New Names: Agricultural Holdings Established Last Decade

Ukrainian agriculture is the most dynamically developing industry, which comprises a large number of enterprises engaged in the production of agricultural products. The bulk of the players featured in the TOP 100 Latifundists of Ukraine rating came out of the tough 90s and more 2000-s. Many companies were created on the basis of collective farms (kolkhoz) and Soviet factories privatized for nothing. Agricultural enterprises grew, learned to build business models, manage human and financial resources, work with foreign markets. The agrarians themselves say that there is no easy money. Nevertheless, one managed to build a business with an international scale, while others overestimated themselves and dropped out.

Latifundist.com decided to look back at the companies that have entered the country's developing agricultural market over the past 10 years. It turned out to be a rather ragtag band: there are foreign investors (Cygnet Agrocompany, Kusto Agro, A.G.R. Group), as well as those from other business spheres (SAT, Epicentr Agro, etc.). The first 5 members in the rating were founded in the period between the two crises. The turbulent years of 2013-14 forced the new players, as well as the old ones, to adapt to the changed circumstances. For example, Kusto Agro, which at the beginning of 2014 managed 12 thou. ha of farmland, planned to increase its landbank to 20-25 thou. ha in a short period of time but shifted its focus from scaling to increasing production efficiency. Cygnet Agrocompany did not give up its investment projects, in 2014 the company completed construction and commissioned a new elevator, and in 2015 put into operation a seed treatment line. The year 2016 was marked for Cygnet with landbank optimization: 24.2 thou. ha were cut off.

Facts to Know about Misak Khidiryan's A.G.R. Group

The country's complex situation has not discouraged foreign investors. Armenian investor, former banker Misak Khidiryan in 2013 started investing in Ukrainian agriculture with the establishment of A.G.R. Group which is now actively developing. The Group even plans to conduct an IPO.Ukrainian agribusiness on stock exchanges (click for full resolution)

Companies were also created in the no-less-tough year of 2014. Agricom Group had to evacuate the newly set up business from Luhansk region. Nevertheless, next year the company expanded its landbank by 11 thou. ha and then constructed a plant to produce cereal flakes. The SAT company, established in 2014, was also smoothly moving forward with its goal increasing the landbank to 30 thou. ha, and starting new business lines.

After the two crises, the industrial sectors had come through, there was renewed interest in the agricultural sector among representatives of other businesses. The most vivid example is Epicentr Agro which promptly burst into the agricultural market in 2015, causing the indignation of competitors with its aggressive approach. Over the past 10 years, this is perhaps the second company after Kernel, which was proactive in accumulating the landbank. During five years, Epicentr Agro has consolidated 160 thou. ha.Sowing campaign in the fields of Epicentr Agro

Thus, Ukraine's agricultural profile is still being formed. Time will show what features the latest pandemic and the opening land market will entail. One thing is clear: change is inevitable.

Alla Sylyvonchyk, Latifundist.com

No.
Company
Year of establishment
1
Cygnet Agrocompany
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2011
Год основания: 2011

Земельный банк, тыс. га: 37

Cygnet Agrocompany was established in Ukraine in 2011. Since then the agricultural holding has been rapidly developing annually reporting about new accomplishments. In 2012, the group accumulated 37 thou. ha of farmland and purchased a sugar plant. In 2014, the holding completed construction of a 60 thou. t grain elevator. In 2015, Cygnet launched a seed treatment line.

In 2016, Cygnet Agrocompany decided to optimize its land bank to 24.2 thou. ha, and in 2018 started increasing the volume of cultivated land plots again. The company has diversified its activities and is developing crop production, dairy cattle breeding, sugar production and grain storage services. Thus, over the years, the company has grown up, has gained strength and continues establishing itself firmly in Ukrainian agribusiness. In particular, in autumn 2020, the holding plans to commission a new 60 thou. t grain elevator in Vinnytsya region.

2
Agrain
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2011
Год основания: 2011

Земельный банк, тыс. га: 110

The Agrain Group of companies was shaped in the last decade. Agrain is an example of a market player who not only survived but also grew and developed despite the legal proceedings accompanying the company. In 2017, the holding even announced its intention to exit the market. But, having dealt with the trials, Agrain continued its operations.

Today Agrain continues managing 110 thou. ha of farmland in Zhytomyr, Kharkiv, Chernihiv, Odesa and Cherkasy regions, developing crop production, livestock farming, elevator and logistic business directions. In late March 2020, it became known that the French company SAS INVESTCOMPAGNIE acquired ownership of three agricultural enterprises of the group. This, as expected by Agrain, will strengthen the company, make it more consistent, stable and open up prospects for development.

Learn more: Agrain's Fourteen. Business Card of the Agro Group

3
Kusto Agro
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2011
Год основания: 2011

Земельный банк, тыс. га: 24

Kusto Agro Group is a part of an international holding with Kazakh origins, KustoGroup, which operates in the oil industry, energy, development, production of construction materials and agriculture. The name Kusto Agro, which appeared in Ukraine in 2011, has nothing to do with the legendary French explorer Jacques-Yves Cousteau but appeared from the name of Kostanay region, where it has its origin. The holding develops crop production, dairy cattle breeding, trading and storage business.

Since 2019, the company has also been engaged in horticulture and berry business. Thus, judging by business directions and agricultural technologies applied, Kusto Agro is committed to working in Ukraine seriously and permanently. The company is gradually increasing the volume of cultivated land. In 2014, the land bank made up 12 thou. ha. In early 2019, the company Kusto Agro acquired two enterprises from AgroGeneration, increasing the land bank to 23 thou. ha. By 2023, the company plans to expand the land bank to 35 thou. ha. Nevertheless, the main strategy is not to increase the number of hectares, but to use the cultivated land efficiently.

4
South Agrarian Export Company (SAEC)
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2012
Год основания: 2012

Земельный банк, тыс. га: 58,9

The Joint Venture South Agrarian and Export Company (SAEC) has been operating in Mykolaiv region since 2012. This vertically integrated agro-industrial holding specializes in growing grains, pulses and oilseeds, production of pellets, freshwater fish farming.

Until September 2019, Yuri Kormyshkin, Rostislav Danilchenko and the Cyprus firm Daleylha Holdings Limited were the beneficiaries of the SAEC Group. In September 2019, the group was split up, and Yuri Kormyshkin became the sole owner of the company.

5
A.G.R. Group
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2013
Год основания: 2013

Земельный банк, тыс. га: 28,8

In 2013, Armenian investor Misak Khidiryan, having worked in banks, observed the prospect and decided to invest in Ukrainian agriculture. In November 2017, a holding company AGR INVEST HOLDING LTD (Cyprus) was established. Today the company incorporates 19 agricultural enterprises located in Kyiv, Chernihiv, Poltava and Sumy regions. The holding specializes in crop production, dairy cattle breeding, horticulture and grain storage services.

The company is developing grain storage capacity and in early summer 2020 will commission the first phase (28 thou. t capacity) of the new grain elevator complex in the north of Sumy region. Once the project is fully implemented, A.G.R. Group's total elevator capacity will grow up to 162 thou. t.

In 2019, the company announced its plans to enter international loan markets. The idea is rather desperate, as Ukrainian companies are viewed today as highly risky on foreign capital markets. By the way, the last IPO of the Ukrainian company, associated with the agricultural market, was in 2013. A.G.R. Group intends to fully benefit from this window of opportunity. Preparing for the IPO, the company has restructured the holding, received a positive audit opinion from KPMG and is currently implementing international corporate governance standards. Although the IPO remains the primary strategic goal of the agricultural holding, the company is also open to considering other options to raise finance for its new projects and the development of existing activities.

"A.G.R. Group's yield indicators speak to the fact that the future lies in the use of the brand new technologies and machinery, rational use of land resources and efficient organization of all production processes: from soil preparation and sowing to harvesting and transportation of a new crop," says Misak Khidiryan.

Learn more: Facts to Know about Misak Khidiryan's A.G.R. Group

6
Agricom Group
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2014
Год основания: 2014

Земельный банк, тыс. га: 30

Agricom Group was established in the difficult period of Ukrainian history. The company moved its office from Luhansk to the capital and started the business with USD 5-6 mln and 15 thou. ha of farmland. In the first year, Agricom Group increased the land bank to 26 thou. ha and in the following three to 40 thou. ha. It acquired a feed mill and two grain elevators. In 2015, the company attracted a partner investor, who contributed USD 14 mln to Agricom Group projects.

In May 2018, in Mykhailo-Kotsubynske urban-type community of Chernihiv region, the company started up flakes production plant under the TM Dobrodiya. In 2019, the holding optimized its land bank to 30 thou. ha.

7
SAT
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2014
Год основания: 2014

Земельный банк, тыс. га: 30

SAT was established within the Technologia Group, which specializes in corking and packaging materials. The company was formed as a separate business unit at the end of 2014.

The range of SAT's activities is wide, but the main directions are trading and investment in agribusiness. The Sumy grain trader sells 58% of its products on the domestic market and 42% on the external market.

The company develops both crop production (corn, wheat, soybean, sunflower) and livestock farming. Besides, SAT owns grain storage facilities. In particular, the enterprise Vitchyzna, which is also a part of the Technologia Group, has an 89 thou. t grain elevator. The company cooperates with 26 partner elevators in Sumy, Poltava and Chernihiv regions. Along with production and trading, SAT supplies farmers with seeds and agrochemistry.

In April 2019, the company established the SAT-LAB Soil Research Center in Sumy region.

8
Epicentr Agro
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2015
Год основания: 2015

Земельный банк, тыс. га: 160

In the past decade, the company Epicentr became the brightest example of an aggressive entry into the agricultural business. Its owner, Alexander Gerega, was called the "collector of land". In 2015, the MP founded Agroholding 2012 and pursued such an aggressive policy of forming a land bank, causing outrage to competitors, as he paid additional bonuses to shareholders for concluding lease agreements. In summer 2016, the company already leased 42 thou. ha, in 2019 120 thou. ha. And on May 20, 2020, Epicentr finalized the acquisition of part of the assets of Svarog West Group increasing the land bank to 160 thou. ha, and taking 7th place in the TOP 10 Latifundists of Ukraine.

Thus, in 5 years the company grew into one of the largest agricultural holdings in the country. The company operates livestock breeding complexes, two seed plants and grain elevators with a total capacity of over 1 mln t.

9
GREENSTONE (Central Farming Ukraine)
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2015
Год основания: 2015

Земельный банк, тыс. га: 25

GREENSTONE was established in August 2015 on the basis of 25-30% of Creative Group assets founded by Stanislav Berezkin. Victoria Berezkina, former CFO at Creative Group, assumed the post of Executive Director of the Agro-Industrial Group. GREENSTONE comprises several business lines: production and sale of soybean and sunflower oil, meal; agricultural and livestock production; a motor transport company and several investment projects.

Central Farming Ukraine is an agricultural division of the GREENSTONE Group. The company cultivates 32 thou. ha of land in Kirovohrad, Chernihiv and Mykolaiv regions, produces grains and industrial crops. The company exports its products to more than 10 markets worldwide. The main export directions are China, the Middle East, Africa.

Elevator grain storage business is one of the main lines of GREENSTONE. The Group owns three elevators with a total storage capacity of 108 thou. t.

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