Astarta expands sowing area 19% yoy in 2012

Astarta (AST PW) plans to increase its crop sowings 19% yoy to 235 ths ha, the company announced yesterday at the start of its sowing campaign. The company plans to slightly increase acreage under sugar beets, even though their share will fall slightly. 

Yegor Samusenko: We expect the crop structure this year to resemble 2011, just slightly swapping sugar beets in favor of wheat. Last year Astarta planted 23% of its landbank with sugar beets, 21% with wheat, 18% with soy, 15% with corn, 7% with barley, 5% with sunflower and 11% with other crops. Based on our current expectations of declining yields (vs. the positive weather shock of 2011) and flat prices, we expect the harvest’s value to increase by a mere 4% yoy in 2012 to USD 143 mln (ex sugar beets).