The investment program of the New Land Grain Corridor Group of Companies («NLGC» Group) for the development of contract farming, elevator infrastructure, and grain logistics facilities is included in the long-term socio-economic development strategy of the Siberian Federal District approved by the Russian Government.
«Food Export Trade» Company, as the part of the «NLGC» Group, is authorized to develop a modern linear elevator network with one-time storage capacity for 200 thousand tons at the territory of the Siberian Federal District (Altai Territory, Irkutsk Region, Kemerovo Region, Novosibirsk Region, Omsk Region, etc.). The modern elevator infrastructure will increase production volume, provide advantages in high-quality processing and storage of grain, legumes and oilseeds, ensuring food security of the region and of the whole state. In addition, it will allow to reduce costs and increase the profits of agricultural producers when exporting production volumes by «shipping routes» to sea terminals and in the direction of the Grain Terminal Zabaikalsk, which was put into operation by NLGC Group as the world’s first specialized grain railway terminal.
In this regard, the most important and well-established mechanism for the scientifically valid development of the grain, legume and oilseed production, included in the strategy, is the contract farming ecosystem created and promoted by the «Food Export Trade» Company, that provides an advance payment opportunity, full agronomic support for producers, and formula pricing.
The contract farming ecosystem, in line with developed infrastructure and scientifically valid planned production (with the involvement of more than seven industry research institutes) will allow to at least double the yield, as well as gross harvest, and also to take advantage of up to 7.2 million hectares of land. All these measures will not only enhance food security, but also increase export opportunities, hence the income of farmers, provide support to friendly countries and make a significant contribution to the socio-economic development of the region.
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The «New Land Grain Corridor» Group of companies is a production holding structure that implements the same-named Program for the development of grain production and grain logistics infrastructure in the Urals, Siberia, and the Far East with the support of the President of the Russian Federation, the Government of the Russian Federation, including Chairman of the Government, Intergovernmental Commissions and the Eurasian Economic Commission.
The Group includes: «Food Export Trade» Company, which provides development of the contract farming ecosystem and the individual formula pricing mechanism as the competence center of crop production and infrastructure development; Grain Terminal Zabaikalsk as the specialized full-cycle inland grain terminal that solves wheel tracking difference problem and provides high productivity up to 8 million tons per year due to its highest biological and food safety standards.