Leaders of the Ukrainian Organic Movement: 5 Successful Enterprise
Global developments, such as climate changes as well as an increase in demand for healthy food lead to the transformation of business processes. Thus, today the application of organic farming technologies is one of the promising business niches for farmers.
Since 1999, the total global volume of organic arable land increased by 300%. According to the Federation of Organic Movement, from 2002 to 2015 the total volume of lands cultivated in compliance with norms of organic farming has increased by 250%. In EU practically all lands suitable for organic farming are already occupied by eco-farmers. At the same time, Ukraine has big potential in this regard as only 1% of the total volume of arable lands corresponds to principles of organic farming.
Taking into the account an increase of popularity of products grown without application of chemicals, organic farming seems to be an attractive investment sphere. Several Ukrainian companies have already benefited from advantages of such business. We’ve selected five most successful projects among more than 200 «green» enterprises. Let’s take a closer look at their experience.
«Agroecologia» - is one of the oldest agricultural enterprises in Ukraine applying only organic farming technologies. The land bank of this enterprise amounts to 8’000 hectares, while the company itself is over 40 years old. It’s one of few agricultural enterprises in Ukraine which was created on the basis of a collective farm (kolkhoz) and not only managed to avoid degradation but increased its production capacities and continues to introduce new technologies.
Semen Antonets, the founder of «Agroecologia» recollects how everything started: «My technology is very simple: I don’t use chemicals and plow. In 1978 nobody even could imagine that when penetrating the soil fertilizers intoxicate products and then consumers. I forbad to use them when I saw that my employees poison themselves while working with pesticides». The enterprise has completely refused from the application of chemical fertilizers. Instead, they use manure and plant waste, as well as don’t collect harvest once in 4 years. In «Agroecologia» they also don’t plow their land too deep, maintaining the depth of the furrow at around 3-4 cm.
Besides crops’ cultivation, the company is also engaged in livestock breeding and processing. Livestock is fed with organic feed, thus the produced meat and milk are also organic. «Agroecologia» produces sunflower oil and different types of flour. The company uses modern mill but with stone grinding plates. This technology allows to achieve the fluffy texture of the flour and preserve natural qualities of the grain. The company also promotes and supports the development of rural infrastructure and decentralization reform. 500 local residents of Mykhailiky village in Poltava region are employed by the enterprise. Thanks to «Agroecologia» this village has one of the best employment rates in the rural area.
Joint Ukrainian-Swiss enterprise «EtnoProduct» was established in 2008. Oleg Zhukovskiy (head of the supervisory council of «EtnoProduct») decided to create a small organic farm in order to produce products for his own family. Today, the company owns 4’000 hectares of organic land in Chernihiv region, as well as a farm with 1000 heads of cattle.
The company has the full cycle of products processing and thus sells not raw materials but certified ready-made products: raw and pasteurized milk, cream, buttermilk, yogurts, butter, honey, meat, sausages, vegetables as well as crops and legumes. Presence of foreign investors among shareholders of the company is one of the most evident indicators of its financial success. Furthermore, last year the company was ranked 3rd most successful organic enterprise in Ukraine.
This is another joint Ukrainian-Swiss project. It was established under very favorable baseline conditions: company’s representatives found a parcel of arable land in Zhytomyr region which wasn’t cultivated for last 20 years. In order to be certified for organic farming activities, the land should remain uncultivated for at least 3 years. Founder of «GALEKS-AGRO» managed to save this time.
The company which started operating in 2008 was established as the result of the merge of two enterprises (LLC« ORGANIC MILK» and LLC «ORGANIC MIYASNIY PRODUCT») and has vertically integrated structure encompassing land cultivation and meat products production. The company owns a dairy factory with a daily processing capacity of 30 tons of milk, as well as cultivates 8,5 hectares of eco lands. In 2016, LLC «ORGANIC MILK» made it to the top of the rating of the largest organic food producers in Ukraine. Its subsidiary «GALEKS-AGRO» engaged in crops production, was ranked 5th in the same rating.
LLC «Organic original» («Ecorod» trademark)
The company is one of the Top-5 leaders of the organic movement in Ukraine (last year it was ranked 4th). Within just six years the company became one of the most successful producers of eco products. The motto of the company, which is majorly engaged in groceries’ production, is: «Eocorod – natural vegetable patch». The enterprise is successful not only on the Ukrainian market but abroad as well: in 2013 the Ecorod’s cold-pressed sunflower oil was named the best organic product of Eastern Europe at the Organic Marketing Forum in Poland.
This company is one of few examples of organic business which was developed not «from the scratch»: in 2010 the owner transformed the traditional enterprise into an ecological one. Key businesses of the company are dairy cattle husbandry and crop farming. In 2016 «Stariy Porizck» expanded its production having established first organic cheese factory in Western Ukraine. Currently, this factory produces butter, mozzarella, suluguni, bryndza and other types of cheese. Such expansion of its production capacities allowed the company to be ranked as the 2nd best organic enterprise in Ukraine.
Stories of these five companies demonstrate advantages of investments in the organic farming. Considering the big potential for development of organic food market in Ukraine, the creation of an eco-farm may be successful and profitable.