Ranking of agricultural companies that proved to be the most efficient during the full-scale invasion

In collaboration with the Clarity Project open data analytics system, Mind presents the ranking of the most resilient agribusiness companies for the year 2022. It includes 50 players who, based on a combination of indicators, have proven to be the most successful during a period of maximum economic turbulence.

An obvious factor that determined last year's results is whether a particular player was fortunate enough to be located far from the zone of direct combat. It was to be expected, the majority of nominees are located in Western regions. However, even the top ten finalists demonstrate that the geographical factor is not always decisive.

In all other aspects, it is quite challenging to generalise the characteristics that led to the success of the participants, or rather, minimal losses during the period of military escalation..

Furthermore, the previous year revealed the benefits of internal processing: companies geared towards exporting raw materials were forced to reduce activity or completely halt operations due to port blockades in the Black Sea and limited opportunities with Ukrzaliznytsia (Ukrainian Railways). Meanwhile, those engaged in processing domestically produced goods into feed or supplying resources to the Ukrainian food industry secured high positions in the ranking.

In terms of agricultural sectors, producers of oil and fat products demonstrate the highest resilience, primarily due to strengthened contracts within the country, or specialising in the production of bottled, more margin-rich products.

The presence of well-established logistics, access to railways, and proximity to western borders in 2022 are considered synonymous with the word 'fortunate'. .

Private Company Oliyar

Net income, 2022: 9,686,638 UAH

Net profit/loss before taxation, 2022: 630,602 UAH

Net income, 2021: 6,603,601 UAH

A combination of several factors – the location of production facilities in the relatively calm Lviv oblast, well-established logistics to Poland, and strong pre-war market positions – allowed the Oliyar to withstand and even strengthen in 2022.

Its flagship brand Mayola, traditionally presented in the Western region, rapidly expanded its presence throughout the country, including the capital.

Oliyar's plant is located just 100 km from the Polish border, and the company has its own railway connection point – an invaluable luxury in conditions of limited maritime exports and the increased importance of land-based logistics. Thanks to this, the export of products, particularly high-margin bottled oil, is possible with minimal constraints.

Oliyar has been and remains a family company – after the death of its founder, Ivan Zalizny, at the age of 43, the business is now led by his wife, Iryna..

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PJSC Nizhyn Fat Factory

Net income, 2022: 4,497,900 UAH

Net profit/loss before taxation, 2022: 736,974 UAH

Net income, 2021: 1,423,991 UAH

PJSC Nizhyn Fat Factory was founded back in 1896. Today, it is a multicultural oil extraction plant processing sunflower, rapeseed, and soybean seeds.

The plant underwent a major reconstruction just before the war – in 2020-2021, it underwent extensive modernisation and the introduction of new production capacities, with processes being automated. The facility is capable of processing 330,000 tonnes of sunflower and producing 140,000 tonnes of oil, 120,000 tonnes of feed meal, and 20,000 tonnes of sunflower husk pellets per year.

Nizhyn ranks second in the Chernigiv Oblast in terms of the scale of military destruction, directly after the regional centre. The city was shelled by the russian army for one and a half months. As far as it is known, the enterprise itself did not suffer, but the local infrastructure, particularly the energy and transportation sectors, incurred damage.

Nizhyn Fat Factory is part of the Agrex Group, with its second asset being Svativska Oil LLC. Considering the extensive combat operations in the Svatove area, the Nizhyn plant will remain Agrex's main production site for a long time..

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Globyno Meat Processing Plant LLC

Net income, 2022: 5,722,510 UAH

Net profit/loss before taxation, 2022: 292,950 UAH

Net income, 2021: 4,037,752 UAH

After the shock of the first month of the full-scale invasion, by April 2022, Globyno Meat Processing Plant – one of the largest Ukrainian meat processors – announced that it was operating at full capacity, producing over 150 tonnes of products per day. The monthly sales volume exceeds 1700 tonnes of sausage products all over Ukraine.

The vertically integrated structure of the group contributed to its resilience during the period of highest instability.

However, being a full-cycle enterprise dealing with perishable raw materials, the company faced increased risks due to power outages caused by russia's attacks on the energy infrastructure.

In the fall of 2022, it was announced that Globyno Meat Processing Plant plans to transition to alternative solid fuel boilers to reduce heating costs and have an uninterrupted fuel source. The company also implemented moderate optimization of production processes and invested in the energy efficiency of its buildings.

Furthermore, considering the current realities, two of its most popular products, "moscow" sausage and "russian" cheese, were renamed.

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Delta Wilmar Ukraine LLC

Net income, 2022: 11,663,940 UAH

Net profit/loss before taxation, 2022: 830,856 UAH

Net income, 2021: 11,452,917 UAH

Delta Wilmar Ukraine is a subsidiary of the transnational agro-industrial corporation Wilmar International. In Ukraine, it is one of the largest suppliers of oil and fat products and ingredients for the food industry. The company owns a transhipment complex, a plant for processing oil crops, and another one for processing tropical oils, primarily palm oil, which is widely used in the food industry. All of this indicates commendable resilience, but there is a nuance: Delta Wilmar's assets are located in the suburbs of Odesa, which has been and remains a target of regular attacks by the russian army.

The company temporarily suspended all production processes at the end of February 2022, due to increased military danger, including export, import of products, and logistical activities. However, the supply of raw materials to bakery and dairy industry enterprises was maintained to prevent shortages of essential goods in Ukraine.

As the situation in the region relatively stabilised and maritime exports, although limited, resumed, Delta Wilmar resumed its operations and regained its status as a leading exporter of bulk refined sunflower oil.

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Shchedro LLC

Net income, 2022: 4,876,696 UAH

Net profit/loss before taxation, 2022: 296,324 UAH

Net income, 2021: 4,287,627 UAH

Shchedro is a company well-known to consumers for its sauces – mayonnaise, ketchup, and mustards – under the same brand name. However, the foundation of its business lies in B2B contracts, specifically the production of block margarine, spreads, and confectionery fats for the food industry.

As the food industry gradually recovered, and with adjustments made to regional logistics to accommodate internal population migration to the western regions, the company was able to achieve positive results in 2022 compared to the previous year.

The location of the company's assets played a significant role as well – the Lviv Fat Plant was not affected by active combat operations. On the other hand, another plant of the company, the giant Zaporizhzhia Oil and Fat Plant, is located directly near the front line and, according to market participants' reports, is "functioning in an extremely limited capacity.".

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Research and Production Company Urozhay

Net income, 2022: 5,808,474 UAH

Net profit/loss before taxation, 2022: 741,692 UAH

Net income, 2021: 2,239,563 UAH

Urozhay is the flagship agricultural company of the largest poultry meat producer in the country, the MHP Holding.

The company achieved impressive financial results in 2022, surpassing the previous year's performance even after accounting for the devaluation of the national currency.

In 2023, the company plans to cultivate nearly all available areas, covering 352,500 hectares in 12 oblasts of Ukraine, mainly for cereal and oilseed crops. Urozhay has also retained resources for investments in machinery and the implementation of innovative technologies.

Unlike many players in the agricultural sector, the company does not face significant sales challenges as it is less dependent on or almost independent of exports, particularly maritime exports. The harvested crops are used for the production of compound feed for the company's own livestock. The production facilities are mainly located in the Cherkasy and Kyiv oblasts and have not suffered significant damage during the conflict.

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PJSC Vinnytsia Oil and Fat Plant

Net income, 2022: 3,405,001 UAH

Net profit/loss before taxation, 2022: 121,046 UAH

Net income, 2021: 1,859,223 UAH

ViOil group, which includes Vinnytsia Oil and Fat Plant, Chernivtsi Oil and Fat Plant, a network of agricultural enterprises, and elevators, is one of the largest producers and exporters of vegetable oils in Ukraine. Its products are marketed under the brand Violiya.

Due to its location in Vinnytsia, which is considered a safe area, the assets of the company and its counterparties, including farmers, were not affected. In July, ViOil allocated one million UAH to help mitigate the consequences of a rocket strike by the russian federation on the House of Officers in the city centre.

The company faced more significant risks from law enforcement authorities. Last year, three criminal cases were opened against the group, alleging possible economic activities "in favour of a citizen of the russian federation." It was likely referring to the beneficiary of the company, Viktor Palamarchuk, although it is not known if he currently holds russian citizenship.

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Globyno Processing Plant LLC

Net income, 2022: 4,318,959 UAH

Net profit/loss before taxation, 2022: 658,580 UAH

Net income, 2021: 2,996,239 UAH

Globyno Processing Plant is one of the main assets of the Astarta Holding and is focused on processing of soybeans and wholesale trading of soybean products. The company's portfolio includes high-protein granulated meal, soybean oil, and granulated husks.

The designed annual processing capacity of the plant is 230,000 tonnes.

It is evident from the company's report that the soybean sector has delivered unprecedented financial results for Astarta, even surpassing pre-war figures.

In 2022, the company's profit from product sales exceeded half a billion euros, marking the highest figure in the entire public history of the holding. The growth was driven by increased sales of soybean products, with volumes rising by 23% to 211,000 tonnes. Consequently, the segment's revenue from soybean product sales increased by 36% to 122 million euros.

Last year, the company exported meal and soybean oil to nine countries worldwide, mainly to the EU. The export of these products accounted for 86% of the segment's revenue in 2022, compared to 66% in 2021. The restrictions imposed on Ukrainian agricultural products by Eastern European countries in the spring of 2023 did not affect the business and trade of Astarta since its key markets are Western European countries..

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Interstarch Ukraine LLC

Net income, 2022: 6,553,585 UAH

Net profit/loss before taxation, 2022: 591,818 UAH

Net income, 2021: 6,190,769 UAH

Mind wrote here about starch being 'white gold' and the opportunity to process corn domestically, achieving the same added value.

Starch is primarily associated with the food industry but is also used in the cellulose and paper industry, textile production, pharmaceuticals, and other sectors.

Interstarch Ukraine is a company that controls approximately 80% of the corn processing market for starch and glucose syrups, according to Pro-Consulting. The company produces a wide range of starch products, which are key ingredients for the food and non-food industries. In 2022, the company benefited from the low cost of raw materials, as corn prices in Ukraine reached record lows due to oversupply and limited exports.

Not everything is so 'smooth' on the state side. The Antimonopoly Committee of Ukraine (AMCU) has accused Interstarch of abusing a dominant position in the national market for primary sales of corn starch syrup between 2018 and 2020. A fine of 283 million UAH was imposed on Interstarch along with PRJSC Dniprovsky Starch and Syrup Plant and PJSC Intercorn, as a result.

The company has contested these sanctions in court, and some believe that the AMCU's actions are politically motivated and directed against the former beneficial owner of Interstarch, the fifth President of Ukraine, Petro Poroshenko..

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Roshen Confectionery Corporation

Net income, 2022: 22,128,835 UAH

Net profit/loss before taxation, 2022: 4,814,683 UAH

Net income, 2021: 21,235,296 UAH

In the first quarter of 2022, at the beginning of the full-scale invasion, Roshen Corporation experienced one of the most challenging periods in its history. Sales declined sixfold, and exports in the first half of the year decreased by one-third. Production facilities in Kyiv and Boryspil were halted due to the fighting for Kyiv.

However, by the end of the year, the company was able to demonstrate itself as one of the most efficient players in the industry. Vertical integration and the ability to rely on its own raw materials, such as dairy products, grains, syrup, and other ingredients produced by other companies within the Ukrprominvest Holding, worked in its favour.

It is also worth mentioning the placement of production capacities in relatively unaffected by the hostilities regions, primarily in Vinnytsia.

In the war-torn year of 2022, Roshen not only maintained its position in the domestic and global markets, ranking among the top 30 out of the 100 largest confectionery manufacturers in the world but also managed to launch new products such as truffles, marzipans in chocolate, and a new coconut-almond bar that became viral due to its uniqueness..

Source – Clarity Project , calculations – Mind

Methodology:

• For the Unbreakable Agrarian ranking, we selected Ukrainian agrarian companies whose operational activities suffered the least in 2022. It was expected that the majority of such companies would be found in Western regions.
• To begin, we selected 200 companies based on their net revenue with the main National Classifier of Types of Economic Activity (KVED) codes in classes 01 (Agriculture, hunting and related services), 03 (Fisheries), and 10 (Manufacture of food products).
• To calculate the ranking, we assessed three factors: the company’s overall net revenue, its revenue dynamics compared to 2021, and the financial result dynamics before taxation. The factors were weighted in a ratio of 2:2:1.
• To determine the ranking position, each factor's calculation result received a rating score. For example, the company with the highest revenue received 200 points, while the lowest received 1 point. The indicators in the "revenue/financial result dynamics" factors were divided into groups. For instance, if revenue doubled or more, companies received 200 points. If it increased by 1.8 times to 2, they received 180 points, and so on.
• The ranking position is a relative assessment of the company's operational performance in 2022 compared to 2021 and the results of other companies in the market. The ranking is an informational product and cannot serve as a basis for making any business decisions (such as providing loans, investments, entering into contracts, etc.).