«Kuban Аgro» and seed producer Maisadour create a joint venture in Russia
30.11.2015
"Kuban" will have access to technology, the French company will reduce import sales

"Kuban agro" (a part of "Basic Element" Oleg Deripaska) and the French seed producer Maisadour Semences will create a joint venture in Russia. The agreement on the parties signed in late October, told "Vedomosti" representative "Kuban" and confirmed the general director of Russia's Oksana Maisadour Krasnyanskaya.

"Kuban Agro" has already started work to double the capacity of its Ladoga Corn and Sizing plant - up to 10 000 tonnes of seed per year, a company spokesman said. According to him, the experience of growing parental forms of corn and sunflower, as well as work on breeding new lines of hybrid seeds on agricultural lands "Kuban", will begin in 2016. If the project is successful, the parties can also create a new brand, the representative of the Russian agricultural holding.

Total investment in the joint project with the French has not been determined, said the source "Vedomosti" from the "Kuban". However, in the next 3-5 years Maisadour plans to invest 16-20 million euros in production, irrigation, equipment selection and breeding center in Russia, said the representative of the French company.

"Kuban" is already producing corn seeds for their own use (211 tonnes in 2014/15, the season, according to its own data) and for sale (5340 m). Partnership with Maisadour Agroholdings allow access to new technologies and to generate hybrid funds, says the representative of the Russian company. In addition to the seed "Kuban" also grows corn, produces pork, sugar. At the end of March 2015 "Kuban", according to its own data, it operated 94 000 hectares of land in the Krasnodar region; its revenues in 2014 amounted to 7.3 billion rubles., net profit - 1.1 billion rubles.
Who are they

French agribusiness cooperative Maisadour founded in 1936, brings together more than 8,000 farmers. Its turnover in the 2013/14 financial year, according to its own data, amounted to 1.55 billion euros, EBITDA - 52 million euros. In addition to the agricultural division in the group includes meat, food area and garden centers. The company has five seed breeding stations, including in Mogilev (Ukraine).

Maisadour Semences - seed division of the French agro-industrial cooperative Maisadour (cm. Incision). In Russia in 2000, where it sells the seeds of maize and sunflower, said on its website. Operating performance Maisadour Semences in Russia did not disclose. According to "SPARK-Interfax", its revenue in 2014 amounted to 248 million rubles., A net loss of - 5 million rubles. Maisadour Semences is among the ten largest producers of seeds, said Executive Director of "SovEkon" Andrey Sizov, among the market leaders - Syngenta, Bayer, Pioneer, Monsanto.

If you are still only 10% of sales accounted for Maisadour seed produced in Russia in the next five years through a partnership with the "Kuban", the company intends to increase its stake in its sales to 80%, refined Krasnyanskaya. This is substantially more than the average for Russia: currently imports 50% of corn seeds and 70% of sunflower seeds, knows the general director of the Institute for Agricultural Market Studies (IKAR) Dmitry Rylko. Localization allows Maisadour save, suggests a top manager of a large company - producer of seeds, it provides an average 15-25% reduction in cost, in some cases - depending on the region and technology - up to 50%.

The demand for local products and Maisadour "Kuban" is possible - as the question emphasizes a top manager of a large company-processor. According to him, it is ready to replace the current supplier, the Swiss Syngenta, if the price of seeds Maisadour a result of localization will be more profitable. Bonduelle Russia is also ready to consider the possibility of cooperation with Maisadour, if its seeds will meet all the requirements of the company, including the variety and high quality, he assured the Managing Director "Bonduelle-Kuban" Sergei Kovalev. Now, according to Kovalev, the Russian subsidiary of Bonduelle is not cooperating with Maisadour, because it specializes in seed corn of another sort. While online Maisadour global Bonduelle named among the partners of the group.

Capacity-tech seed production in Russia is logical in an environment where agriculture has ceased to be a backward sector, said the deputy head of the Center for Economic Forecasting Gazprombank Daria Snitko. Thus, in September 2015 about the plans to establish its own production of hybrids are told the magazine "Agroinvestor" Regional Director of DuPont Pioneer Europe Paolo Barbieri.