Petro Melnyk: Agricom Group: The price of the one hectare of land will start from $1-1,2 thousand
From July 1, 2021, the moratorium on the sale of agricultural lands will be cancelled in Ukraine and the land market will start working. Petro Melnyk, CEO and co-owner of Agricom Group, spoke about the price per hectare and how the sales mechanisms will work.
According to him, the price per hectare of land will start from $ 1-1.2 thousand. “This will be the average price range in 60-70% of cases. As for the peak prices, taking into account the region and the quality of the land, proposals from $ 2.5-3 thousand are possible,” Petro Melnyk said.
He also stressed that in the next two years there will be strong price fluctuations in the market. “The lack of regulations and working mechanisms will reduce prices. As soon as we are faced with the fact that someone wants to buy or sell land, we will be forced to go through several “circles of hell” until the work regulations are formed. And this always works to reduce the price: demand begins to cool and supply cools in parallel,” shared the CEO of Agricom Group.
According to the company, today only 3-5% of landowners surveyed within the holding want to sell their shares. Others are still hesitant about whether to sell the land or continue to lease it. “There is not much excitement about selling land now,” says Melnyk, adding that Agricom Group will not buy land above the price of $ 1-1.2 thousand. – If the price is higher, we are not ready to buy land, because the business must be profitable.
According to him, Agricom Group has decided to purchase land in the clusters where the company is represented (Zhytomyr, Luhansk, Chernihiv regions). After all, the Group aims at long-term successful development in Ukraine.
It should be reminded that Agricom Group recently approved a new strategy, according to which it will invest more than $ 20 million over the next 5 years. 10% of investments will be forwarded into the development of the agricultural direction, 60% to the expansion of the product line of TM “Dobrodiya” and 30% – to enter new areas of activity. One of such directions will be the expansion of the presence of the agricultural holding in the oat segment.
Source: Agravery