Alpcot Agro’s strategy is to operate an efficient, modern agricultural business according to international best practice. The company’s value chain has three links: cultivation of the land, storage and sales.

Cultivation of the land

Alpcot Agro has opted to work with a plough-free technique. This means that instead of a plough, various types of cultivators are used to prepare the fields for seeding. The land acquired by the company has frequently been fallow for several years, which means it often has naturally regained a good ground structure. This reduces the need for labour-intensive and costly deep treatment.

Once the land is being cultivated the focus shifts to maximising yields. This is done by ensuring the plant nutrient status and that weeds are controlled in the growing crops. Ongoing follow-up and adjustment of established crop production plans are important since fertilizing and weed control are relatively costly.

Alpcot Agro uses primarily Western agriculture equipment such as tractors, seeding machines, cultivators, sprayers and spreaders in the direct field work; while Russian machines such as lorries, tank trucks and support vehicles are used in supporting activities.

Storage

Grain prices in Russia may fluctuate substantially over the course of a year. Directly owned and controlled storage capacity allows the company to maximise revenues. Alpcot Agro has the possibility to use four types of facilities for storage:

• Flatbed storage for temporary storage during the harvesting period
• Airtight storage for medium to long-term storage
• Russian silos with integrated drying capacity and railway connections for both transporting grain out and input goods
• New silos built according to Western standards with integrated drying capacity for the most valuable harvest and the company’s own seeds

Sales

Over the past year the company has sold its grain both to local and national grain buyers. In order to increase the effectiveness in sale of grain, the company is in the process of establishing its own central sales organisation.