Large Ukrainian tomato paste producer Agrofusion (Agrofusion, Mykolayiv) intends to resume operations of its three tomato processing plants in Mykolayiv and Kherson regions, which were on the front line and were significantly damaged during the hostilities with Russian invaders.
The holding company is tasked with restoring the industry in the region, creating jobs and resuming exports of tomato paste from Ukraine, according to the EastFruit information and analysis platform’s website Monday.
“We built three tomato processing plants in the Mykolaiv region. These plants were among the best in Europe. Our plants are located in Zhovtnevyi (Vitovka – IF) district of Mykolaiv region and in Snegiriv region. These regions were on the front line and suffered a lot,” EastFruit quoted Agrofusion founder and director Sergei Sipko as saying.
He also clarified that now out of 2 thousand employees of the enterprises 400 people are ready to work.
“Agrofusion is a vertically integrated group of companies. Engaged in growing and processing of tomatoes for the producers of juices, ketchups and tomato sauces. Produces tomato paste under the Inagro brand that is represented in 45 countries around the world.
The group was founded in 2005 by businessman Sergei Sypko. It includes three plants (two in the Mykolaiv region, one in the Kherson region) producing tomato paste with a total production capacity of about 750 thousand tons of tomatoes per season, as well as agricultural farms in the Kherson and Mykolaiv regions cultivating over 30 thousand ha of land, and two greenhouse farms.
In 2019, the Group completed construction and put into operation a vegetable drying plant in Snegirevka (Mykolaiv region) and started production of tomato powder.
Exports of tomato paste from Ukraine in 2021/22 (marketing year, July-June) amounted to 62,180 tonnes, which is 45% (or 27,980 tonnes) less than the previous year.
As reported on the industry website tomatonews.com, the main reason for this reduction was the Russian occupation and hostilities in Mykolaiv and Kherson regions, where the largest Ukrainian tomato paste producer, the Agrofusion agricultural holding, is located.
According to the publication, the export of tomato paste from Ukraine in February 2022 amounted to 4,090 tonnes (37% less compared to the same month in 2021), in March – 196 tonnes (a drop of 97.2%), in April – 861 tonnes (80% less), in May – 1,120 tonnes (72.2% less), in June – 473 tonnes (85.7% less).
Agrofusion is a vertically integrated group of companies engaged in the cultivation and processing of tomatoes for manufacturers of juices, ketchups and tomato sauces. Before the full-scale Russian invasion, it included 10 departments, two greenhouses, three plants for the production of tomato paste (two in Mykolaiv region, one in Kherson region) with a total capacity of up to 750,000 tonnes of tomatoes per season. The total land bank of agricultural enterprises in Kherson and Mykolaiv regions amounted to more than 32,000 hectares of irrigated land.
The group of companies was founded in 2005 by businessman Serhiy Sypko. In 2019, Agrofusion launched a vegetable drying plant in Snihurivka (Mykolaiv region) and began the production of tomato powder.
The Agrofusion Group, a large tomato paste and industrial tomato producer in Ukraine, plans to plant and process 740,000 tonnes of tomatoes in 2019.
According to a press release available on the group’s website, season of tomato harvest gathering and processing began. The season will last until early October.
“Unfavorable weather conditions shifted a start of the season on a week. Now the weather is preferable for ripening and fruit quality. Tomatoes have good structure and color,” the company said.
Agrofusion is a vertically integrated group of companies for production of tomato paste (the Inagro brand) in Ukraine.
Agrofusion Group, founded in 2005, belongs to businessman Serhiy Sypko.
Agrofusion includes three tomato paste production plants with the processing capacity of about 750,000 tonnes of tomatoes per season, as well as farms in Kherson and Mykolaiv regions, processing 25,000 hectares of irrigated land, and two greenhouse farms.
The International Finance Corporation (IFC) on June 1 signed a contract to provide the largest Ukrainian vertically integrated tomato paste producer, Agrofusion, with a long-term loan of $17 million. According to information on the IFC’s website, the funds are intended to expand the company in 2018-2019 and refinance its obligations. The total cost of the project is estimated at $30 million.
The IFC said this is the third project with Agrofusion.
Agrofusion is the largest vertically integrated producer of tomato paste in Ukraine. It was founded by businessman Serhiy Sypko in 2007. Agrofusion includes three tomato paste production plants with a total production capacity of about 750,000 tonnes of tomatoes per season, as well as agribusinesses in Kherson and Mykolaiv regions, cultivating 25,000 hectares of irrigated land, and two hothouse farms. In 2017, the company expanded its capacity and reached 79,443 tonnes of paste (64,800 tonnes in 2016). Some 70% of its products are exported to 35 countries.
Agrofusion, the largest Ukrainian vertically integrated producer of tomato paste, intends in the current year to launch a tomato powder factory in Snihurivka (Mykolaiv region), company financial director Ivan Sakal has said. “We are building a factory for production of tomato powder in Snihurivka this year. This is a very popular product. Now we are discussing this with international financial institutions. We hope to start building the fourth tomato processing plant in three years. Four plants to produce tomato paste is probably the best number,” he told Interfax-Ukraine after the opening of the Business Integrity Week in Kyiv.
Sakal said the company is considering the possibility of investing UAH 2 billion in the fourth tomato processing plant.
“The volume of funds the company invests in development this year is being discussed with our financial partners. I think investment will amount to UAH 1.2-1.3 billion,” he said.
At the same time, according to Sakal, the company increased plans for processing tomatoes to 750,000 tonnes, whereas earlier Agrofusion planned to grow and process 630,000 tonnes of tomatoes. Agrofusion is a vertically integrated group of companies producing tomato paste (under the Inagro trademark) in Ukraine. It was founded by businessman Serhiy Sypko in 2007.
