Ukraine Agrarian Index

Ukraine Agrarian Index

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 looking to fill the food demand gap locate in 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  by tel. + 380 44 451 46 34 (multichannel) for sample

agro@ukragroconsult.org