses producers mln tonnes 92.4 +30.3 2013 120.7 105.3 104.8 +19.9-0.47 +15.2 2014 2015 2016 CAGR 13-16 9.3% Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (1) Krasnodar Region 13.9 13.7 +1.4 2 (2) Rostov Region 11.6 9.5 +22.1 3 (3) Stavropol Region 10.2 8.9 +14.6 4 (5) Altai Region 4.8 3.9 +23.1 5 (4) Voronezh Region 4.8 4.2 +14,3 Total, Russia 120.7 104.8 xx % change year-on-year Source: Russian Federal State Statistics Service Source: Russian Federal State Statistics Service 20 WWW.INVESTINRUSSIA.COM 21

CEREALS AND PULSES IN RUSSIA: CURRENT ISSUES AND TRENDS TOP 5 COMPANIES ACCOUNT FOR OVER 30% OF TOTAL GRAIN EXPORT VOLUME WHEAT ACCOUNTS FOR OVER 70% IN THE RUSSIAN GRAIN EXPORT STRUCTURE Top-5 grain exporters mln tonnes Cereals and pulses export structure 2016, % Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (1) TD RIF 4.1 4.4-6.8 2 (2) MZK 3.1 3.0 +3.3 3 (3) Cargill 2.7 1.9 +42.1 4 (5) Aston 2.1 1.4 +50.0 5 (8) Louis Dreyfus 1.7 1.2 +41.7 Corn 15.4 % Barley 8.3 % Others 3.8 % 34.9 mln tonnes +22% compared to 2015 Wheat 72.5% Total, Russia 34.9 31.2 Source: Rusagrotrans Source: Federal Customs Service 22 WWW.INVESTINRUSSIA.COM 23

CEREALS AND PULSES IN RUSSIA: CURRENT ISSUES AND TRENDS RUSSIA IS THE LARGEST EXPORTER OF WHEAT IN THE WORLD IN 2016 TOP 5 RUSSIAN WHEAT IMPORTERS ACCOUNT FOR OVER 50% OF TOTAL EXPORT VOLUME Top-3 largest wheat exporting countries 2016, % Top-5 wheat importing countries 2016, mln tonnes Egypt 6.7 Russia 14.8 Canada 12.8 USA 12.6 Others 59.8 25.3 mln tonnes +14% compared to 2015 Turkey Bangladesh Yemen Azerbaidjan Others 2.6 1.8 1.4 1.3 11.5 Source: Foreign Agricultural Service, USDA, FranceAgriMer, Eurostat Source: Russian Federal State Statistics Service, Federal Customs Service 24 WWW.INVESTINRUSSIA.COM 25

III GREENHOUSE VEGETABLES IN RUSSIA: CURRENT ISSUES AND TRENDS

GREENHOUSE VEGETABLES IN RUSSIA: CURRENT ISSUES AND TRENDS GREENHOUSE AREA IN RUSSIA IS GROWING STEADILY... Greenhouse area in Russia* Ha...AS WELL AS THE GREENHOUSE VEGETABLES PRODUCTION VOLUME Russian greenhouse vegetables production* mln tonnes 1887 2041 2195 2355 0.6 0.7 0.8 0.9 +3.8 +8.7 +7.5 +7.2 2013 2014 2015 2016 +8.1 +13.0 +3.9 +14.0 2013 2014 2015 2016 CAGR 13-16 7.7% CAGR 13-16 10.2% xx % change year-on-year Source: National Horticultural Union * in agriculture companies xx % change year-on-year Source: Russian Federal State Statistics Service * in agriculture companies 28 WWW.INVESTINRUSSIA.COM 29

GREENHOUSE VEGETABLES IN RUSSIA: CURRENT ISSUES AND TRENDS IN 2016 TOP 5 REGIONS PRODUCED ONE THIRD OF TOTAL GREENHOUSE VEGETABLES VOLUME... Top-5 greenhouse vegetables producing regions* mln tonnes...and TOP 5 COMPANIES AQUIRED FOR OVER 15% OF TOTAL GREENHOUSE VEGETABLES VOLUME PRODUCED IN 2016 Top-5 greenhouse vegetables producing companies mln tonnes Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (2) Krasnodar Region 0.09 0.07 +33.9 2 (1) Republic of Bashkortostan 0.07 0.07 +0.5 3 (4) Karachayevo-Circassian Republic 0.05 0.04 +22.2 4 (8) Stavropol Region 0.04 0.03 +42.9 5 (3) Republic of Tatarstan 0.04 0.03 +11.4 Total, Russia 0.9 0.8 Rank 2016 (2015) 2016 2015 S, Ha 2016 1 (1) Yuzhniy Karachayevo-Circassian Republic 0.05 0.04 144 2 (2) Eco-Kultura Stavropol., Leningrad, Lipetsk Regions 0.04 0.03 79.1 3 (4) Zelenaya Liniya Krasnodar Region 0.03 0.02 83 4 (3) Moskovskiy Moscow Region 0.02 0.03 75 5 (5) Vyborjetz Leningrad Region 0.02 0.02 26 Total, Russia 0.9 0.8 Source: Russian Federal State Statistics Service * in agriculture companies Source: Spark, company data, open sources 30 WWW.INVESTINRUSSIA.COM 31

IV MEAT AND POULTRY INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS

MEET AND POULTRY INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS MEAT AND POULTRY PRODUCTION: OVER 10 YEARS OF GROWTH Livestock and poultry for slaughter slaughter weight, mln tonnes 8.5 9.1 9.6 9.9 +4.9 +7.0 +5.5 +3.1 2013 2014 2015 2016 CAGR 13-16 5.2% GROWTH IN 2016 WAS ENSURED BY PIG AND POULTRY, WHILE BEEF PRODUCTION SLIGHLTY REDUCED Beef Poultry Pig Others 2015 Livestock and poultry production structure mln tonnes 1.6 2016 1.6 2015 4.5 2016 4.6 2015 3.1 2016 3.4 2015 0.4 2016 0.3 xx % change year-on-year Source: Russian Federal State Statistics Service Source: Russian Federal State Statistics Service 34 WWW.INVESTINRUSSIA.COM 35

MEET AND POULTRY INDUSTRY IN RUSSIA: CURRENT ISSUES AND TRENDS TOP 5 REGIONS ACCOUNT FOR OVER 20% OF LIVESTOCK AND POULTRY PRODUCTS VOLUME IN ACTUAL PRICES Livestock and poultry products bln RuR, in actual prices BELGOROD REGION REMAINS THE CHAMPION IN TERMS OF LIVESTOCK AND POULTRY PRODUCTION Livestock and poultry production slaughter weight, mln tonnes Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (1) Belgorod Region 146.7 150.7-2.7 2 (2) Republic of Tatarstan 112.8 107.8 +4.6 3 (3) Krasnodar Region 99.4 90.0 +10.4 4 (4) Republic of Bashkortostan 91.7 86.3 +6.1 5 (5) Rostov Region 80.6 74.9 +7.6 Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (1) Belgorod Region 1.3 1.3 +1.0 2 (2) Chelyabinsk Region 0.4 0.4 +4.9 3 (3) Krasnodar Region 0.4 0.4 +0.7 4 (4) Kursk Region 0.4 0.3 +7.3 5 (5) Stavropol Region 0.3 0.3 +11.2 Total, Russia 2470 2374 Total, Russia 9.9 9.6 Source: Russian Federal State Statistics Service Source: Russian Federal State Statistics Service 36 WWW.INVESTINRUSSIA.COM 37

REGIONS WITH THE LARGEST CATTLE HERD AND TOP BEEF PRODUCING REGIONS ARE LIKELY TO COINCIDE Cattle herd vs beef production by top beef producing regions THE SAME WORKS FOR THE PIG MEAT PRODUCTION Swine stock vs swine production by top swine producing regions Beef production, slaughter weight, mln tonnes Cattle herd, mln heads 2016 Rank 2016 Rank Republic of Bashkortostan 0.1 1 1.0 1 Republic of Tatarstan 0.09 2 1.0 2 Altai Region 0.07 3 0.8 4 Krasnodar Region 0.07 4 0.5 7 Republic of Dagestan 0.06 5 1.0 3 Swine production, slaughter weight, mln tonnes Swine stock, mln heads 2016 Rank 2016 Rank Belgorod Region 0.6 1 4.1 1 Kursk Region 0.2 2 1.5 2 Tambov Region 0.2 3 1.0 3 Pskov Region 0.1 4 0.8 4 Voronezh Region 0.1 5 0.7 6 Total, Russia 1.6 18.9 Total, Russia 3.4 22.0 Source: Russian Federal State Statistics Service Source: Russian Federal State Statistics Service 38 WWW.INVESTINRUSSIA.COM 39

TOP 5 COMPANIES ACCOUNT FOR 20% OF THE TOTAL MEAT VOLUME PRODUCED IN 2016 Top 5 meat producing companies slaughter weight, mln tonnes TOP 5 COMPANIES, ENGAGED IN MEAT PRODUCTION, ACCOUNT FOR 15% OF THE RUSSIAN AGRICULTURE INDUSTRY REVENUE Top 5 meat producing companies Revenue, bln USD Rank 2016 (2015) 2016 2015 2015 vs 2016, % 1 (1) Cherkizovo 0.6 0.6 +7.0 2 (2) Prioskolye 0.5 0.5-3.2 3 (3) Miratorg 0.4 0.4 +11.0 4 (4) Belgrankorm 0.3 0.3-1.2 5 (5) Resurs 0.3 0.3 +3.9 Rank 2016 (2015) 2016* 2015** 2015 vs 2016, % 1 (1) Miratorg 2.0 1.4 +25.0 2 (2) Cherkizovo 1.4 1.1 +6.5 3 (3) Rusagro 1.4 1.0 +16.7 4 (4) Agro-Belogorye 0.9 0.9-14.9 5 (5) Agrokompleks im. N.I. Tkacheva 0.8 0.6 +15.8 Total, Russia 9.9 9.6 Total, Russia 42.8 34.0 Source: company data, open sources Source: Russian Federal State Statistics Service, company data, Forbes, open sources * 1 USD = 58.8 RuR ** 1 USD = 69.0 RuR 40 WWW.INVESTINRUSSIA.COM 41

V 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-6 Russian agriculture companies Revenue, bln USD 1. Sodruzhestvo (oilseed processing, animal feed, logistics, food distribution) 2. Miratorg (meat production and processing, animal feed, logistics, food distribution) 3. Efko (oilseed processing, mayonnaise, margarine, milk and milk products, ketchup) 4. Cherkizovo (poultry and swine production and processing, animal feed) 5. Rusagro (sugar, meat, margarine, mayonnaise, cereals production) 6. Agro- Belogorye (swine production and processing, animal feed) 2015* 1.6 1.4 1.2 1.1 1.0 0.9 2016** 2.5 2.0 1.8 1.4 1.4 0.9 2016 vs 2015, % +19.7 +25.0 +31.2 +6.5 +16.7-14.9 Source: Forbes * 1 USD = 69.0 RuR ** 1 USD = 58.8 RuR 44 WWW.INVESTINRUSSIA.COM 45

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