Krasnodarzernoprodukt Group (KZP Group) reinforces the company's agricultural assets in line with its long-term strategic plans to develop a balanced vertically integrated business. As a result, it has almost doubled the acreage of farmlands under the Group's governance over the last year, bringing it to 45 K ha (over 110 K acres).
Krasnodarzernoprodukt today comprises 7 agricultural holdings located in the South of Russia, Krasnodar region, and employing over 800 people involved in cereals and oilseed growing as the main line of activity. Around 40% of all farmlands are utilized for rice growing; some holdings have dairy or cattle breeding facilities.
Alexey Sidyukov, CEO of Krasnodarzernoprodukt, is convinced that integrated farming is a reliable source of cereals supply for the Group's food processing plants, producing wheat flour, milled rice, semolina and animal feed products. Expansion of croppable area will also benefit KZP new business segment that focuses on food ingredients production.
In 2011 Krasnodarzernoprodukt investments in agriculture totaled RUB 1,2 B (around USD 37,5 M), which, besides farmland acquisition, were used for purchasing up-to-date agricultural machinery and infrastructure sites, for improving lands under crops and agricultural holdings' floating assets. Now the company will focus on perfecting farming routines to increase agricultural production effectiveness.