2020
2019 was a difficult year for the Ukrainian agricultural industry. However, along with the challenges, the key market players had many notable achievements this year, which testifies to the active development of the Ukrainian agrosphere.
Last year, LNZ Group increased its land bank by 10 thousand ha (to 80 thousand ha). In 2019, the holding received permission to purchase two agricultural enterprises in Cherkasy Oblast and one in Sumy Oblast and completed the acquisition of the company “Shpola-Agro Industri”. “In the regions where we are already present, we plan to keep growing, but not thoughtlessly, not at any cost, but gradually and deliberately. In general, we do not plan any sudden moves regarding land in other regions yet,” notes Dmytro Kravchenko, Chairman of the Supervisory Board of LNZ Group.
Alongside expanding its land bank, the company improved its distribution, infrastructure and logistics. In particular, in 2019 a new scheme of working with farmers was implemented: deferred price fixing when purchasing agricultural products. If the price has risen by the time it is fixed, farmers receive the difference in fertilizers or crop protection products. Dmytro Kravchenko emphasizes that thanks to this, LNZ Group compares favourably with its competitors.
In the logistics segment, the company plans to increase its fleet of railway grain wagons from 108 to 216. In the infrastructure sector, LNZ Group is also building up capacity: construction of a 100 thousand tonne elevator is planned in Cherkasy Oblast.
In 2019, LNZ Group also launched 20 new projects. In spring, its own service department for agricultural machinery maintenance was established. At the end of April, the company obtained a license to sell natural gas to agricultural companies. Later, in May, another brand of corn hybrid seeds of North American genetics, UNIVERSEED, entered the Ukrainian market. In autumn, another brand was launched — LEGEND.
And in summer, LNZ Group brought to the Ukrainian agro-universe a modern online store, LNZ web, where seeds, crop protection products and fertilizers can be purchased easily and conveniently. It features, in particular, products of the DEFENDA and UNIVERSEED brands and the company's private label LEGEND.
“It is impossible to switch to online trading in 2–3 seconds, but we see that the industry is getting younger, and the number of customers will grow every day,” remarks Viktor Kravchenko.
