Cattle can give a profitability of 20-30%: results of 2021

While the number of cattle in Ukraine continues to decrease, Ristone Holdings, by its example, once again proves that this industry can not only survive, but also be economically profitable. According to preliminary calculations, this direction in the holding will end 2021 with profitability indicators of 20-30%, which is twice as much as last year’s indicators. We spoke with Oleg Yemts, coordinator of the animal husbandry department of RH, about how it was possible to achieve such results.

– 2020 was a year of reformation for the entire livestock division of the holding – the dissolution of several farms and the transfer of livestock to two main farms – LLC “Agrofirma im. Horhogo” and SPP “Chumaki”, changes were made to the fodder base due to the reduction of areas for growing grass. Was 2021 supposed to show how effective all these actions were?

– Summing up the preliminary results of 2021, we can say with confidence that all this was not in vain. If we ended 2020 with profitability indicators at the level of 10-15%, then this year we can talk about a result twice as high – 20-30%. Also this year we managed to stabilize the issue with animal feed. Although the period of renegotiation of contracts with sharecroppers continues and the risks of reducing the area under fodder harvesting still exist, this year we managed to harvest enough fodder that has good nutritional characteristics. In 2021, we got a small negative only in cattle productivity, but this is a small decrease that did not affect the economic results. Yes, in LLC “Agrofirma im. Horhogo” we received 9700 kg of milk per lactation, and “Chumaki” – 6500 kg. Last year the figures were 9,791 kg and 7,527 kg respectively.

But I would not say that the year 2021 for our direction passed without reforms and experiments.

– Tell us more about the new beginnings.

– This year clearly showed how important a role the team, the farm collective plays in our business. As part of the experiment, we decided to organize a cattle farm at “Agrofirma Orilska” LLC, although we do not yet have ideal premises and modern equipment in this farm, the conditions are significantly inferior to the same LLC “Agrofirma im. Horhogo”. But the approach of this farm and its management made it possible, even in such conditions, not only to turn a profit, but also to make a profit above our expectations. Of course, in terms of productivity, this farm is still inferior to others – this year we produced 5,500 kg of dairy cows per year, but even this indicator is impressive considering the circumstances. And the success of this experiment became possible only thanks to the coordinated work of the team of this farm, careful care of animals.

– Are you satisfied with the results of the year in general and what are your plans for the future?

– Given the difficult situation in the industry, we are more than satisfied. In addition, it is pleasing that the profitability of our farms is complemented by high quality milk. Currently in AF named after At Gorky, 95% of our production is extra-class milk, at “Chumaki” – 90% is extra-class. But there is always room to grow. In our case, these are indicators of productivity, improvement and expansion of livestock. We currently have about 1,700 dairy herds in all farms, and we plan to expand the herd to at least 2,000.