Russian Agricultural Division (RAD)

OJSC Russian Agricultural Division is a subsidiary of major Russian grain processor PAVA. It was incorporated in 2008 in order to consolidate PAVA’s existing farming enterprises, and to acquire and cultivate agricultural land assets in a number of Siberian regions.

RAD is among the first companies in the national grain processing sector to break ground on large-scale investment in agricultural land. The project brings innovation drive to farming with leading-edge agronomic techniques and modern machinery with the aim to boost productivity of Russian fertile soils.

The company plans to grow a wide range of high-value added agricultural crops including wheat, barley, rye, sunflower seeds, buckwheat, oats and peas. The major part of wheat is intended for supplying PAVA’s own processing units, and the rest of the produce will be distributed on domestic and overseas markets.

The project gives strong opportunities for generating additional margins as the company puts under control the entire production chain - from growing and storing of crops to grain trading.

Russian Agricultural Division selects lands according to their historical and current fertility in regions with favourable climatic conditions. The project will create value through yield enhancement while comparatively low cost of lands serves as a potential for land appreciation gains.

RAD is a foundation for the new course of development chosen by the parent company. It is the first link in the “field-to-fork” production, as PAVA is re-shaping its business structure to become a leading vertically integrated agroindustrial holding.