Kyiv International Economic Forum is continued. Investments in various sectors of the economy are in the focus of second day of forum.
Agribusiness is one of the most attractive destinations for investors. After all, according to experts, demand for food products in the global market will increase, while volumes suitable for cultivation of agricultural land in the world reduced. In this context, Ukraine has huge prospects due to large areas of fertile black soil, relatively inexpensive labor force, favorable climatic conditions andgeographical position.
How to attract investment in the agricultural sector and to increase profitability? It was the topic of speech by CEO AgriLab Iaroslav Boiko. Along with him these questions discussed Tiberiu Dima, Country Manager of Crop Protection at BASF in Ukraine, Moldova and the Caucasus, Elena Voloshina, Head of the International Finance Corporation (IFC) in Ukraine, Daria Isakova, Landlord project director, Jacek Austen, European expert on agricultural logistics ILF Consultant, Yurii Kosyuk, founder of PJSC “MHP” and Carl Sturen, president of companies “Chumak” and “Vindkraft Ukraine.”
The opinions of experts came together under the common thesis – innovations are the key condition for the development of agribusiness. These include intensive technology of growing crops, the use of robotic systems in animal and intellectual, precision agriculture.
Iaroslav Boiko said: “Today agribusiness began developing on the new technological level, with new business models, new vision. This concerns not only large, but also small producers. Those companies, that pay attention to innovation, not only improve yield but also increase their efficiency in general. If we talk about the most popular technology today, first-of-all, it is qualitative analysis of the soil. This is the foundation that allows to use the relevant agronomic products, to control input (fertilizers, seeds) and natural (soil, climate) resources. Professional supporting production processes, caring of crops, correction of technical operations using modern tools such as portable laboratories, satellite and sensor equipment, can save about 30% of the inputs, and technologies such as variable rate save about from 40%. Remote data transmission make possible to control the using of materials and to avoid theft. But not much companies have implemented automation still. But the main thing – concluded Iaroslav Boiko – a study of people. They should be able to use modern innovative tools. “
Describing the impact of innovative tools to EBITDA increasing, the CEO of AgriLab said: “All technologies enhances each other. Therefore, they should be considered together. EVITDA increases to $76 per hectare if company use the mapping, variable fertilizers application rate. But we must take into account the individual characteristics of each field. For example, the application of these technologies are more noticeable in the forest-steppe zone, or in Polesye through difficult relief. So, the EVITDA increasing will be greater. However, farms located in the South, should pay more attention to managing moisture technologies. “
At the end of the discussion about innovation in agribusiness, Iaroslav Boiko said: “No need to reinvent the wheel. Modern technology has been successfully working in the EU and the US. AgriLab is introducing best international experience of precision agriculture, adapting it under Ukrainian conditions. This proves to be effective. “
Modernization and innovative technologies can become the driving force of Ukrainian economic renewal. Domestic producers have enormous potential, but they should move with the times. The combination of automated production and digital technology, scientific approach and technological achievements – the only path to prosperity in the era of the fourth industrial revolution.
