Agrokultura AB (“the Company”), the owner and operator of farmland with agricultural operations in Russia and Ukraine, reports initial results of the 2014 harvest of its winter planted crops. Highlights · Winter barley harvest 97 per cent completed in Ukraine with net yields up 49 per cent on 2013 to 5.5 tonnes per hectare · Ukraine rapeseed harvest is approximately 27% completed with yields currently running materially in excess of 2013 net yields of 2.9 tonnes per hectare · Russian winter wheat harvest is approximately 50 per completed with net yields in excess of 2013 yields of 3.5 tonnes per hectare · Improved yields are on top of material increases in 2013 and are combined with previously announced cost cuts amounting to SEK 150 million over comparable 2012 costs which have been achieved and in some cases exceeded Weather conditions in Ukraine have been excellent with yields recorded so far being higher than at any time in the history of the Company. These yields are at the level required to make the Ukraine business profitable. Russian crops were held back by a very wet seeding period in the autumn/winter of 2013 together with a hot and dry May and June 2014 which prevented the full yield potential being achieved. Despite this, the Company appears on track to match the record 2013 winter wheat yield. Improved organisation, selected machinery investments and strict adherence to operating windows all contributed to the excellent state of the crop. A further update will be made on completion of the harvesting of winter crops in the second half of August. Stephen Pickup, Managing Director of Agrokultura, commented, “We are pleased to be able to announce not only that the cost cuts continue to be on track but also that the required improvements in yield for the winter seeded crops have been consolidated from last year and in many cases exceeded. This has been in part due to the excellent weather conditions but also due to the improved processes, controls, budgeting and operational experience and organisation. We believe these yields will place us well in the upper quartile of scale farmers in the region. These results begin to show what the internationally listed agribusinesses operating in eastern Europe are able to achieve. We will continue to focus on securing the rest of the of the harvest and setting more challenging cost and yield targets while also working on our sales strategies to maximise revenues." Stockholm, 24 July 2014 For additional comments, please contact: Stephen Pickup, Managing Director, tel. +44 782 529 4352 Kristian Shaw, Group CFO, tel. +44 782 529 4356 About Agrokultura AB (publ) Agrokultura invests in farmland and produces agricultural commodities in Russia and Ukraine. The Group aims to generate an attractive return on invested capital by optimally utilizing its agricultural land bank through crop production, livestock and related operations. Shares in Agrokultura are listed in Sweden on the Nasdaq OMX First North exchange under the ticker AGRA and the Group’s Certified Adviser is Remium Nordic AB.
Harvest update 2014
| Source: Alpcot Agro AB