GlobalAgro enhances agribusiness efficiency

Since the situation on the global economic scene has impacted profitability of agricultural and grain processing business, large players of the sector choose in favour of new cost-cutting production technologies and economies of scale. Altay grain processor PAVA has taken a series of steps towards improving its business performance.

One of top-ranked companies in the Russian milling sector and the most rapidly developing exporter of flour, strengthened its core activities by introducing a new processing technology. It resulted in creation of a new flour grade Zhitnitsa, which maximized output, and further – positively influenced the bread yield.

Seeing the flour market slow down its paces, the company has arranged to widen its business into areas characterized by nascent growth such as production of gluten, starches and alcohols. There is high volume of imported value-added wheat ingredients on the domestic market, and quality of Altay grain together with high synergies of the project could ensure global competitiveness.

Further adjusting its operations to the market, PAVA created a daughter holding GlobalAgro, consolidating deep wheat processing and independent production of agricultural crops. Better margins coming from vertical integration will bring business profitability onto a new level and ensure quality chain from field to table.