Kernel’s mid-term strategy

We aim to profitably double export volumes, providing unique complex solutions to our clients: customers and suppliers, by balanced development of our business segments as a result of efficient use of our asset base, investment in technology and innovation, strategic acquisitions, continuous development of our employees and strengthening of our operations.

Kernel’s mid-term strategy


FY2016 strategy achievements:

Sunflower oil

• Increased crushing capacity through the acquisition of a state-of-the-art 560,000 tons crushing facility and entered into a tolling agreement for additional 275,000 tons, while strategically divesting 200,000 idle capacity

Grain and infrastructure

• Achieved record 11% growth in volumes of grain transshipped, debottlenecking Transbulk terminal facility and increasing of storage capacity at Taman

Farming

• Delivering another year of strong profitability, offsetting other segments drawbacks

• Fully exited from sugar business by divesting remaining idle assets


Mid-term targets in detail:

Sunflower oil

• Consolidate the oilseed crushing industry in the Black Sea region by acquiring up to 1.5 million tons of additional crushing capacity in Ukraine

Grain and infrastructure

• Double grain export volumes between 2016 and 2020 through greenfield construction of up to 4.0 million tons deep-water transshipment facility in Ukraine

• Optimize silo network for expansion of trading and farming operations

Farming

• Achieve sustainable low-cost crop production through investment in technology

• Integration of assets acquired in June-July 2017 to uplift the operational efficiency and productivity levels to Kernel’s high standard