Winter planting report 2014

Agrokultura AB (“the Company”), the owner and operator of farmland with agricultural operations in Russia and Ukraine, has completed its 2014 winter campaign with a total of 51,900 hectares planted.

The Company has planted a total of 51,925 hectares, of which 33,725 hectares are wheat, 10,850 hectares are rapeseed and 7,350 hectares are barley. The area planted is 12% larger compared to 2013 which had been impacted by unusually persistent heavy rain through the planting period in Russia. In 2014 the weather has been generally dry in Russia through the seeding window allowing us to execute our planned area for seeding.

Rapeseed in Ukraine has been reduced by 13 per cent due to rotational requirements, winter barley has been increased due to improved margins together with operational benefits and local demand.

Russian wheat sowings increased on 2013 due to less rainfall although the dry period over the summer and autumn 2014 will put some of the Russia wheat sowings at risk given the limited establishment to date.

The table below shows the breakdown of the winter planting by crop and region.

Winter planted area 2014, ha

Region Winter wheat Winter 
Winter barley Total
Ukraine 7,350 10,850 7,350 25,550
Russia CBS 26,375  -  - 26,375
Total 33,725 10,850 7,350 51,925

    Stephen Pickup, Managing Director, commented:

“Ukrainian conditions have been good and we are pleased with the establishment of the crop. The target is to have an overall cropped area in 2014 similar to what we have had in 2013 despite the disposal of one of our clusters. Although we have seeded most of the planned area we are concerned by the lack of rains in the Russia CBS region. Approximately 20 per cent of winter seeded area has emerged in a poor state and is not well prepared to face the winter. If required we will reseed certain areas in the spring.”

Stockholm on 29 October 2014

For additional information, please contact:

Stephen Pickup, Managing Director, tel: ++44 7825 294 352
Kristian Shaw, Group CFO, tel: +447825 294 356

About Agrokultura AB (publ)

Agrokultura invests in farmland and produces agricultural commodities in Russia and Ukraine. The Group aims to generate an attractive return on invested capital by optimally utilizing its agricultural land bank through crop production, livestock and related operations. Shares in Agrokultura are listed in Sweden on the Nasdaq OMX First North exchange under the ticker AGRA and the Group’s Certified Adviser is Remium Nordic AB.