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Home Ukraine

Landkom Joins U.S.-Ukraine Business Council (USUBC)

The FINANCIAL by The FINANCIAL
September 13, 2010
in Ukraine
Reading Time: 3 mins read
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The FINANCIAL — Landkom International PLC ("Landkom"), a large Ukrainian producer of agricultural commodities, has been approved for membership in the U.S.-Ukraine Business Council (USUBC), the USUBC executive committee announced on September 13 on behalf of the entire USUBC membership of over 130 companies and organizations who have business operations, investments or other development programs in Ukraine. Landkom is incorporated in the Isle of Man.

 

Landkom, based in Ukraine with a landbank of 74,000 hectares, produces grains such as barley, maize, soybean, rape seed, and wheat.  The commodities are supplied directly and partially via grain traders to the global food and biofuel markets.  In addition, company is operating dairy, beef, pigs and sheep farms. Within current business plan Landkom start to produce briquettes from straw with targeted market in Western Europe.

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The Company's operations are located throughout Ukraine with a current concentration of planted land situated in western, southern and center regions. The "black earth" land in Ukraine is among the most fertile in the world. In 2009 the company harvested over 29,000 hectares of crop delivering over 39,000 tonnes of oil seed and grain. In 2010, Landkom has to harvest crop from at least 39,000 hectares of land.
 
LANDKOM…POSITIVE CONTRIBUTOR TO LOCAL UKRAINIAN ECONOMY

Landkom uses latest equipment and farming practices to consistently deliver yields considerably above the Ukrainian historical averages. Future demand for agricultural feedstock's looks strong with increased demand from growing populations, increased protein intake combined with legislated demand for biodiesel related feedstock's. With its varied crop outputs, Landkom is well placed to take advantage of price rises occurring from supply demand
imbalances.

 

Ukraine currently has a moratorium in place preventing the freehold sale of Agricultural land, therefore the Group leases land. Agriculture land leases extend on average to approximately 10 years and contain right to renew and right to buy provisions at the end of the lease period.

 

Landkom is a major positive contributor to the local Ukrainian economy, contributing to social welfare projects, reinstating derelict land to farming and improving the quality of existing farmland through sustainable high input agricultural practices.

 

VITALIY SKOTSYK, LANDKOM CEO

Vitaliy Skotsyk has been Chief Executive Officer of Landkom International PLC., since November 2009. Mr. Skotsyk was appointed a Director of Landkom International PLC on September 28, 2009. Mr. Skotsyk has worked in key positions in agricultural businesses in Ukraine, UK and the USA.

 

Mr. Skotsyk has valuable local and international experience in the agricultural sector, having built up and led AMACO, one of the largest agricultural equipment and input suppliers in Ukraine and the CIS over the past 12 years. He has a PhD in Agriculture from the Ukraine State Agriculture University, a Doctorate of Economics in Strategic Management from the International Management University, Kiev.

 

Since his appointment as Chief Executive, Vitaliy Skotsyk has implemented a number of significant improvements, both in terms of cost and efficiency, including reduction of labour force and increased efficiency of farming methods. He has also strengthened Landkom's operational management by recruiting an experienced team with a significant track-record in the Ukrainian agricultural sector. 

 

Vitaliy Skotsyk, in relation to the 2010 harvest in Ukraine, said last week: “We are very pleased by the harvest of our core crop.  These results, with their improved margins, clearly demonstrate the productivity of our farming techniques and operational expertise as they have been achieved despite the vastly reduced input costs. We are on course to complete all the outstanding harvesting of the other crops over the next few months and have already started planting for next year.”

 

LANDKOM AND USUBC

"I have known Vitaliy Skotsyk for several years.  He is a young, outstanding agribusiness leader in Ukraine," said Morgan Williams, Director, Government Affairs, Washington Office, for the SigmaBleyzer Private Equity Investment Management Group, who serves as President of the U.S.-Ukraine Business Council (USUBC).  "USUBC is most pleased to have the opportunity to work with Landkom under Vitaliy's progressive leadership.

 

 

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