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Arthur Loza: Ukrainian pig production realizes only the 10th part of its possibilities

01.07.2011 12:42:52

They started pig production on “Demis – Agro “Ltd from the scratch. Nowadays the guests and different delegations on the enterprise is a usual practice. Colleagues trust the experience of the director of “Demis-Agro” Ltd, Arthur Loza and always hold to what he says. His thesis: “Pig production is very promising for Ukraine and has great opportunities” is proved by the success of his enterprise.

Dnipropetrovsk region is a leader in produced pork of Ukraine. For almost four years of existence “Demis-Agro” Ltd ranks fourth among the pig producers of the region. How do you achieve such results?

— I would say your question in other words “why don’t we achieve such results as Danish pig producers”. Of course the results we have now are quite good for Ukraine. But they are not the best. As a matter of fact there is a space to grow. We have deliberately chosen the strategy of maximal growth dynamics on our enterprise. That’s why we had to sacrifice some points to achieve maximal development as fast as possible. First of all, we are restrained by the “growth problem”, as most Ukrainian producers. It is well known that in Western countries they build the farm on a turnkey basis and they have money for all technological processes. We increase the capacity evolutionary because we don’t have a possibility to finance the project completely. For example, three years ago we planned to build a multiplication farm designed for 1800 sows, and reached the results we planned only this year. We finished building without stopping the production. And that influenced the productivity. It’s impossible to receive the long-term loan for 10-15 years in Ukraine, to finish building and then to focus on the production. In Denmark besides pig production,the service market is formed. There is an infrastructure that provides full functioning of the whole business: research institutions, education and retraining of the staff (not only for managers of the farms, but for ordinary employees also), stations of artificial insemination. We have to keep our own bio laboratory and a section for boars, collect and evaluate semen. Western farmers have an opportunity to buy semen on specialized stations from the best boars. When we have such infrastructure we will be able to compete for words’ results.

— Lately pig producers claim on bad demand. Do you have any problems with sales?

— In modern management practice they say “we must forget about the word “sales”. Because it means to get rid of the product by any means. Modern business system is customer – focused production. We have to produce what customer wants.

What pork will always have a demand?

— What genetics does “Demis – Agro” Ltd trust”?

— Why is Arthur Loza sure that Ukraine will become a powerful producer and exporter of pork?

— What is the back ground for the successful development of the branch?

— What rules and foundations do Ukrainian pig producers have to keep to, to realize them?

You can read the full version of the interview in magazine publication”Profitable pig production” №1, September 2010р.

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