Mission: to find the capacity of the village
Three things of success
In modern economy agriculture is commonly referred to raw materials industry, as its production is used specifically as raw materials for production of commodity, for example, it is used in food industry. Improvement of the economic efficiency of farming companies, among other things, is possible on the basis of the development of such companies to vertically-integrated, which independently grow and processing crops creating a product to final consumer under their own trade mark. Improvement of operating performance of the enterprise is also an important aspect; it is possible on a condition of competent management and as a result of the employment of high performance technology. In spite of significant growth potential, foreign investors are not interested in agriculture in Ukraine – they don’t trust the complicated system of approvals, complex taxation, but the most of all they are afraid of the unstable social and economic situation in the country. National investors are ready to overcome such difficulties; they understand how to implement projects under impossible, as foreign colleagues think, conditions. Besides, national investors know the characteristic aspects of business dealing and market factor.
Employment of modern technology is very important factor for agriculture and other business activities.
Through the reduction of resource-intensiveness of production the prime cost can be reduced and optimum level of profitability can be achieved. It requires the system cost management, regular and all round monitoring, which is impossible without highly-skilled specialists, whose knowledge is the major motivation to any effective company.
The effect of Ukrainian investor
The national agro industrial group Agricom Group can be identified with the companies, which introduced and successfully use modern scientific approach in agricultural and food spheres. Last year Agricom Group started its work with “Agrofirma Ivanovka AG” LLC, which lands are situated in Chernihiv district. The company, which was unprofitable in the past, immediately got a feeling of the strong financial and administrative support: it could pay off all debts, uses the means for modernization and renewal of Vehicle Park and equipment, increased the employees’ salaries. Also all spring field works were financed and such things were purchased: seed grain, plant protection products, mineral fertilizers, fuel. The programs for optimization and improvement of single process are carried out successfully.
Village community also improved its situation: within the corporate and social responsibility of Agricom Group, a lot of agreements for social and economic cooperation were concluded with local councils (lands are situated on their territory). According to these agreements the enterprise undertakes the financial commitments to support villages. For example, Krasne local council got money to be spent on such needs: repair of school, transport services for schoolchildren, land improvement. A new educational center is started in Karhkovka with the financial and administrative support of Agricom Group. As a matter of fact, nursery school is a rare event for such small communities.
«Starting working in the certain region we do not set objectives to get here and now profit. Our business plan is mapped out for years. For example, it is necessary to take the crop a lot of times to let processing plant or elevator earn its keep or profit. Certainly, land is our strategic resource, but it shall be controlled properly. We need qualified specialists and not just managers, we need skilled workers, who work in the fields and in the companies of Agricom Group», – said Petro Melnyk, the CEO of Agricom Group.
Agriculture in Ukraine, in spite of its traditional character, yields to its “colleagues” from Western countries considerably according to its quantitative and qualitative specifications. Due to the specialists’ research the productivity of land in Ukraine is a third as low as in the USA, and 2,5 times as low as in EU. The experts of the World Bank consider that Ukraine takes advantage of its resources by one forth. What is necessary to use this potential? The main question is who can unlock it?
Following the Chernihiv City Portal – http://www.gorod.cn.ua/news/gorod-i-region/64054-missija-naiti-potencial-sela.html