KTG Agrar AG: 2011 harvest brought in from 35,000 hectares
- 150,000 tons of grain, maize and rapeseed harvested
- 250,000 tons of intercrops for biogas production
- Harvest already sold at good prices
- Growing interest in farmland as real asset investment
Hamburg, 30 November 2011 - "We are satisfied with our 2011 harvest," says Ulf Hammerich, Management Board member of KTG Agrar AG [ISIN: DE000A0DN1J4], who looks back on a good crop year. In the past summer and autumn months, the agricultural company has brought in the harvest from more than 35,000 hectares in east Germany and Lithuania. Overall, the company has harvested some 150,000 tons of conventional and organic grain, maize and rapeseed, which makes KTG Agrar one of the largest producers of agricultural commodities in Western Europe. Moreover, the company has stored over 450,000 tons of silage for its own renewable energy production activities. More than half of this comes from intercrops such as millet and grass. Says Ulf Hammerich: "We began to sell our harvest already last year and have thus secured the high price level."
There was a major difference between the development of winter and summer crops this year. Winter grain and rapeseed were affected by the dry spring and the rain during the harvest season, which is why harvests were slightly lower than last year. This was more than offset by higher sales prices, though. Maize and intercrops benefited from the summer rain, which led to very large harvests of maize, maize silage and intercrops.
KTG Agrar currently farms 35,000 hectares of land in east Germany and Lithuania, which means that the company operates in regions that benefit from favourable conditions. On the one hand, good soil and sufficient precipitation ensure stable harvests. On the other hand, the short transport routes to the processors keep transport costs low. The excellent environment for farming has recently been confirmed by agricultural expert Harald von Witzke, a professor at Humboldt University in Berlin, who calls Germany "an exceptionally favourable location". This will turn out to be an even bigger advantage in times of climate change. The global demand for food and energy is on the increase, due to factors such as the growing world population, urbanisation and changing eating habits. KTG Agrar benefits from these mega trends and will continue its profitable growth in the coming years regardless of the economic situation.
The trend in farmland prices also shows that Germany and Lithuania, in the heart of Europe, benefit from excellent conditions for farming. According to the Federal Statistical Office, the price per hectare in east Germany increased by over 20 percent in 2010, with similarly strong growth reported in Lithuania. Some 7,300 hectares or approx. 21 percent of the total are owned by KTG Agrar. Says CEO Siegfried Hofreiter: "In the current macroeconomic situation, interest in farmland as a real asset investment continues to grow. For an agricultural company like ours, farmland is much more than an investment, it is the very basis of our business. It is nevertheless reassuring to know that we have built up considerable hidden reserves in the meantime." The company will continue to invest in farmland, which is one of the most stable asset investments.
After the good harvest, nothing stands in the way of a successful close to the fiscal year 2011. The biogas segment will again make a contribution to the successful performance. In the meantime, KTG Agrar produces over 20 megawatts (MW) of clean energy. Additional plants with a combined capacity in excess of 10 MW are already under construction. This means that, by 2012, the company will have tripled its capacity for the production of renewable energy to over 30 MW in the course of only two years.
About KTG Agrar:
With cultivable land of around 35,000 hectares, KTG Agrar AG is one of the leading producers of agricultural commodities in Europe. As an integrated supplier, the company produces agricultural commodities and renewable energy and food. The Hamburg-based company's core area of expertise is the organic and traditional cultivation of market products such as cereals, maize and rapeseed. For organic market products KTG Agrar is the European market leader. The company mainly produces in Germany but has also operated production in the EU full member state of Lithuania since 2005. The third mainstay is the production of bio-energy. At present, KTG Agrar operates biogas plants with a total capacity of around 20 megawatts. As a result of the takeover of Frenzel Tiefkühlkost in 2011, KTG has expanded the value chain by the production of food. In the year In the year 2010, KTG achieved a total output of EUR 70.8 million and EBIT of EUR 13.4 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and has currently about 400 employees. Further information can be found at www.ktg.ag.