Agroton posts 19% yoy growth in winter wheat yield

Agroton (AGT PW), one of Ukraine’s largest farmers, released encouraging winter wheat harvest results yesterday: a reported yield of 3.24 t/ha (+19% yoy) and a total harvest of 140.3 kt (+17% yoy).

Alexander Paraschiy: The harvest results are a good sign for the company – they suggest Agroton is paying increasingly more attention to planting of the crops which were previously used for crop rotation purposes only (as the company is focusing on sunflower seeds). Moreover, the reported yield is well above our expectations (we projected 12% yoy decline). The strong harvest numbers should allow Agroton to turn wheat profitable this year, as opposed to last year (our estimates suggest 2011 wheat costs outstripped revenues). Nevertheless, since oilseeds remain Agroton’s key crop, we look forward to an update from the company on its sunflower harvest.