Reference

Technical assistance for large-scale production farming in Siberia


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 challenge

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.

FGM results

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.


Technical assistance to farm management

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:

  • Comprehensive appraisal of the existing situation including agronomic aspects, review of available equipment, infrastructur, management and HR,
  • Elaboration of the technical and managerial plan for year 2019 with a new cropping program, technical cards and farming practices utilizing the existing assets,
  • Review of husbandry plans: cereal (wheat, barley, oat), feedstuff (corn silage, alfalfa), oilseeds (rape, soybean) and peas,
  • Full-time on-site technical and management support with FGM International experts dedicated to the agronomy of the project and its management,
  • End-of-season evaluation of the farm’s practices and financial performance,
  • Presentation of next-season’s program integrating the new processes and key sucess factors to be implemented.

 

Vaganovo farm in Siberia: excellent land for cereal and grain production

Company situational analysis and advice

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:

  • Comprehensive review of the various department’s profile and operations,
  • Economic analysis of the project including sales, gross margin, fixed cost review and potential EBITDA and net profit result,
  • Identification of priority areas of action for the marketing, sales, complementary agro-consulting services, management and HR,
  • Final report with analysis of opportunities, challenges and solutions.

 

Anhydrous ammonia (azane), ready for in-field application

Development plan for a model farm

The client mandated us to support the development of a disused brigade to develop a self-sufficient unit using modern farming practices.

  • Preparation of farm planning including a crop husbandry plan, list of required equipment, management chart and infrastructure,
  • Preparation of a 2019-2020 Budget according to the unit’s capacities,
  • Client escort at the Agritechnica fair, in Germany, to meet equipment suppliers and review available technology to be integrated into the project.

 

Assessment of farming equipment in Siberia


Provided services in the frame of this projet


Interesting reading relevant to this project


Location

Russia

Number of experts

10 experts

Date

2019

Duration

1 Year

Area

25000 ha

Client

TPZ

Assigned competencies

  • Team Leader
  • Large-Scale farm manager
  • Agronomists
  • Agro-economists
  • Economic analyst

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