As one of the leading agro-industrial businesses in Ukraine, Optimus Agro takes its role in the production and multinational export of crude sunflower oil and high protein granular and non-granular meal seriously. With its extensive production capabilities fueled by continual investment in various types of elevators and a focus on international-standard health and safety, Optimus Agro has earned its positive reputation.
Optimus Agro
Founded in 1994 by current owner Anatoly Martynov following the strategic sale and exchange of fuels and lubricants for agricultural products in the neighbouring Ukrainian regions of Dnipropetrovsk and Zaporozhye, Optimus Agro's business grew from the purchasing of sunflower seeds. These seeds were initially supplied to Zaporozhye Oil & Fat Plant, with the acquisition of controlling shares of the plant following in 1997.
The purchase of eight elevators in 1999 kickstarted Optimus Agro's rapid commercial success, with the development of its concentration on the bulk storage and sale of agricultural products bringing dynamic growth to the company. These initial elevators proved positive in their aim to boost the procurement and storage capabilities of the company, selected specifically due to their location and logistics. In the following years, a further 20 elevators have been purchased, providing a total of 1.1 million tonnes of simultaneous floor and silage storage. The elevators are able to work with all types of crop, with the company making two to three turnovers each year. The storage is supported by its ability to carry out full train shipments, primarily by rail, with the company having contracts with the ports of Nikolaev, Yuzhny, Odessa, Chornomorsk, Kherson, and Berdyansk.
Maxim Konopatenko
Head of Elevator at Optimus Agro, Maxim Konopatenko
Head of Elevator Direction Maxim Konopatenko explains how the company's elevators are both modern and unsubsidised, saying, “We only use our own profits to operate and invest in our equipment and machinery. We are systematically buying separators, transport, bucket elevators, and conveyors. We have already purchased railway scales that are able to weight railway transport with up to 18m between axels, as well as two BSH-300 separators that allow us to reduce ragweed in corn Furthermore, we expect that the speed of dispatching routes will increase in the near future.”
The main raw material processed by Optimus Agro is sunflower seeds, with the company able to accept any quality of raw material and then form shipping lots with stable quality indicators thanks to its own elevators. The quality of the high-oleic sunflower is determined by the elevators as they are equipped with ATAGO portable refractometers, which perform express analysis of the oleic acid content in every single transport unit. After the formation of batches, samples are taken to the laboratory of ZMEZ and tests are completed to confirm the actual quality and content of oleic acid using an arbitration method.
Long-term partnerships
Working with long-term partners including agricultural companies Agrotrade, Agrain, Freedom Farm International, Landfort, and Ukrlandfarming, Optimus Agro also enjoys strong commercial relationships with Cargill Ukraine, COFCO Agri Ukraine, ADM Ukraine, Glencore, and other Ukrainian and international businesses. With such respected multinational partners, Optimus Agro is dedicated to maintaining its renowned attention to quality across its entire process, so such capabilities and testing is crucial.
In order to formalise this attention to quality, Optimus Agro has developed and implemented a safety and quality management system for its food and feed products. Certified in accordance with ISO 22000: 2018, GMP + B12 (forage production), and GMP + B3 (sale, storage, shipment of forage/fodder), as well as being certified Kosher and Halal.
Such a roster of approvals highlights that Optimus Agro is experienced in working with national and multinational customers and meets international standards of quality and safety. As an export-orientated company, with 2019 export share 84% of the total sale of products, its annual percentage generally fluctuates between 80-95% depending on market conditions. The wide export geography of the company shows customers for unrefined sunflower oil shipped from Ukrainian ports including France, the Netherlands, Greece, Spain, Italy, India, China, Nepal, Qatar, and the UAE. Pelleted and non-pelleted meal (which is used as an additive in animal feed) is exported to Poland, Belarus, Spain, France, China, Malaysia, Myanmar, Vietnam, Thailand, and Morocco.
Currently working with over 1900 agricultural producers, Optimus Agro can work with any volume, with purchases made in any batch, up to machine norms. Commercial director Sergei Grishin says, “We are now able to transport meal using the Dnipro River from Zaporizhzhya river port. This allows us to significantly reduce the cost of delivery of products to the end customer. Loading of containers directly at the plant with the subsequent dispatch of the 'customs-cleared' container by road or rail to the port is certainly a promising direction for shipment of meal in the current season. We also ship granulated sunflower husk, used as fuel, to Poland.”
Acquisitions support strategic growth
Acquisitions continued to bring further competences and facilities to Optimus Agro, with the 1947-established Zaporozhskiy Oil Extraction Plant (ZOEP) transferring to its management in 2017. At the time of the acquisition of controlling shares, the plant's seed processing capacity was 800 tonnes per day, yet with additional investment focused on increased production and modernisation, today its total capacity is 2800 tonnes per day. Director of ZOEP Andrey Zakernichny explains, “Our oil extraction plant currently has the capacity to process 900,000 tonnes of sunflower seeds each year and we are included in the Top 5 companies in Ukraine for producing unrefined sunflower oil and meal. In 2019, we produced 368,000 tonnes of oil and around 332,000 tonnes of meal, which represents a 5% and 2% increase respectively on the previous year.”
2019 also saw the increase of the plant's storage capacity by 33% with the building of two additional silos and an extra truck unloader. Current plans to reconstruct the existing production is set to increase capacity to 1200 tonnes each day, which will provide a further 1 million tonnes of sunflower seed processing each year. In addition to processing sunflower seeds, this modernisation will allow for the processing of crops including rapeseed and soy beans. Additional warehousing for storage is also planned.
Zakernichny adds, “We have enjoyed a number of investments to further increase our capabilities in recent years, including a combined heat and power plant with a capacity of 50 tonnes of steam per hour put into operation in 2015, and the installation of two boilers in 2018 that have increased service intervals and allow us to obtain stable steam with maximum productivity. We are also delighted to have 100% thermal energy produced from our own raw materials, with natural gas only as a reserve fuel. As we move to further increase the energy independence of our operations, we will have a large-scale energy audit this year and we plan to install a 3MW condensing steam turbine.”
With Optimus Agro's forward-thinking strategy and ability to maintain strong investment, its strong market position is assured. Plans for further customer-focused development and increased capacity will allow it to store and process even greater volumes, with no restrictions. General Manager Elena Burkatovskaya concludes, “While the development of our corporate strategy and overall management of the company is carried out by our owner, my task as general manager is to ensure the efficient and effective work of all our structural divisions, in order to continue the rewarding financial results and positive environment across the company.”
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