KSG Agro started export deliveries of rapeseed and sunflower oil to three EU countries. This was reported by the press service of the agricultural holding.
KSG Agro started export deliveries of rapeseed and sunflower oil to three EU countries: Poland, Slovakia and Italy.
As part of the signed contract with KSG Agro for raw rapeseed supplies, 2,000 tons of this crop will be exported to Slovakia. In addition, trial deliveries of sunflower oil to Poland and Italy using flexitanks – polymer containers designed for the transportation of liquid cargo and installed on ordinary trucks – have begun. The transportation of oil by flexitanks on traditional trucks allows to reduce transport expenses and the cost of supplies.
At the moment, KSG Agro is negotiating with partners regarding the refining and bottling of sunflower oil in EU countries with the aim of rapidly increasing its export and sale of ready-to-consume products.
In order to develop the export direction in the EU, the agricultural holding attracted two export managers to work in the European Union. With their help, in particular, the possibilities of practical steps for further processing of agricultural products, both produced by the agricultural holding itself and those that can be purchased on Ukrainian markets, are being considered.
“We managed to build efficient logistics chains for export deliveries of both grain and products with a high added value – oil – to the markets of the European Union countries, despite the blockade of sea ports,” comments the Chairman of the Board of Directors at KSG Agro Sergiy Kasianov. – In 2022-2023, we plan to focus on the development of the export of our products in order to increase foreign exchange earnings. There is every reason for this, for example, the high demand in the EU for grain and rapeseed. Currently, there are very good conditions for agricultural producers regarding export to the EU – there are virtually no taxes (in particular, VAT) and import duties. So if you solve the problems with transportation, establish effective logistics, you can have a good source of replenishment of foreign exchange income. Of course, it is not good for us that transport rates are increasing. But transporters can also be understood, because if one delivery to the EU used to take 5-7 days, in the current conditions of queues at the borders, it can take 20-30 days.”
KSG Agro started export deliveries of rapeseed and sunflower oil to three EU countries. This was reported by the press service of the agricultural holding.
According to the results of 8 months of 2022, KSG Agro increased the number of pigs by 20%. This news came from the press service of the agricultural holding.
Agricultural holding KSG Agro has increased its pig population by 20% since the beginning of 2022. While at the beginning of the year, the number of pigs was more than 50 thousand heads, as of September 1, 2022 – based on the results of 8 months of 2022 – it exceeded 60 thousand.
According to Vasyl Starobor, the head of the holding’s pig breeding department, director at LLC Strong-Invest, the increase in livestock was achieved due to the improvement of the quality of the herd (sows and boars), rejuvenation of the livestock, as well as improvement of technologies and production processes.
In addition, according to the results of the first half of 2022, KSG Agro pig complex increased, compared to the same period in 2021, the volume of pork sales by 7%, from 52,903 to 56,735 heads.
KSG Agro agricultural holding will complete the reconstruction of the slaughterhouse by the end of autumn 2022, to increase the supply of pork to retail chains. This was reported by the press service of the company.
By the end of autumn 2022, KSG Agro will complete the reconstruction of the slaughterhouse serving the pig farm of the holding in the Dnepropetrovsk region and located at the Dnipro meat processing plant.
At present, the equipment of the German company Freund, which specializes in the production and supply of means for slaughter and primary processing of animals, has already been purchased and is being prepared for installation. Stunning devices purchased include electric stunners, stunning tongs and other optional accessories.
“The reconstruction of the slaughterhouse and the installation of new modern equipment will allow us to increase the volume of pork produced for retail chains, and of the highest quality, without the so-called “stress hormone” that is present in meat if the animals were stressed before slaughter,” comments the Chairman of the Board of Directors of the agricultural holding KSG Agro Sergiy Kasianov.
In addition, the new equipment will make it possible to slaughter gilts and sows.
According to the agrarian, the commissioning of the reconstructed workshop will also significantly increase the supply of pork produced by the pig farm to the retail chains of the Dnipropetrovsk region, in particular, Silpo and Varus.
KSG Agro provided more than 100,000 kg of pork to the Armed Forces and hospitals of Dnipropetrovsk region
KSG Agro provided more than 100,000 kg of pork to the Armed Forces and hospitals of Dnipropetrovsk Region. This was reported by the press service of the agricultural holding.
KSG Agro agricultural holding has provided more than 100,000 kg of pork to the Armed Forces and hospitals of the Dnipropetrovsk region since the beginning of the large-scale aggression of the Russian Federation against Ukraine. Aid arrived both directly to military units and hospitals of the Dnipropetrovsk region, and by agreement into the city military administration of Kryvyi Rih.
Since the beginning of the war, more than 3,000 cans of pork stew have also been produced and delivered for the needs of the Armed Forces and medical institutions of the Dnipropetrovsk region.
“We believe that during the war our front is a labor front. Therefore, with the support of the Ukraine’s agricultural association, lists of employees were submitted through the Dnipropetrovsk Regional State Administration to the Ministry of Agrarian Policy in order to protect them from mobilization, – says the chairman of the Board of Directors of KSG Agro Sergiy Kasyanov, – The preservation of the workforce allowed us to support the army and our medical facilities with such important consumer products in difficult times of war.
At the moment, there are more than 200 temporarily displaced people at the location of the KSG Agro pig complex. Those of them who have the desire and appropriate qualifications are offered work at the pig complex. At the moment, 10 people are already employed in various professional positions, such as managers, heads of shifts, leading specialists in pig breeding, etc.
In the first half of 2022, KSG Agro agricultural holding increased its normalized profit by 43% compared to the first half of 2021 – up to USD 1.21 million from USD 0.85 million. This was reported by the holding’s press service with reference to the company’s report published on the Warsaw Stock Exchange.
In the first half of 2022, KSG Agro agricultural holding increased its normalized profit by 43% compared to the first half of 2021 – up to USD 1.21 million from USD 0.85 million.
The company’s Board of Directors used the measure of “normalized profit” to provide a more adequate assessment of financial results for the period for comparison purposes instead of accounting profit. When determining the normalized profit, the management excludes the impact of one-time operations (including the disposal of subsidiaries), as a result, the representation becomes more objective and reliable when comparing periods.
As mentioned in the report, the Board of Directors is developing a new development strategy to expand the group’s activities in the EU with the clear goal of having most of its assets and revenues there within the next 3-5 years. This objective can be achieved through a series of mergers and acquisitions and is financed through a combination of equity and debt, including additional equity issues.
At the same time, KSG Agro does not plan to sell its assets in Ukraine. Its development strategy is to expand and invest only in Ukraine to hedge potential risks, as well as mitigate the negative impact on the group’s activities in the current macroeconomic situation in the country.
In addition, the Board of Directors decided not to adjust the range of agricultural crops due to possible future changes in both local and global demand for certain crops because of the Russian invasion of Ukraine. The group will maintain the current ratio – 60% of winter crops (wheat, barley, rapeseed) and 40% of spring crops (sunflower, corn). In the long run, this turned out to be a more rational approach from an agronomic point of view.
KSG Agro’s stable operation during the war made it possible to update its credit rating in the first quarter by RA “Expert-Rating” to uaA+ level.
The stable operation of KSG Agro, in particular, its pig breeding complex, during the war made it possible to confirm its credit rating by RA “Expert Rating” in the first quarter at uaA+ level. This was reported by the press service of the holding with reference to the report of the rating agency Expert Rating.
With the beginning of full-scale hostilities in Ukraine, KSG Agro agricultural holding has taken a set of measures to ensure uninterrupted operation in the field of crop production and pig breeding complex, whose activities relate to the sphere of food security of Ukraine. Thus, the logistics chains were revised, the issue of providing transport with safe routes for the delivery of products was resolved, the staff was motivated by a two-fold increase in wages, and a strategic stock of animal feed was formed. In order to ensure uninterrupted activity of the team with the support of the Association of Pig Breeders of Ukraine through the Dnipropetrovsk Regional State Administration, lists of employees were submitted to the Ministry of Agrarian Policy in order to secure them from being drafted. Such a strategy of the holding, which led to its uninterrupted operation and deliveries, was highly appreciated by RA Expert-Rating, which at the beginning of August updated the long-term credit rating of KSG Agro in the first quarter using a national scale at the level of uaA+ (rating on the international scale of the Agency – at the level of BBB).
Important to recall that a borrower with a rating of uaA is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments.
Among other factors confirming the high credit rating was the growth of the holding’s equity capital for the period from 31.03.2021 to 31.03.2022 by 3.74 times – up to USD 23.42 million, reduction of liabilities by 21.43% – to USD 45.31 million and, as a result, an increase in the ratio between equity and liabilities of KSG Agro by 40.84 percentage points to 51.70%.
“A significant increase in the level of KSG Agro’s own capital has a positive effect on the company’s solvency and is highly appreciated by the agency”, noted RA “Expert-Rating” experts.
In addition, in their opinion, it is important that the predominant share in the structure of long-term liabilities of KSG Agro as at 31.03.2022 was occupied by long-term loans, the volume of which in the analyzed period increased by 5.78% – to USD 25.97 million.
“The volume of sales of the company’s products in the analyzed period still showed growth. In particular, sales revenue for the first quarter of 2022 compared to the first quarter of 2021 increased by 0.54% and amounted to $3.54 million. At the same time, KSG Agro’s net profit at the end of the first quarter of 2022 increased by 2.45 times compared to the same period in 2021 to USD 1.84 million. A significant increase in the financial results of KSG Agro had a positive effect on the profitability of sales and profitability of the company’s assets, which in the analyzed period showed significant growth,” analysts of RA Expert Rating note.
Analysis of KSG Agro consolidated financial statements showed that EBITDA for the first quarter of 2022 compared to the first quarter of 2021 increased by 9.96% to USD 1.52 million, and the ratio between the amount of EBITDA for the first quarter of 2022 and the volume of loans as at 31.03.2022 increased compared to last year’s figure by 0.29 percentage points to 5.36%, which is positively assessed by RA Expert-Rating.
The agency notes that, since the beginning of the Russian invasion, there have been no hostilities in the immediate vicinity of the holding’s assets, KSG Agro S.A. has no customers from Russia, and the price dynamics of goods produced by the agricultural holding is favorable.
Besides, despite Russia’s military aggression against Ukraine, KSG Agro received from TASCombank in the first quarter USD 1.33 million of credit funds for the sowing campaign. Also, the company, even in the conditions of wartime, continued to increase the pace of pork production – i.e. KSG Agro in March increased sales of pigs by 3% compared to February 2022.
Thus, the agency has noted a significant increase in the level of equity coverage of liabilities, an increase in financial results, high performance indicators of the company, as well as an increase in the ratio between EBITDA and loans.
The farms that are part of the KSG Agro agricultural holding have completed the harvesting of early grain crops. This was reported by the press service of the holding with reference to the head of the crop division of KSG Agro Dmitry Emelchenko
The farms that are part of the KSG Agro Agricultural holding have completed the harvesting of early grain crops on an area of 6.3 thousand hectares ha, including:
• wheat – 4.2 thousand ha
• barley – 1.3 thousand ha
• winter rapeseed – 0.8 thousand ha.
During harvesting, the holding’s farms were fully provided with the necessary equipment: combines and trucks for harvesting. Thanks to modern equipment and technologies used by the holding, the entire sown crop is harvested without loss.
“The weather was characterized by the lack of productive precipitation in the required technological terms for plants, which did not contribute to the high yield of crops,” said Dmitry Yemelchenko.
As a result, the yield of wheat and barley was 3 t / ha, and winter rapeseed 2.2-2.5 t / ha.
KSG Agro and Makarony Polskie (Poland) signed a memorandum of cooperation in the area of processing and trade of vegetable oil and cereals
KSG Agro Agricultural holding and Makarony Polskie (Poland) signed a memorandum of cooperation in the area of processing of rapeseed and sunflower oil, grain, as well as trade in finished products. This was reported by the press service of the holding with reference to the company’s message on the website of the Warsaw Stock Exchange.
On July 11, 2022, KSG Agro Agricultural holding and Makarony Polskie (Poland) signed a memorandum of cooperation in the area of trade in rapeseed and sunflower oil, as well as grain crops. Their processing is also foreseen. The document establishes the principles of economic cooperation in oil and grain trade, as well as partnerships in other areas of agricultural production. In particular, the companies plan to import rapeseed and sunflower oil from Ukraine, their processing and marketing in Poland and other countries.
“As part of the implementation of the memorandum, we are negotiating with our Polish partners on the joint processing of products, in particular the grain group, in Poland, with the further sale of products ready for final consumption both in Poland and in other EU countries,” commented signing of the memorandum Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro. According to him, within the framework of this cooperation, it is possible to create a joint venture with Makarony Polskie.
As previously reported, KSG Agro has started processing rapeseed and sunflower seeds in Ukraine under a tolling scheme for export purposes. At the same time, according to reports, after refinement of vegetable oil and packaging especially for the EU, the holding will export products ready for consumption.
Makarony Polskie SA is one of the largest and fastest growing pasta producers in Poland. The main office of the company is located in Rzeszow. The company has production facilities in Rzeszow and Czestochowa. It produces pasta, as well as fruit and vegetable preserves and ready meals under its own trademarks and brands of retail chains and hypermarkets (including Tesco, Carrefour, Auchan). The company’s shares have been traded on the Warsaw Stock Exchange since 2007.
KSG Agro is one of the leading agricultural holdings in Ukraine, a European innovative group of companies operating under the principle of vertical integration. The holding’s shares are listed on the Warsaw Stock Exchange. KSG Agro is a member of the European Business Association (EBA), as well as the Association of “Pig Breeders of Ukraine”. The main activity of the holding is the cultivation of land and the production of crops, as well as the pig business, for which its subdivision LLC Strong-Invest is responsible. Since September 2014, KSG Agro has been implementing a development strategy, according to which the company is developing the most promising projects, primarily in pig breeding, as well as crop production.
KSG Agro, together with the Maybutnie Charitable Foundation delivered humanitarian cargo for hospitals in the Dnepropetrovsk region
KSG Agro agroholding, together with the Maybutnie Charitable Foundation, delivered humanitarian cargo for hospitals in the Dnepropetrovsk region. This was reported by the press service of the holding.
KSG Agro Agroholding, together with the Maybutnie Charitable Foundation, delivered humanitarian cargo for hospitals in the Dnipropetrovsk region. The cargo with a total value of UAH 0.3 million, which arrived from Germany to Dnipro, included medicines, dressings, personal protective equipment, dropper systems, etc.
Partially, the German side purchased medicines and equipment at its own expense, and the rest was financed by the Sergiy Kasianov’s Maybutnie Charitable Foundation, the main donor of which is KSG Agro agricultural holding.
“The logistics and most of the financing of this cargo, which will be distributed among hospitals in the Dnepropetrovsk region and partially to other regions, was provided by the Sergiy Kasianov Maybutnie Foundation, says Olexander Loskutov, president of the Ukrainian-German Union of Orthopedic Traumatologists. “Thanks to him, we will be able to operate more efficiently on wounded soldiers of the Armed Forces of Ukraine.”
“This is the second humanitarian cargo from Germany that we have delivered to Ukraine, to the Dnipropetrovsk region, and we are not going to stop on this path,” comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro, founder of the Charitable Foundation “Maybutnie”. – Farmers know very well the real price of peaceful labor in the fields of our native Ukraine, which is on fire today. Realizing our social responsibility, we do our best to help the injured soldiers and citizens, we try to constantly help the Armed Forces of Ukraine.”
“Thanks to the effective cooperation of the Ukrainian-German Society of Orthopedic Traumatologists and KSG Agro, more than 150 operations can be performed with the help of the delivered medicines. The delivered cargo will be primarily useful in cases of severe joint damage, consequences of amputations of limbs and for the rehabilitation of the wounded,” explains Olexander Golizdra, Communications Director at KSG Agro.
“The most modern endoscopic equipment has arrived to us, capable of providing about 1.5-2 months of our work,” says orthopedic doctor Artem Naumenko. “The new equipment allows us to perform even the most complex operations more quickly and efficiently.”
At present, the team of the Maybutnie Charitable Foundation with the help of KSG Agro continues to work on preparing the delivery of new cargoes to Ukraine for domestic doctors.
KSG Agro starts processing under the toll scheme of rapeseed and sunflower in Ukraine and bringing the oil to the consumer standard directly in the EU, for the export of vegetable oil intended directly for the consumer. This was stated by the Chairman of the Board of Directors of KSG Agro Sergiy Kasianov in an interview with the CBC Canadian television and radio company.
The war in Ukraine is forcing agricultural producers to change their strategies, looking for new sales channels for agricultural products. The blockade of Ukraine’s seaports due to Russia’s military aggression makes traditional logistics chains and export supplies of grain and oil agricultural products impossible. In these circumstances, KSG Agro agricultural holding under the tolling scheme began processing rapeseed and sunflower in Ukraine for export. At the same time, after finishing the oil and packing directly in the EU, the holding will export ready-to-eat products.
“Our military realities push us to find new strategic solutions,” says Sergiy Kasianov. “Yes, we have decided that rapeseed and sunflower will be processed, because selling such products abroad in the form of the same vegetable oil, ready for consumption at a better price is more likely than just sunflower seeds.”
According to Sergiy Kasianov, the agricultural holding has already signed a contract with one oil refinery in Ukraine. Negotiations are currently underway with European partners on the refining of oil, its packaging in PET bottles in EU countries for further sale, both in the EU and in other countries.
In order to solve the problem of transporting oil to the EU, KSG Agro has already purchased flexitanks in Turkey, which will allow them to transport up to 22-24 tons of oil in conventional trucks.