Kusto Group, the multi-sector conglomerate that acquired Israeli paint manufacturer Tambour, has expanded its agricultural operations in Ukraine. Since purchasing Tambour in 2014, Kusto has increased the company’s manufacturing capabilities and transformed it into an international brand.
Ukraine is often referred to as the ‘breadbasket’ of Europe, and for good reason. Its rich, fertile lands provide the ideal natural environment for a multitude of agricultural pursuits. Kusto Agro, a subsidiary of the multifaceted, Singapore-based Kusto Group, has embarked on an ambitious plan to become a producer of the highest quality agricultural products in the country. According to Yerkin Tatishev, the chairman of Kusto Group, the future of Kusto Agro in Ukraine continues to look bright.
Last month, Kusto Agro received the ‘Best Enterprise of Ukraine’ recognition and its CEO Daulet Nurzhanov was awarded ‘The Leader of Ukraine’ medal for the company’s ‘significant contribution to the socio-economic development of Ukraine.’ The company has implemented a technological approach to agriculture that has allowed it to thrive and flourish in Ukraine, a country with rich agricultural potential.
Kusto Group’s subsidiary Kusto Agro recently received ‘Best Enterprise of Ukraine’ award and its CEO was awarded ‘The Leader of Ukraine’ medal for the company’s contribution to the economic and social development of Ukraine.
Kusto Agro’s Expanding Land Bank
The Ukrainian agricultural sector is often cited as one of the most competitive in the world and Kusto Agro hopes that through the application of modern technology and the expansion of its operations, it can achieve a competitive edge over other agricultural firms in the country. Estimates approximate that 70% of the country’s land is devoted to agricultural activities, with 55% dedicated to arable production. Ukrainian farming operations produce diverse crops from cereals like wheat and barley to other important crops like rapeseed, sugar beets, soybeans, sunflowers, and corn. This, of course, is in addition to meat and dairy productions.
Kusto Agro use of modern technology in agrarian practices include the use of high-quality sensors to monitor temperature, conditions and crop degradation. The company employs drone technology to supply real-time images and data for analysis to identify problem areas before they become a larger problem. This technological approach has increased Kusto Agro’s efficiency, improved the overall quality of its product and decreased operational expenses.
Kusto Agro is a rising force within the Ukrainian market, recently acquiring Lishchinskoye LLC and Agrarnyy Fond Tereschenka LLC from the French company AgroGeneration adding 11,338 hectares of agricultural land to Kusto’s land bank. Additionally, the acquisition of these two agricultural enterprises will provide vital infrastructural components to Kusto Agro’s operations in the form of warehouses, office buildings and silo bags.
Both agricultural firms are located in the Zhytomyr region of Ukraine. Kusto Agro’s command of a significant presence in the region illustrates their commitment to the region where they aspire to become a signification part of the local agricultural landscape.
Currently, Kusto Agro’s land bank is spread across the Vinnytsia, Zhytomyr, and Khmelnytsky regions of Ukraine. In addition to its expanding land assets, Kusto Agro owns three silos with a total storage capacity of 90,000 tons and about 600 heads of dairy cattle.
Kusto Agro’s new grain hopper cars will provide efficient and reliable transportation of the company’s grain to domestic and international markets.
New Grain Hopper Cars are an Investment in the Company’s Future
In addition to expanding its agricultural land bank, Kusto Agro has looked to expand its operations through the purchase of tools and technology critical to the structural execution of their agrarian activities. To successfully run their operations from field to market, Kusto Agro relies on the smooth functioning of their intricate network of operations, much of which is hidden from the view of the consumer.
An essential element of this network is the fleet of grain hopper cars that transports the firm’s high-quality harvest from its farms in Ukraine to market destinations across the world. With the growing connectedness of the global economy, railway freight shipping has proven to be the most efficient and cost-effective method used by Kusto Agro to transport their product to consumers.
Kusto Agro has recently purchased 25 additional grain hopper cars, increasing the size of its fleet to 45 cars in total. The organization has plans to further expand the fleet to a total of 70 vehicles before the end of the year. The company views the purchase of new hopper railcars as a valuable investment in the future of the company.
The company’s expanding land bank requires other facets of its operation to evolve and adapt accordingly, ultimately serving the needs of the customer. The purchase of a new fleet of grain railcars will help Kusto to develop a highly efficient operation, setting them apart from their competitors. Each of the new grain cars has the capacity to transport about 70 tons of grain. The new railcars will provide for the uninterrupted loading and unloading of grain from grain elevators, ensuring Kusto is able to fulfill the export requirements of their contractors.
According to Kusto Agro, the new hopper cars will improve the company’s growing logistics costs, which inevitably accompany the expansion of any firm. For the company, fostering innovation and promoting efficiency lays the groundwork for success for future generations.
Through Kusto Group’s expansion of Kusto Agro, the company aims to expand opportunities within the local communities it operates by providing more high-skilled jobs and a higher-quality product for their customers. Kusto’s has assembled a talented and dedicated workforce that supports its operations worldwide. A culturally diverse personnel base is a strength for the company, providing vast local knowledge and offering insights allowing the company to better understand domestic business environments.
According to Kusto Agro’s CEO Nurzhanov, “Learning from new cultures and ensuring our businesses adapt to the individual characteristics of new markets is one of Kusto’s key values… I am proud that we have become such an important part of the country’s economic and social fabric — this recognition inspires us to continue our effort to grow Kusto Agro in Ukraine.”
Kusto Agro’s progressive and advanced modern business practices, along with their continued investment in the expansion of the company, provide them with a competitive edge in the industry that will undoubtedly lead to the company’s continued success in the Ukrainian market and beyond.