DGAP-News: KTG Agrar reaches mark of 35,000 hectares farmland
(firmenpresse) - DGAP-News: KTG Agrar AG / Key word(s): Acquisition/Miscellaneous
KTG Agrar reaches mark of 35,000 hectares farmland
20.06.2011 / 07:50
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Takeover of a 1,000 ha farm with high percentage of own land
Hamburg, den 20 June 2011 - KTG Agrar AG (ISIN: DE000A0DN1J4) is pushing
ahead the expansion of its farmland. The agricultural company has acquired
another 1,000 hectare farm in Brandenburg. This means that KTG Agrar is now
cultivating agricultural commodities such as grain, maize and rapeseed on
some 35,000 hectares of farmland. Geographically, the company focuses on
east Germany and Lithuania.
The new farm is in a favourable location close to existing farms in the
Berlin region. As a result, the company will benefit from efficiency
advantages such as a shared fleet. All employees of the farm will be taken
over. The farm has over 400 hectares of own farmland, which will increase
KTG Agrar's own farmland to some 7,000 hectares, which represents 20
percent of the total farmland. The remaining farmland is leased under
long-term leases for more than ten years.
Siegfried Hofreiter: 'Farmland is the basis of our business as an
agricultural company. We will therefore continue to increase the percentage
of company-owned land.' Global demand for farmland is high. It is an asset
that protects against inflation and a scarce resource which is the reason
for one of the main challenges of our times, namely a secure supply of
food. Demand for agricultural resources is rising constantly due to factors
such as population growth, growing prosperity in the emerging countries -
in combination with higher meat consumption - and urbanisation. In the
past, the agricultural sector has kept pace with consumption by exploiting
previously unused land and increasing its productivity. But this is
becoming increasingly difficult. According to the half-year report of the
Food and Agriculture Organization of the United Nations, the prices of
agricultural commodities will continue to rise. Even a good worldwide grain
harvest will hardly be sufficient to cover consumption. These developments
are reflected not only in the prices of agricultural commodities but also
in the prices of farmland. Since 2004, the prize of one hectare of farmland
in east Germany has climbed from EUR 4,000 by 150% to over EUR 10,000. In
Lithuania, it has even more than quintupled. In both regions, prices are
still far below the price level in west Germany, where one hectare costs
over EUR 30,000. Says Siegfried Hofreiter: 'From an agricultural point of
view, there is no explanation for the big difference. The quality of the
soil, the amount of precipitation and the proximity to the customer are
virtually identical.'
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. 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 16 megawatts. In the year 2010, KTG achieved atotal
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 250 employees. Further information can be found at
www.ktg.ag.
Contact:
Investor Relations / Press
Fabian Lorenz
IR.on AG
Phone: +49 221 914097 - 6
E-mail: fabian.lorenz(at)ir-on.com
End of Corporate News
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20.06.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KTG Agrar AG
Ferdinandstr. 12
20095 Hamburg
Deutschland
Phone: +49 (0)40-303 76-47
Fax: +49 (0)40-303 76-799
E-mail: info(at)ktg-agrar.de
Internet: www.ktg-agrar.de
ISIN: DE000A0DN1J4
WKN: A0DN1J
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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129047 20.06.2011
Datum: 20.06.2011 - 07:50 Uhr
Sprache: Deutsch
News-ID 34419
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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