According to the statement made by the Chief Financial Officer of the company in Poland, Industrial Milk Company is planning to decrease investments in its own development by 96% in annual terms, as the investments for 2014 are expected to reach USD 2 million compared to 2013 USD 50 million. It was stated that the company would be focusing on restructuring its existing debt as well as increasing effectiveness of its operations. Company is not planning to invest in expansion of its land bank in 2014, neither there will be purchase of new machinery. IMC CFO mentioned that the company had been growing its assets over the past 3 years and 2014 will be the year of optimizing existing operations and focusing on effectiveness and efficiency size. Company might consider further growth through acquisitions towards the end of 2014, as it is expected that business prices are expected to be declining all year, as it was mentioned in the statement.

UkrAgroConsult comment: the idea of the company to focus on improving its operations in 2014 sounds reasonable and appealing. It is clear that in the lieu of current lack of financing from abroad, lowered credit rating of Ukraine and companies within it as a result, IMC, as well as other agroholdings will have a difficult year ahead of them. We will be closely monitoring the situation and keep you updated.

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