Agricultural Machinery and Equipment

The Group utilizes modern equipment and machinery in its crop production business, including John Deere, CLAAS and Amazone (among others). At present, the Group has enough units of machinery and equipment to operate 90,000 hectares and is currently harvesting 40,000 hectares of land currently under its control. Ukrkrzernoprom Agro LLC, SC Zernyatko, Stepove LLC and SC Kolosyste own the majority (with the remainder owned by certain of the Subsidiaries) of the agricultural machinery of the Group, which they deliver to other Group farms according to their business needs. All expensive machinery is purchased through a centralized department of the Group.

The market value of 1,118 units of the equipment and machinery fleet of the Group amounts to a market value of more than USD 6.7 million. The Group continues to expand its machinery fleet. In 2011, the Group purchased tractor-drawn and lift-type equipment, spreaders, seeders, one plate harrow, two spraying machines, scythes, and four lowboys for combine harvester transportation.

The table below illustrates the number of units of equipment by type as of June, 30 2011:

 
The Company owns 2 МТS (machine and tractor stations) – subdivided into МТS-Harvesting and МТС-Cultivating – which are managed by a team of highly qualified personnel with ample work experience in the field.
 

MTS-Cultivating has a fleet of agricultural machinery used for sowing campaigns, soil fertilizing and other operations with soils and crops.

MTS-Harvesting consists of machinery used for harvesting campaigns.
Both MTS’s have advantageous geographical locations (Khmelnytska Oblast and Dnipropetrovska Oblasts). This geographical location minimizes the time required to transport the machinery to any particular agricultural enterprise of the Company.