Amid robust wheat prices, Don Agro International upgraded the winter wheat class of its harvest that commands up to USD5 more per tonne
With the completion of harvesting works for this year, the Company has harvested 72,300 tonnes of winter wheat as of November 2021, driven by land bank acquisitions and the implementation of innovative technologies.
The upgrade in the Company's winter wheat class to third class is due to the increase in the content of protein from approximately 12.5% to 13.5%. Not only does the third class of wheat command an increased pricing of USD1.5 to USD5 as compared to the fourth class, the price of the third class of winter wheat reached USD313 per tonne at the end of November 2021 based on the Chicago Board of Trade, representing a 50% year-on-year increase from its price in November 2020. The last time prices of winter wheat were that high was in January 2013.
"The increase in the yield and quality of our products is the result of the consistent development and progress of the Company, which is achieved due to several factors. The first is the renewal of the vehicle fleet as we buy the most modern and productive machines every year. The second, of course, investments in the soil itself - we increase its fertility by applying organic and mineral fertilizers. The third is quality control, for which we also use quadcopters. Fourth, with the introduction of new technologies, we constantly experiment with improving the quality and ultimately the profitability of our operations. Wheat prices have reached an all-time high since January 2013, and therefore we are confident in the future of the Company", commented Mr. Marat Devlet-Kildeyev, Chief Executive Officer of Don Agro International.
Another direction of the Company's development is the reduction of environmental impact. Don Agro increases the amount of land on which no-till technology is applied annually and there is more than 7,000 hectares of such land currently. The method effectively eliminates any mechanical impact on the soil, which, among other things, reduces emissions into the atmosphere. The Company plans to expand the no-till area to 8,000 hectares in 2022.
About Don Agro International Limited
Don Agro is one of the largest agricultural companies in the Rostov region in Russia principally engaged in the cultivation of agricultural crops and production of raw milk. The Group is also engaged in crop production in the Volgograd region in Russia. The Group has a total controlled land bank of 67,340 hectares, of which more than 54,420 hectares are arable land. The Group owns approximately 17,200 hectares of its controlled land bank.
The Group's operations are principally located in the Rostov region, one of the most fertile regions of Russia, situated close to the Azov and Black Seas and the Don River which house major international ports. The Group's second operating division in the Volgograd region is located in close proximity to key trading routes including the Volga River. This allows the Group's customers, who are mainly traders and exporters, to save on transportation costs and, as a result, be able to offer higher prices for the Group's crops. Within the crop production segment, the Group is primarily engaged in the farming of commercial crops such as winter wheat, sunflower, and corn.
In addition, the Group is the largest milk producer in the Rostov region and owns more than 4,000 heads of dairy cattle which includes approximately 2,200 milking cows.
Issued for and on behalf Don Agro by Financial PR
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Don Agro International Limited (the "Company") was listed on Catalist of the Singapore Exchange Securities Trading Limited (the "Exchange") on 14 February 2020. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor").
This press release has been reviewed by the Company's Sponsor. It has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.
The contact person for the Sponsor is Mr Joseph Au, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, sponsorship@ppcf.com.sg
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