COMPANY HISTORY

2009

Don Agro LLC was incorporated in October 2009 as a result of a reorganisation by statutory merger of five agricultural companies, which were privatised state collective farms acquired by LLC Razgulyai-Agro in the Millerovo district of the Rostov region of Russia. The five agricultural companies were involved in the cultivation of agricultural crops and dairy farming business and owned approximately 3,500 hectares of land at that time.

2012

Our Executive Chairman, Evgeny Tugolukov, was sourcing for the potential acquisition of an agriculture business in Russia given the potential growth of Russian agriculture industry. During the process, Veles Capital, a mid-sized investment company based in Russia, had identified and introduced Don Agro LLC as a potential strategic investment. As part of the acquisition of Don Agro LLC by Vallerd Investments, Tetra JSC was first established in May 2012 to acquire all the participatory interests (that is, the shares in a Russian LLC) in Don Agro LLC from LLC Razgulyai-Agro. Vallerd Investments, subsequently acquired the entire issued and paid-up share capital of Tetra JSC in June 2012. Following the acquisition of Don Agro LLC by Vallerd Investments, ProdAlliance was appointed by Vallerd Investments to manage the day to day operations of Don Agro LLC.

2013

As part of our initiatives to improve the yield of our agricultural business, we commenced experimentation on no-till farming on some of our arable land so as to mitigate the effects of drought and minimise the usage of fallow fields.

2014

To improve our dairy business, we invested approximately US$1.0 million in acquiring three modern Claas Jaguar forage harvesters to improve our forage quality. We also purchased 172 pedigree Holstein heifers from Holland and improved our cow care and feeding processes. Accordingly, this led to an increase in our dairy yield. We also invested approximately US$0.25 million in the reconstruction of a farm building in our Kudinovka farm in our Northern production division. During the year, we also started supplying raw milk to the Molvest Group, one of the largest dairy product manufacturers in Russia. To improve our crop business, we started purchasing high quality and yielding seeds and agriculture products from local agriculture product wholesalers that have a wide selection of quality products from international agricultural companies such as Monsanto Company, DuPont Pioneer, Maisadour Semences SA and Syngenta AG. We began implementing no-till farming on some of our fields and are one of the earlier adopters of no-till farming in the Rostov region. In addition, we also started to implement strict control over our agricultural operations whereby our machinery was equipped with global positioning system so as to accurately monitor and ensure that our farming operations are performed as prescribed by our agronomists. The enhancements to our key business processes enabled our operations to become more effective and efficient which led to higher sales and more efficient purchases. As such, our Group increased net profit after tax by approximately US$9.4 million from a net loss of approximately US$5.1 million in FY2013 to a net profit after tax of approximately US$4.3 million for FY2014.

2016

As part of our ongoing improvement works to our farm infrastructrure, we constructed a new awning-type farm building in our Degtevo farm in our Northern production division with a land area of approximately 1,100 sq m to house our calves and young herd and also performed capital refurbishment works on the floors for the Degtevo and Novoselovka farms. During the year, we also became one of the largest dairy farms in the Rostov region in terms of dairy herd quantity. We continued our strategy to invest in modern machinery to improve our dairy and agriculture operations and invested approximately US$0.3 million in modern machinery, including a Massey Ferguson seeder and three heavy tractors, and milking equipment for our Novoselovka farm in our Northern production division. As a result of our improved operations, we harvested a record yield of over 4 tonnes per hectare and 1.8 tonnes per hectare of wheat and sunflower crops, respectively. We also successfully renewed the leases of our land amounting to approximately 35,000 hectares until 2026 to 2028.

2017

Our Group made further improvement in our farming operations through the use of more effective fertilisers and made investment in machinery including including an Amazon DMC seeder and two John Deere seeders. We also expanded our no-till farming to approximately 6,000 hectares, representing approximately 14% of our arable land). This resulted in a record yield of 4.6 tonnes per hectare of our winter wheat crop. We started the construction of two modern awning-type farm buildings at our Degtevo farms to replace our old facilities which were housing our young herd. As part of our improvements to our dairy facilities, we converted one of our silage pits from clay to concrete in our Kudinovka farm in our Northern production division so that the quality of our silage will not be affected by the weather. Our average milk produced from each milking cow reached 5,804 litres per year as compared with 3,719 litres per year in 2013 and we became one of the top producers of milk in the Rostov region with a total milk production volume of 11,259 tonnes per year. In order to streamline our corporate structure, we disposed of our subsidiary, Volgro-Agro LLC, to Vallerd Investments in August 2017.

2018 to present

We continued to enhance our machinery fleet with the acquisition of two John Deere seeders, a Kinze seeder and a fodder mixer. In August 2018, we secured a contract for the supply of 22,500 tonnes of winter wheat to Bunge Limited, an international agribusiness and food company. To further streamline our Group’s corporate structure, we completed the disposal of our subsidiary, Krinichansky, to an independent third party in December 2018.

Russia HQ – 12 Sedova St., City of Millerovo, Millerovskiy District, Rostov Region, 346130, Russia
Singapore – 10 Collyer Quay #10-01, Singapore 049315
© Don Agro 2019