September 27, 2010

Ukraine's Agro-Soyuz targets 20% profit by 2011

In 2010, the profitability of Agro-Soyuz farm is around 8-10%, a little more than in 2009, and the company plans to reach 20% within one year to 2011, director Anatolyi Rotienko said.

"Feed represents 70% of our production costs - around RUB3.5 million (€90,000) per month," Rotienko added.

Rotienko has started up the rebuilding of Agro-Soyuz farm in 2006 and will invest RUB60 million (€1.5 million; US$1.95) within two years to continue this process. Of this total, RUB40 million (€1 million; US$1.3) came from the national programme of development of agriculture, aimed at boosting investments in Russian agriculture.

Today, the pig farm counts 850 sows in 10 buildings, with a capacity of 12,000 slaughter pigs sold per year. In total, 28 people are employed on the farm. When all buildings are rebuilt, the capacity of the farm will triple to reach 36,000 pigs/year.

The slaughter pigs are killed at 100 kg liveweight and their price depends on their quality. "The price increased from RUB62/kg (€1.60; US$2.01/kg) liveweight in 2009 to RUB78/kg (€2; US$2.53/kg) today," says Rotienko. He complains about the high level of pork imports coming mainly from Poland, but also from Argentina or Brazil. The technical results of this pig unit are very good, with 25 piglets weaned/sow/year and a feed unit built on-farm, producing five tonnes feed/day.

Investments do not stop either when having reached the 20%. Rotienko plans to invest in a processing unit next year to bring more added value to his pigs. He says, "I did not see the crisis."