FGM International was appointed by a major Siberian holding to strengthen the development of its agricultural department. The assignment had three main goals: audit and technical assistance for a large-scale farm of 30 000 ha producing grains, oilseeds and forages, situational analysis of business opportunities for fertilizer marketing and development of a 7 000 ha model farm.
The client’s holding company specialises in industrial activities and has diversified into farming operations. Currently it was struggling to develop fertilizers sales and to achieve profitability for its main farm that intend be used as a model for implementing modern farming practices in the area.
In just one agricultural season, FGM International has efficiently led the farm to profitability despite not having the overall autority to supervise all the operations. With a profitable model, the client is now in a position to scale up or improve next season’s results.
The project cultivates 30 000 ha of land in Kemerovo distributed among 6 brigades with a distance of approx. 60 km between the most distant plots. With the former management system still in place when FGM started operations, the project relied on a centralised management and had not integrated any overall process to standardise and sustain the farming operation. Thus, FGM International has provided the following:
The client wants to develop the market for fertilizer inputs to increase its sales in the region. The following services were provided to the service enterprise owned by the holding company:
The client mandated us to support the development of 5 950 ha of abandoned land (former land allotment of a farming brigade), to develop a self-sufficient unit using modern farming practices.