1, Lampousas st.
1095 Nicosia
Cyprus
"Sintal Agriculture" PLC Ukraine
54, Klaptsova Str.
61093 Kharkov
Ukraine
Tel.: +380 (57) 717 79 95
Fax: +380 (57) 766 51 64
info@sintalagriculture.com
Strategy
Our company’s main strategic objective is to become one of the leading agricultural enterprises in
Further land bank expansion for future appreciation opportunities
Sintal Agriculture pursues an aggressive land bank expansion strategy, which is based on the intensive growth through constant increase of its land lease rights. Every new leased land plot is the subject to comprehensive selection procedures and detailed analysis of land quality. Sintal favours land areas in fertile regions of
Economy of scale
The Company aims to further optimize its operating efficiencies and increase the effective size of the land area in each separate region in order to improve margins. In order to implement this strategy, the Company establishes machinery and equipment stations on the controlled land and insures the persistent use of its fleet on the controlled land. The Group establishes production clusters, on the land under control, which have individual profit responsibility and are governed by professional management with support from central organization. The central organization coordinates sales efforts, investments and purchase of seeds, fertilizers and other inputs.
The Group applies modern farming practices supported by modern machinery as well as by modern information GPS mapping platform in order to optimize the agricultural operations and maximize production efficiency. Company aims at No-till farming that contributes to reduction of costs on tillage and to improvement of the soil quality security with twofold increase of the yields. Today Sintal Agriculture uses Mini-till farming system and consider it as a transition period and a management instrument in achieving No-till. Using research base, Company professionals provide accurate soil analysis for the optimal selection of seeds and fertilizes.
In order to minimize the impact of climatic risks Sintal Agriculture is focused on diversification of its land bank in terms of geographical presence. It allows us to improve productivity and margins by using same machinery units for field works in different regions. It is possible because field works starts in Kharkiv region (North-East of Ukraine) when in Kherson region (South of Ukraine) they are finished. Cultivation of wheat, sunflower, barley and maize is our main specialty. In addition, we have implemented flexible crop rotation process that helps us to diminish harmful effects on soils and contributes to the rational use of soil nutrients by different crops. We are apportioning the land between winter (50%) and spring (50%) crops.
Vertical integration
We consider strategy of gaining control over a larger part of the value chain through investments in grain elevators and specific industrial processing capacities as an instrument to further improvement of our margins, increase of cash flow diversification and reduction of impact of commodity prices volatility. The Group’s strategy presumes investments in acquisition, construction and modernization of elevators.
