Agrokultura has completed spring planting campaign
2014-06-03 15:06:06
According to the official report released by the company, Agrokultura had completed spring planting campaign in Russia and Ukraine. Total area planted in 2014 equaled to 119 200 hectares, an 11% decrease compared to 2013 level of 134 000 hectares. 44 900 hectares of land were planted in Ukraine and 74 300 hectares were planted in Russia accordingly. Company reported favorable weather conditions in both: Ukraine and Russia for the planting campaign. Early spring contributed to earlier start of the campaign, as well as its faster progress, delayed only slightly in Western regions of Ukraine due to heavy rains. Company increased area planted in Russia by 37% from 54 300 hectares in 2013. Increase occurred in accordance with company’s plans after smaller area planted in Russia in 2013 due to weather conditions. Simultaneous decrease of planted area in Ukraine (by 5 300 hectares) is explained by company’s expense-reduction program, which accounted for planting only in highest yield areas. The breakdown of company’s crops is presented in the table below.
|
Crop |
Russia - Central Black Soil Region |
Ukraine |
Total |
|
Winter planted crops |
|
|
|
|
Winter wheat |
16,200 |
8,200 |
24,400 |
|
Winter rape |
- |
12,200 |
12,200 |
|
Winter barley |
- |
4,100 |
4,100 |
|
Spring planted crops |
|
|
|
|
Sunflower |
16,800 |
12,500 |
29,300 |
|
Corn / Maize |
4,600 |
7,900 |
12,500 |
|
Spring Barley |
11,100 |
- |
11,100 |
|
Soya |
5,100 |
- |
5,100 |
|
Buckwheat |
1,800 |
- |
1,800 |
|
Spring rape |
7,400 |
- |
7,400 |
|
Sugar beets |
1,300 |
- |
1,300 |
|
Spring wheat |
4,100 |
- |
4,100 |
|
Oats |
1,900 |
- |
1,900 |
|
Other |
200 |
- |
200 |
|
Total crops for sale (ha) |
70,500 |
44,900 |
115,400 |
|
Forage crops |
3,800 |
- |
3,800 |
|
Total cropped area |
74,300 |
44,900 |
119,200 |
Efficiency and profit maximization are the focal points for the company in 2014, according to the management of the company. Alex Morgun, Financial Analyst of UkrAgroConsult stated that current year is very important for the company in terms of financial performance, as Agrokultura had been reporting net loss in 2011, 2012 and 2013. It is apparent that the company feels pressured to end the year with the positive result.
UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult monthly report “Agrarian Business in CIS region” for January 2014 (featuring Ukraine). First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.