According to a Financial Times article, Jim Rogers is back in the news as he just took an advisory role with the Russian government-owned VTB Bank. He will advise on a new agriculture fund. The bank seeks to raise up to $1 billion for investments in Russian agriculture. Recently, Rogers was in the press stating that he is now for the first time considering investing in Russia.
The article quoted Tim Demchenko, global head of private equity and special situations at VTB Capital: “Jim sees the investment opportunity in regional agriculture resulting from its low-cost, highly-fertile cropping land, potential productivity gains, abundant water supply and close proximity to the high demand regions of MENA and China via established shipping routes.”
For those who do not know Jim Rogers: He is an American investor who is most famous for shorting the British pound in his Quantum Fund which he co-founded with George Soros. He has written several books in investments and has traveled around the world twice. He called the beginning of a commodities bull market in 1999.
Regrettably, most of the Russian companies trade only on the Russian and Polish stock exchanges. So if you have access to these markets you can research the following companies:
|Company||Profile||Stock Exchange||Symbol||Market Cap||Price/Book mrq||9/20/2012 price|
|Agroton Public Ltd||Agroton Public Ltd. is a vertically integrated agricultural production and distribution business based in eastern Ukraine. The Company harvests black soil farmland in the Luhansk and Kharkiv regions. The Company operates in crop farming, livestock, food processing and food production. Agroton Public Ltd. also operates elevator storage facilities.||Poland||AGT||$244 million Zolty||.50||11.26 zolty|
|Astarta Holding NV||Astarta Holding N.V. is an agri-industrial holding company. The Company, through its subsidiaries, produces and sells sugar made of sugar beet, sugar by- products, grain crops, meat, and milk.||Poland||AST||$1,645 million Zolty||1.07||65.80 Zolty|
|Kernel Holding SA||Kernel Holding SA is a diversified agri-business company operating in Ukraine. The Company produces, procures, transports, stores, processes and merchandises agricultural commodities on the international markets through Company-owned port transshipment facilities. Kernel also produces, refines, packages and merchandizes bottled vegetable oil.||Poland||KER||$4,992 Million Zolty||1.30||62.65 Zolty|
|KSG Agro SA||KSG Agro SA operates agricultural businesses. The Company raises wheat, barley, corn and other grains, sunflowers, soybeans, rape seed, potatoes, carrots, onions, beets, cabbage, cherries, apples, pears and apricots, and produces wheat flour, buckwheat flour, sunflower oil, and pasta.||Poland||KSG||$182 million Zolty||.71||12.20 Zolty|
|Milkiland NV||Milkiland NV owns dairy assets in Ukraine and Russia.||Poland||MLK||$553 million Zolty||.83||17.70 Zolty|
|Razgulay Group||Razgulay Group produces grain and sugar. The Company owns and operates grain elevators and flour mills.||Russian||Graz|| $2,507|
|Rusgrain Holding OAO||Rusgrain Holding OAO is a vertically integrated agro-industrial holding. The Company produces, processes and sells grain and oil-bearing crops and livestock feed, trades in grain crops, and produces poultry and eggs. Rusgrain Holding operates industrial agricultural processing businesses, develops agricultural assets and acquires agricultural land.||Russian||RUGR||$870 million Rubles||n/a||20.25 Rubles|
|Black Earth Farming Ltd||Black Earth Farming Limited acquires and cultivates land in south-west Russia||US OTC||BLERF||$1601 million SEK||1.30||1.90 USD|
Link to Financial Times Article
If you want Russian Agricultural investments in your portfolio, please do your due diligence on these companies. Any Russian or Polish readers who know these companies are welcome to comment on these as investments.
About the author:
Carmine RomanoBy Carmine Romano. I have leveraged expertise in both commodity and stock markets to drive short-term and long-term trades for personal account. Integrated knowledge of economics, fundamental and technical analysis, and statistics / probabilities theories to realize portfolio growth and profitability.
• Realized average annualized returns on self managed IRA account of 14% from January 2004 to December 2012 (total return 150+).
Save on home energy bills at www.napower.com/224201