Ukrzernoprom Agro to cut winter crop planting by 9%

Ukrzernoprom Agro/MCB Agricole (4GW1 GR) said in a press release yesterday that it plans to cut its planting of winter crops this year by 9% yoy to 54 ths ha. The company intends to sow 28.8 ths ha with winter wheat (vs. 33.5 ths ha in 2008), 16.3 ths ha with rapeseed (vs. 19.2 ths ha in 2008), 2.4 ths ha with rye (vs. 3.4 ths ha in 2008), and 6.5 ths ha with barley (vs. 2.7 ths ha in 2008). Andriy Gostik: In our view, a plausible explanation of the reduction in winter crop planting is insufficient financing to fund working capital needs for the winter sowing campaign. As with many other agricultural companies, MCB had to adjust its development plans downward due to the credit crunch. The news does not come as a big surprise to the market.