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Business will be profitable when there are efforts and understanding of technologies — LLC «Belhrankorm-Poltavschuna»

15.01.2014 16:01:46

LLC «BELHRANKORM-POLTAVSCHUNA» — the only Russian investment project, which develops pig production in Ukraine. Although the uniqueness does not end there: a young management team in a new way has come to address many critical production issues. How it all began and by which a decision «Belhrankorm-Poltavschuna» now occupies one of the top positions in the list of the most successful producers of pork, the director of animal husbandry towards Vladislav Leshenko.

— Vladislav, how did you joine to the pig production?

— When I started studying in Poltava Agrarian Academy, I realized that I wanted to keep pace with progress, the latest technology and innovation in agriculture. In Ukraine it was not developed, so I decided to go abroad to see how people live, what social protection have, what priorities are developing. I was in England, but I did not work in the specialty. In the fourth year, when the outlook has become more formed and approach to life more responsible, I decided that I would deal with livestock, especially pigs. So I went to get experience in leading country − Denmark. I was at a pig farm, which consisted of 750 sows − the classical variant Danish economy. One and a half year internship. The owner was happy with my results and left me for the same term, but now as a manager. Then he decided to return to Ukraine and grow here. I was looking for a job. Then one of my friends said that in Bilykah a new pig farm builds with Danish technology and Danish genetics. I decided to try it. I came here in July 2011, while it continued construction work went cranes and concrete. Through the interview, and a month later started to work. Then we entered into an agreement with a genetic Company Breeders of Denmark on the first delivery of young pigs.

— In an interview with the CEO of the parent company, Alexander Orlov said that the political situation in the Poltava region contributes to business, and it is to easily relate with the power too. What is behind these words?

— First of all, the Poltava Regional State Administration is interested in the development of their region. Thanks to it now Kobelyacky region ranks third or fourth in the production of pork in the Poltava region, and onlu a few years ago it was the second from the end. In addition, people realize that it is the real economy: deductions are going into the region, our company is financing district and district hospitals, kindergartens and schools. Our social workers are protected and can plan their lives for sure in the future. Bilyky is historically industrial town: there was milky cannery, now there a sugar mill operates. Population is about 5000. People are here, close to home, to the family. Four days work, one at home. For work people ask from nearby villages − we cart them. And student interns are coming, so that we prepare your staff. Four, which worked well, have job too. For people who have worked all life on the farm, it is very difficult to retrain.

— In pig production circles were rumors that Russian investors want to sell a business in Ukraine. Are they satisfied with the project?

— This is a baseless gossip. Performance of our Russian colleagues behind. Without going into details I will say that although the planned capacity of the economy − 7.5 thousand tons of pork in live weight, but by the end of 2013 we are selling 8.5 tons. That is the feasibility of this project, there are favorable lending terms and loan agreements. We turn all on time, never delay salary, not drowning as some of our colleagues of business say non-profit and unprofitable. It is a philosophy of Alexander V.Orlov: in any case pay on time. Because no one will sell, and we will work as we work now, and even better. Perhaps we will even expand.

— Do you have regular suppliers of premixes, amino acids and other feed additives, that you trust?

— We purchase finished products. Otherwise, you will not find risks. If you have any problems feed manufacture will say that the premix is bad, and supplier will accuse feed mill. And all the cards — in one hands. We only give the recipes developed by Danish Technology under supervision. They are suppliers of genetics and they understand and know what it should be: how much energy, vitamins and more. This agrees with feed mill and then start production.

— Vladislav, with which critical points you control the efficiency? Someone ties to performance indicators, such as number of weaned piglets per sow per year. Others are guided by the amount of meat produced per square meter.

— We measure efficiency by the number of meat produced per sow per year, because it is a composite index that includes outcome number and amount of feed required per sow per pig, and many other criteria. We aim to reach 9.5 tons per 3,600 sows per year. It is our goal for 2014. Then kilogram increase would cost about 10 grn.

— You care about the welfare of the people and what about the welfare of pigs? Do you implement the concept of «happy pig»: Pregnant sows are in groups, pigs gelding only with anesthesia, etc.?

— We keep sows in stalls up to 28 day, then translate into the group. In this approach we have many advantages: the animals are moving back to the time of farrowing uterine muscles better developed, they are more willing to eat, food is better digested. Our group is small up to 16 sows. They are beating only early days, until the hierarchy. The percentage of abortions within acceptable − 1.1. In fact , this system is much better than individual maintenance, there is no need for so much equipment. And it is expensive. Second, sow stands for all lifetime, but it’s not a robot, it’s an animals. So here I fully support the Europeans. Regarding gelding pigs we are doing this «alive» and frankly saying, I doubt very much that in Europe use anesthetics: they are thinning the blood, and thus they can’t avoid bleeding.

— Speaking of Europe. Although the association with the EU wasn’t signed, the government continues to talk about the European vector of Ukraine. How do you evaluate this scenario?

— We have 50 years to grow for the EU. Everyone hopes that the Germans will come and build our roads. Nobody will. Everyone needs to do their work and answer for himself. In EU there are many goods, and there is no market from it so it is looking for. Will get credit from the EBRD and products will be delivered bought at the same money, and then we will be guilty. That is the policy. And the time we are selling tomorrow pork on the European market is a fairy tale. The cost of one kilogram in Europe is about eight grn., and we have on the best farms − within eleven. So are we a competitor? We just open the borders for delivery of Polish, German or even someone’s meat, yet not with necessarily quality.

— Share, please, with the plans for 2014.

— The plan is the only to produce 9.5 tonnes of pork in live weight. On «Belhrankorm-Poltavschuna» everything is still, but we should make better the production process. But we all will implement innovative ideas in the new project.

1. Why do investors remade in pig production «Belhrankorm-Poltavschuna», remembering that it was planned to make it for poultry?

2. The owners are not pity about the reconstruction of old dairy farm in Bilyky instead of building from the very beginning, are they?

3. There is an official information, that the building of «Belhrankorm-Poltavschuna» costs 165 million of grn. Does the project fille the budget and from where was the money involved?

4. How much does the «Belhrankorm-Poltavschuna» depend on the parent company «BZRK Belhrankorm»?

5. Why did the farm chose the Danish genetics? With what criteria it was chosen?

6. «Belhrankorm-Poltavschuna» − vertically integrated agricultural company. What other areas are united and what are the results of such cooperation?

7. The slogan of «Belhrankorm-Poltavschuna» is «High-quality, but yet affordable product». However, experience shows that quality is rarely cheap. How do they manage to sustain the balance?

8. How do they solve the issue of staff deficit?

9. What new methods were included in the bonus wage system and how do they avoid fraud?

10. What achievements in 2013, including the increase of production performance of livestock, «Belhrankorm-Poltavschuna» is most proud of?

11. What are the plans to improve the existing pig farm have in 2014th? What innovative technology are planning to put in a new farm in Poltava?

You can find answers to these and other questions in the full version of the interview with Vladislav Leschenko in the magazine «Profitable Pig Production», № 6 (18) 2013.

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