Astarta Holding, buoyed by a quarter in which higher sugar prices fuelled a jump of 20 times in earnings, unveiled an expansion spree which will more than double crop production in six years.

The Ukraine agribusiness giant said that it planned to ramp up sugar production to 600,000 tonnes by 2015, from 275,000 tonnes last year, with milk output lifted to 100,000 tonnes.

Grain and oilseed production will hit 1m tonnes, compared with 376,000 tonnes in 2009.

The increases will be supported by a continuation of the expansion which has increased its landbank from 90,000 hectares in 2006, when the group floated in Warsaw, to 175,000 hectares at the end of last year.

Acquisition opportunities 

"Looking back at the goals we set for 2010 before our [flotation], that are currently being well outperformed, we are pretty much confident that the group has enough potential to fulfil these new development plans," the company said, noting ripe opportunities for acquisitions.

"There are assets in the Ukrainian agricultural sector that are still undervalued, and present a good opportunity [for integration] into Astarta."

Earlier this year rival farm operator Landkom said a collapse in Ukrainian land prices offered a "great opportunity" to buyers.

Earnings soar 

Astarta unveiled its growth plans after a quarter in which revenues jumped 180% to 421.0m hryvnia, with earnings rocketing to 198.6m hryvnia from 9.6m hryvnia a year before.

However, the bulk of the growth reflected the spike in sugar prices which, in Ukraine, jumped from less than 2,500 hryvnia a tonne at the end of 2008 to some 7,000 hryvnia a tonne in February this year.

"Sugar prices skyrocketed in January, adding 160%," said Astarta, a major beet grower, saying that a Ukrainian production deficit had compounded the impact of soaring international prices.

Sugar price revival? 

And prices looked set to remain firm, boosted by the domestic shortfall and, potentially, by a revival on global markets, where values have halved since February.

"The international sugar market is so far under the impression of a possible record crop in Brazil and a good outlook for the upcoming crop in India," Astarta said.

"Should these expectations not come true… market sentiment could change again."

Astarta shares closed 3.6% higher at 58.00 zloty.