IMK Agro Holding plans to invest about $233 million between 2023 and 2033 in the implementation of the Smart Green Strategy.
The group said Tuesday at the Warsaw Stock Exchange that the strategy aims, among other things, to improve operational efficiency, reduce fossil fuel consumption, reduce greenhouse gas emissions and invest in buying agricultural land in Ukraine.
According to the agroholding, sustainable agriculture projects have been developed for each strategic direction.
It is noted that the funds to implement the strategy will come from our own sources and borrowed funds. They will be used to improve operational efficiency through the introduction of new technologies and sustainable environmental development.
It is indicated that the agricultural holding intends to completely replace the equipment for spraying crops to reduce the use of pesticides by 50%. It is also planned to replace the grain dryers on more productive and transfer part of them to biofuel to reduce natural gas consumption. In addition, the company plans to modernize seeders to ensure faster and higher-quality sowing.
In addition, in 2023 the agricultural holding plans to buy 75 new grain carriers. It estimates that this will reduce consumption of diesel fuel and exhaust emissions, as well as enable the company to transport crops for subsequent export.
By 2033, IMC intends to convert 80% of its acreage to simplified tillage (switching from plowing to deep loosening), which will reduce CO2 emissions and improve soil conditions.
According to the press release, IMC will use part of the funds to buy land, taking advantage of changes in legislation that allow agricultural companies to acquire land ownership. For the time being, the land cultivated by the agricultural holding is on lease.
The program also provides for the development and support of local communities in regions where IMC farms operate.
“Our strategy takes into account Ukraine’s integration with the EU and the consequent need to reduce gas emissions and fossil fuel consumption. Our program is a long-term one, but some of its elements we are going to implement this year”, – Alex Lissitsa, president of IMC Holding, said.
IMK specializes in the cultivation of grain and oilseeds and milk production in Ukraine. It cultivates about 123.3 thousand hectares of land in Poltava, Chernigov and Sumy regions. It has a storage capacity of 554 thsd. tons of grains and oilseeds.
In January-March 2023, IMC Agro Holding incurred a net loss of $4.10 million, which is 2.6 times less than in the same period last year, largely due to higher logistics and distribution costs. The revenues of the holding increased by 11% – to $41.96 million, of which $35.03 million were exports. Due to the decrease of production costs the gross profit of IMC grew 3.9 times – to $8.60 million. Because of the increase in logistics and distribution costs by half (to $9.40 million) the operating loss was $2.85 million, which is twice as much as in the first quarter of 2022.
