April 25, 2017

 

Huangfangu Farm drives economic revival in Ukraine's Koryukovka district

 

 

Chinese state-owned Huangfanqu Farm's recent joint venture in Ukraine has brought further agricultural development in a remote corner of the country's northern Chernigov region, according to a Xinhua news report.

 

The company invested more US$10 million into the expansion of farming in the Koryukovka district - an area, nearly 300 km north of Kiev, that is now a witness to an economic revival as new farms and houses established their presence there. 

 

Thanks to Chinese investors from Central China's Henan province, Koryukovka's livestock sector was reinvigorated in 2013 following decades-long of a declining labour force. 

 

"Since the Chinese company started to finance us, we have significantly increased the number of livestock and boosted the productivity of our cattle," Olga Ruchko, a technician at a Koryukovka livestock farm, told Xinhua.

 

The farm once risked closure due to inadequate funding, until financing from the Chinese investors ensured that it was able to purchase animal feed for both cows and calves reared at the site.

 

The investments also facilitated the renovation of the farm and improve animal welfare. The daily milk output per cow increased to 22 litres from 10 litres.

 

In addition, the number of animals doubled to 2,000 while about 100 residents found employment in the farm.

 

Nine tonnes of fresh milk are sold to cheese producing facilities daily. Free milk is delivered to a local kindergarten. 

 

Viktor Yushchenko, chairman of Gorky enterprise which operates the Koryukovka farm, is highly optimistic that the company will be able to set up its own milk processing plant one day.

 

Huangfangu Farm's joint venture, called Fanda, controls two agricultural enterprises – the farm at Koryukovka is one of them. The other enterprise is located in Naumovka, a suburb of Koryukovka, just a 15-minute drive away.

 

Naumovka fell behind times in the post-Soviet Union days but was able to obtain a new lease of life from a Chinese investment, resulting in 3,000 hectares of arable farmland and consequentially, jobs available for more than 130 villagers. 

 

"I have been working for a Chinese company for about four years and I like my job," Volodymyr Metla, a 40-year-old resident of Naumovka, remarked. "Chinese managers pay the wages timely, they have good agriculture equipment and they are good people. We made friends with some of them."

 

According to Zhang Zhenhua, director of Fanda, the agricultural cooperation between Chinese and Ukrainian enterprises is a win-win situation due to the complementary economic advantages of both China and Ukraine.

 

China's expertise in modern farming technologies and abundant financial capital find a strategic investment of resources into Ukraine's fertile land and good farming infrastructure.

 

"Before coming to Ukraine, we have visited many countries in Africa and Southeast Asia. Then we found out that agriculture is very well developed in Ukraine and decided to invest in this country," Zhang told Xinhua.

 

The intention of the Ukrainian authorities to join the Chinese Belt and Road Initiative has also reassured Chinese farmers of prospects in Ukraine.

 

For Zhang, his goal is to expand his enterprise in order to further benefit employees and local workers.

 

Zhang will next source for fresh investment to reconstruct a pig breeding complex, build a greenhouse for vegetables and fruits, and construct a milk processing plant.

 

"Throughout the world, agriculture works on the same principles: the cultivation of land and breeding of cattle does not make a big profit. To get more income, you need to process the products," Zhang said.

 

Fanda is expected to invest a total sum of more than US$50 million.

 

The projected capital will allow the company to create up to 1,500 new jobs in the Koryukovka district.

 

- Xinhua