Agricultural enterprise with a substantial holding of prime agricultural landThe Business
This Agri-holding is mid-sized agricultural enterprise in Ukraine with an aggregated land bank of over 12,000 hectares. It consolidates three agricultural enterprises, which are under control of a management company.
The Agri-holding is fully equipped with cultivating, seeding and harvesting equipment as well as transport vehicles. It also has garages, workshops, and facilities for equipment storage and repair. The Agri-holding also has a facility for finished goods that consists of four corn floors for crop handling and primary processing, warehouse premises (which totals over 30,000 sq. m. ) as well as a German grain-dryer complex with a capacity of up to 50 tons per hour. The Agri-holding has its own certified laboratory for grain analysis and state certificate for its grain elevator.
Market
Ukraine was second in world cereal export in 2008 and eighth in cereal production. Ukrainian grain (primarily wheat and sunflower) has higher yield (tons per ha) than the world average. Ukraine has the potential to become an even larger producer and exporter since it has large blocks of fertile, well-situated fallow land that has a high potential to produce cereal grains.
Maize sales accounted for fifty percent of the Agri-holding?s crop revenue in 2009. According to Goldman Sachs, corn has the greatest growth potential among all agricultural commodities in 2010 due to low world stocks and higher energy prices. According to the FAO, world export of maize in the 2009/10 season will increase by two percent over the 2008/09 season.
The shareholders of the Agri-holding are looking to raise financing for the business through the sale of a sizable minority or majority equity stake to a strategic or financial investor. The financing is to be used for repayment of accounts payables and business expansion.
Sector: AgricultureSegment: Grain FarmingRegion: UkraineFinancing Size: $5m to $20mContact: Sergey Goncharevich
Company: Capital TimesTelephone: +380 44 499 8834Email: [email protected]