Industrial Milk Company shows record-high corn yield

23 February 2017

According to statement of the company in current season gross yield of corn made 9.1h/ha, which is the highest value in the history of IMC operations. Earlier the company reported very good results for its oilseeds harvest.

Corn yield is quite important for activity of Industrial Milk Company as this crop takes more than 50% of planted area of the company. Current seasons gross yield is by 24% higher y-o-y, though due to weather conditions (rains and snowfalls during November-December) we estimate that growth of net yield has been lower (net yield in the range of 8.5-8.8t/ha, quality can be affected as well). In any case such good yields are to provide for improvement of financial performance and general financial situation of the company.

In addition in report of the company it is stated that sales of corn in calendar Y2016 made 502k tons, by 17% lower y-o-y. It is fully explained by the fact that more than 70% of realized in Y2016 corn is crop of Y2015, due to lower corn harvest in MY2015/16 vs. previous season, corn stock as of Y2016 have been lower than in corresponding period of Y2015, leading to lower sales in H1 2016.

In Q4 2016 (when IMC realized corn of new season harvest) corn sales made close to 145k tons (by 7% higher y-o-y). Main part of Y2016 corn is to be realized in H1 2017.

Earlier we reported record-high gross yield of IMC for soybeans and sunflower seeds in current season. Gross yield for soybeans was at 3.4t/ha, for sunflower seeds 3.1t/ha, historical Industrial Milk Company yields for the main crops are represented in following table (along with estimations of net yields for current season):

Season 2016/2017 est 2015/2016 2014/2015 2013/2014 2012/2013
Corn
Sown area, ha 71 17475 18583 38761 40038 664
Yield per 1 ha, tons 8.77.07.37.15.8
Sunflower seeds
Sown area, ha 25 09524 60619 13825 50017 410
Yield per 1 ha, tons 3.02.82.52.51.9
Wheat
Sown area, ha 15 40712 3038 20210 5007 927
Yield per 1 ha, tons 4.85.05.14.83.3
Soybeans
Sown area, ha 6 4166 8358 2024 4005 282
Yield per 1 ha, tons 3.22.51.81.81.4
Total land bank, ha 136 700136 700136 700120 70082 640

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Company Price, USD Market Cap Change,%
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Ferrexpo
Astarta
Ovostar

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Corn CBOT
Wheat CBOT
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