OREANDA-NEWS. May 24, 2012. Basic Element has revealed a new agribusiness development strategy that aims to double grain production and triple the amount of land under cultivation and triple grain trade by 2016.

Basic Element runs agribusiness in five regions of Russia – the Krasnodar, Moscow, Nizhni Novgorod and Volgograd Regions and the Republic of Mordovia. Basic Element is now planning to expand to the Altai Territory, the Amur Region and the Republic of Khakassia.

Under the new strategy, the company's land bank will triple through land acquisition in both the Altai Territory and the Amur Region - from the current 100,000 hectares to 300,000 hectares by 2016. Basic Element is also investing in the developing livestock sector in the Republic of Khakassia by building a 100,000 heads capacity hog farm.

Basic Element’s grain production totalled 296,000 tons in 2011, this is forecast to increase to 340,000 tons in 2012. Under the strategy grain production could increase by up to 650,000 tons by 2016. The grain trade volume in 2011 amounted to 400,000 tons. Basic Element forecasts that in 2012 it will rise up to 500,000 tons and will reach 1.5 million tons in 2016.

Along with the increases in grain production and trade volumes, the key focus of the strategy is logistics development.  It includes expanding grain export shiftment capacity and developing a network of grain elevators and grain-handling centers through rent or construction. In addition, the strategy aims to optimize grain railway transportation by using its own grain carriers.

The investment program will continue construction of the 60,000 heads hog farm, a slaughterhouse and a soya beans processing plant. In addition, Basic Element is looking at building a 5 million tpy grain terminal at Taman seaport.

Basic Element’s goal is to become an agribusiness efficiency leader and enter Russia's top three, in terms of output. Basic Element plans to invest more than 10 billion rubles (USD 330 million) in the strategy realization.