MHP agroholding is actively implementing a new format of cooperation with agricultural producers, moving away from the traditional "seller-buyer" model, where each party seeks to maximize its own profit. Instead, the company offers partnership relations that benefit both farmers and the holding itself, UNN reports with reference to the company's press service.
Details
Thus, MHP supports farmers in product certification according to the ISCC standard, and also helps confirm compliance with international EUDR and ESG requirements, which opens access to the markets of the EU, Asia, and Africa. In addition, the company's partners gain access to high-quality MAG Fertilizers, plant protection products of their own import, and seeds with technological support from Syngenta.
If everyone pulls the blanket over themselves, no one wins. We believe that partnership relations are what will allow the agricultural sector not just to survive, but to develop in the conditions that have now developed in the country
Practical advantages of partnership
The example of MHP's cooperation with "UKPROMINVEST-AGRO" illustrates the advantages of such a model. The enterprise is located near MHP's facilities in Vinnytsia region, so logistics are profitable and convenient.
"Logistically, we are very close to MHP's facilities in Vinnytsia region, so our interaction is based on simple and convenient logistics. We supply sunflower to their plant, and also use storage services at elevators. Although we have our own elevators, given the convenience and the presence of MHP's extensive infrastructure, we transport sunflower specifically to them," comments Volodymyr Bondaruk, head of the grain and oilseed sales department of "UKPROMINVEST-AGRO."
Another important tool for cooperation is composite storage — farmers can store their harvest for free at MHP elevators provided it is subsequently sold to the company. This makes it possible to avoid urgent sales and better plan sales.
Partners can also use forward contracts, which allow them to fix the price of the harvest in advance, reducing the risks of market fluctuations. In addition to traditional crops, MHP encourages the cultivation of high-oleic sunflower and high-erucic rapeseed with a premium to the market price.
Investments and development of the agricultural sector
After the start of the war, MHP invested over $220 million in the development of the agricultural sector. Every year, the company spends about $15-20 million on updating equipment, improving elevator infrastructure, and digital transformation. Great attention is also paid to processing technologies — for example, protein extraction from oilcake after sunflower processing, which will improve the quality of compound feed.
"Today, MHP's agricultural production unit is more than 360 thousand hectares under cultivation, more than 7 thousand employees in 12 regions, and 2.6 million tons of grain grown per year. Another 1.5 million tons are purchased from the market.
Of this volume, 2.4 million tons go to feed — the company covers 99.9% of its own need for compound feed. Another half a million tons go to oilseed processing: MHP operates three sunflower processing plants and one soybean processing plant. About a million tons are exported as raw materials," emphasizes Serhiy Dobrogorsky, Deputy Chief Executive Officer for Agribusiness at MHP.
Farmer feedback
Oleksiy Vasylina, director of the agricultural enterprise "TAIS" from Donetsk region, who works 41 km from the front line, notes that he is interested in expanding partnership with MHP. Especially in terms of cooperation on Syngenta products and fertilizers. He says that he has even already calculated how much RKD is needed for his sown areas.
He adds that security difficulties significantly affect the work, but the hope for MHP's support motivates him.
Serhiy Polishvaiko, MHP fertilizer sales manager, says that the company offers farmers not only a quality product, but also training on the correct use of fertilizers.
We have practical experience in applying the product and have developed an optimal recipe that we use ourselves
Market prospects
During the "Agrodialogues" in Kyiv, organized by MHP to discuss the new format of cooperation, significant interest in the partnership model was recorded. However, as Anton Besarab notes, not all farmers are immediately ready to join.
"Farmers need to try it, make sure it really works. And this is normal practice. We expect that the first participants will share their results, and then others will join them. All new things take time, but we are ready for this," he concludes.
Reference
MHP is an international food and agritech company, a producer of high-quality and delicious food products that improve consumers' lives. It develops more than 15 product brands, including "Nasha Ryaba", "Apetita", "Lehko!", "Bashchinsky", Skott Smeat, RyabChick, and others. Together with partners, the company has opened 1300 retail outlets of various types throughout Ukraine. These include the "Myasomarket" chain of stores, Döner Market fast food establishments, "Yizha Svizha" stores, and "Nasha Ryaba".