The size of the company is far from always equivalent to its effectiveness and this fact is confirmed by specific figures. A large number of land allotments and their scatter complicate the processes of management. In addition, the use of modern technologies allows you to increase productivity without expanding the land area.
Modern agribusiness businessmen try to use their land bank as efficiently as possible, and refuse to rent plots due to difficulties with logistics, management and high rental costs. Producers are trying to increase productivity to investing in the organization of labor and new technologies, so the most successful agro companies operate in relatively small areas with areas up to 100 thousand hectares.
Given the decrease in the cost of agricultural products and continuous increase in expenses, only those companies that will relieve the improvement of technological processes, and not for expansion, will be able to survive in the modern market, and this is already noticeable in the list of companies of the agromarket of the Ukrainian market.
The following agricultural holdings go to the top of the most effective companies:
- UKRLANDFARMING. The holding owns 670 thousand hectares of land, and has significantly greater production capacities than its main competitors.
- Kernel. The most profitable agricultural company, which in a significantly smaller territory makes almost twice as much profit than the manufacturer who has occupied the first line of the rating, largely due to the fact that it sells a processed product sunflower oil.
- Svarog West Group. The most effective company in terms of calculating its income from one hectare. Agricultural holding grows and exports all, as well as beans, pumpkin and flax, the production of which in Ukraine is much lower than that of grain crops, but has greater stability.
The economic crisis, the devaluation of the national currency and the difficulty of obtaining loans, as well as a global decrease in agricultural prices, led to the fact that the half of the largest agricultural holdings according to the results of the last year’s season incurred losses.
BCV agricultural holding is not included in the top of the largest agricultural companies in the country, but it develops stably and increases momentum. Already now in the structure of Holdinkg, 9 companies in three areas that allow both themselves and partners all the resources necessary for doing business, including export services. Already next year, the company plans to expand its land bank to 37 thousand hectares and significantly increase the production of basic grain and nongrain crops. Excellent results are ensured by the presence of their own fleet of equipment and subsidiaries for the supply of seeds, protective equipment, fertilizers, and export capacities.
The BKW Group Holding relied on the efficiency of using its resources from the moment of creation and combined precisely those companies that allow it to introduce the latest technologies in all fields of field work from cultivation, to plant protection and harvesting. Now the holding is occupied by the 42 line of the country’s agricultural company rating, however, its access to higher positions of the list is the issue of time.