OREANDA-NEWS. November 30, 2009. In the 2008/09 marketing year, Sintal Agriculture Co. has increased its harvest by around 20% to 323kt. This growth was mainly due to an increase in the wheat harvesting by 3.5 times, y/y to 224kt, while the sugar beet harvest dropped by 55%, y/y to 19.4kt. The Company also announced its harvest plans for 2009/10 marketing year. Namely, it plans to concentrate on sunflower planting (up 4.5 times, y/y) and on increasing its sugar beet output (by 2.1 times), while decreasing wheat harvesting to around 180kt (down 17%). Also, Sintal will start growing rapeseed (16kt in 2010E).

Millennium Capital sees the news to be Positive for Sintal, since, considering a slight crop price rise in 1H10, this will result in an increase of the Company sales in 2010. Still, our prediction is that the decrease of the sugar beet harvesting in 2009 will decrease the Company potential gains in 2009 and 1H10.