Agriculture

According to company data, Valeriy Korotkov, the second biggest shareholder, sold 6% of his stake (1.5 mln shares) in Astarta [AST PW, U/R] on Tuesday, February 11.

Astarta [AST PW, U/R] has attracted a USD 50 mln loan from Hellenic Bank. The Company intends to restructure its existing debt and to finance its working capital. The loan consists of three parts: one loan of USD 30 mln for a three-year term and two loans of USD 10 mln for one year-term each.

According to the Government Ukraine exported 7 mln tonnes of grain in the current marketing year (July 2010 – June 2011) as of February 10. It was exported 2.6 mln tonnes of wheat, 2.4 mln tonnes of barley and 1.9 mln tonnes of corn.

Avangard [AVGR LI, N/R], a leading Ukrainian agricultural holding that specializes in the production of eggs in the shell and egg products, has increased its shell egg production volume by 22%, to 4.42 bln pieces from 3.63 bln pieces in 2009. The increase is largely a result of an increase in its poultry stock by 51%, to 24.3 mln head. The Company has continued its strategy of focusing on the development and diversification of its customer base. The share of the Company's sales volume through modern retailers increased to 16% in 2010 from 2% in 2009. Avangard has increased its export volumes by 3 times in 2010, reaching 1 bln eggs and egg-equivalent products.

Astarta [AST PW, U/R] has reached an arrangement for the acquisition of the Novoivankivskyi sugar plant in the Kharkiv region, with production capacities of 2 thsd tonnes of sugar beets per day. This new asset will become a starting point for the formation of a vertically-integrated regional unit of the Company in the Eastern part of Ukraine.

Mriya Agro Holding [MAYA GR, BUY] has received a USD 25 mln loan from the EBRD. According to the Company data, these funds will provide financing for inputs needed for agricultural production as well as for crops stored at certified warehouses. With the help of the EBRD loan, Mriya Agro Holding will continue with the sustainable growth of its operations, ensuring market expansion and competition by bringing new land into production and increasing crop yields.

Astarta [AST PW, U/R] has launched a new modern feed factory in the Poltava region, with a capacity of 240 tons of feed per day. The Company has renovated the factory and has installed both foreign and Ukrainian equipment. According to the Company’s data, the factory will produce animal feed for milking and dry cows, as well as for calves. An improvement in feed quality should result in a 20% increase in milk yields. The Company aims to increase milk output by 15%, to 60 thsd tons in 2011.

The Cabinet of Ministers has intentions to increase the volume of quotas by 2.7 mln tonnes of grains to 6.9 mln tonnes. Quotas for export are expected to be increased by 1.7 mln tonnes for corn and by 1 mln tonnes for wheat. They also have intentions to lift grain export quotas in April.