Torben Andersen is responsible for selecting farm operations suitable for investments by Baltic Property Trust Partner Services A / S. Today BPT is creating Agricultural Investment Fund (BPT Farmland) for agricultural investment to Russia, Ukraine and the Republic of Belarus.

— Yes, the question "where to get the money?" can be referred to the "eternal" ones.

— And often to go to a bank with this question is a waste of time. Communicating with representatives of banks, I sometimes joke: "So to get a loan, I need to convince you that I do not need it at all." Then I decided that it’s better to raise finances of someone who will also be more or less involved in production – that’s how the idea of cooperating with an investment fund appeared.

— In which countries you already have investment projects?

— Mostly in EU countries, a project inCroatiais successfully developing at the moment. But now we are focused onUkraine,BelarusandRussia.

— Why the focus is on these countries?

— There are a number of factors that can be grouped around two. Firstly, the lands. Everybody knows black soils and their potential, which has not been fulfilled inUkraineyet, and large areas that allow large-scale production. Besides land prices compared to most European countries, are much lower. Though to buy land inUkraineis still impossible, the price of land in neighbouringRussiaranges from 300 - 500 euros per hectare, while inWestern Europethe price is 7 - 12 000 euro per hectare. In Poland, the price per hectare of farmland is skyrocketing and now is 3 - 4 000 euros, while in other countries of Eastern Europe 2 - 3000 Euro / ha. Secondly, inexpensive labour and high profitability of pork production inUkraine.

— You have had several attempts to create investment projects with Ukrainian farms. Were they a success?

Not yet so far. Projects stopped as soon as it came to financing from the Ukrainian farmer. InUkrainethere already are several pig farms created by Danish investments, but the investors also denote, that cooperation comes not so easy. The main reason of it is we see this business differently

— The claim that Ukrainian pig has big potential is not new. You are an expert in this business and a person who can assess the situation in general, how do you think why it is still only a claim?

— The main reason is you do not desire. Opportunities alone are not enough, you should want this.

— Mister Andersen devotes all his life to pig production and jokes that he has “walked the branch from a to z”. Where did he get such an experience?

— What made him start working with the Fund?

— Involving money from the bank and from the investment fund — what is the difference?

— What are the pros and cons of the cooperation with the investments fund?

— When to expect the return of money invested to pig production?

You can read the full version of the interview with the representative of one of the most powerful investment funds in Europe Baltic Property Trust in magazine publication “Profitable pig production” №1, September 2010.