Agri-Shop Ltd
22 October 2016 | Online since 2003
Auto Trader Ltd

FarmingUK Logo
6 May 2009 04:06:52 |Arable,Crops and Cereals,News

PAVA views land assets as unique investment opportunity

Agricultural investment has gained an increasing scope recently, and in view of the latest developments on the world economic scene, it is unlikely to subside for decades. Food importing countries with land and water constraints – including Saudi Arabia, the Emirates, South Korea, China, India, Libya and Egypt among others - are at the forefront of new investments into agricultural land. The growing number of overseas deals with land has led to higher competition; farmland prices have risen throughout the world in recent years.
The largest Russian grain processor PAVA together with its agricultural subsidiary, an owner and developer of agricultural land in Russia, called ’Russian Agricultural Division’ (RAD, is keeping the situation in perspective, and consolidates vast tracts of the country’s agricultural land. RAD was established in 2008 to acquire agricultural land assets in Russia with the intention of becoming a large-scale producer of high-value added agricultural feedstock including wheat, barley, rye, sunflower seeds, buckwheat and peas for foreign and domestic market supplies.
"Abundant farmlands in Russia provide a unique investment opportunity; besides, land in Russia is still an underestimated asset. For instance, in the USA the average price per 1 ha stands at $10,000 - $30,000, while in Russia the figures are much lower, sometimes reaching the level of $250 per ha. Clearly, the potential is very strong", says Galina Balaenkova, PAVA Head of IR and International Business Development Department. "With double impact of the financial and food crises, agricultural land has now become a strategic asset for our company", Ms Balaenkova continues. "This is prompted by unstable crop prices and aggravated by the biofuels boom – while the UN sees the increasing number of starving and malnourished population. Large agribusinesses have the key role in contributing to world food safety, possessing the right tools for making the investment work efficiently".
Russian Agricultural Division aims to acquire and cultivate agricultural land by introducing modern equipment and management; moreover the Company intends to increase the productivity of the land, generate cash flows and create value by land value appreciation.
RAD presently controls over 160,000 ha of land in different regions of Russia, and envisages to increase this amount to at least 500,000 ha by end-2010. As of today, RAD is controlled by PAVA who is willing to cede up to 40% of its control through a share issue in a Private Placement transaction. Investors, both Russian and foreign, are interested to invest millions of dollars into Russian land to help bring around the long-neglected farmland amid of food crisis.
"Our aim is to create mutual benefits. PAVA is also implementing an advanced wheat grain processing project, which would enable us not only to increase world supplies of prime-quality agricultural produce and high value-added ingredients, but also to promote the development of national economy ", adds Ms Balaenkova.


0 Comment


Please enter your name


Please enter your email

Please enter valid email


Please enter your comment

Post Comment

Your comment has been submitted successfully. Please wait for admin approval.


No comments posted yet. Be the first to post a comment

Australia | 21 October 2016
Local bloc seeks to counter bid for Australian cattle empire

Nationalist lawmakers have teamed up with local ranchers to try to counter a bid involving Chinese buyers for the S. Kidman & Co. cattle empire, in what would be one of Australia’s biggest agribusines...

USA | 21 October 2016
Arizona farmers give back by donating milk to food banks

43 million gallons of milk have been dumped in fields across the country since the start of the year. That's why many American farmers have been forced to do with lower milk prices not bringing in...

USA | 21 October 2016
Your groceries may be cheaper, but farmers and supermarkets feel the pain

If you’re just a little irked that gasoline prices have edged up recently, maybe this will cheer you up: Groceries are a bargain. Average supermarket prices fell 2.2% in September from a year ago, ...

Canada | 21 October 2016
Farmers fail to rally to tax revolt talk

If farmland property taxes are too high, don’t pay them. That’s what Dugald farmer Edgar Scheurer suggested while commenting on Facebook about Manitoba Co-operator stories on skyrocketing farmland ...

United Kingdom | 21 October 2016
Woman killed in cattle attack on family farm

A woman has been killed after she was attacked by cattle on a family farm in Co Derry. The pensioner, who has been named locally as Brigid McKeefry and is aged in her 70s, was rushed to the Causewa...

Trending Now


Top stories you may have missed