Agricom Group plans to increase the amount of the raw materials grown for its own factory

From 2020, Agricom Group plans to grow raw materials for the plant more actively, because they are convinced that raw material suppliers are not ready to fulfill the conditions of the forwards.

“Only 70% of farmers made deliveries at a price and volumes fixed in the contract. In Ukraine, the mentality of forwards does not work: the farmer is sure that the processor earns on him, and does not understand that the processor pays the price basing on the calculations of the price at which he could sell his products,” he said.

Petro Melnyk reminded that in the world a forward is an unconditional contract, and an insurance company hedges risks. Instead, no one in Ukraine is ready to take on such a responsibility, and farmers can disrupt supply.

In the future, the company plans to combine production and processing: to sow 3-4 thousand hectares of oats and thus guarantee 50-60% of its own quality raw materials for the plant. So far, the technology of growing oats by 30% has been tested. Therefore, next season they plan to lay many experimental sites, attract foreign and Ukrainian specialists, intensify cooperation with breeding stations.

Raw materials for the plant are stored in big-bags, so compared to elevators, it is cheaper, more convenient in terms of logistics and, moreover, it does not affect the quality of the grain.

Source: Agravery.com