Sudden competitor. Ukraine’s role in the world economy is growing

The development of Ukrainian agricultural sector to get world leaders to fear for their positions. While the grain market. In the long term — livestock.

 Andrew Gordiychuk
"Investgazeta» № 50 Today

 

 

The next stage of development of the Ukrainian Agribusiness — livestock

The first evidence of active development of the agricultural sector — the very appearance in the back of the term "agribusiness", which are used extensively in the last few years. Ukrainians began to recognize agriculture as a business and not as a process of "how many potatoes planted — and gathered as much."

In early December, I was interviewed by American edition of Wall Street Journal. Journalists are very active interest in the position of Ukrainian agricultural companies on a local and global markets. Genuine interest in Ukraine from the United States and the fact that a number of the most influential American newspaper will be devoted to Ukraine, according to at least that our country is more interested in the global players as an investment object and as a competitor in the markets.

Ukraine's role in the world economy is growing. Obviously, the U.S. is considering our country as one of the top competitors. I did not want to talk about it during an interview with foreign journalists, but the same U.S. is not very interested in the active development of Ukrainian agriculture: under the pretext of creating a favorable climate for investments they support the launch of a land market in Ukraine — because they understand how it will shake the position of companies and reduce the growth dynamics of Ukrainian agriculture. Investment in the agricultural sector of Ukraine — it's just a cover. Do you want to — invest, the land market has nothing to do with it. By the way, our Japanese colleagues would like to buy Ukrainian grain, but can not because the U.S. dictate terms: buy from us for $ 300, and not in Ukraine at $ 250.

On the trends

Today we can say that in the next three to five years, the agricultural sector will be the leader of the economy in terms of exports. This triggered the basic law of economics: everyone has to deal with the fact that it can do better than others.

You know how to play chess, do it as "excellent" and uchastvuesh in the championships — earn on it. Many factors suggest that Ukraine could feed the world and can do it better than others. And the outcome is not only of climatic, geographic and land conditions.

Proceed to another of social features, and simply genetics Ukrainians — we know how to work well on the ground.

The majority of Ukrainian Agricultural Companies so far focused exclusively on grain exports. However, when dealing with European colleagues, I have repeatedly convinced that the future of the agricultural business in Ukraine is not in the export of grain (even if it is many millions of tons).

Much more interesting than its processing and production of meat, milk and other products had exported them, and thus make a profit on the creation of additional value. Unfortunately, the agricultural policy of the state today does not encourage the development of processing of agricultural products. Yet already there are companies who themselves are paying attention to this.

In recent years, the market has shown that the vast latifundia, which deals exclusively with increased exports of grain, sooner or later will become ineffective, or, in other words — it's hard to be at all effective.

And the increase in land bank without vertical integration is meaningless. Therefore, the market is transformed and will continue to evolve in this direction. For example, an agricultural holding MHP develops strategically — Land Bank of the company is mainly focused on the production of chicken meat in the market where the company sales leads.

The overriding component of a successful agricultural holding — a quality top management, such as the market can be counted on the fingers. What can be discussed if the same technology in different companies does not work because the wrong people are adopting. Even if all automated (which is impossible in agriculture), it is still the human factor in agricultural production will not take.

Our plans

In the next three to five years, the profitability of grain exports in pure form will be reduced due to many factors: cost, regulatory risks on the part of the state, etc. Therefore, in the future, "Svarog West Group" will move toward the export of flour, oil and meal from soybeans . This will help ensure sustainable profitability of companies. In addition, in 2013 we will continue to implement a strategy to reduce the cost of cultivation of major crops (wheat, soy, corn) at the expense of precision farming and increasing the proportion of organic fertilizers. Therefore, the development of animal husbandry is fully integrated into the process of improving the quality of crops. Effective use of these tools allows you to increase the yield by 20-30% per hectare.

Crops in 2013 and subsequent years will focus on global trends in prices for crops.

In other words, our strategy of crops — a marketing rotation. But this strategy will necessarily be aimed at preserving the yield potential of the earth. That is, even if the culture is highly profitable, but will not fit into the laws of agronomic crop rotation — will not be seeded. In terms of livestock, then, for example, our company is actively developing dairy cattle. Over the next two years we plan to increase the milking herd from 3,600 to 8 million heads, investing about $ 10 million exclusively to the development of milk production. And in the future, and we think to do it in processing. Ukraine is "doomed" to animal husbandry and processing — it just requires a market.

Andrew Gordiychuk, chairman of the corporation "Svarog West Group"


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