Land legislation in Ukraine

In Ukraine land cannot be sold freely, instead agricultural land is leased to farm operators on a long term basis. During the 11 years of operations Grain Alliance has developed an approach on how to make sure that land owners stay loyal to the company and lease their land to Grain Alliance.

In 2000 the state and collective farms were restructured and dismantled. Farm property was divided among the farm workers in the form of shares. Individuals who own land can use it to grow crops themselves or lease it to agro companies on a long-term basis (3 – 25 years). The company holding the land lease has a renewable pre-emption right and also an acquisition pre-emption right.

The question on how the land can be maintained and tied to the Company is crucial, since Grain Alliance cannot own the land the company operates. During the 11 years of operations Grain Alliance has developed an approach on how to make sure that land owners lease their land to Grain Alliance. One part of this approach is that the existing director and staff of the old kolkhoz companies are kept on and incorporated into the organization of Grain Alliance. When included in the business the assets of the old company, buildings, installation, infrastructure and equipment are transferred to Grain Alliance. Moreover, Grain Alliance takes a noticeable social responsibility in the villages, in which the company operates.

 

We understand the importance of a sustainable agriculture. Grain Alliance has a unique fully equipped in-house soil sampling laboratory.

In order to maintain long term profitability Grain Alliance run a sustainable agriculture. The Company’s production is oriented towards a long term perspective, therefore a balanced mix of crops are grown with an emphasis on crop alteration and soil recovery. Grain Alliance has an in house laboratory, which monitors and measures the quality of our lands. In Ukraine there are only a handful of such laboratories, including Grain Alliance’s. By continuously analyzing the soil the agronomists scientifically know what kind of fertilizer to use and in which quantities. Grain Alliance can also in time react to problems such as increased acidity of the soil. Moreover, this information is used in the long term production planning process and thus securing a long term sound usage of the soil and avoids exhaustion.

In addition to the soil analysis Grain Alliance management information system provide full traceability of all crops grown. We can follow exactly from seed to plant, which operations has been carried out, which quantities of fertilizer and pesticides have been used, at what time, by whom, with which piece of equipment, precipitation levels during the growth period, etcetera. By monitoring in detail all inputs and all field activities we ensure that we follow all environmental regulations and recommendations.

 

We understand the importance of a sustainable agriculture. Grain Alliance has a unique fully equipped in-house soil sampling laboratory.

In order to maintain long term profitability Grain Alliance run a sustainable agriculture. The Company’s production is oriented towards a long term perspective, therefore a balanced mix of crops are grown with an emphasis on crop alteration and soil recovery. Grain Alliance has an in house laboratory, which monitors and measures the quality of our lands. In Ukraine there are only a handful of such laboratories, including Grain Alliance’s. By continuously analyzing the soil the agronomists scientifically know what kind of fertilizer to use and in which quantities. Grain Alliance can also in time react to problems such as increased acidity of the soil. Moreover, this information is used in the long term production planning process and thus securing a long term sound usage of the soil and avoids exhaustion.

In addition to the soil analysis Grain Alliance management information system provide full traceability of all crops grown. We can follow exactly from seed to plant, which operations has been carried out, which quantities of fertilizer and pesticides have been used, at what time, by whom, with which piece of equipment, precipitation levels during the growth period, etcetera. By monitoring in detail all inputs and all field activities we ensure that we follow all environmental regulations and recommendations.

Contact us

  • +38 04576 62 572, +38 04576 62 660
    +46 8 441 55 00
  • BZK Grain Alliance AB
    Gamla Brogatan 29
    S-111 20 Stockholm
    Sweden

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