Globalagro Adds Its Own Storage Capacities To The Holding Structure

Barnaul, Russian Federation (PressExposure) November 25, 2008 -- GlobalAgro holding-company added another link to the vertically integrated chain by shifting grain storage facilities under its structure. In this way, the company will be able to control all basic steps of the production cycle that ranges from crop growing, storage and trading to multiple processing activities. Now, total storage capacities for agricultural produce owned by GlobalAgro stand at around 240,000 MT which can be expanded to 570,400 tonnes if more enterprises of the parent company are involved. This volume satisfies the needs of the current scale of crop production. In future, as farming operations are building up, GlobalAgro considers acquisition of additional storage facilities. All of the current enterprises have access to the necessary infrastructure and are equipped with facilities for drying and primary cleaning of grain. GlobalAgro is controlled by PAVA, one of the major grain processors in Russia. The structure of GlobalAgro includes Russian Agricultural Division, a land-owning company engaged in agricultural production and Grainvest, an SPC that will specialize in wheat grain fractionation. Both projects are adaptable to the changing market environment. RAD can grow different portfolios of crops due to crop rotation schemes, while flexible technologies enable Grainvest to vary the volume of its outputs. "We have no doubts that an efficiently structured holding will give us vast opportunities for lowering transaction costs, optimization of cash flows and better risk management", said Sergey Balaenkov, PAVA CFO.


PAVA is one of the three leaders of Russian grain processing sector, Best Exporter of the Industry in 2007

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Press Release Submitted On: November 25, 2008 at 3:08 am
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