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Svarog West Group Corporation
Key performance indicators
2015
About Svarog West Group Corporation
2003 2015
ACREAGE4,000 ha 80,000 ha
PERSONNEL200 employees 4,500 employees
GEOGRAPHYKhmelnytskyi region
Khmelnytskyi region
Chernivtsi region
Zhytomyr region
INFRASTRUCTUREShepetivka Sugar-Mill JSC • Shepetivka Sugar-Mill JSC
• Grain, legume, oil and special (niche)
crops
• Seed material production (seed plant)
• Dairy and meat livestock farming
• Horticulture
• Products processing and storage
• Modern MTSs
• Agricultural machinery and equipment
production
• IT Projects
• NFC juices production
• Corporate Social Responsibility, Charitable
Foundation
The agricultural department was established on the basis of Shepetivka Sugar-Mill JSC to supply sugar production needs with its own raw materials resources
New business directions — dairy and meat livestock farming, MTS
Svarog-2006 Corporation was officialy registered on December, 27. The company incorporated 6 farms in Khmelnytskyi region
Acquisition of farms in Chernitsi region. New business direction — horticluture
Strengthening of the Company's positions and territorial expansion. Rebranding of the Corporation. New name - SvarogWest Group
Intensive development of existing business directions
History
History
Own products export program development. Production and recording processes automation on «1C 8» platform
Company legal restructuring and international audit projects start, adoption of IFRS (in partnership with Deloitte company)
The Corporation becomes Ukrainian leader in terms of yield indicators. Business expansion in Khmelnytskyi region
The most powerful in Western Ukraine seed plant, modern fruit storage, juice production line are set into operation
The Company's business activity expands in Zhytomyr region. Elevator facilities are increased. The second line of fruit storage with the capacity of 2.5 thousand tons is set into operation. Seed production is intensively developing. New business direction — agricultural machinery and equipment production
Special (niche) crops production and processing program starts on a commercial scale. Svarog is Ukrainian leader in terms of wheat, sugar beet and soybean yields. 5% of Ukrainian soybean production market. Automated company management system in on-line mode is created
Geographic location Professional team
Effective
implementation of
agricultural
technologies
Modern material and
technical facilities
Diversification of
production
Socially responsible
business operations
Clear legal structure High reputation of the
Company
Competitive Advantages
Farm lands
Orchards
Geographic Location of Lands
Khmelnytskyi
Zhytomyr
Chernivtsi
Georaphic Location of Lands
Khmelnytskyi region
LAND AREAS CLUSTERS
Shepetivka
Slavuta
Starokostyantyniv
KHMELNYTSKYI
Chernivtsi region
Kamyanets-Podilsky
Kitsman area
Sokyryany area
Novoushitskiy area
Kelmenetsky area
Georgaphic Location of Production Facilities
Seed plant
Livestock farms
MTSs
Elevators
Controlled atmosphere
fruitstorages
Vegetable storages
Dairy farms
Agricultural Machinery and
Equipment Plant
Seed farms
Seed plant
Elevators
Modern MTSs
Leading Inventory producers
Export
Stud farms
In-house fodder base
Modern dairy farms
Waste products are used in
organic segment of crop
farming
Nursery garden
Controlled atmosphere fruit
storages
Weather station
Sorting line
NFC juices production
Export
Complexity of Agriproduction
Svarog West Group Corporation Business Operation
CROP FARMING
Geography:
Khmelnytskyi, Chernivtsi and Zhytomyr regions
Leased land acreage:
80,000 ha
Niche crops:
spelt, beans, mustard,
pumpkin, oil flax,
chickpeas, lentils
Main crops: corn,
soybean, wheat, sugar
beet
Total yield of main crops in 2014: over 320,000 tons
( where the total yield of soybean - 147,000 tons)
Crop production
storage:
9 modern cereal
receiving stations with a
total capacity of
270,000 tons
Land Bank Dynamics in 2008-2014
CROP FARMING
CROP FARMING
Total Yield of Main Crops in 2008-2014
2008
2009
2010
2011
2012
2013
ths tons
ths tons
ths tons
ths tons
ths tons
ths tons
ths tons
Yield Dynamics of Main Crops in 2008-2014
Динаміка врожайності, тонн/га
2008 2009 2010 2011 2012 2013 2014
6.7
4.8
9.3
11.310.3
11.8 12.1
8.8
3.8
6.3
3.02.6
6.16.4
2.6
5.0
2.5
4,6
0.8
4.7
2.0
CROP FARMING
CORN, Т/HA WHEAT, Т/HA SOYBEAN, Т/HA
Crop Structure Dynamics in 2011-2014
SOYBEAN
CORN
WHEAT
OTHER CROPS
25,0 %
18,0 %
25,0 %
32,0 %
24,0 %
19,0 %
22,0 %
35,0 %
40,0 %
30,0 %
16,0 %
14,0 %
46,4 %
10,6 %
16,4
22,6 %
2011 2012 2013 2014
SPECIAL (NICHE) CROPS
65ths ha
69ths ha
80ths ha
80ths ha
4 %
CROP FARMING
Seed Plant
CROP FARMING
Main crops
Season work schedule
July August September October November December January February March April May June July August September October November December
Soybean
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Wheat
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Spelt
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Research at soybean trial fields•Testing of soybean varieties (foreign selection) for the regions’conditions•Influence of thousand-seed weight on growth energy, germination and soybeanyield•Research on efficiency of applying various mineral fertilizing systems on yield and quality of soybeans•Efficiency of applying various protection systems (fungicides, herbicides, insecticides) on soybeans•Research on efficiency of applying growth regulators on productivity of soybeans•Research on efficiency of applying inoculation (various bacteria) on yield and quality of soybeans• Influence of seeding rate on yield and quality of soybeans• Research on soybeans sowing timing in the regions’ condition•Research on efficiency of applying biostimulators on soybean productivity•Use of mixes of regulators for seed treatment to improve the yield of soybeans
Svarog carries out own wide scale research to raise the efficiency of production and find the best varieties of seeds that will ensure high quality and rich harvest of crops. Company tests 94 varieties of soybeans and 86 varieties of wheat at specially dedicated land plots
Laboratory research•Influence of seed damaging on sowing indicators• Influence of heterogeneous seeds on sowing indicators• Stillness of seeds during ripening depending on seedvarieties• Research of factors that influence seed lifespan and longevity•Research of influence of various chemicals on seed energy and sprouting•Use of mixes of regulators for seed treatment to improve the development of root system
Seed testing
Research at winter wheat trial fields•Testing of winter wheat varieties (foreign selection) for the regions’ conditions•Use of mixes of regulators for seed treatment to raise the yield of winter wheat•Influence of seeding rate on yield and quality of winter wheat•Research of winter wheat sowing timing in the regions’ condition
July August September October November December January February March April May June July August September October November December
Corn
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Sugar beet
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Main crops
Season work schedule
January February March April May June July August September October November December
Haricot
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Pumpkin
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Flax
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Niche crops
Season work schedule
Agricultural Machinery and Equipment Plant
SERVICE SECTOR
Total plant area Production premises area
140,000m2
62,500m2 Test run
3,4 MV
Capacity of electrical network
Drinking water
1,000m3
2 km
Siding rail
MTS
SERVICE SECTOR
Own MTS service that consists of 4 regional subdivisions and
has all the required infrastructure
Company’s technical
personnel annually
undergoes trainings on the
plants of the
manufacturers
Self-propelled agricultural
machinery fleet
over 500 units
85% – machinery from the
international manufacturers with
a period of operation in the
company of no more than 5
years
New project is launched in 2013: manufacturing of modern agricultural machinery, equipment, and
information technologies on the basis of Shepetivka Cultivators Factory
CEREAL RECEIVING STATION
Elevators are located in the area of developed transportation
infrastructure (railway, highway) and arable land clusters
Argentine grain storage
technology (silo bags)
helps increase the storage
capacity up to 500 ths
tons
9 certified elevators
with a storage capacity of
270 ths tons
Certificated and accredited laboratories of cereal receiving stations
SERVICE SECTOR
Partners
COLLECTIVE ENTERPRISE “BILOTSERKIVKHLIBOPRODUCT”
Flour production plantCapacity of 500 tons/day
Buckwheat production plant Highest capacity in Europe - 360 tons/day
Feed factory240 tons/day
Wheat germ processing factory
Products and services:• wheat flour;• semolina and buckwheat;• peas polished; dietary
supplements of wheat germ -"Oil", "Hlyukorn", "flakes";
• feed for all farm animals, fish and poultry;
• storage and processing of grain;
Founded in 1910
Location:
Bila Tserkva, Kyiv region
Partners
CROP PRODUCTION REALIZATION
80% of crop production is exported
SEEDS, FERTILIZERS AND CROP PROTECTION PRODUCTS
Partners
AGRICULTURAL MACHINERY AND EQUIPMENT
Partners
Svarog West Group Corporation Business Operation
Geography:
Khmelnytskyi, Chernivtsi and Zhytomyr regions
Strategic direction – dairy
farming
Pedigree cattle include
three Ukrainian high-
production cattle breeds,
one of which is unique and
is bred exclusively in
Svarog's livestock
complexes Livestock farms are almost
completely supplied by own
fodder base
Milk yield per one cow is 19-20 liters per 24 hours
Cattle herd: 12,135 heads
LIVESTOCK FARMING
Dairy farms are certified as
special raw material
resources base for
production of baby food
Cattle Herd Dynamics in 2009-2014
2009
2010
2011
2012
2013
2014
ths heads
ths heads
ths heads
ths heads
ths heads
ths heads
LIVESTOCK FARMING
YOUNG CATTLE DAIRY COWS CATTLE FATTENING
LIVESTOCK FARMING
Cattle Herd Structure Dynamics in 2010-2014
2008
2009
2010 2011
2011
2012tons per year
LIVESTOCK FARMING
2014
2013
Beef Production Dynamicsin 2008-2014
LIVESTOCK FARMING
2008
2009
20102011
2012
2013
2014
Annual milk production yields: Milk yield per one cow:
2011
2008
2009
2010
2012
2013
2014
tons per year
tons per year
tons per year
tons per year
tons per year
tons per year
tons per year
tons per year
Milk Production Dynamics
ПП РЕНЕТ
LIVESTOCK PRODUCTS REALIZATION
Partners
Svarog West Group Corporation Business Operation
HORTICULTUREGeography:
Sokyriany and Khotyn districts of Chernivtsi region
Orchards acreage:
505 ha
Storage of production:
3 modern controlled
atmosphere fruit storages
with total capacity of
8,700 tons
Main orchard crops:
apples, pears, stone fruits,
berries
Seedlings:
Supplied with planting
material from its own
nursery garden
Production:
Juice production line wih
capacity of 500 l/hour
Total yield of apples in
2014:
10,600 tons
ORCHARDSACREAGE
SPECIES COMPOSITION OF ORCHARD
AREAS
fruitful apple tree
74%young
apple tree
8%
fruitful peartree
14%
stone fruit
trees
4%
ha ha ha ha haha
HORTICULTURE
ha
Orchards Acreage Dynamics
10,600 tons11,700 tons7,300 tons
2008 2009 2010 2011
2014
1,300 tons 2,600 tons 3,400 tons
20132012
HORTICULTURE
6,600 tons
Apples Total Yield Dynamics in 2008-2014
Horticulture
January February March April May June July August September October November December
AppleProtection against mice and
hare
Treepruning
Tying up trees
Side dressing (NPK)
Application of disease prevention products and
pesticide (in 4-7 days)
Foliarfeeding
Application of growth-regulating chemical
Application of herbicide in nearwellbore
Harvesting of summer apples
Apple selling
Harvesting of autumn and winter apples
Apple storage
Season work schedule
Horticulture
January February March April May June July August September October November December
PearProtection against mice and
hare
Treepruning
Tying up trees
Side dressing (NPK)
Application of disease prevention products and
pesticide (in 4-7 days)
Foliarfeeding
Application of growth-regulating chemical
Application of herbicide in near wellbore
Pearharvesting
Pearstorage
Pearselling
Season work schedule
Corporate Social Responsibility
PERSONNEL ECOLOGYLOCAL
COMMUNITIES
«Selection» of its own
personnel
Cooperation with higher
educational establishments
Advanced Training Programs
Safety of labour
Crop rotation
Safety of production
Organic technologies
Charitable Foundation
Education
Health care
Culture
Sports, Parasports
Immateriality
Infrastructure
Targeted social assistance
Corporation is in an active cooperation with village and town communitieswithin
the territory of its activities.
INTERACTION WITH LOCAL COMMUNITIES
sI
tage
IstagIe
2006 – 2010 – Social and Public Communications Department. Social
Investments Program «With People and forPeople».
Total sum of investments into social sphere : UAH 10 mln
Total sum of direct investments in 2010-2014 : over UAH 40 mln.
21 towns 309 villages
Since June 2010 – Strengthening Communities Charitable Foundation as a mean of
interaction with local communities and social projectsimplementation.
Khmelnytskyi
Chernivtsi
Zhytomyrregions
Interaction with Local Communities
Implementation of innovations
1. Use of high-quality fertilizers with low level of carbon footprint to ensure the quality of plants treatment
2. Tailor made sowing technology for soybeans
3. Own designed and produced in partnership with European Company equipment to fulfill the new technology
4. Chemical analysis of soil for smart use of different chemicals and maintaining high quality of soil
5. Introduction of green energy projects: use of waste from crop farming to produce heat, electricity, organic fertilizers
6. Cultivation of crops with high energy potential
7. Application of organic fertilizers to reduce use of chemicals and increase quality of soil
8. Own developed IT software –Precision Agriculture technology
Precision agriculture technology
• “Precision agriculture technology” assumes:
strict following of crop rotation schemes
reduction of emissions and use of chemicals with new machinery and equipment
individual approach to the each field and application of fertilizers and minerals according to the soil analysis
combining technological operations in the tramline to preserve the structure of the soil and its surface
• “Precision agriculture technology” has a broad functional that covers all aspects of activities in agricultural company and consists of several main blocks:
chief agronomist’s module
online field condition monitoring
inventories and services tracking system
system for sampling and soil analysis
transport movement control system
fuel consumption control system
Precision agriculture technology
• The use of precision agriculture technology provided numerous benefits for the Company, simultaneously reducing the effect on the ecology:
Reduction of CO2 emissions
System of precise machinery handling
Increasing the speed of cultivation, which reduces fuel consumption
Fuel control system
Reduction of fuel consumption as a result of monitoring fuel flows between fueling tankers and machinery together with the fuel control sensors installed on machinery/equipment
GPS monitoring and control
Operational dispatch reduces machinery downtime
Reduction of losses in soil fertility
Implementation of innovative technology for soil cultivation
Reduction in quantity of soil cultivation operations saves fuel and partially eliminates losses in soil fertility
Improving the quality of soil using own mineral and organic fertilizers
Developing of new compost production methods (from the livestock mould, chicken manure, waste of crop farming)
Precision agriculture technology
Reduction of fertilizers and chemicals use
System of aerophotography (online field condition control)
Forecasting and preventing plants diseases
Optimal and timely soil and/or foliar fertilizing
Strict definition of germination phases for planning the use of pesticides and fertilizers
Differentiated pesticides application at the critical points of the field
Laboratory analysis (soil, crops, mineral and organic fertilizers)
Saving 10-26% of fertilizers
Application of necessary fertilizers and chemicals based on agrochemical soil characteristics, field relief, and foliar crop diagnosis
R&D
Infrastructure• Trial plots and seed orchards (including those under irrigation)• Seed plant (preparing, processing of seeds and seed lots formation, equipment manufacturer ‒Cimbria)• Seed laboratory• Research laboratory• Breeding machinery (manufacturer – Sampo)
Technological peculiarities• Own seeds treatment technology• Full scale usage of precision agriculture technologies, including: soil analysis, individual approach to each field, control of each production stage• Own technology of cultivation of commodity soybean: unique self-engineered sowing machine Prime Twin 3000 (produced in 2015)• Use of European mineral fertilizers produced by Yara
Company pays a lot of attention to soybeans as a core crop in its crop mix. Given this, significant efforts of the personnel are aimed at finding and choosing the best production technologies, the most yielding and high-protein varieties as well as necessary infrastructure to secure all stages of crop evolution
Soybean production
Breeding• Annual trials of 40 to 70 varieties of soybean on own trial fields• Selection of high-protein varieties of soybean• Cooperation with breeding centers from Austria, Canada, the USA• Annual renovation of seed line with high reproductions• Constant monitoring of know-how at different countries
R&D
To preserve the high quality of commodity, Svarog monitors all stages of production and carries out numerous laboratory tests – the synergy of scientific and practical approaches is reflected in leading positions in crop yields
Production• Formation of new plan of strain renovation•Fields (including those under irrigation);• Sowing, production and harvesting machinery from leading manufacturers;• Quality control and compliance with phytosanitary standards (GMO control on every stage of production process, determination of seeds quality profile on every stage of production process: preparing of seed material, growing, harvesting, processing, formation of commercial lots) on the basis of our own laboratories;• Laboratory researches for determination of seeds condition, the effects of treaters, microelements, promoting agents and salts on the crop quality characteristics and structure analysis, determination of the dependence of changing of seeds sowing characteristics on the its storage duration time);• Processing and storage of commodity soybean in our own elevators (9 elevators, total capacity – 270 ths tons), equipped with up-to-date facilities
Soybean production
R&D
Research at soybean trial fields• Testing of soybean varieties (foreign selection) for the regions’ conditions• Influence of thousand-seed weight on growth energy, germination and soybean yield• Research on efficiency of applying various mineral fertilizing systems on yield and quality of soybeans • Efficiency of applying various protection systems(fungicides, herbicides, insecticides) on soybeans• Research on efficiency of applying growth regulators on productivity of soybeans• Research on efficiency of applying inoculation (various bacteria) on yield and quality of soybeans• Influence of seeding rate on yield and quality of soybeans• Research on soybeans sowing timing in the regions’ condition• Research on efficiency of applying biostimulators on soybean productivity• Use of mixes of regulators for seed treatment to improve the yield of soybeans
Svarog carries out own wide scale research to raise the efficiency of production and find the best varieties of seeds that will ensure high quality and rich harvest of crops. Company tests 94 varieties of soybeans and 86 varieties of wheat at specially dedicated land plots
Research at winter wheat trial fields • Testing of winter wheat varieties (foreign selection) for the regions’ conditions• Use of mixes of regulators for seed treatment to raise the yield of winter wheat• Influence of seeding rate on yield and quality of winter wheat• Influence of sowing timing in the regions’ condition
Laboratory research • Influence of seed damaging on sowing indicators• Influence of heterogeneous seeds on sowing indicators• Stillness of seeds during ripening depending on seed varieties• Research of factors that influence seed lifespan and longevity • Research of influence of various chemicals on seed energy and sprouting • Use of mixes of regulators for seed treatment to improve the development of root system
Seed testing
Business approach
Innovations• Svarog is recognized as an innovative leader in Ukraine and similar to Bayer invests significant costs and efforts in R&D• Svarog shares Bayer’s ideas of direct relationship of new technologies and human’s well-being. We see that our innovations create new working places, optimize efficiency of work and allow us to earn more, in turn giving more back to communities
Environmental safety • Following the latest achievements of chemical giants (Bayer, Syngenta, Du Pont) Company applies user-friendly fertilizers to reduce the carbon footprint and CO2 emissions• Svarog’s own R&D led to production of innovative agriequipment that helps merging technological operations and reduce the use of fuel• Going forward Svarog plans to develop alternative energy projects to convert waste from agriproduction into heat and electricity
Svarog understands the importance and responsibility of large business in front of communities, environment and, in case of agricultural company – human needs in food. Company’s motto – With people and for people - reflects those principles in the best way.
Research as a key growth trigger• Svarog sees research as a key enabler for the innovations, growth, prosperity and efficiency. We think that agriculture has to be innovative as well as other industries like chemicals, pharmaceuticals and IT• Like Bayer, Svarog has separate research for the seeds – own seed plant and trial plots help to choose the best varieties, treatment technologies and sowing time to achieve high yields
Sustainable development• Svarog adheres sustainable development principles and non-GM as well as organic farming. Company certified 10 thd ha with Danube Soya to confirm the sustainability of its products. At the same time Svarog is doing its best to work efficiently, ecologically-friendly. preserve integrity of production and support local communities through different programs
R&DIndustrial facilities
Investment Directions in 2015-2017
1. Improvement of technological effectiveness of the Company and products quality standards.
2. Increase of non-GMO soybean production. Improvement of technologies. Construction of processing facilities in EU. Processing of soybean with certain product line for consumers in EU.
3. Special (niche) crops production. Construction of processing facilities in Ukraine. Processing of products for the final consumer in the countries East ad Asia.
4. Production of quality milk and cattle meat (including beef) with its further processing and export in the CIS, UE and Eastern countries.
5. Development, improvement and production increase of modern agricultural machinery and equipment for Ukrainian market by means of joint projects with European partners (2015 – modern multifunctional sowing machines, integrated with precision agriculture systems).
6. Development and improvement of IT projects for Ukrainian market («precision agriculture», «agricompany management in on-line mode»).
7. Development of «Green energy» and energy saving projects.
8. Production of baking mixes by means of joint programs with European manufacturers.
About Svarog West Group Corporation:
PRODUCTION – PROCESSING – TRADING
The most efficient and highly technological company of Western Ukraine. Leader of Ukrainian market in terms of agriproduction.
Business directions:
• Crop production (land bank 80,000 ha): grain, legume, oil and special (niche) crops
• Dairy and meat livestock farming
• Fruit and juices production
• Processing: sugar, flour
• Seed production: modern seed plant, processing and sales of seeds
• Modern storage: elevators and controlled atmosphere fruit storages
• IT developments: agricompany management system in on-line mode by means of complete automation of production processes and precision agriculture
• «Green energy» and bio-production projects
• Modern agricultural machinery and equipment production
Participants and key positions:
• International Chamber of Commerce (ICC)
• Ukrainian Club of Agri Business (UCAB)
• European Association «Danube Soya»
Website www.svarog-agro.com
WELCOME TO COOPERATION!
