Top German farming business, and one of Europe’s few listed farming operations, KTG Agrar AG is planning to increase its non-GMO soybean acreage from 7,000 hectares this year to between 10,000 and 12,000 hectares next year citing increasing European demand for non-GMO crops. KTG chief executive officer Siegfried Hofreiter states that he sees the potential for GMO-free soybeans for products such as soy oil, soymilk, and tofu, and as the demand for meat stagnates, the demand for GMO-free soy will boom. This year the company aims to harvest 20,000 tons of soybeans from its farms located in eastern Germany, Romania, and Lithuania, and plans to harvest in excess of 25,000 tons next year which the company plans to process itself. KTG forecasts total grain production of between 200,000 and 250,000 tons this year, comprised of maize, wheat, rye, barley, and rapeseed, of which 80% has already been sold or accounted for to meet their own production needs. The remaining 20% of grain will be placed in storage in the hopes of higher grain prices this winter. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the company is expected to be €50 million – up from €34.6 million for 2013 as a result of a major investment program.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service