Milkiland expands landbank by 2 ths ha via acquisitions

Milkiland (MLK PW) acquired two agriculture companies with 1,700 ha of land and own 150 milking cows. This increases the company’s landbank to 19,800 ha and milking cows headcount to about 2,750. Yegor Samusenko: Milkiland’s core business is milk processing and the company remains, like all milk processors in the CIS, reliant on third-party milk supplies. We estimate Milkiland’s own raw milk currently satisfies 5% of its needs. The company is targeting increasing self-sufficiency in milk to 15% in 2-3 years and we believe there is no need for an increase over that level, as milk production is a more risky business than processing and there is little historical evidence of success in building a vertical milk production chain in Ukraine.