Anti-Counterfeit ProjectUkraine

Maryna Buchma, EBA Sept 27th, 2007

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Ukraine – General

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Area: 604 Tkm2

Population: 48 Mio.Currency: 1є=6,5 UAHCultivated Area: 21,1 Mio. Ha.Ø CPP cost per ha: 4,7 EURØ cereal CPP costs per ha: 4,0 EURØ Wheat Yield: 28 dt/haNo. of Farms: 22 T (from 10 ha)

42 T (from 2 ha)No. Distributors: 60 - 80

Ukraine – General

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Strategic location between EU and Russia; Access to Black Sea Ports (Odessa, Sevastopol)

Ethnicity: Ukrainian 77,8%, Russian 17,3%, Belarussian 0,6 %, Moldovian 0,5%, Tartars 0,5%, Bulgars, Hungarian, a.o.

Religion: Ukrainian Orthodox, Catholic, Jewish, Muslims

GDP per capita: 7.600 USD

Inflation (2006): >11,6%

Unemployment: 3 – 6%

Share of Agriculture in Total GDP: >15%

WTO Membership planned to 2008

Ukraine – Crop Distribution

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Kiev

Kherson

Lvov

Kharkov

...

South

East

West

...

...

...

...

Central

Crop Area 2006 (mln. ha)Cereals: 12,0Sunflower: 3,6Corn: 3,4Potatoes: 1,5Sugarbeet: 0,8Soybean: 0,6Oilseed Rape: 0,5Orchards: 0,2Vineyard: 0,1

Ukraine Distribution Channels 2006

(original CPP)

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12 international companies7 generic companies2 national producers

>60 Distributors

Food processingIndustry

>100 Re-Sellers

22 T big farms ( 10 T ha); 46 T small-medium farmrs (2 Ha.)

5%64%9%

70%

22%

25% 5%

127

30

21

22 59

26

943

25

79

22

UkraineMarket by Indications and Crops 2006

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Crop Protection Market: 200 mln USD net(excl. fakes)

Herbicides Fungicides Insecticides sdf

Cereals Sunflowers S-Beets Corn

Potatoes Orchards OthersSoybean

200

50

UkraineCPP Market incl. fakes 2006

in mln. USD net

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Original CPP Fakes

Share of Fakes in Total Agrochemical Market: 20%

The share of fakes hasincrease in the last4 years from 5-7%in 2003 to >20% in 2006

The percentage share of fakes is a consensus figure agreedby all the EBA Agrochemical Committee members and is based on MarketAnalysis, Company Dataand other sources ofInformation.

Main ports of Entry: Odessa,Airports, Russian Border, Transnistria

Anti-Counterfeit CampaignMilestones, Sept 2007

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• The same is true for support from the Ukrainian Agrarian Confederation

• A PR Agency has been selected

• The Concept, Framework, Timelines and Campaign Logo and Design elements have been finalised

• Learning from experiences of other countries (PL, H, D, E,….) and communicating with each other

Anti-Counterfeit Strategy

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I. Creation of Awareness Campaign which emotionally addresses the risk of counterfeited Agrochemicals to Health, the Environment and loss of revenues to agricultural producers and distributors of agrochemicals.

II. Lobbying at relevant governmental levels in order to achieve prosecutions and stricter penalties at the same time creating awareness that the Ukrainian image and industry is being impacted negatively, which could have grave consequences for its international trade.

I. EBA Anti-Counterfeit Awareness Campaign (1)

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• Main Target Groups: Farmers, Agricultural Distributors

• Other Target Groups: Governmental Officials, Customs, Ministry of Agrarian Policy, Ministry of Environmental Protection, Hygienic Inspection of Ministry of Health

Allies: EC Delegation, Agricultural Traders, Ukrainian Agricultural Associations (UAC)

• Start of the Campaign: February 2007

• Duration: 2007 – 2009

Responsible: Maryna Buchma, EBA; H.Kube, BASF

I. EBA Anti-Counterfeit Awareness Campaign (2)

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• Main Activities: -Creation of a Campaign Logo and Design elements

-Press Conferences

-TV and Radio spots

-Distribution of brochures during Seminars, Filed Days, Customer Events, mailings etc..

-Brochure: “Most asked questions about “Fakes” and their Answers”

-Training for Distributors, Officials and Farmers on how to recognise “Fakes”

-Publishing of Articles in Journals and Newspapers

-Placing Posters, Brochures at POS

II. Lobbying

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• At EU Level: -several meetings have taken place with Mr Portero Sanchez, Representative of the EC Delegation and engaged in the special Trade Negotiations between the EU and Ukraine

-EBA and EU are now fully engaged in the process and exchanging information and participating in joint meetings (EU-Ukraine IP Dialogue).

At Ukrainian Governmental Levels:- In 2006 the Amendment to Article 7 of the Law of Pesticides has been approved;

- However, the problem is proper enforcement, stricter penalties and prosecutions;

- Officials, Customs, Inspectors etc. will participate in Press Conferences and Customer Events.

At Alliances levels: - grain Traders; - Distributors; - Ukrainian Agrarian Confederation; - farmers organisations.

Anti-Counterfeit CampaignNext Steps

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• Finalise design elements, logo and media plan: Sept. 2007

• Present Campaign to EU Commission and UAC: Oct. 2007

• Present campaign to Distributors: Oct./Nov. 2007

• Press Conference: Jan. 2008

• Placement of visuals, posters, stickers, certificates (linked to positive distributors list) at pos: 2008

• Seminars, Press conferences, Ads, Articles: 2008

• Hotline launch: 2008 - 2009

Anti-Counterfeit Campaign

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Thank you for attention!

Дякуємо за увагу!

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European Business Association

1st floor, 1A Andriyivsky uzvizKyiv, 04070, Ukraine Tel.: +380 44 496 0601 Fax: +380 44 496 0602

E-mail: office@eba.com.ua www.eba.com.ua

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