Dakor Agro Holding, formed through the merger of Dakor West and Land West, is pleased to provide investors with an update on spring sowing campaign
Dakor Agro Holding (DAH), formed through the merger of Dakor West (DAKOR:UK; WI81:GR) and Land West (4K1A:GR), is pleased to provide investors with an update on spring sowing campaign.
As of today spring sowing campaign is 95% completed and is expected to be finished by 1 June. Dakor Agro Holding plans to sow 66 ths ha this year which represents a marginal 4 % decline from last year’s harvested 69 ths ha. Management stated that the crops and areas planted for 2010 harvest were specifically chosen to maximize profitability given the company’s current working capital constraints. Sugar beet was originally chosen as key strategic crop with a 121% yoy increase of planted area. With expected yield of 40 tons per ha DAH plans to process 680 ths ton of sugar beet to produce about 100 ths tons of high quality sugar in 2010. DAH continues to leave the remaining areas fallow for future cultivation. Sowing is proceeding in accordance with an approved spring crop plan. All farms are fully supplied with fuel, seeds, fertilizers and plant protection materials.
DAH completed sowing of sugar beet, spring rapeseed, spring wheat, brewing barley, and others. Company continues sawing of soy and technical crops. This is an addition to the 27 226 hectares of winter crops planted in the autumn of 2009 comprising of winter rapeseed, wheat and barley.
Please find detailed culture/crop operating data for both 2009 and 2010 shown in the table below:
Planted area (ha)
2009
2010
YoY change
Sugar Beet
7 700
17 000
121%
Winter Rapeseed
11 814
7 328
-38%
Winter Wheat
21 737
13 637
-37%
Spring Wheat
1 473
2 124
44%
Brewing Barley
15 973
7 870
-51%
Winter Barley
1 838
5 397
194%
Spring Rapeseed
1 291
3 304
156%
Oat
1 237
789
-36%
Winter Rye
3 832
864
-77%
Flax
753
731
-3%
*Soy
1 001
7 000
599%
Total
68 649
66 044
*Sowing of soy and technical crops is expected to be finished by 1 June.
Crops planted in fall emerged from winter with minimal damage, despite widespread losses across Ukraine.
89 per cent of the winter rapeseed is estimated to be in either good or excellent condition with 8 per cent in average condition and 3 per cent lost. This compares to approximately 20 per cent of Ukraine’s rapeseed lost due to severe weather conditions, according to the Ukrainian Ministry of Agriculture estimates.
96 per cent of the DAH winter wheat crop is estimated to be in good or excellent condition with 3 per cent in average condition and 1 per cent lost. 95 per cent of the winter barley is estimated to be in either good or excellent condition with 3 per cent in average condition and 2 per cent lost. This compares to approximately 13 per cent winter crops lost across the whole country.
Plans for distribution harvest are underway and the DAH’s sales team has started targeting both domestic and international customers. Company is in the process of signing forward contacts for barley and rapeseed.
For further information, contact Elena Sergeyeva, IR of Dakor Agro Holding at Sergeyeva.Elena@dakorwest.com
