Reference

Technical assistance for large-scale production farming in Siberia

FGM International was appointed by a major Siberian holding to strengthen the development of its agricultural department. The assignment had three main goals: audit and technical assistance for a large-scale farm of 30 000 ha producing grain, oilseed and forage, situational analysis of business opportunities for fertilizer marketing and development of a 7 000 ha model farm.

The challenge

The client’s holding company specialises in industrial activities and had diversified into farming operations. It was struggling to develop fertilizers sales and to achieve profitability for its main farm that it intended to use as a model for implementing modern farming practices in the area.

FGM results

In just one agricultural season, FGM International has efficiently led the farm to profitability despite not having the overall authority to supervise all the operations. With a profitable model, the client is now in a position to scale up or improve next season’s results.

Technical assistance to farm management

The project cultivates 30 000 ha of land in Kemerovo distributed among 6 brigades with a distance of approximately 60 km between the most distant plots. With the former management system still in place when FGM started operations, the project relied on centralised management and had not integrated any overall process to standardise and sustain the farming operation. Thus, FGM International has provided the following:

Comprehensive appraisal of the existing situation including agronomic aspects, review of available equipment, infrastructure, management and HR,
Elaboration of the technical and managerial plan for the year 2019 with a new cropping program, crop husbandry plans and farming practices utilizing the existing assets,
Review of husbandry plans: cereal (wheat, barley, oats), feedstuffs (corn silage, alfalfa), oilseeds (rape, soybean) and peas,
Full-time on-site technical and management support with FGM International experts dedicated to the agronomy of the project and its management,
End-of-season evaluation of the farm’s practices and financial performance,
Presentation of next season’s program integrating the new processes and key success factors to be implemented.

Vaganovo farm in Siberia: excellent land for cereal and grain production

Company situational analysis and advice

The client wants to develop the market for fertilizer inputs to increase its sales in the region. The following services were provided to the service enterprise owned by the holding company:

Comprehensive review of the various department’s profiles and operations,
Economic analysis of the project including sales, gross margins, fixed cost review and potential EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) and net profit result,
Identification of priority areas of action for the marketing, sales, complementary agro-consulting services, management and HR,
Final report with analysis of opportunities, challenges and solutions.

Anhydrous ammonia (azane), ready for in-field application

Development plan for a model farm

The client mandated us to support the development of 5 950 ha of abandoned land (former land allotment of a farming brigade), to develop a self-sufficient modern farm unit to demonstrate best farming practices.

Preparation of farm planning including a crop husbandry plan, list of required equipment, management chart and infrastructure,
Preparation of a 2019-2020 Budget according to the unit’s capacities,
Client escort at the Agritechnica fair, in Germany, to meet equipment suppliers and review available technology to be integrated into the project.