UAi

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Business model

 

The UAI’s land bank is concentrated in four areas which provides for benefits of diversification and partially mitigates weather risks. Over 80% of the land bank is highly fertile chernozem soil.

 

Land control – UAI owns leasehold rights for more than 240,000 ha of agricultural land in 16 Ukrainian regions, with an average outstanding lease length of nine years, compared to the Ukrainian average of about three years. All UAI’s leases have been acquired with a view to ensuring the optimum balance of climatic conditions and soil quality.

 

Operations management – UAI’s 62 farms are grouped into 17 production areas, each led by a supervising manager, a team of agronomists and other administrative and support staff. Each farm site has high-speed internet access.

 

Crop harvesting and machinery – UAI is currently 100% self-sufficient in land preparation and sowing, fertilizing and spraying equipment. The machinery helps to handle the very time-sensitive preparation stage in-house which reflects in higher yields. UAI owns more than 1,000 units of agricultural equipment, supporting the timely execution of all major field operations, from cultivation to seeding, fertilising and crop protection. Starting 2011 the company heavily invested in harvesting combines and currently largely meets its own requirements in such machinery.

 

Storage – One of the current priorities is the development of its own storage capacity. UAI is targeting 75% self-sufficiency in storage which provides for lower storage costs per tonne, quality control and greater flexibility to sell crops when prices are right.

 

Crop sales – UAI is focused on exporting its crops with some 70% of its harvest exported to Europe, Middle East and North Africa. The in-house trading department is responsible for originating export sales.

English