Ridne to grow wheat, buckwheat and sunflower for in-house processing after Astarta asset acquisition

Ukrainian food consortium Ridne, which is acquiring Chernihiv Eco Plus from Astarta, said the main goal of the deal is to strengthen control over raw material production for its processing operations and humanitarian programmes, Commercial Director Serhii Kovalchuk told Latifundist.com.

"It is important for us to control the raw material production process. It provides security of supply, stability and an additional source of income. At the same time, we also see farming as a standalone business," Kovalchuk said.

He noted that the consortium's biggest challenges remain seasonal price fluctuations and disruptions in the supply of grains used for cereal production.

"Our priority is securing sufficient volumes at reasonable prices. Wheat groats, pearl barley and buckwheat are sometimes subject to supply disruptions and significant price volatility, particularly outside the harvesting season. That is why having our own production helps diversify risks and provides more predictable pricing," he said.

Kovalchuk stressed that in-house production would not replace market purchases entirely. If the consortium's partners or other farmers offer more competitive terms, Ridne will continue buying raw materials from them, while its own harvest could be sold to grain traders.

According to Kovalchuk, the cropping structure will remain largely unchanged after the acquisition. The main crops will continue to be wheat, buckwheat, sunflower, corn and rapeseed. Wheat, buckwheat and sunflower will primarily be used to supply the consortium's processing facilities, while corn and rapeseed will be marketed through grain traders.

Kovalchuk said Ridne selected Astarta's asset because the companies had cooperated before Russia's full-scale invasion of Ukraine, giving the consortium confidence in Astarta's management practices and operational standards.

Additional advantages of the acquisition include consolidated land plots of 400-500 hectares each and the opportunity to retain most of the farm's existing workforce.