Don Agro International, an agriculture company based in the Commonwealth of Independent States (CIS) countries, announced new business initiatives, such as its entry onto the flour market and cultivation of new protein-rich crops.
This announcement was made alongside the release of its annual report for FY2022 ended Dec 31, 2022 on April 17.
In FY2022, the group reached a key milestone: an all-time record winter wheat harvest of 89,108 tonnes, which represents a 23.3% growth y-o-y.
Taking into consideration the falling trend on the global grain market, the group explored other growth opportunities.
In 2023, the group has purchased flour production equipment with a total annual capacity of 13.0 thousand tonnes of flour. To hit maximum capacity, the group needs to utilise the 19.0 thousand tonnes of winter wheat, which is well below the group’s 2022 output of 89,108 tonnes.
This purchase will give the group flexibility in deciding whether to sell grain to traders or to mill it into two different flour grades, bran or semolina.
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Evgeny Tugolukov, executive chairman of Don Agro says: “Our company not only produces goods in demand on the market, it is also one of the elements of ensuring global food security, since our products are vital for their consumers. That is why we perceive our work as fulfilment of an important civilisational and humanitarian mission. Winter wheat has been Don Agro’s main source of profit over the years but we now need to adapt to the everchanging economy. Consequently, the group has started exploring different opportunities for further business development,"
Shares in Don Agro closed at 19 cents on April 19.
