RAD’s key strengths
The company possesses a number of unique competitive strengths ensuring that it will successfully exploit the current market situation in the Russian agricultural sector. They include:
- Advantageous location
- Experience in agricultural business:
- Professional management team
- Trusted method of land acquisition
- Know-how of the agroindustry
- Grain trading expertise
- Vast land holdings with an opportunity to consolidate fertile areas into clusters
- Own storage facilities
- Detailed knowledge of the local conditions: market, traditions, language
- Diversification of risks
- Adaptability to the market demand through flexibility of crop production
- Guaranteed market for crops (the majority of wheat will be used as feedstock for the company’s processing activities)
- Relatively low cost of agricultural land in Russia
- Successful and rapid progress with land registration owing to high professionalism and commitment of the management
- Government support for the project on federal and regional levels (tax incentives, subsidizing interest rates on loans)
- Keeping in line with major global tendencies, as food importers or countries suffering from scarcity of agricultural resources are looking to increase food security