A/S Trigon Agri harvest update: highest average yields and lowest production cost per tonne achieved in the history of the company
Trigon Agri has completed 81% of the winter wheat harvest and 94% of the rapeseed harvest, the two key early crops grown by the Group. Wheat, which is the largest crop by seeded area (40% of the total crop plan in 2011), yielded an average gross yield of 3.9 tonnes per hectare, a year-on-year increase of 51% (gross wheat yield in 2010 stood at 2.58 tonnes per hectare). The best wheat fields of the Company have yielded as high as 8 tonnes per hectare which shows the underlying potential of the regions where the Company operates. Winter rapeseed, constituting 6% of the total crop plan in 2011, yielded an average gross yield of 1.4 tonnes per hectare, which was in line with the expectations of the Company, given the harsh 2010/11 winter which substantially lowered the yield potential.
Given the current outlook in the fields for the remaining key crops of sunflower, soya and corn, Trigon Agri expects the total 2011 gross harvest to be higher by 50% in tonnage terms than in 2010, while the total harvested area will be up by only 6% year-on-year. Meanwhile, the Group is on target to show the lowest production cost per hectare and per tonne, in its entire history.
The Research and Development department launched during Q1 2011 has had a successful start. The first results of trial tests have contributed a lot of valuable data which will be used by the Group to modify its growing technology for the 2012 harvest, with the aim of increasing yields and lowering the cost of production per tonne. The Research and Development department has also been used as the backbone for the Group’s agronomists training throughout the growing season this year and will provide the same dual function going forward.
At the date of the current release the Group has sold 70% of its expected total rapeseed harvest with an average price of USD 607 per tonne, which is 50% higher than the average rapeseed sales price achieved in 2010. Prices for other crops remain at levels which are substantially higher than seen last year and the Group is gradually executing sales of this year’s harvest.
Further details on the 2011 harvest as well as the Group’s financial performance during Q2 2011 will be given in the quarterly report to be published on August 25, 2011.
Replicated Trial Plot Harvesting 2011, Kharkov, Ukraine.
Mr. Ülo Adamson, President of Trigon Agri A/S
Tel: +372 66 79200
About Trigon Agri
Trigon Agri is a leading integrated soft commodities production, storage and trading company with operations in Ukraine, Russia and Estonia. Trigon Agri’s shares are traded on the main market of NASDAQ OMX Stockholm. Trigon Agri is managed under a management agreement by Trigon Capital, a leading Central and Eastern European operational management firm with around USD 1 billion of assets under management.