Download Svarog West Group Corporation Key performance indicators

Svarog West Group Corporation
Key performance indicators
2015
About Svarog West Group Corporation
2003
Khmelnytskyi region
4,000 ha
200 employees
Shepetivka Sugar-Mill JSC
2015
GEOGRAPHY
ACREAGE
PERSONNEL
INFRASTRUCTURE
Khmelnytskyi region
Chernivtsi region
Zhytomyr region
80,000 ha
4,500 employees
• 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
History
The agricultural department was established on the basis of
Shepetivka Sugar-Mill JSC to supply sugar production needs with its
own raw materials resources
Intensive development of existing business directions
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 - Svarog
West Group
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
Competitive Advantages
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
Geographic Location of Lands
Zhytomyr
Farm lands
Khmelnytskyi
Chernivtsi
Orchards
Georaphic Location of Lands
LAND AREAS CLUSTERS
Slavuta
Chernivtsi region
Shepetivka
Novoushitskiy area
Starokostyantyniv
Kamyanets-Podilsky
Kelmenetsky area
Sokyryany area
Kitsman area
KHMELNYTSKYI
Khmelnytskyi region
Georgaphic Location of
Production Facilities
Seed plant
Agricultural Machinery and
Equipment Plant
Livestock farms
MTSs
Elevators
Vegetable storages
Dairy farms
Controlled atmosphere
fruitstorages
Complexity of Agriproduction
Seed farms
Modern dairy farms
Nursery garden
Seed plant
In-house fodder base
Controlled atmosphere fruit
storages
Stud farms
Weather station
Waste products are used in
organic segment of crop
farming
Sorting line
Elevators
Modern MTSs
Leading Inventory producers
Export
NFC juices production
Export
Svarog West Group Corporation
Business Operation
CROP FARMING
Geography:
Khmelnytskyi, Chernivtsi and Zhytomyr regions
Leased land acreage:
80,000 ha
Crop production
storage:
9
modern cereal
receiving stations with a
total capacity of
Main crops: corn,
soybean, wheat, sugar
beet
Niche crops:
spelt, beans, mustard,
pumpkin, oil flax,
chickpeas, lentils
270,000 tons
320,000
Total yield of main crops in 2014: over
tons
( where the total yield of soybean - 147,000 tons)
Land Bank Dynamics in 2008-2014
CROP FARMING
Total Yield of Main Crops in 2008-2014
CROP FARMING
2008
2009
2010
2011
2012
ths tons
ths tons
ths tons
ths tons
ths tons
ths tons
2013
ths tons
Yield Dynamics of Main Crops
in 2008-2014
CROP FARMING
Динаміка врожайності,
11.3 тонн/га
10.3
11.8
12.1
9.3
8.8
6.7
4.8
4.7
4,6
2.0
2008
6.4
6.1
6.3
5.0
3.8
2.5
2.6
2.6
3.0
2010
2011
2012
2013
0.8
2009
CORN, Т/HA
WHEAT, Т/HA
SOYBEAN, Т/HA
2014
Crop Structure Dynamics in 2011-2014
CROP FARMING
80
ths ha
65
ths ha
OTHER CROPS
32,0 %
69
ths ha
35,0 %
14,0 %
25,0 %
22,0 %
CORN
18,0 %
19,0 %
16,4
40,0 %
SOYBEAN
25,0 %
24,0 %
2011
2012
22,6 %
16,0 %
30,0 %
WHEAT
80
ths ha
2013
10,6 %
4%
46,4 %
2014
SPECIAL
(NICHE)
CROPS
Seed Plant
CROP FARMING
Season work schedule
Main crops
July
Soybean
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Wheat
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Spelt
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
August
September October
November December
January
February
March
April
May
June
July
August
September October
November December
Seed testing
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 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
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
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
Season work schedule
Main crops
July
Corn
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Sugar beet
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
August
September October
November December
January
February
March
April
May
June
July
August
September October
November December
Season work schedule
Niche crops
January
Haricot
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Pumpkin
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
Flax
Land preparation
Fertilizing
Planting
Plant protection
Harvesting
February
March
April
May
June
July
August
September
October
November December
Agricultural Machinery and Equipment Plant
SERVICE SECTOR
Capacity of electrical
network
Siding rail
Total plant area
Production premises area
2 km
3,4 MV
Drinking water
140,000
62,500
m2
m2
1,000
m3
Test run
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
500 units
85% – machinery from the
over
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
SERVICE SECTOR
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
Partners
COLLECTIVE ENTERPRISE “BILOTSERKIVKHLIBOPRODUCT”
Location:
Bila Tserkva, Kyiv region
Flour production plant
Capacity of 500 tons/day
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;
Buckwheat production
plant
Highest capacity in Europe
- 360 tons/day
Feed factory
240 tons/day
Wheat germ processing
factory
Founded in 1910
Partners
CROP PRODUCTION REALIZATION
80% of crop production is exported
Partners
SEEDS, FERTILIZERS AND CROP PROTECTION PRODUCTS
Partners
AGRICULTURAL MACHINERY AND EQUIPMENT
Svarog West Group Corporation
Business Operation
LIVESTOCK FARMING
Geography:
Khmelnytskyi, Chernivtsi and Zhytomyr regions
Cattle herd:
Strategic direction – dairy
farming
12,135
heads
Pedigree cattle include
three Ukrainian highproduction cattle breeds,
one of which is unique and
is bred exclusively in
Svarog's livestock
complexes
Milk yield per one cow is
Dairy farms are certified as
special raw material
resources base for
production of baby food
Livestock farms are almost
completely supplied by own
fodder base
19-20
liters per 24 hours
Cattle Herd Dynamics in 2009-2014
LIVESTOCK FARMING
2009
2010
2011
ths heads
ths heads
ths heads
ths heads
2012
2013
2014
ths heads
ths heads
Cattle Herd Structure Dynamics
in 2010-2014
LIVESTOCK FARMING
YOUNG CATTLE
DAIRY COWS
CATTLE FATTENING
Beef Production Dynamics
in 2008-2014
LIVESTOCK FARMING
2014
2013
2008
2012
tons per year
2009
2011
2010
2011
Milk Production Dynamics
LIVESTOCK FARMING
Annual milk production yields:
2008
2009
2010
2011
2012
2013
2014
Milk yield per one cow:
tons per year
2014
tons per year
tons per year
2013
2008
tons per year
tons per year
tons per year
2009
2012
2011
tons per year
2010
tons per year
Partners
LIVESTOCK PRODUCTS REALIZATION
ПП РЕНЕТ
Svarog West Group Corporation
Business Operation
HORTICULTURE
Geography:
Sokyriany and Khotyn districts of Chernivtsi region
Orchards acreage:
505 ha
Seedlings:
Supplied with planting
material from its own
nursery garden
Main orchard crops:
apples, pears, stone fruits,
berries
Production:
Juice production line wih
capacity of
500 l/hour
Storage of production:
Total yield of apples in
2014:
10,600 tons
3 modern controlled
atmosphere fruit storages
with total capacity of
8,700 tons
Orchards Acreage Dynamics
HORTICULTURE
ORCHARDSACREAGE
ha
ha
ha
ha
ha
ha
ha
SPECIES COMPOSITION OF ORCHARD
AREAS
fruitful apple tree
74%
young
apple tree
fruitful pear
tree
8%
14%
stone fruit
trees
4%
Apples Total Yield Dynamics in 2008-2014
HORTICULTURE
1,300 tons
2,600 tons
2008
2009
7,300 tons
2012
3,400 tons
2010
11,700 tons
2013
6,600 tons
2011
10,600 tons
2014
Season work schedule
Horticulture
January
Apple
Protection against mice and
hare
Tree pruning
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
Harvesting of summer apples
Apple selling
Harvesting of autumn and
winter apples
Apple storage
February
March
April
May
June
July
August
September October November December
Season work schedule
Horticulture
January
Pear
Protection against mice and
hare
Tree pruning
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
February
March
April
May
June
July
August
September October November December
Corporate Social Responsibility
PERSONNEL
«Selection» of its own
personnel
Cooperation with higher
educational establishments
Advanced Training Programs
Safety of labour
ECOLOGY
LOCAL
COMMUNITIES
Charitable Foundation
Crop rotation
Safety of production
Organic technologies
Education
Health care
Culture
Sports, Parasports
Immateriality
Infrastructure
Targeted social assistance
Interaction with Local Communities
Corporation is in an active cooperation with village and town communities within
the territory of its activities.
I
II
s
a
tge
INTERACTION WITH LOCAL COMMUNITIES
2006 – 2010
– Social and Public Communications Department. Social
Investments Program «With People and for People».
Total sum of investments into social sphere :
UAH 10 mln
Since June 2010 – Strengthening Communities Charitable Foundation as a mean of
interaction with local communities and social projectsimplementation.
stage
21
towns
309 villages
Total sum of direct investments in 2010-2014 : over
regions
UAH 40 mln.
Khmelnytskyi
Chernivtsi
Zhytomyr
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
Soybean production
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
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
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
Soybean production
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
R&D
Seed testing
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 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
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
Business approach
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.
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 agri
equipment 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
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&D
Industrial 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:
Participants and key positions:
• 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
• International Chamber of Commerce (ICC)
• Ukrainian Club of Agri Business (UCAB)
• European Association «Danube Soya»
Website
www.svarog-agro.com
WELCOME TO COOPERATION!