Dmytro Dubovykov: «In conditions of high business struggle survive the most effective ones»
Year 2014 became the challenge for Ukraine that redounded upon the native pig breeding. In such conditions only the most effective can be sure of tomorrow. How not only to stay afloat but also to continue developing business in a challenging time told the executive director of Rantie, LLC Dmytro Dubovykov.
«Business has to know how to survive in free floating»
- Dmytro, how does the fate bring you to pig farming?
- While studying at the university I had never thought I would work in this brunch. But in the final year it became possible to go to Denmark for work. It was interesting to visit foreign country, to adopt the best practices and see how production is organized there.
I had been working on small farm (400 sows) for year and a half. In two months of work every worker had the opportunity to explore the manager part. I understood that pig farming — it is mine. Gaining experience, actual in Ukraine, I decided to come back home.
That’s why, in 2003 together with homecoming I took an offer of Agrokombinat «Slobozhanskyi», PJSC.
In five years’ time I passed into «Astarta» in dairy cattle. But pig farming was closer, that’s why in a year (in summer 2013), when I was proposed to chair this branch in group of companies KSG Agro, I decided to try my lack. The project’s ambitiousness tempted... We are on way of its realization yet, but even now it can be said that its startup has passed rather successful.
- KSG Agro joins different branches of agriculture. How do they collaborate together?
- We have powerfully developed analysis of economic indicators of each brunch. We stick to the opinion that every business has to be ready to arrear in free floating in a definite moment and be able to survive. Only this way it is possible to get the efficiency level. That’s why we buy grain in companies of the group by market prices. But we sold pigs to our meat-processing plant by the same prices as to another partners.
- This year Ukraine did a solid step toward the European integration. Do you consider the possibility of entering the European market with own pork?
- We examine them: estimating perspectives, capacities and requirement in these markets. Probably we do not come to European pork consumer very fast, but we want to be ready, in order not to blunder it away in a happy hour. We pass all corresponding certifications. But I’m solidary with statement that home market is not filled enough to find external sale sources.
«Economy is the first thing»
- According to which factors do you estimate the household efficiency?
- We calculate the target prime cost of monthly production. There are some definite control points on different stages of pig growing. They show what we do right or wrong.
We don’t chase 16-17 piglets per farrowing and conception rate 99%, if the prime cost is equal to the selling price. We are not interested in production for production. Factors determining the prime cost are controlled every day. Is there a sense to state in two month that we spend too much? First of all we calculate economy.
- Last year epizootic dangers in our country had essentially intensified. How do you play safe?
- We keep biosecurity programs. Staff of the farm is banned from growing pigs. It is scrutinized by our security. Breaking of a rule means immediate dismission.
We do not let go visitors to animals. In emergency conditions the quarantine last for them for 72 hours. It is possible to enter the working area only after shower and changing clothes. Workers are banned from bringing products along with. They have meals in the canteen on farm’s territory.
Moreover we prevent any animal ingredients in diet. As it is one more way of pathogens invasion on the farm.
«We will increase the sow herd twofold»
- What goals do you set yourself for some next years?
- Surely we’ll enlarge the sow herd: planning to increase it to 8200 sows. Now we’re finishing reconstruction of one of two «reflexed» units. In 2015 we’ll start the second stage. It helps to feed more pigs, but not to sell them at weight 25 kg.
- In other words you stop selling commercial piglets?
- Not so. This is that very niche that is unoccupied on a large scale. There is a good demand on commercial piglets. The year before our pig man brought them from German, Poland and Hungary. And now it is difficult to do, and the profit at the present currency fluctuations is doubtful. That’s why we will certainly carry and develop this line. Now we knit long-term contracts. By the way, there are some households on our market who are ready for such cooperation.
- What will you wish to colleague-pig man in the run-up to the New Year festivities?
- As the outgoing year show, all pig farms have to be mobile, but not look like a ship that is difficult to stop or to turn on a dime.
Patience and success in this difficult task!
- Rantie, LLC is a successor of soviet integrated plant «Apostolivskyi», famous by its achievements. How do local citizens respond on pig farm recovery?
- What factors are taken into consideration first of all at the household?
- What technological concepts does Rantie use during production to get the maximal success?
- What factors determine the cost price of the pig farm?
- Are the rumors about Rantie’s plans to set going the breeding farm true?
- How does the economically challenging year 2014 affect the work of the household? What are the future plans?
You can find answers for these and other questions in the full version of the interview in the magazine «Profitable Pig Production», № 6 (24) 2014.