AgroGeneration to Expand Grain Storage in Ukraine by 50 Percent
Paris-listed AgroGeneration farms a little over 100,000 hectares in Ukraine. However, the company has seen its earnings fall by half last year due to adverse weather that negatively affected yields for corn and sunflower seeds.
As it foresees a rebound this year on the back of rising grain prices, the company is investing 10 million Euro, (US$12 million) to fund a project that will expand its grain storage in Ukraine by 50 percent. In doing so, AgroGeneration states that the added storage will help the company weather market volatility.
The Ukraine-based company is currently in talks with an undisclosed European partner to fund the project that includes the building of silos across northern Ukraine, in proximity to its farming operations.
Winter sowings, which will be harvested in two months, totaled 48,000 hectares, and spring sowings are progressing on pace, giving the company expectations for between 18 and 19 million Euro (US$21.8 and US$23 million) before interest, tax, depreciation, and amortization (EBITDA).
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