KSG Agro Agricultural Holding has signed an agreement for restructuring of its credit debt with the German company Big Dutchman.
In accordance with the decisions taken by KSG Agro and Big Dutchman (Germany), the debt of the agricultural holding to the German company under the loan agreement dated August 28, 2012 was restructured.
The parties recognized that the credit debt amounted to 4,764,533 euros, namely, 3,960,000 euros of the principal amount of the debt and 804,533 euros of interest accrued.
Decisions on restructuring imply a reduction in the amount of debt to a German lender to 1,030,000 euros, which will be repaid starting from July 31, 2019.
Loan funds from the company Big Dutchman were attracted by the agro-holding to develop a pig farm in Niva Trudova (Dnipropetrovsk region) owned by LLC Rantye, a member of KSG Agro group.
“We are grateful to foreign creditors for the partnership approach in solving debt problems,” commented Sergiy Kasianov, chairman of the board of directors at the KSG Agro agricultural holding, “We are actively being understood by our partners, who allow us to pay off our debts with a significant discount. Reaching an agreement allows both parties not to lose, but to gain. For us, successful restructuring means the successful development and launch of new projects in the field of crop and pig production”.
According to Mr. Kasianov, the settlement of credit debt issues will remain among the strategic priorities of the holding for 2019.
KSG Agro Holding started harvesting miscanthus.
KSG Agro Holding began harvesting miscanthus on an area of 30 hectares. This energy generation crop was planted in 2013 and grown using a special technology, according to which harvesting takes place 5 years after planting.
“Six years ago we introduced the technology of using non-agricultural land for the cultivation of special energy crops. It was then that uterine plantations of miscanthus were created — a culture that is already recognized as revolutionary in agriculture for the production of solid biofuels”, says Sergey Kasyanov, Chairman of the Board of Directors of KSG Agro,“ Growing miscanthus with its high energy output fully fits into our strategy for producing heat from renewable biofuels. As a raw material for the production of pellets, this culture is much more efficient than cereal waste. After full harvest, we plan to get more than 400 tons of raw materials for pellet production”.
According to the harvesting results from the first three hectares of miscanthus, the crop yield was 12-15 t / ha.
As previously reported, KSG Agro, together with the territorial communities of the Dnepropetrovsk region, without the involvement of budget funds, implements a program for transferring boiler houses of social facilities (schools, etc.) from heating with expensive natural gas or coal to fuel pellets. As a result, budget savings for each facility amount to about 40%.
By the end of 2018, KSG Agro increased the total amount of thermal generation from biofuel by 37% to 8.35 mW.
In 2019, KSG Agro will commission a reproducer for 714 sows
In 2019, KSG Agro will commission a new sow house at the pig complex for 714 heads to increase pig production by 20%.
The planned volume of investment in the facilities will amount to UAH 11 million. It is planned to upgrade the reproducer with equipment produced by the German company Big Dutchman.
Putting into operation the new sow house scheduled for September-October 2019 will increase the number of piglets produced by 1.5-2 thousand per month. For comparison, at present, from 9 to 10 thousand piglets are monthly brought up at the pig complex.
In 2018, KSG Agro began the reconstruction of infrastructure facilities adjacent to the pig complex. In particular, the construction of the sewage pumping station started, the volume of investments in its equipment amounted to UAH 2.5 million. In addition, in 2018 the agricultural holding invested UAH 1 million in the equipment for the crematorium for the pig waste disposal.
As previously reported, investments in the infrastructure of the pig complex helped the company increase sales of pig products in monetary terms to UAH 403 million (+ 6.3% by 2017).
According to the company, the average annual number of pigs in 2018 at the pig farm in the village of Niva Labor Dnipropetrovsk region was about 55 thousand heads.
The 2018 results show that KSG Agro agricultural holding increased its sales of pig-breeding products by 6.3% compared to 2017 and reached about UAH 403 million.
In comparison with 2017, KSG Agro holding’s pig sales last year increased by 6.3%. By the end of 2018, the agroholding’s sales of live pigs amounted to about 93 thousand heads.
“In 2018, we continued to concentrate on our strategic priority – pig breeding, which, by the end of 2018, again demonstrated its high efficiency,” commented Sergiy Kasyanov, chairman of KSG Agro’s Board of Directors. – Despite the objective difficulties on the market, we managed to maintain the capacity and profitability of the business, as a result of the introduction of a number of technological and managerial measures. I did my job on the reconstruction of pig-breeding capacities. Throughout the past year, the volume of consumer demand consistently exceeded our production capacity. As a result, the average sales price exceeded the same indicator in 2017 by 16.5%, amounting to about 44 UAH / kg”.
According to the head of KSG Agro’s Board of Directors, in 2019 the company plans to keep great efficiency of the pig industry by maintaining a high level of livestock quality, as well thanks to further reconstruction and introduction of innovative technologies at the pig breeding complex.
In 2018, LLC Rantye, which is responsible for the development of the pig complex in the village of Niva Trudova, Dnipropetrovsk region, maintained an average annual population of about 55 thousand pigs.
Land irrigation program
KSG Agro Holding has begun a program of agricultural land irrigation. First at the farms of Apostolovsky and Solonyansky districts of the Dnepropetrovsk region. This program intends to provide the necessary amount of moisture to agricultural crops in our arid climatic steppe zone. Such crops include soybeans, corn and other crops. Of particular importance is the need to receive high yields of green mass of corn to provide animal feed at LLC Rantye’s pig farm. The program of land irrigation will enable usage of new technologies of plant feeding and protection.
Harvesting late crops at KSG Agro Holding
The KSG Agro Group’s farms began harvesting late crops, in particular sunflower and corn. Sunflower is already harvested at 65% of sown fields. The average yield is 3.1 t / ha. Corn is being harvested too. At the moment, this crop has produced a yield of 6.5 t / ha. Part of the areas sown with corn was intended for growing green mass for the fodder base of Rantye pig-breeding complex. The yield of silage has amounted to 30t / ha.
At the same time, the holding continues the autumn sowing campaign. Fields are being prepared for sowing winter wheat with some 10 thousand hectares planned for this year. For a better primary processing of land during the sowing campaign, the new powerful machinery was acquired. These are Lemken’s 10 plows and tillage equipment.
Winter rape is being sowed too.
Harvesting of early cereals
KSG Agro Agricultural holding completed the harvesting of winter rapeseed and barley.
Winter rapeseed is harvested from fields with an area of 6 thousand hectares, with the average yield amounting to 3.0 t / ha. Barley is harvested from an area of 4 thousand hectares, the average yield is about 3.9 t / ha.
The harvesting of peas is also completed; the area of crops is 115 ha, with an average yield of 2 t / ha.
By July 9, 2018, the third of the winter wheat fields were harvested. Yield forecasts are optimistic and will be announced at the end of harvesting.
KSG Agro participates in scientific agrarian research
KSG Agro Agroholding takes an active part in scientific activity, cooperating with Mironivskiy Institute of Wheat named after V.M. Remesla of the National Academy of Agrarian Sciences of Ukraine.
In 2018, the company participates in the institute’s program to expand the range of use of wheat varieties, barley of Myronivska selection. The program considers the adaptation of winter and spring crops in our climatic zone. The agroholding has processed a breeding site for wheat and barley varieties of the Mironivsky Institute for researching the timing of crops, germination, drought resistance and yield in the steppe zone of the Dnipropetrovsk region.
On June 13, there was a celebration of the Day of Field at the demonstration site of winter and spring grain crops of the Mironivskiy Institute of Wheat named after V.M. Remesla located on the field of “Zatyshne” in the Krinichansk district of Dnipropetrovsk region.
During the event the guests were introduced to the achievements of agrarian science and new technologies of growing crops.
The scientists of the Mironivsky Institute spoke about the achievements of breeding, peculiarities of growing crops, agrotechnical and protective measures carried out at the demonstration site.
Everyone could ask a question of interest and get a comprehensive answer.
The group of KSG Agro’s top managers visited AGRO-2018 agro-industrial exhibition.
Stands that demonstrated agricultural machinery, equipment and spare parts triggered the biggest interest for plant growers.
To improve production, introduce innovations, partners were selected for refurbishment of seeders in the agro-holding’s machinery and tractor fleet. To improve the process of sowing and streamline its quality there is a need to convert simple sowing to sowing with the simultaneous application of fertilizers into the soil. The managers could find the necessary partner to re-equip the existing seeder park. An important technical aspect was about the opportunity to examine modern tools and mechanisms for optimal soil preparation in spring – field work. The agroholding professionals were interested in the rotary harrow, which allows to retain moisture during soil cultivation, and in many other exhibits.Additionally, partners were found to introduce the latest technologies used in agribusiness for precision farming, automation and control, as well as enterprise management.
The exhibition turned out an effective platform for improving production.
Spring field works started in February, despite the cold weather, at the KSG Agro agricultural holding farms. As of April 20, the organic fertilizing of winter crops was carried out in all planned areas. The spring sowing campaign began in the second half of April. Traditionally, the main crops in the crop rotation will be sunflower, corn, sorghum, and another culture – buckwheat – is added this time. Since April 20, it is planned to start sowing sunflower. Later in May, maize, sorghum and buckwheat will be sown.
Sowing areas are planned as follows:
Sunflower – 15 thousand hectares
Corn – 2 thousand hectares
Sorghum – 3 thousand hectares
Buckwheat – 300 hectares.
In general, the area of winter crops in the holding is about 20 thousand hectares, the crops are in good condition. Areas of winter crops are:
Barley – 4 thousand hectares
Wheat – 10 thousand hectares
Winter rapeseed – 6 thousand hectares
The holding farms are fully provided with high-quality fertilizers and modern agricultural machinery and instruments.