AgroGeneration planning to expand its business in Ukraine
2011-03-21 18:03:43
French farm investor AgroGeneration aims to double its business in Ukraine in the next two or three years, chief executive Charles Vilgrain has said.
"Today we are controlling 50,000 hectares. We are looking to ... double in the next two to three years, which will be feasible through two or three acquisitions," Vilgrain said.
He noted that AgroGeneration had identified and approached several companies in a distressed financial situation following the sharp fall in global commodity prices in 2009, and last year's drought and export quotas in Ukraine.
Vilgrain said that the company did not plan to control more than 100,000 hectares in the Black Sea country.
"I do not think we want to get much bigger in this country as we would rather develop a second area in order to mitigate climatic and geopolitical risks," he said. The southern hemisphere, "most probably Argentina," would allow AgroGeneration to alternate harvests, and not have all its output in 2-3 months, said Vilgrain, adding the company was studying conditions and partnerships for a possible investment in one of the world's top soybean, corn and wheat exporters.
AgroGeneration produced 120,000 tons of cereals in 2010 -- against 55,000 in 2009 and 18,000 in 2008 -- and expected to have been EBITDA positive in 2010. Agro has a market value of 62 million euros.