KSG Agro Holding’s companies started the procedure of renewal of land lease contracts (shares). According to newly concluded agreements, lease rates have increased by 30%.
The campaign to renegotiate contracts with the new, higher rates started in the Novopokrovka village (Solonyansky district of Dnepropetrovsk region). This move was announced by KSG Agro’s Director of the Department for Development and Integration of land use Valery Mashtaler, later quoted by the press office of the bank.
“KSG Agro has always appreciated good partnership with land shareholders, – says Valery Mashtaler. – In the context of the general rise in prices and reduction of our citizens’ welfare, we have decided, despite the difficult situation on the agricultural market, to find an opportunity to raise the level of payment for the use of land shares by a third. Thus, the holding company demonstrates its desire to continue to be good and effective partners with land shareholders”.
In addition to rental rates, another innovation in the newly concluded contracts would be to replace the legal entity in the contracts: the land owners are encouraged to conclude with KSG Dnipro. According to Valery Mashtaler, this initiative is due to the consolidation of the companies in KSG Agro Holding and assumes no changes to the shareholders. “We optimize and scale up our companies to reduce the costs of management in difficult times”, – said KSG Agro’s Director of the Department for Development and Integration of land use.
KSG Agro’s decision to increase the rates for the lease of land shares received a positive reaction from the local authorities. According to the chairman of the Novopokrovskiy village council Yuri Petrenko, new lease terms strengthened positive feedback in shareholders’ interaction with such a large and reliable agricultural holding as KSG Agro. “In the event of crop failure in our area, KSG Agro can always pay off shareholders with products grown in another area, district or region, – says Yuri Petrenko.- In my practice there was a case when we had a bad year in the area, and small farms were unable to pay off the shareholders. At the same time, a large enterprise, despite the poor harvest in our area, paid its shareholders, bringing in products grown in another area”.
KSG Agro is one of the leading agricultural holdings in Ukraine, the European innovative group of companies operating under the principle of vertical integration. Shares of the holding are listed on the Warsaw Stock Exchange. KSG Agro’s main activity is tillage and crop production. In September 2014, KSG Agro presented its new development strategy. At its core lies the priority development of the pig industry, processing, flour production and the production of biofuels.
KSG Agro’s press-service
Contact: Sergei Viktorov (tel. +38067-509-17-27)
E-mail: pr@www.ksgagro.comagro.com