AgroGeneration
Nomination: Successful Attraction of Capital
At the beginning of 2015, following the company’s financial improvement strategy employed in 2014, AgroGeneration successfully reduced debt and increased its equity through the issuance of OSRANE subordinated convertible bonds. These measures resulted in a sound balance sheet and significant decrease of interest expenses for the next 4 years.
"AgroGeneration has confident development aspirations. Only strong and effective companies can withstand and thrive in the continuing large-scale crisis that hit Ukraine"
Operating Results
Aiming to improve its business efficiency, AgroGeneration analyzes and optimizes costs, makes a profound crop profitability and crop rotation research with a view to the high-yield crops, analyzes the quality of soil applying the soil conservation technologies, manages its staff to increase proficiency and performance of the team, optimizes business processes etc. Last year AgroGeneration launched the Lean 6 Sigma system to streamline its business processes. It will allow the company to not only make a better use of cost reduction opportunities, but also to become more productive in the long run. AgroGeneration has also introduced the Balanced Score Card (BSC) system applying a comprehensive set of Key Performance Indicators (KPI) to almost all its employees. Thus, KPIs have been developed for all farms of the Group; they include revenues per hectare, expenses, land KPIs etc. The implementation of such KPIs allows to see what the company will look like in the long-term perspective.
Infrastructure Development and Modernization
Today the company owns elevators and warehouse facilities with the capacity of 220,000 tons. Owing to the successfully implemented effective production and sales strategy, there was no need to increase the available storage capacities. On its fields AgroGeneration applies state-of-the-art machinery equipped with GPS and fuel sensors to control its operation and the use of materials. The company keeps on improving the technology it applies in order to realize the potential of the Ukrainian fertile soil.
Export
The company maintains stable partnerships with such international traders as ADM, CARGILL, KERNEL, and LOUIS DREYFUS. It has established a robust commercial structure responsive to the variable market conditions and adjustable to the Group’s sales strategy.
Social Responsibility
AgroGeneration is a socially responsible company. It takes care of the welfare of citizens residing in the districts where the company’s farms operate. During 2015 it has implemented around 250 social and charitable projects in five regions of Ukraine assisting in repairs of educational and medical establishments, intercity roads, and churches. Moreover, it has provided a lot of financial and technical help to the anti-terrorist operation combatants and their families.
|
Structure of the Company |
Group of Companies (Western and Eastern Clusters) |
|
Regions of Presense |
Lviv, Ternopil, Zhytomir, Sumy, Kharkiv oblasts (offices — Paris, Kyiv, Kharkiv, Lviv) |
|
Founded |
2007 |
|
Activities |
Crop Production, Animal Breeding, Seed Production |
|
Controlled Area |
around 120,000 ha |
|
Animal Breeding |
Cattle — around 800 heads, incl. milk cows — 500; sheep — around 2,000 heads |
|
Grain Storage Capacities |
220,000 tons |
Source: Magazine "Agrarian Elite of Ukraine", May 2016
The article was originally written in Ukrainian and translated by AgroGeneration
On awarding ceremony AgroGeneration was presented by Kateryna Konashchuk, Vice-President of Commerce
