Landkom International revealed it had spread its net over merger talks beyond the potential partner announced last month as it admitted a "disappointing" half-year performance and unveiled a fresh chief executive.

The Ukraine farming group, which a month ago announced talks with an unnamed domestic rival, on Monday said it was in "advanced" discussions with "a number of international farming operations".

"The board is reviewing a number of strategic proposals to reduce overheads per hectare... while also reducing the key farming risk of weather by widening the geographic spread of farming operations," Landkom added.

Negotiations revolved around a funding injection, importing agricultural expertise and a "substantial merger" of farming operations.

Landkom's cash balance narrowed to $542,000 at the end of June from $34.5m a year before.

New boss

The announcement came as Landkom unveiled an interim loss of $16.6m compared with a $19.2m deficit a year before, and said it had hired Vitaliy Skotsyk, a well-known figure in Ukraine agriculture, as chief executive.

Mr Skotsyk, aged 37, has joined with Landkom "immediate effect", but will remain general manager at Amaco, short for American Machinery Company, a farm equipment supplier.

"His knowledge and local expertise will be important to all aspects of our operations in Ukraine," Landkom chairman Neil Balfour said.

Mr Skotsyk will be granted options over 2.4m shares in Landkom, exercisable at the market price at the time the options are issued.

Shares fall 

Landkom said its "disappointing" financial performance in the first six months of 2009 reflected in the main falling crop prices.

However, a dry spring had meant yields from western Ukrainian operations had missed forecasts.

And it signalled further weakness in results ahead, saying that it had sold most of its summer harvest at a price which "compares unfavourably" with the cost of producing it.

Landkom shares tumbled 8.3% to 9.62p in morning trade in London.