Investment strategy

 

 

Alpcot Agro’s expansion is being managed by Alpcot Agro’s Investment Manager, Alpcot Capital Management Ltd. Alpcot Capital Management Ltd is overseeing the registration of leases and is at the same time acquiring the land that Alpcot Agro is farming. Investment opportunities are evaluated based on a number of established criteria with the objective to create a world class agricultural company:

The quality of the soil and precipitation

Factors such as soil samples and precipitation are carefully monitored and analyzed before each investment decision.


The size of the focus area

Alpcot Agro aims to quickly control an area of at least 10,000 hectares in the regions where the company has decided to establish. By creating large focus areas the company can efficiently use the operating management for each focus area.


Proximity to population centers

To facilitate recruitment the company prefers locations close to large villages or small towns.


Proximity and access to infrastructure

Transportation networks and other infrastructure are of varying quality in rural Russia, and it is both time-consuming and costly to build a road network or storage capacity. Alpcot Agro therefore gives priority to investments in land close to existing infrastructure.


Geographical diversification

The company’s ambition is to spread its focus areas to reduce exposure to local weather conditions.

 

Geographical extension

Alpcot Agro invests in land in the fertile black earth belt, that stretches from northern Ukraine through southern Russia to Siberia. Alpcot Agro works to locate its acreage along a north-south direction axis to extend the seeding and harvest seasons and enable an optimized utilization of the company’s machinery.

 

Relationships with local decision makers and stakeholders

Strong relationships and a mutually beneficial cooperation with local authorities are essential for the company to successfully operate in regions where the company has decided to invest. Alpcot Agro has undertaken a number of corporate social responsibility initiatives in the regions where the company operates.