Global Ag Investments, LLC - Ukraine is:
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A farm management company in Eastern Europe that provides services to Investment Banks, Investment Funds, and Private Investors.
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Offers full-scale management from production to marketing or however the Investors sees fit.
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The first professional western agricultural management company working in Ukraine.
Some of Our Operations include:
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Doing No-Till farming on our location.
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Only John Deere Track Tractors being used in the country beginning in 2008, personally brought in from the states and assembled on site by the GAI team to increase efficiency and production.
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Currently plant wheat, barley and oilseed rape over the winter months. In the spring, Global Ag will have sunflower and sorghum.
Reasons for locating in the Ukraine:
Agriculture
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The land in Ukraine produces amazing crops and has favorable sunlight hours during the growing season.
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More than 60% of Ukraine is covered in Black earth top soil. Organic matter runs anywhere from 3-6%.
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It is very common to find soil pits that can have an A horizon, or, top soil level that will go down 40 inches. For example, it is amazing to see road construction in Ukraine being done where they have dug down 4 feet and it is all top soil.
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Ukraine has a perfect climate for growing small grains throughout the country and is excellent for corn or soybeans in the north.
Country and Government
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28% of the population work in or are involved in Agriculture. Labor is inexpensive, but are very able to do the work. Those who work in agriculture have spent their entire life working with older farm equipment for the village, therefore, they are excellent repair men and tractor drivers.
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The land is owned by the state (government) and the people have lifelong leases on it. They range from 2 Ha to 8 Ha depending on the size of the village when the USSR fell.
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The ability to find land available to lease for farming is fairly easy. Also, the prices for land leases are very inexpensive and remaining stable. There is the challenge of get available blocks of land that are connected in one big field; for example, on a 3000 Ha farm, we have 897 landlords. Thankfully, this can all be taken care of through 1 or 2 people at the village councils.
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Limited locations are available in the world that have inexpensive farmable land. Ukraine is included in this group.
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The hope in Ukraine is that land will become privatized through new government law, allowing people to own the property. Russia has already done this: the people that were leasing the land had first right to buy at a very reasonable price.
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The Ukraine government has hopes of joining Eastern Europe in the future.
Crops and Marketing
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Among all the European countries, Ukraine is a leader in growing of sugar beet, buckwheat and carrot; second place in growing of wheat (after Russia) and of tomato (after Poland).
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The Ukraine is geographically the best situated of all European countries for marketing with easy access to the Black Sea, China and all of Western Europe to feed a growing population. Ukraine, overall, has the best port access in this region of the world.
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For Global Ag Investments - Ukraine's farm location, there is train car access nearby down to the ports in the Black Sea.
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The market for Wheat, Barley, Sunflower and Canola have been excellent. The Sunflower and Canola are being used for oil production and Wheat/Barley for either milling wheat or feed wheat. Western Europe and China have provided a great market for these crops.
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Cargill, John Deere and others are showing greater interest in the European Bread Basket region's market.
