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The strategic objectives of the PentAgro Group is attaining and keeping high-profit activity and ensuring stable growing money flows with the help of efficiency, growth, innovations and regional leadership.
To reach the set objectives, the Group is planning to:
• Increase the production capacity of the land and the share of farmed land fund.
Till the end of 2014 the Group is planning to increase the share of farmed land (in the total fund of own land) to 85%, and in the prospects – to 100%. Also, in the short-term and long-term perspective, the Group is planning to improve crop yield indicators by 50% using innovative and scientific approach for cultivation of the land acquired recently. We expect that increase of the crop yield combined with increase of the area of farmed agricultural land will considerably improve the growth of income both per hectare of land and from the whole trend.
• Increase the land fund.
We believe that now there are considerable investment capabilities for acquiring underestimates agricultural land in the Saratov region and the neighbouring black-soil areas. The Group intends to acquire a considerable volume of plowed fields in the areas where there is the necessary infrastructure and optimal climatic and soil characteristics. That will allow to reduce the need for construction of additional production and operation centers and maximize centralized use of the currently existing capacities. In addition, the strategic plans of the Group also include expansion of the finished products storage base.
• To increase production and sales of poultry meat in 3 times by 2014.
The Group intends to increase the production volumes at the expense of upgrade of the equipment and increase of the total operating efficiency. Mikhailovskaya Poultry Factory and the Mikhailovskaya Kurochka brand are positioned as exceptionally environmentally-friendly production and natural ecologic product, which allows to gain relatively high profit compared to the main competitors in the Saratov region. We are also sure that increase of the production capacities will allow the Group to increase its sales not only in the Saratov oblast, but in the neighbouring regions. The economy at the expense of growth of production will allow the Group to reduce expenses and increase the profit.
• To increase and optimize the portfolio of meat and dairy products with a focus to high marginality.
The Group intends to gain profit using the growth of consumer demand for high-quality food products in the regions of its presence and also expanding the market share in the premium and upper-medium segment. We intend to expand the current portfolio of brands with the help of high margin product in attractive and modern packaging – soy products, a range of dairy products, sausage products and semi-finished milk products. |