Vision, Goals and Strategy
Agromino’s vision is to be one of the top most cost efficient integrated commodities operators, from land operation, crop production, to crop storage, marketing and to grain trading, using sustainable farming methods.
The main operational focus is on high production coupled with stringent cost management. Therefore, the operational goal is to produce its commodities at the lowest possible price per tonne. This is achieved through continuous improvements of the efficiency of our production techniques.
Agromino group’s overall business strategy covers every value-added activity from agricultural land operation, subsequent introduction of modern technology and experienced farm management, as well as follow-on storage, sales and trading activities with the purpose of maximising prices achieved for the group’s commodities.
The overall business strategy of Agromino can be summarised as follows:
01. A FOCUS ON LARGE-SCALE FARMING CLUSTERS
Agromino operates farms and agricultural land within small geographical areas (building up land concentration around grain storage capacity within a geographical radius of up to approximately 75 kilometers) with the aim being to form large cereal farming clusters of more than 5,000 hectares, a size which justifies significant investment and realizes managerial efficiency.
02. Combination of highest capacity Western and Ukrainian manufactured machinery
Agromino focuses on using primarily highest capacity Western and Ukrainian manufactured machinery, allowing for high efficiency in operations.
03. Ukrainian and Russian language speaking management teams
Agromino has local management teams together with European co-managers. The co-managers are Western trained but speak fluent Ukrainian and Russian. This enables the company to select best of Ukrainian and Western technologies and to quickly implement technological and operational changes required under modern production standards.
04. Selectively implementing international best practice
Agromino works closely with leading global agronomic advisers and technology providers to pick and choose approaches best suited for its own regional climate and soil. New technologies are first tested and tried on the company’s test-fields prior to being implemented in large scale on a group-wide basis.
05. Own elevator storage capacity
Agromino operates farms primarily around its own elevator storage capacities. Agromino owns its own elevator storage facilities which strengthens independence of its farms and traders. The group’s sales and trading business allows the group to obtain the best available prices for its commodities through the execution of deliveries both domestically as well as to export markets.
06. Develop integrated commodity production, storage and trading operations
On the basis of its production and storage operations the company has developed its own trading operations. This allows for maximisation of sales prices for the company’s produce and for capturing available trading margins from consolidating crop from farms which do not have access to distribution channels.
07. Production clusters in geographically diversified areas allowing for weather hedge
Agromino operates its production clusters at large distances from each other, allowing for hedging against regional weather conditions and providing for a better group level predictability of cash flows.
08. Agricultural land portfolio in the Black Earth region
Agromino operates its cereal farming land portfolio in the Black Earth region of Ukraine, an area known for the very high fertility of the soil and allowing for production of grains and oilseeds at some of the lowest “cost per tonne” achievable globally.