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New generation of Ukraine’s agriculture

AGRO2

AgroGeneration is an agricultural company which has concentrated c.a. 120,000 hectares of arable land in Ukraine since March 2007. Today, AgroGeneration is ranked amongst some of the largest agricultural firms in Ukraine both in terms of cultivated acreage and operational efficiency. The company’s core business is grains and oil commodity crop farming. Operations are fully provided with modern agricultural machinery and infrastructure. The company is run by a strong management team with a proven track record consisting of seasoned agricultural professionals and experienced professionals from the agricultural sector.

History
The history of AgroGeneration starts in 2007. Today the company is one of the leading agricultural producers in Ukraine. From that time till nowadays company gained more and more strength and production facilities: the production output has grown from 20,000 tons to 390,00 tons, the cultivated land has spread from 5,000 hectares to 109,000 hectares. In October 11th, 2013, it was completion of the merger with Harmelia company (established in early 2010 by Southeast European Fund IV (SBF IV), managed by SigmaBleyzer, one of Eastern Europe’s largest and most experienced private equity investors; operated over 70,000 hectares of farmlands in the Kharkiv region). After the merger, AgroGeneration became the 5th largest crop producer in Ukraine with production of 440,000 tons and cultivated land of 110,000 hectares.

Company’s strategy and achievements
The strategic potential of the company is its land and shareholders. The Earth is our main resource - there will be no land, there will be no harvest. Thanks to hard work and constant development AgroGeneration has achieved such success and gain customers reliability. The company constantly improves all production processes. For example, in 2017 the company implemented the Lean Six Sigma (LSS) methodology. Lean Six Sigma is basically lean production, cost optimization and improvement of agricultural technologies and quality. Lean Six Sigma will be fully implemented in AgroGeneration by the end of 2017, which will be its first practical implementation in the industrial agriculture of post-Soviet countries. The application of this methodology will open new opportunities for AgroGeneration. Today AgroGeneration is one of the leading agricultural producers in Ukraine in terms of land area in processing, as well as operating efficiency. The main activity of the company is the production of grain and oilseeds. The company’s operations are fully provided with modern technology and infrastructure. The company is led by a strong and professional team of managers with outstanding experience in the agricultural sector, which, alongside highly qualified technical and industrial specialists of the industry, allows to achieve high performance results. AgroGeneration’s long-term strategy is to create value and generate attractive returns by consolidating land into efficient management structures and integrating storage and supply chain assets, and commercial activities for further expansion both vertically and horizontally to achieve economies of scale and provide operational synergy. Operational focus is centered on implementing state-of-the-art agricultural technology and reducing costs, choosing profitable grains and oilseeds adapted to the specific regions of operation and improving yields to achieve sustainably high results. The Company establishes itself as a good base for further development and growth, with its large size, application of unique Western-management practices and skills, and good experience on the Ukrainian agricultural market.

Export volumes
Today AgroGeneration produces winter wheat, winter rapeseed, spring barley, winter barley, corn, soybeans, peas, sunflower and other crops. In 2016, the achieved yields of the Company exceeded the average figures for Ukraine for most of the collected crops. The storage capacity of products is approximately 220,000 tons and production capacity is approximately 400,000 tons of agricultural crops per year. The company is constantly increasing the volume of export sales of products. Because of the 2016 season, the share of exports was approximately 45%. In 2015, it was 38% and in 2014 - 18%.

Mission and vision of the company
AgroGeneration is a successful and efficient, fast growing international company with a resolute team working hard to provide Ukraine and the world with high quality agricultural commodities, thus helping to solve the issues and challenges relating to global food security. Company invests in modern technologies and in human capital, treating its land and people who live and work on it, with the respect and well-being they deserve. Now AgroGeneration has 1360 permanent employees, and for the season of field work the number increases due to seasonal employees who work on a fixed-term employment contract, usually this is an additional 100-130 people. Company has a corporate center and a production department in our company, which in turn is divided into administrative and production personnel. The corporate center is 13% of the staff, the administration in production is 13%, the rest is 74% are employees directly involved in the agricultural production, such as tractor drivers, drivers, elevators and general production specialists - agronomists, engineers, repairmen, weighers, storekeepers, etc. AgroGeneration is a leading Ukrainian producer of high-quality agricultural commodities that are exported throughout the world. Being run by a well-trained, accomplished team and adopting state-of-the-art technologies, it demonstrates advanced managing standards and the highest profitability among agriculture companies operating in Ukraine. AgroGeneration is creating additional value through vertical and horizontal integration, land expansion, optimization of production process, supply, storage and sales; lead the development and doing its best to restore fertility of the land and to improve the well-being in the regions in which we are operating.

Main principles
Thanks to its principles, AgroGeneration can maintain its positions on the market. It acts responsibly to constantly improve its results, reduce expenses and reach the highest efficiency. AgroGeneration is one of the top operational performers of the Ukrainian agricultural market, significantly outperforming Ukrainian average yields for most harvested crops. The company is run by a strong and professional management team with a solid track record in the agricultural sector, and, with the support of a highly qualified technical and production staff, can reach high production efficiency. AgroGeneration runs a transparent business, complying with legislation of countries where the Company operates. Company is always open to cooperation with our clients and partners, as well as with stakeholders. It timely informs the shareholders, investors and counterparts about all essential events, changes and plans of the Company and values the given trust. Company also takes care of the cultivating land, the main natural endowment of Ukraine, and of the people who live and work on it. The company’s activities contribute to the improvement of society in the regions where it operates, primarily through creating employment opportunities with fair wages, and through support of the less privileged members of society. AgroGeneration takes care of its personnel, giving them opportunities for personal growth, inspiring with goals and common ideas. Developing its business, company gives confidence to its employees and contribute to the prosperous growth of the country. AgroGeneration uses modern business approaches and comprehensive up-to-date agricultural production technologies, constantly improving each step of the operational process to reach superior results.

Awards and certificates
AgroGeneration has applied for the Innovation nomination with the Lean Six Sigma project on Global Grain Awards 2017and has already received official confirmation that it has become one of the finalists. The final announcement of the winner will be held on November 14, 2017 in Geneva. The company has its own history, achievements, continuous development and traditions. AgroGeneration is included in the TOP-10 agricultural producers in Ukraine and takes the second place in the ranking on the reputation among Ukrainian agroholdings according to LANDLORD. John Shmorgun, President of AgroGeneration, took the second place in efficiency among all leaders of the agrarian branch of Ukraine according to LANDLORD. The company is led by a strong and professional team of managers with outstanding experience in the agricultural sector, which, alongside highly qualified technical and industrial specialists of the industry, can achieve high performance results. 

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