Association «Ukrainian Agribusiness Club» together with UCABevent Agency held IX International Conference «Large Farm Management» (LFM) on September 19-20. This year the underlying theme of the event was debatable question about the role of the agrarian sector in the state development. Is the agrarian sector an economic driver capable of generating foreign exchange earnings and being competitive on world markets or this industry should have another function that ensures the stability of the development of regions and rural areas.
The event brought together the Ukrainian and world experts who shared with us the practical tips and success stories of doing business. The representatives of Industrial Milk Company, Horsch, The Climate Corporation, NovAmerica, Velcourt, BASF, Agro KMR, Ukrposhta, Syngenta and many others discussed how to ensure optimal production costs through innovation, minimization of transaction costs and maximum motivation of staff.
Now in Ukraine there is a debate about whether the agrarian sector should be the basis for the implementation of the state policy for servicing society in the countryside or it should serve as a driver of economic changes.
Taras Vysotskyi, General Director of UCAB is convinced that Ukrainian agribusiness sets the tone of many other related industries. “The agrarian sector can combine two components harmoniously: to remain profitable and innovative, ensuring the development of rural areas and maintaining a positive environmental background”.
Alex Lissitsa, CEO of IMC, President of the Association «Ukrainian Agribusiness Club» told what is needed for innovation in the agricultural sector to be effective. According to the president of UCAB, 80% of innovations in the Ukrainian agrarian sector are focused on the problem of preventing bribery and theft.
Producers can’t clearly describe the benefits of additional innovative solutions and their inflated prices. IT developers are partially detached from the agrarian environment and offer implements that further complicate the business. In addition, the level of education of workers does not correspond to the level of technical innovative implements of our time that management proposes to introduce.
«For a qualitative leap and effective introduction of innovations in the agricultural sector we need cardinal changes in agricultural education and science, radical restructuring of business processes and management systems in agribusiness, a full review of labor legislation and opening access for qualified personnel from abroad.
Today in Ukrainian agrarian sector work near 1 million people who, unfortunately, aren’t ready to the introduction of modern technologies. The agromanager of the future is the manager of automated systems, the analyst who makes decisions on the basis of getting data from the systems of precision farming, because in the coming 5 years the robotization touches everything», – said Alex Lissitsa.
Specially invited speaker of the conference was Michael Horsch, one of the founders and CEO of Horsch. In his opinion, the controlling of technical park affects the success of the agricultural producer: “Over the past 25 years the harvest of Ukraine increases in 2 times thanks to the optimization of crop rotation.
But the contents of humus fell from 10% to 2%, it doesn’t enough to ensure necessary level Р/К.
What can we do for improving the harvest? In EU and USA producers investigate $1000 per year in the technical park, in Ukraine - $700 per year, at an average cost of reaper in EU and USA - $50, in Ukraine - $150. The main reason of such difference is used technics.
In Ukraine the production is being actively developed, but there is little attention to the efficiency. We should better manage our technical park to reduce repair costs.
Stop the purchasing of mixed machinery and buy the best technics by one producer. One more advice – it’s better to buy 3-4 combines rather than 5-6, because in such case you can provide better logistics.”
Clément Coussens, CEO of Agro KMR, spoke about the experience of the developing his company. “Collaborative teamwork of professionals – this is the main secret of the success of Agro KMR. The main principles of personnel policy of the company are making the team based on mutual respect.
Agro KMR supports its employees both financially, providing the proper lever of payment and socially – provides the car, mobile phone for using and also medical insurance is provided for employees and their family. The company constantly organizes educational trips for the team both in Ukraine and abroad”
During the second day of the conference the participants discussed about new technologies actively used by leading agrarian companies. On the fields of Agro-region based in Kyiv region were demonstrated and examined modern technological implements.
There were demonstrated disc and paw cultivators, subsoilers, heavy disc harrows, plows and others. During the plenary session, leading experts talked about the cases of introduction of advanced technologies in production, the use of tools and systems in precision farming and how to implement the sowing efficiently.