KSG Agro has started the reconstruction of the second stage of the pig-breeding complex in order to increase the production capacity up to 58 thousand heads of one-time keeping. This was reported by the press service of the company.
KSG Agro agricultural holding has started the reconstruction of the second stage of the pig farm in the village Niva Trudova (Apostolovsky district, Dnepropetrovsk region). The second stage includes 10 workshops and will increase the number of livestock to up to 58 thousand heads of one-time keeping. Thus, after the commissioning of the second stage at full capacity, the total sales of marketable livestock at the pig farm will reach 110-120 thousand heads per year.
Currently, reconstruction is underway and equipment has been supplied for the growing plant, as well as 50% equipment for six fattening plants. While the reconstruction is in progress, the delivery of equipment for the insemination, waiting and farrowing shops is still expected.
“The reconstruction of the second stage will allow us to achieve the strategic goal of doubling the livestock at the pig complex, including thanks to the pigs of the Genesus Canadian genetics, which we are introducing into the herd, and, accordingly, the growth of sales of live pigs,” comments the Chairman of the Board of Directors at KSG Agro Sergiy Kasianov. – Due to the market turbulence of 2014 and the recent crisis in the pig breeding market, we have postponed the start of the second stage reconstruction project several times. However, in the past few years we have been working with positive results, in particular, in the first 9 months of this year, we achieved an increase in gross income by 43%, EBITDA by 10%, and gross profit by 8%. All this made it possible to form the financial resource necessary for the expansion of capacities.”
As previously reported, on August 5, 2021, KSG Agro received a notification filed in accordance with Art. 69 pairs. 2, clause 2 of the Law on Public Offer, Conditions for Placing Financial Instruments in Organized Trading Systems and Public Companies of the Republic of Poland, from the direct shareholder of the holding – OLBIS INVESTMENT LTD. S.A. on reducing the share in the total number of votes in KSG AGRO S.A. by more than 1%. The change in direct participation in voting occurred as a result of the sale of 1 million shares of KSG Agro as a result of the conclusion of 2 civil law agreements on 2.08.2021. Until this information was received, OLBIS INVESTMENT LTD. S.A. owned 9.7 million shares of KSG AGRO S.A. which amounted to 64.62% of the authorized capital. After the sale, the company owns 8.7 million shares of KSG AGRO S.A. which is 57.96% of the authorized capital.
On December 10, 2021, the RA Expert-Rating rating committee made a decision to update the long-term credit rating of KSG Agro: on the national scale at uaA + and on the agency’s international scale at BBB. This was reported by the agricultural holding’s press service.
According to the agency, KSG Agro with a uaA rating is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments. The creditworthiness level is sensitive to the impact of unfavorable commercial, financial and economic conditions. The agency updated its credit rating after analyzing the data from the consolidated statements of KSG Agro for the nine months of 2021.
Commenting on the update of the KSG Agro rating at a sufficiently high level, the experts of RA Expert-Rating noted: “For the period from September 30, 2020 to September 30, 2021, the equity capital of KSG Agro S.A. increased by 1.55 times to $ 19.96 million. The main factor behind the growth of the company’s equity capital was its profitable activities and the reduction in retained losses. Obligations of KSG Agro S.A. during the analyzed period decreased by 7.37% to $ 53.96 million. The corresponding movement of indicators led to an increase in the analyzed period of the ratio between equity capital and liabilities of KSG Agro S.A. by 14.87 p.p. up to 36.98%. Growth in the level of provision of KSG Agro S.A.’s own capital is assessed positively by us”. The Agency also considers a positive trend to be a decrease in the volume of short-term loans by 43.97% for the period from September 30, 2020 to September 30, 2021, to $ 2.51 million, and an increase in long-term loans in the structure of long-term liabilities of KSG Agro as of September 30. 2021 by 9.55% – up to $ 27.19 million.
Experts noted that the volume of sales of the company’s products in the period under review increased significantly. “In particular, income from sales for the nine months of 2021 compared to the same period in 2020 increased by 42.78% to $ 20.94 million. At the same time, the volume of net profit for the three quarters of 2021 amounted to $ 17.28 million, which 3.63 times higher than the indicator for the three quarters of 2020. The main factor of the company’s profit growth in the period under review was sales of its subsidiaries and an increase in product sales. Increase in financial results of KSG Agro S.A. led to a significant increase in its profitability indicators”.
Analysis of the consolidated financial statements of KSG Agro S.A. showed that EBITDA for the first nine months of 2021 compared to the same period in 2020 increased by 10.46% to $ 7.35 million, and the ratio between the amount of EBITDA for three quarters of 2021 and the volume of loans as of September 30, 2021 increased up to 26.53%. The corresponding level of this indicator testifies to the company’s ability to service its debt obligations. Thus, having analyzed the consolidated financial statements of KSG Agro S.A. for nine months of 2021, the agency notes an increase in the level of coverage by equity capital, an increase in sales revenue and net profit of the company, as well as a good level of ratio between EBITDA and loans.
Recall that on June 8, 2021, at a meeting of the RA Expert-Rating’s rating committee, it was decided to assign a credit rating to the KSG Agro agricultural holding at the level of uaA + according to the national rating scale. In addition, the holding was assigned a BBB rating on an international scale (for comparison: Ukraine’s rating as a country is at the B level). On September 10, 2021, these ratings were affirmed by the agency.
KSG Agro leading experts analyzed new technologies for growing and protecting crops. This was reported by the press service of the agricultural holding.
Leading experts of farms belonging to the KSG Agro agricultural holding reviewed and analyzed new technologies for growing and protecting crops offered by the world’s leading manufacturers. This happened during a three-day retreat training seminar “Technologies for growing basic crops”, which took place in the tourist complex “Osokory” (Orlovshchina, Dnepropetrovsk region).
Among the participants of the seminar were heads of departments, agronomists, engineers, directors of farms of an agricultural holding on the one hand, as well as representatives of companies producing seeds, fertilizers, plant protection products (PPP), etc., on the other hand.
During the event, the specialists of the holding learned first-hand about new technologies and approaches in the cultivation of basic agricultural crops, primarily sunflower and corn. In particular, representatives of the Limagrain Ukraine company shared their experience in the field of working with seeds, new hybrids and growing technologies based on the analysis of this year’s harvest.
Various aspects of innovations in the cultivation of field crops, as well as technologies for the use of plant protection systems were discussed in a presentation from Agrii Ukrainy. Experienced manufacturers such as UTK ChemAlliance (liquid complex fertilizers), Adama Ukraine, August-Ukraine, Eridon and others presented their know-how in this segment. And one of the European leaders among seed companies, Euralis Semens presented new hybrids of sunflower seeds and technologies for increasing the yield of this crop. In addition, the Nor-Est Agro company shared its possibilities for agro-technical support and increasing the efficiency of agricultural production.
“By organizing a training seminar, we set the task of analyzing new proposals on the market in the field of technologies for growing crops, plant protection products, in particular, the advantages of liquid fertilizers over dry ones, seed growing with the aim of using them to increase the productivity of our crops,” says Dmitry Yemelchenko the production director at KSG Agro agricultural holding. “As a result, we got the opportunity to learn about new products in these areas directly from the world’s leading manufacturers, ask them all questions of interest, taking into account our specifics, and also take part in the discussion of the best technologies for growing crops for work in 2022”.
According to Dmitry Yemelchenko, on the basis of a professional discussion, the best options from agricultural suppliers were selected, which will be reflected in the conclusion of contracts for the supply of products for the agricultural holding farms.
Farms that are part KSG Agro agricultural holding completed harvesting corn and sorghum last week. This was reported by the press service of the agricultural holding with reference to KSG Agro production director Dmitry Yemelchenko.
Farms that are part of KSG Agro agricultural holding have completed harvesting corn and sorghum.
Corn was harvested on an area of 1120 ha with a final yield of 8.4 t / ha (for comparison: the average result of previous years was 4-4.5 t / ha).
“The bulk of the harvest – some 80% of the grain – comes with a humidity of up to 20%, which is very important because drying grain is quite expensive,” says Dmytro Yemelchenko. – In general, with favorable weather conditions of this truly unique year for farmers, we had a task to make the most of this gift of nature to maximize yields. I believe that thanks to the optimal choice of technologies, selection of seeds and plant protection products, we have succeeded.”
KSG Agro also completed the 360-hectare sorghum harvesting campaign. The yield of this crop was 4.2 t / ha, which corresponds to the average of previous years (3.5-4 t / ha).
4 Lexion combines and 20 trucks were used to harvest corn.
KSG Agro will expand the range of crops grown with legumes and niche crops: peas and beans. This news arrived from the agricultural holding’s press service.
KSG Agro Agroholding will expand the range of crops grown with legumes and niche crops, such as peas and beans.
The project will be implemented in two stages. At the first stage, in the first ten days of November of this year, 50 hectares will be sown with the seeds of the first reproduction of peas produced in Serbia, “Moroz” grade. In addition, depending on the weather conditions in January-February 2022, in May, beans will also be sown on an area of 50 hectares.
At the second stage, it is planned to grow peas and beans on sown areas of 500-700 hectares, respectively.
“Expanding the range of legumes, in our case, peas, is natural, because this crop is very useful as a precursor for growing winter crops. In addition, peas are a part of pig feed, and having our own raw materials for feed is very important for our pig farm, especially against the background of their significant price rise. Peas may well become a worthy substitute for soybean meal in compound feeds as a source of proteins, – says Dmitry Yemelchenko, Production Director at KSG Agro. “As for beans, there were several reasons to pay attention to this crop at once – high profitability of production, stable price, export potential, as well as the fact that the inclusion of beans in the crop rotation positively affects the quality of the soil and increases the yield of the follower crop.”
During 9 months of 2021, KSG Agro increased the sales of pigs in live weight by 17.4% compared to the same period last year. This news came from the agricultural holding’s press service.
During 9 months of 2021, KSG Agro Holding increased the sales of pigs in live weight by 17.4% compared to the same period last year, from 5,667 tons to 6,653 tons.
According to Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro, the main reasons for the increase in the volume of sales of pigs in live weight were the renewal of livestock and the improvement of the quality and structure of feed. “As part of the program for the renewal and rejuvenation of the livestock, this year we purchased 1,000 sows of the Danish Dunbred breed, which made it possible to replace the sows of the main herd and thus increase the birth rate of piglets of high-quality genetics,” comments Sergiy Kasianov, “In addition, we have managed to significantly improve the compound feed quality, thanks to a comprehensive partnership program with Cargill. Within its framework, not only did we improve the staff qualifications, but also updated the equipment and created modern laboratories.”
To remind, the current production volume of the KSG Agro feed mill is 120 tons per day and 2500 tons per month. The holding’s own agricultural products are used as raw materials: corn, wheat, barley, sorghum, as well as prefix additives purchased from Cargill.
According to the head of the meat business at KSG Agro Holding Oleksandr Dolzhenko, preparations are currently underway for the modernization of the pig farm in Niva Trudova (Apostolovsky district, Dnipropetrovsk region). The design documentation for future work has already been approved.
Agroholding KSG Agro starts a pilot drip irrigation project on an area of more than 300 hectares. This news came from the press service of the agricultural holding.
KSG Agro Agroholding has launched a pilot project for the introduction of drip irrigation on an area of more than 300 hectares. At the first stage, we are talking about the irrigation of corn crops, but in the future the irrigation system will be extended to other crops grown by the holding’s farms.
The pilot project has already been developed by Technoservice (Nikolaev) and is currently undergoing the necessary approvals. It will be implemented on an area of 300 hectares in the village of Niva Trudova (Apostolovskiy district, Dnipropetrovsk region), where the infrastructure makes it possible to effectively use water resources for irrigating the fields of the agricultural holding’s farms. For the technical support of the project, irrigation systems of mainly American production will be purchased, as well as JCB (Turkey) pumping systems of the Italian company IVECO.
Support for agricultural producers is becoming one of the priorities of the Ukrainian state policy. In the State Budget for 2022, 2.7 billion UAH are allocated for reclamation complexes and maintenance of water management systems. KSG Agro, within the framework of the implementation of its pilot project, plans to receive funding under this state program to support land reclamation.
“Drip irrigation is an opportunity to almost double the average yield even under difficult weather conditions. This was understood back in Soviet times, when the lands on which the agricultural holding’s farms now operate were irrigated on an area of 5 thousand hectares, – says Chairman of the Board of Directors Sergiy Kasianov. – Today, it is very difficult and costly for agricultural producers to independently implement irrigation systems without budget and credit support. That is why one can only welcome the allocation of budgetary funds by the state to support irrigation. In addition, it is expected to attract loans from the United States. We hope that, with the broad support of the state program to support farmers and American creditors (we are purchasing equipment manufactured in the United States), it will be possible to implement not only our pilot irrigation project already in 2022, but in the future, restore irrigation systems on an area of 5 thousand hectares, where they used to exist and where now there is such an infrastructural opportunity.”
According to Dmitry Yemelchenko, Production Director of KSG Agro, the introduction of drip irrigation systems makes it possible to approximately double the average corn yield – from 3 t / ha to 6 t / ha.
As previously reported, the Verkhovna Rada is considering the bill No. 5202 “On the organization of water users and stimulation of hydraulic land reclamation.” The essence of the document is the creation of non-profit organizations of water users (associations of farmers), which will receive objects of reclamation systems. At their own expense, they will repair, modernize and build new irrigation systems. In addition, they are deprived of the right to determine the schedule and volumes of water supply for irrigation, as well as tariffs for irrigation services.
Currently, Ukraine is negotiating to attract US loans totaling $ 4 billion to restore the engineering infrastructure of irrigation systems and the development of irrigation agriculture. The implementation of the project is scheduled for 2022-2030. In addition, the Ministry of Agrarian Policy is negotiating public-private cooperation in the reconstruction of irrigation systems in the southern regions of Ukraine with companies from Israel, the USA, France and China. Earlier, by order of the Cabinet of Ministers No. 1567-r dated October 21, 2020, an action plan was approved for the implementation of the Strategy for Irrigation and Drainage in Ukraine until 2030. In particular, it provides for: modernization and construction of on-farm irrigation systems, restoration and modernization of drainage systems, increasing water supply for the development of irrigation.
The corn harvesting campaign has started on the farms that are part of the KSG Agro agricultural holding. The preliminary yield indicator is significantly higher than the average of recent years. This news came from the agricultural holding’s press service.
KSG Agro agricultural holding’s farms have started a corn harvesting campaign on an area of 1,100 hectares. The preliminary yield indicator significantly exceeds the average indicators of recent years – 8 t / ha versus 4.5 t / ha in previous periods.
According to Dmitry Yemelchenko, Production Director at KSG Agro agricultural holding, three Claas Lexion combines and 14 trucks are used to transport the crop during the harvesting campaign. In parallel, sunflower harvesting continues on the territory of 7 thousand 240 hectares.
Sowing of winter wheat is nearing completion at KSG Agro farms – 4 thousand hectares out of 6 thousand hectares planned and barley are sown – 1.2 thousand hectares out of 1.4 thousand hectares, respectively. For sowing, five John Deere 1890 seed drills are used.
On September 10, 2021, RA Expert-Rating committee made a decision to confirm the long-term credit rating of KSG Agro: on the national scale at uaA +, international scale at BBB. This news came from the press service of the agricultural holding.
According to the expert rating agency, the company’s (in this case, KSG Agro agricultural holding) uaA rating means high creditworthiness compared to other Ukrainian borrowers. The agency has updated its credit rating after analyzing the consolidated financial statements of KSG Agro for the first half of 2021 (http://www.expert-rating.com/rus/rating-list_individualnye_reitingi_promyshlennye_kompanii_ksg_agro_s.a._onovleno_reiting_ksg_agro_s.a./).
Justifying the confirmation of a sufficiently high credit rating to the KSG Agro agricultural holding, the experts of RA Expert-Rating noted: “During the period from June 30, 2020 to June 30, 2021, the equity capital of KSG Agro increased by 52.46% to $ 14.47 million, including due to the profitable activities of the holding and the reduction of retained losses. Over the same period, KSG Agro’s liabilities decreased by 12.52% to $ 55.7 million, mainly due to the sale of three subsidiaries in May 2021.
Among other factors in the conclusion, RA Expert-Rating named: a decrease in the volume of accounts receivable and payable for the period from June 30, 2020 to June 30, 2021 by 75.15% and 62.89%, respectively; prevalence of long-term loans in the structure of long-term liabilities of KSG Agro; net profit growth in the first half of 2021 by $ 13.42 million to $ 13.7 million
“The main factor in the growth of the agricultural holding’s profit in the period under review was the sale of its three subsidiaries. Thus, according to the results of the first half of 2021, KSG Agro demonstrated high profitability indicators, an increase in the level of coverage by its own capital of liabilities, profitable activities and a good level of ratio between EBITDA and loans,” the Expert-Rating concludes.
Recall that on June 8, 2021, at a meeting of the rating committee of RA Expert-Rating, it was decided to assign a credit rating to KSG Agro agricultural holding at the level of uaA + according to the national rating scale. In addition, the holding was assigned a BBB rating on an international scale (for comparison: Ukraine’s rating as a country is at B level). A company with such ratings, in this case KSG Agro, has a high creditworthiness compared to other borrowers.
The sunflower yield at KSG Agro, recorded at the beginning of the harvest, is significantly higher than last year. This news arrived from the press service of the agricultural holding.
Sunflower harvesting has begun on the fields of the Apostolovo and Zatyshne farms, which are part of the KSG Agro agricultural holding. Harvesting of this crop takes place on an area of 7,240 hectares.
According to Dmitry Yemelchenko, Production Director at KSG Agro, preliminary yield indicators were 28-30 c / ha, which is significantly higher than last year.
“We plan to complete the harvesting of sunflower before October 10, also because, in parallel, 100% of the area under this crop is sown with cereals – wheat and barley,” says Dmitry Yemelchenko. “The good weather is in favor of these plans.”
During the harvest, 14 CLAAS Lexion 560 combines and 26 trucks are involved. For sowing wheat and barley, five John Deere 1890 seed drills are used.