Kernel in the process of disposing the corporate rights for land

The company Kernel plans to reduce the land bank to 560 thou. hectares, Yevgeny Osipov, the CEO of Kernel, informed in the interview for Latifundist.com.

"Even if we have 1 thou. hectares in a good region, but they are located at a great distance from our other land areas, we divest of this land. We cannot manage effectively from the point of view of logistics and production. Suppose we sell 1 thou. hectares in Khmelnytsky region. We consider this region to be the best in many respects, but there are 1,000 hectares that do not fall into the logistics of production, and we are forced to dispose the corporate rights for this land," said Yevgeny Osipov.

According to him, the same situation is in Kirovograd, Nikolaev, Ivano-Frankivsk, and Chernigov regions.

"Almost in each region there is land that simply does not logically fall into the model that we apply. We believe it is right to transfer this land to other producers who will work on it more efficiently building their own logistics," the CEO said.

With regard to the optimization of the land bank, the company plans to form the land bank of about 560 thou. hectares.

"This is the size with which we plan to preserve in the near future," he said.

According to Osipov, the reduction of the land bank is already in process.

"Now we are conducting some sales in sub-optimal areas for us. And this again confirms our idea that we do not strive for the size of land bank. Efficiency is the most important thing for us," the CEO of Kernel added.