The group of companies "Agroliga" announced the rejection of dairy farming. The company explains this decision with the crisis that has been observed in the industry since 2014.
The main negative factors that led to the loss of interest in milk production, "Agroliga" called the increase in prices and tariffs, which leads to higher prices for the content of cows; decline in solvency of the population; reduction in export supplies due to withdrawal from the Russian market.
Given all these factors, in Ukraine there is a clear tendency to reduce the livestock of all farm animals.It is noted that animal husbandry has lost its attractiveness, even though the company has a great advantage - the ability to feed livestock from waste from its own oil production.
“We produced high-quality milk with a price correspondingly higher than the market,” the Agroliga noted. - And our end customer was not numerous. The costs of caring for and treating animals, the logistics of finished products, and the wages of all workers were constantly growing, although they did not result in losses, but they became an obstacle to making a profit. ”
The company is now participating in a large-scale and promising project for the construction of thermal power plants and wants to direct its efforts and resources into the development of other, more profitable projects.At the same time, the “Agroliga” noted that the rejection of the livestock sector does not mean that the company will not return to it, given the vast experience gained.
For reference, "Agroliga" cultivates about 10 thousand hectares of land. In addition to dairy farming, it grows wheat, barley, sunflower, rapeseed, corn, buckwheat, processes sunflower seeds in its own oil extraction plant.