OREANDA-NEWS. May 26, 2010. Dakor Agro Holding (UX: DAKOR UK, FSE: WI81 GR, FSE: 4K1A GR) released a spring sowing campaign update yesterday. DAH said it was 95% completed with its spring sowing campaign target of 66 ths ha this year (down 4% yoy from 2009’s harvested 69 ths ha); it expects to finish sowing by June 1. In particularly, DAH increased its area planted with sugar beets by 121% yoy to 17 ths ha, making it its largest crop this year. DAH plans to process 680 ths mt of its sugar beets to produce 100 ths mt of sugar in 2010. DAH said that its losses of rapeseed due to severe winter weather were minimal and amounted to 3% vs. the Ukrainian average of 10% according to the Ministry of Agriculture. Dakor and Land West announced they were merging into Dakor Agro Holding in September 2009; the new company was planning an IPO on the Warsaw Stock Exchange in 2010.

Concorde Capital: Based on our forecast of 1.73 mln mt for 2010 domestic sugar output, the said 2.2x yoy increase in sugar beet acreage (assuming 40 mt/ha yield) should expand Dakor’s share in domestic sugar output by an estimated 2.4 pp yoy to ~5.8%. This should have a positive effect on Dakor’s top line in 2010 as we expect average domestic sugar prices to normalize at ~USD 780/mt (+20% yoy) this year.