French RAGT to purchase 49% of Krasnodar seed vendor
French RAGT Semences SAS intends to purchase 49% of Krasnodar seed vendor «Rosagrotrade». This bargain will become a pioneer example of merger between the Russian and foreign companies in seed business as reported by «Commersant» newspaper.
The parties do not disclose the terms & conditions of the agreement. The representative of «Rosagrotrade» provided explanations to the publishers that the joint venture plans to partially «relocate» the breeding program on the territory of Russia, the fact that would enable to maintain the varieties and hybrids of сrops uniquely tailored to regional weather conditions.
In a five-year prospect the company expects to seize 10% of corn seed and sunflower market in RF. According to the Ministry of Agriculture, in 2019 seventy eight thousand tons of corn seeds and thirty seven thousand tons of sunflower were planted in Russia. The share of foreign seeds in these categories amounts to 54% and 63% respectively.
Earlier, «Rosagrotrade» was considered to be one of the distributors of RAGT Semences. The company administers an in-house breeding center in Krasnodar, during the year 2019-2020 disposed of corn, sunflower, sugar beet, sorghum and soybean seeds for the total area of more than 750 thousand hectares. In 2020 the company’s revenue made 2.28 billion rubles, and net profit – 97.84 million rubles. 50% of the company is owned by Director Dmitry Bandyuk and Ludmila Zlobina.
RAGT Semences was established in 1919 by French farmers, whose families remain shareholders of the company. In terms of sales of corn seeds the enterprise ranks third in Europe. The company also supplies sunflower, sorghum, soybean etc.