Investigation: Vital Farming/GlobalGreenAgriculture
Updated: Jul 18, 2022
The company was incorporated on the 4th of February 2010 as Globalgreenagriculture and was established to invest in agriculture and Farmland in Ukraine.
Vital farming’s motto is to “feed the world ethically”, they specialize in growing cereals (except rice), leguminous crops, and oil seeds.
In 2012, after lengthy negotiations relating to the lease in Ukraine, the Board of vital farming had decided to disinvest in the Ukraine venture and transferred the investment into Ghana where the company had already commenced long-term projects.
The net result after these negotiations is that the Company plans to terminate its 20-year leasehold interests in Ukraine and in exchange, acquire a 50-year lease of 900 hectares in Ghana. The value of the interests in Ghana will be equivalent to the value of the original investment into Ukraine, and so there will be no loss to the Company's Statement of Financial Position However, the Board considers the Ghana interest to be significantly more stable with a long-term investment in a safer and friendlier business and Governmental
climate The Company’s relationship with the Ghana Farming Operator is strong due to the original long-term plans and contacts already established, and the Board is confident of delivering strong returns from the newly expanded landholding.
As part of the termination discussions with the Ukraine Farming Operator, the Company has agreed to accept a settlement payment of £130,000 for the year 2012, being its share of the proceeds of crops In view of the extreme difficulties of mounting a legal challenge to this calculation in Ukraine, the Board has settled on this sum as part of a potential global settlement with the Ukraine Farming Operator The Company acknowledged that it was becoming increasingly difficult, in the current Ukrainian political climate, for the Ukraine Farming Operator to pay monies due to third party investors The total yield figure as per the original Farming Agreement was therefore not capable of formal verification under an audit process, unlike the case for the yield in 2011, and so the Board has agreed to accept this sum in final settlement of the sums due for 2012.
At the date of signing these accounts, agreed formal documentation is not yet in place and the agreement has not yet been concluded The Company has, however, received at the date of these financial statements, an amount of £80,000 in respect of the settlement payment The remaining £50,000 due under this agreement is expected within the next four weeks from the date of signing these accounts The Board, therefore, consider this to be indicative that the Ukraine Farm Operator intends to complete the agreement established above.