Chronology of development
AIC Dubovyi Hai LLC was established in 2011 on the basis of a pig farm built in the 1970s. After the reconstruction of the production facilities, the farm operated as a fattening facility, and later switched to a closed production cycle.
M.U.: "In 2011, after the company was bought out and reconstructed, with the latest foreign equipment installed, a ventilation system and automated feed distribution lines
distribution lines, we started fattening pigs with a total capacity of 4000 heads. Commercial piglets were purchased from domestic producers. The good results encouraged the owners to decide to increase capacity. Moreover, the complex's capabilities allowed it: out of eleven production facilities, only four were in operation. Thus, in 2019, a 500-sow reproductive facility with a modern artificial insemination laboratory was launched. The choice of genetics was based not only on quality characteristics, but also on the availability of prompt technical support. After all, we did not have any specialists with experience in working in a reproductive facility. In fact, we started from scratch. Taking these aspects into account, we purchased replacement cattle from Eco Mit LLC in the Lviv region. The company's specialists helped to launch the reproducer: they provided support, trained staff, set up and controlled production processes. We managed to build close partnerships. We continue to use the company's services and, given the good performance, plan to continue purchasing replacement bulls."
Production and technological aspects
Dubovyi Hai achieves sustainable production through agreements with local farmers. Having no land, the company buys feed raw materials for the production of mixed fodder (a 300 t/day feed mill is located on the territory of the complex) with a minimum delivery radius.
M.U.: "Purchasing grain from local farmers is one of the ways to optimize costs, as it saves on transportation. Especially now, when the cost of logistics services has increased." The farm also solves the issue of manure utilization by agreeing with local farmers to apply manure to their fields.
M.U.: "We store the manure in a lagoon, which we empty twice a year. We apply fertilizer to the fields surrounding the farm. Before the war, we used the services of specialized companies. It is efficient but expensive, so in the current situation we have an agreement that the manure will be taken by our neighbors and local people."
Currently, one of the challenges for industrial enterprises is a significant increase in the cost of energy, particularly natural gas and electricity. This forces them to look for more cost-effective ways to provide heat in the fall and winter. However, AIC Dubovyi Hai LLC took care of this in advance.
M.U.: "We have been focusing on the need for efficient heating of production facilities for a long time. After all, for the normal operation of the reproducer, this is a key issue - raising piglets requires maintaining a stable temperature of 25-26 degrees Celsius. Since the farm is located in Polissia (in the natural forest zone), it was economically feasible to choose a heating system that would work
system that would work on wood. Thus, a modern solid fuel boiler house was built. Its capacity was calculated with a margin for further expansion. In addition, it is possible to use peat briquettes as an alternative to firewood. We already have this experience."
"In particular, the administrative building, the sanitary area, two fattening buildings for 2,000 heads each, which were fully stocked with livestock, a feed production shop, a livestock transshipment point, a weighing station, a water supply system, automotive equipment, etc. The explosion created a rather large crater with a diameter of 5-6 meters. The fattening facility suffered the most: half of the premises were destroyed, the rest are in disrepair and need repair. The ventilation system is out of order, and the feed distribution line is damaged. The reproductive facility was also damaged by the blast wave (the roof, doors, and windows were damaged). It was quickly restored and continued to operate as usual. All damage was recorded. The Security Service of Ukraine in the region has opened a criminal case over the attack, and we are waiting for an examination by state authorities, including the Bureau of Technical Identification. At the moment, there is no question of compensation for damages. We are rebuilding everything on our own."
However, in addition to direct losses, the company continued to suffer losses in the form of lost profits. On the one hand, it had to sell the commercial piglets that had no place to grow due to the destruction of the fattening facilities. On the other hand, it had to urgently sell the pigs that were kept in the damaged workshops. Given the panic that arose at the beginning of the war, as well as the heterogeneity of the batches of animals, the selling prices were much lower than expected. Nevertheless, AIC Dubovyi Hai LLC continued to operate, promptly solving the existing problems. The company is now focusing on restoring the complex's capacity. Since government assistance is a long-term prospect, we have decided to rebuild the destroyed facilities and communications at our own expense.
M.U.: "We have repaired and launched the feed mill, water supply network, are working on repairing the automated ventilation system, and have engaged the specialists of the supplier.
specialists from the supplier company. This is a critical issue, as it affects our targets and prevents us from reaching the level we had before the war. We are currently discussing the reconstruction of the damaged building, which requires major repairs."
Prospects
In the pre-war period, despite the crisis year of 2021 for the pig industry, the company still considered expansion opportunities. However, the full-scale invasion of russia made its own adjustments and forced us to rethink our priorities.
M.U.: "Having established the successful operation of the reproducer, the question arose of providing it with repair young. Therefore, we decided to grow them ourselves. In addition, having achieved good performance in the production of marketable piglets, we realized that the existing fattening facilities were not enough. It was necessary to increase fattening by another 1000
more pigs. We discussed these issues, but the war changed everything."
Currently, the main thing for AIC Dubovyi Hai LLC is the strategy of optimizing costs and establishing a stable production cycle.
M.U.: "Given the need for financial resources to restore the complex, we have repeatedly thought about optimizing costs. To this end, we have made a certain stock of feed raw materials. We also purchased premixes, protein, vitamin and mineral supplements, vaccines and medicines that have an imported component and whose cost is tied to foreign currency even before the rapid devaluation of the hryvnia. At the same time, we are solving the problem of grain storage. The capacity of our feed mill is limited. Many local farms and elevators from which we usually buy grain on the condition that it is stored in their warehouses have also been damaged as a result of the hostilities. This makes it impossible to make advance purchases and minimize price risks."
However, despite the difficult situation in the country, Dubovyi Hai does not rule out the possibility of implementing its pre-war development plans. It understands that today it is responsible for food security and the quality of the diets of domestic consumers.
PigUA.info by materials of the magazine "Profitable Pig Production: Military Digest" № 70