In 2025, Agro-Region will increase its total budget for the purchase of inventory by 15%, the company’s press service reported on Facebook.
“The total budget for inventories in 2025 will increase by 15%, but this is due to a change in crop rotation: we are increasing the share of corn, which is a more expensive crop. If we consider the costs of each crop separately, the growth will be about 5%, but this is not due to prices, but to the use of more expensive technology (more fertilizers and more expensive plant protection products),” said Dmytro Tarasyuk, Chief Procurement Officer of the agricultural holding.
According to him, fertilizers always account for the largest share of costs in the procurement structure. In the 2025 season, they are about twice as expensive as seeds, fuel or pesticides. However, thanks to early purchases, Agro-Region was able to save significantly on fertilizers. The agroholding purchased most of the fertilizers in June 2024, at the “bottom of the price”. This helped to avoid a shortage of phosphate fertilizers that occurred in July and August, as well as additional costs, as nitrogen fertilizer prices rose by 25% by January. The agricultural holding also split the purchase of nitrogen fertilizers into two parts to avoid financial burden and spread risks.
Tarasiuk noted that Agro-Region also purchases seeds in advance. As early as November 2024, 90% of the need was contracted, taking advantage of the maximum discounts for early contracting. The remaining 10% are test hybrids that the agricultural division is testing.
“We also purchase plant protection products (PPPs) as early as possible, especially seed treatment products, soil herbicides and growth regulators. In addition, we create an “emergency” stock of herbicides and insecticides for possible force majeure, such as the unforeseen appearance of pests. This allows us to be flexible in our production processes,” said the head of the division.
He also said that after the outbreak of war, Agro-Region increased its own fuel storage capacity, which made it possible to ensure seasonal operations even in crisis conditions. Currently, the agricultural holding has about 20% of the fuel requirements for the spring sowing season.
“Unfortunately, oil prices remain at $80 per barrel, so we decided to postpone major purchases. We are watching the market and may switch to spot purchases in small batches this year, as it is likely that the later we buy, the cheaper it will be,” summarized the agricultural holding’s procurement director.
Agro-Region owns a land bank of 39 thousand hectares in Kyiv, Chernihiv, Zhytomyr and Khmelnytsky regions. It specializes in crop production. It consists of 11 companies organized into four crop production clusters. It has two elevators – Boryspil elevator with a capacity of 73 thousand tons and Miropil elevator with a capacity of 52 thousand tons.
Agro-Region’s annual harvest of grains and oilseeds is up to 200 thousand tons.
In April 2021, the Swedish company Lobiu Sala AB, owned by the former Minister of Economy of Ukraine Aivaras Abromavičius, received permission from the Antimonopoly Committee of Ukraine to buy the Swedish Agro Region Stockholm Holding, which manages the Agro-Region group of companies in Ukraine.
