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Corporate News

Agribusinesses of AGROTRADE Group carry out spring field works in active way

31.03.15

 

This year 48 thousand ha will be used under spring sowing, that is 74% of the total cultivated area of AGROTRADE Group. Maize share will be reduced by 50% this year. The company had to reduce costs for the spring sowing campaign due to devaluation of hryvnia.

This year 48 thousand ha will be used under spring sowing, that is 74% of the total cultivated area of AGROTRADE Group. Maize share will be reduced by 50% this year. The company had to reduce costs for the spring sowing campaign due to devaluation of hryvnia.

Currency market instability negatively affects the current spring sowing campaign, which will be carried out in difficult conditions. This year AGROTRADE Group had to reduce by 25% the general fund of mineral fertilizers. The reason is high-flying dollar and, consequently, an increase in fertilizer prices.

"Comparing to the last year, where we purchased fertilizers for 2-3 thousand UAH per ton, the price currently reaches up to 10 thousand UAH per ton. But reduction in fertilizer fund is not a saving. This is a necessary measure, which is currently applied by most enterprises", - Oleksandr Voskoboinyk, director of the Agro-Industrial Department of AGROTRADE Group said. There will also be some changes in the structure of sown areas. AGROTRADE Group will reduce areas under corn and increase for soybean crops. Contracts with producers (Syngenta, Bayer) and distributors of material and technical resources, concluded at the last year end, allowed the company to contract for the necessary amount of seeds and crop protection products.

"In recent years AGROTRADE Group has used payment in advance basis to cooperate with seeds and means of plant protection suppliers. This year the company is forced to partially involve distributors commodity credits. We do not attract bank loans", - Oleksandr Voskoboinyk said.

He also mentioned the critical situation of the sowing with those farmers who were not involved in the last year acquisition of the necessary material and technical resources. "Now they cannot purchase any seeds or means of plant protection. It's not even that expensive, the main issue is that the seeds and means of plant protection practically aren`t being imported into the country because of an unstable currency market. AGROTRADE Group today consistently gets contracted volume of seeds, means of plant protection while other agrarians more often get denies to supply from producers", - director of the Agro-Industrial Department of AGROTRADE Group stressed.

The situation is somewhat different with the fuel. Currently, Group`s agribusinesses purchase fuel "on wheels". In this case fueling is going according to the last year agreements with suppliers as well.

Taken actions allowed to reduce risks related to rising costs and a shortage of seeds, means of plant protection and fuel.

The land bank of AGROTRADE Group is 65 ha. About 17 thousand ha of winter wheat were sown for 2015 harvest at the Group`s farms. Enterprises of the holding have completely finished winter crops feeding and early spring crops are now mulching. To date, winter crops are in satisfactory condition. Farming equipment of agricultural enterprises is ready for the spring planting for 100%. Traditionally AGROTRADE Group plans to complete spring field works within a month.

Agrotrade Group, 2009