Land assets

Oblasts of Ukrzernoprom Agro operation

As of September 2011, the Group operates on approximately 94,200 hectares of agricultural land (mostly designated for commercial farming) located across 12 regions of Ukraine and the Autonomous Republic of Crimea. Approximately 90,000 hectares of operated lands are leased by the Group under the land lease agreements. In respect of 4,200 hectares of operated lands the Group is currently in the process of formalizing leasehold rights.

The Company’s leased agricultural land spreads from the South to the North of Ukraine. The advantage of having a wide geographical network of farms is the ability to effectively use agricultural equipment when moving from South to North during sowing and harvesting campaigns due to the short time intervals between soil readiness to sowing and harvesting from farm to farm.  

Most farms are located in the central area (of the country) and some are closer to the northern part of Ukraine. This is due to higher levels of moisture in the central and northern areas. In recent years, there have been fewer snowy winters due to the effects of global warming. This creates especially unfavorable conditions for winter crop development, especially in the southern regions. To minimize such agricultural risks, when choosing new land, the company will give preference to farms located in Kirovohradska, Cherkaska, Vinnytska, Khmelnytska, Rivnenska, Ternopilska and Lvivska Oblasts, where snow cover is traditionally thicker than in other regions during winter and the moisture level is higher.

One of the significant competitive advantages of Ukrzernoprom Agro is its experienced professional team in these regions, their expertise, and the possibility of signing land lease agreements mutually beneficial to both parties. Owing to its socially responsible reputation of benefiting communities, Ukrzernoprom Agro has established long-lasting, trusting relationships with local authorities, managers of agricultural enterprises and farm workers in the regions where it leases land. 

The process leasing lands, as a rule, takes from one to several months. After signing a lease agreement, new lands undergo special preparation, such as tillage, applying herbicide, cultivation and disking. This usually takes between one to two months so that any recently leased land can be made ready for the nearest sowing campaign for a particular region.