Black Earth Farming Profits Plunge

Black Earth Farming, hit by plummeting grain prices, have reported a half year loss (for the period 1 January to 30 June 2009) before income tax from continuing operations of 320 million roubles (USD 10.3 million) compared to a profit of RUR 268 million roubles (USD 8.6 million) in the same period last year.

Despite revenue rising 82% to 1.3 billion roubles (USD 41.6 million), the average price received from sales of crops in the first six months of 2009 was 44% lower than same period last year, the company report.

The company, who say that they are one of the world's largest farming companies by planted area, is publicly listed in Stockholm farm 323,000 hectares primarily in the fertile Black Earth region in southwest Russia in the Kursk, Tambov, Lipetsk, Samara, Voronezh and Ryazan areas.

The General Manager of the Company's Russian operational entity - Agro-Invest, resigned on August 4th.