Land Resources and Acquisition
Ukraine's rich dark soil and vast plains have earned the country the nickname «bread basket of Europe». Today, Ukraine exports substantial amounts of grain, vegetables, sugar beets, sunflower seeds, milk and meat not only to Europe but to many parts of the World. The country's mild climate, abundance of fertile land and low production costs create the most favourable conditions for growing and harvesting a wide range of crops and food produce.
Efficient Management of Land Resources
Mriya benefits from the favourable environment in the native land which contributes to its high harvest yields. Since its foundation, the Company's activities have been focused on unlocking the potential of the Ukrainian agribusiness. Mriya takes full advantage of the abundant supply of high quality arable land in Western Ukraine — which contains high concentration of «Black Earth» — and continuously improves and expands its production while optimising land resources.
Operating on Superior Quality Farmland in Western Ukraine
Mriya's land resources of с. 320 thousand hectares is strategically located within a compact 150 km radius in Western Ukraine, a region enjoying ideal climate conditions suitable for harvesting both spring and winter crops and benefiting from a high concentration of «Black Earth» («chornozem»). This particularly rich soil contains a significant percentage of enriched humus — a layer of 40 to 60 cm on average compared to 10 to 30 cm in neighbouring countries — and high percentages of phosphoric acids, phosphorus and ammonia, making it one of the World's most fertile soils.
Strategically Located Clusters Delivering Operating Efficiency
Mriya's land is spread across five adjoining regions, comprising Ternopil, Khmelnytsky, Chernivtsy, Lviv and Ivano-Frankivsk, with the Company's headquarters located in Vasylkivtsi. Mriya's land is organised in 14 separate large contiguous clusters of 17,000 to 25,000 ha each. Each cluster is managed by a separate production team and has its own agronomists.
Through its cluster model and attractive geographic location, Mriya benefits from key competitive advantages that allow it to manage and preserve land resources efficiently:
- Its large scale permits significant procurement discounts, efficient utilization of equipment and leverage of storage facilities.
- Mriya operates in close proximity to customers and suppliers across Europe and Asia , with Ukraine serving as a transit hub for Russia and Kazakhstan.
- Its base in Western Ukraine gives Mriya easy and cost effective access to raw material supplies and to excellent rail links and storage facilities.
Land Expansion and Efficient Integration: Key ingredients to prosperity
Land expansion and preservation are crucial to Mriya's strategy and ambition to create value and bring prosperity to all. Mriya's disciplined approach reflects the importance of sustainable development by closely integrating new land into the Company's existing portfolio in order to maintain high operating efficiencies across the value chain. In almost two decades, Mriya has gained tremendous experience in selecting the most suitable land to cultivate in Western Ukraine and implementing techniques that consistently increase yields. It has adopted a disciplined three-pronged approach to land expansion: land selection, resource allocation and integration into its infrastructure and logistics network.
Mriya pays special attention to local communities' interests and to potential environmental impact of its operations when deciding on any land acquisitions. As a leading employer and agricultural producer, Mriya has developed a unique and mutually favourable rapport with landowners and the communities where it operates. The Company's in-house specialist team of lawyers, notaries and agronomists conducts extensive due diligence and research to identify prospective plots and determine their optimal fit with existing arable land. Once new land is selected, Mryia signs long-term leases with land owners in accordance with Ukrainian authorities and with consideration for local communities.
Mriya has access to sufficient financing to deploy advanced farming technologies, purchase modern agricultural machinery and produce high-quality seeds, as well as train employees.
Integration into its infrastructure and logistics network
Mriya's vertical integration and ownership of trucks, storage and transportation facilities enhance its control of the farming value chain. GPS technology and centralised logistics monitoring system support the full integration of newly-acquired land into the Company's sowing plan and its logistics network.
In 2011, Mriya expanded its land area by approximately 66,000 ha to over 295,000 ha. See chart below.
Growth of Landholding
Recently acquired lands (k ha)
Harvested lands (k ha)