“ROSTOK-HOLDING” Announces Operating Results for 2014

“ROSTOK-HOLDING”, a vertically integrated agro industrial group specializing in the cultivation and sale of crops, production, processing and sale of dairy products, announces its full year operations update for the period ended 31 December 2014.


«Despite a tough situation in the country, our company yet managed to achieve good production results in the course of 2014. However, the ongoing military conflict in the Eastern Ukraine will most likely make us adjust the plans previously set and focus on effective crop farming», — says Viktor Kupavtsev, Chairman of the Board of Directors of “ROSTOK-HOLDING”.

Agribusiness:

  • Crop Farming:

    In 2014, the croppage of grains and oilseeds increased by 20% y-o-y and reached 270.9 thou tons (2013: 225.0 thou tons). The volume of corn production grew by 16% y-o-y to 206.0 thou tons (2013: 177.0 thou tons). Wheat output increased by 87% y-o-y to 23.9 thou tons (2013: 12.8 thou tons). Sunflower production volume remained the same as last year and reached 34.0 thou tons at YE2014. The volume of soybean harvested totaled 7.0 thou tons (2013: the crop was not part of crop mix).

    In total, the share of corn in group’s crop mix amounted to 50%, sunflower — 31%, winter wheat — 9%, while the share of soybean reached 7%.

    As a result in 2014, the group outperformed the market in terms of crop yields. The average yield of corn reached 87.0 hundredweight/ha and the yield of sunflower — 23.5 hundredweight/ha. The average yield of winter wheat amounted to 57.0 hundredweight/ha, while the yield of soybean totaled 20.6 hundredweight/ha.

    In 2014, the total area of land under cultivation was ca. 47 thou hectares out of 60 thou under management (2013: 40 thou hectares under cultivation).

  • Animal Farming: Throughout 2014 the dairy stock slightly increased to account for 2760 heads, out of which 1290 are milk cows. In 2014, the farms of the group produced 7.7 thou tons of milk, out of which 6.3 thou tons were processed on the basis of Ichnya Milk Powder and Butter Plant (capacity — 200 tons/day). In 2014, the plant processed 49.2 thou tons of milk, showing a 22.5% increase y-o-y.

    Butter production increased by 12.9% y-o-y to 1.7 thou tons, skimmed milk powder volumes grew by 4.5% y-o-y to 2.3 thou tons, and dried whole milk powder — by 5.3% y-o-y  to 1 thou tons. Other whole milk products totaled ca. 12.1 thou tons.

Sales:

  • Crops: In 2014/2015 MY, the company was selling the crops harvested on its fields on CPT and DAF terms to the transnational companies.
  • Dairy products: In 2014, 960 tons of dairy products, i.e. butter and milk powder, were exported. Key export destinations: Armenia, Turkmenistan, Egypt, Azerbaijan, Georgia, the United Arab Emirates.

Investments:

  • Agricultural Equipment: During 2014 the group purchased 30 items of agricultural equipment, including 20 units of towing equipment (sowing systems, sprayers, harrows, plows, etc.) from the world’s leading manufacturers: JOHN DEERE, CASE, CLAAS. The investments into agricultural equipment amounted to UAH 33.5 mln.
  • Crop Storage Facilities: During 2014 the rail load and shipment capacity at the group’s elevator complex in Glukhiv town (Sumy region) was improved to 3,000 tons of grain/day. The project cost ca. UAH 7 mln.

    At YE2014 the total storage capacity of the group reached 81 thou tons.

    Also last year, as an alternative storage capacity plastic bags were used. Due to this technology ca. 150 thou tons of crops were harvested and stored on time.

Information for editors: “ROSTOK-HOLDING” is a vertically integrated agro industrial group specializing in the cultivation and sale of crops, production, processing and sale of dairy products. The total area of high quality black-earth soil under group’s control amounts to ca. 60 thou hectares. The group includes two dairies, 8 cattle breeding farms, 2 elevator complexes and a number of trade companies. The group is exporting its produce to customers and partners in MENA region, Asia, Europe and the CIS.