Strategy

KSG Agro is one of the largest vertically integrated agriholdings in the Dnipropetrovsk region, which operates in almost all segments of the agro-industrial business, including the production, storage, processing and sale of agricultural products.

The holding’s companies practice the strategy of sustainable development. It is based on the company’s focus on the following areas:

  • Improving business performance

The key goal of KSG Agro’s management is to increase the operational efficiency of all types of business.
The main ways to increase the efficiency are:

  • reduction of operating costs, and as a result, a decrease in the cost of production;
  • a new procurement system;
  • optimization of intraoperative processes;
  • restructuring of credit debt.

As a result of this strategy, the economic performance of KSG Agro improved significantly in 2015-2016: in 2016 the company’s revenue increased by 8.6%; operating income increased by 17.8% – from $13.5 million in 2015 to $16 million in 2016.
KSG Agro will continue keeping the same course, and also intends to increase the efficiency of land use, increasing profitability per hectare.

  • Development of pig breeding business and increase in exports of live pigs

Throughout 2015-2016, the agriholding increased the volume of livestock production. The 2016 results showed the 5%increase in the volume of pig sales to $8.5 million dollars;

In the long term, the company plans to double the number of pigs, which now amounts to 60 thousand one-litter pigs and 4.5 thousand sows.

The agriholding entered the Georgian market, beginning to supply live pigs there. By the results of 2016, the share of KSG Agro in the export of live pigs from Ukraine was 22%.
Expansion of exports is planned to be realized by supplying not only live pigs to the Georgian partners, but also piglets for growing. The strategic goal is to enter the top 5 suppliers in the Georgian market.

  • Preservation and improvement of our share in the crop business

The main crops for the holding are wheat, sunflower, corn, spring barley and rapeseed. In 2017, the list expanded with sorghum, a culture, which proved to be doing well in the arid climate of the Dnipropetrovsk region.

The development of export of agricultural products is carried out by entering the market of the Middle East, with the idea to diversify the distribution channels. Entering the Arab market of agricultural products will lead to diversification of the geography of product exports.

  • Introduction of innovative technologies in cattle breeding and plant growing

In growing pigs, KSG Agro uses and will continue to use the proven advanced technologies from Big Dutchman and Danish genetics. In the production of cereals, the holding intends to partially replace nitrogen fertilizers with innovative biological products that increase the yield of wheat, sorghum, barley and rapeseed.

  • Development of alternative energy

At present, the holding covers its energy needs through the use of biofuel – fuel pellets. Also it supplies heat to social facilities. In 2016 and the Q1 2017, the volume of heat generation produced by the holding increased by 41%: from 3.0 to 4.25 MW.
KSG Agro operates 5 pellet boiler houses: three on a pig farm in the village of Niva Trudovaya, one in the village of Novopokrovka (school), one in the city of Dnepr (Miriada shopping center).

The further holding’s strategy is the modernization of the boiler houses in the places of its presence and their transfer to biofuel – fuel pellets. In the short term, it is planned to renovate 6 boiler houses.

The holding also intends to attract an investor and complete the construction of a pellet plant with a capacity of 60,000 tons of pellets per year.

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