This was announced by the company’s CEO, Taras Baran, in an interview with Forbes Ukraine.
According to him, the company’s current feed mill produces around 110,000 tonnes of feed annually and is already operating at full capacity.
“We have 10 pig farms, 500,000 poultry, and 17,000 head of cattle. We are already purchasing feed from the market for our poultry operations. Our plans include doubling milk production to 500 tonnes per day. We have reached a ceiling: either we stop or we continue to grow. Stopping is not something we know how to do,” said Taras Baran.
The company explains that its future development strategy is based on increasing the level of processing of its own raw materials. As crop production profitability continues to decline, the agricultural group aims to further integrate its production chain and generate greater added value from the crops it grows.
“Our goal is to process 100% of what we grow in the fields. Today, that figure is about 60%. The ‘field – elevator – trader’ model no longer works: land rent, fertilizers, and fuel costs are squeezing crop farming margins. Processing is the only way to earn more from each hectare,” Baran emphasized.
The new feed mill will have a capacity significantly exceeding the needs of the company’s own livestock operations. According to preliminary estimates, Agroprodservice plans to market approximately 80,000 tonnes of feed annually to external customers.
The new production complex is being built within the territory of the “Western Ukrainian Industrial Hub” industrial park in the Ternopil region. The company says it selected the location because of the benefits available to industrial park residents, including customs and tax incentives for imported equipment, as well as opportunities to obtain state support for infrastructure development.
The project is expected not only to ensure feed security for Agroprodservice’s expanding livestock business but also to strengthen the company’s position in the feed production market while improving the efficiency of both its livestock and crop production operations.
PigUA.info, based on Forbes Ukraine