Emerging markets: key problems of ag sector
Investment in the last four years into Ukrainian food sector
has grown geometrically but there are no information management services available for domestic and foreign investors.
No relevant ‘benchmarking’ information means investors pay a higher price just for understanding.
Poor understanding means that investment is bypassing Ukraine as sovereign and private funds are looking to fill the food demand gap in well known environments.
The global market solution:
The situation will change when investors get good market information and see the whole picture of Ukraine’s shift to a 21st century information based agriculture.
UAIndex - A daily weighted average share index of listed Ukrainian agro holdings.
The importance of the publication of the daily UAIndex is:
- Global food demand continues to increase under pressure of population growth and climate change.
- Following the green revolution of the 60s and 70s next in agriculture was GMO crops and new equipment technologies. The technology evolutions of the last century barely kept pace with demand. The 21st Century agriculture’s development driver is not technology but capital markets.
- Bringing agriculture to the capital markets requires everyday current business performance information, transparency and high quality management.
- The index captures performance and market sentiment in a daily snapshot.
CALCULATION OF THE UAIndex
Public Ukrainian Agro Holding Company share in the index weighted, based on market capitalization.
At the close of each business day the potential future expense of fuel, fertilizer, and plant protection products is calculated based on change from previous day in closing price for crude oil futures and subtracted (added) to company price
At the close of each business day the potential future revenue from wheat, soy, sugar, corn and barley sales is calculated based on change from the previous day on commodity futures and added (subtracted) to company price
The UAIndex, derived from share prices on trading floors in Europe, London and New York tracks average market sentiment to Ukrainian agro holdings and emerging markets
The UAIndex is adjusted down to reflect future energy cost which is at least half of current production cost and adjusted up to reflect future earning potential of the five major commodities that all holdings produce.
The index is predictive as it captures the commodity futures market sentiment.
The index is informative as it captures leading public company share action.
The index will be the measure of Ukrainian agriculture in capital and debt markets.
The UAIndex bringing agriculture and capital together.
Subscribe to AgroInvest UAIndex (weeky and monthly).
Please contact UkrAgroConsult for a sample.
Contact Name: Igor Iurchenko
Company Name: Commodity Market Analyst Ukragroconsult
Tel: +380 (44) 451 46 34
Fax: 380 (44) 451 46 34
Street Address: Timoshenka Str. 29v,
Office 5 Kiev, Ukraine 04205
Member name: UkrAgroConsult
Member Since: 03 June 2011
Total Leads: 9 UkrAgroConsult Import Export Business Leads
Business focus: Agriculture, Grains, Oilseeds, Milk, Agroholdings
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