KSG Agro will implement a network-centric strategy in 2024
KSG Agro will implement a network-centric strategy in 2024. This was reported by the company's press service with reference to the head of the agricultural holding Sergiy Kasianov.
In 2024, KSG Agro will implement a network-centric strategy. According to Sergiy Kasianov, Chairman of the Board of Directors of the holding, the essence of the new strategy is to use the principle of network centricity in a time of uncertainty, based on effective management in difficult conditions and optimal risk distribution.
"We have decided to move from one large and vulnerable location to a much safer and more productive 'grid' consisting of different locations. Accordingly, we decided to gradually reduce the number of pigs at the main site in the Dnipropetrovs'k region, while increasing it at other farms. The first such farm was a complex in Novoraysk, Kherson region. The choice of location was not accidental, it allowed us to move from pork production and supply to systemic investments, including social investments," comments Sergiy Kasianov.
According to him, together with its partners, the agricultural holding reconstructed the pig farm, which is currently the only pig farm in the de-occupied Kherson and neighboring Mykolaiv regions. So far, 95 new jobs have been created here. The enterprise and the village are connected to alternative sources of fresh water, which became problematic after Russian troops destroyed the Kakhovka dam. Currently, Novoraysk houses 3,000 sows and grows more than 6,000 piglets per month, which are sent for fattening throughout Ukraine.
Sergiy Kasianov: "It is clear that the number of pig farms suitable for purchase or lease is limited. Finding them, reconstructing them, setting up equipment, production and control systems, training staff - all this requires a very long implementation period. The solution was again suggested by the same "network centricity". We had to think it through to the end and create an innovative business model, which, as far as I know, has never been used in the Ukrainian pig industry. The new business model does not involve the company renting or buying out production sites. They are being replaced by cooperation between KSG Agro and the farmers. Our agricultural holding supplies piglets and feed, and the farm provides fattening and veterinary control. The partners share not only risks but also profits, so they are motivated to achieve the best results."
The pilot project for the new business model is a farm in Khmelnytskyi region. Here, about 8,000 25-kilogram piglets will be raised to 115 kg at a time. An increase in the number of such partnership projects will allow animals to be kept in safer conditions and in better health than at a large complex. This, in turn, significantly reduces the cost of treatment and prevention of diseases.
"This format of business cooperation has already caught on with many Ukrainian pig farmers, as its benefits in terms of diversification, cost and risk reduction are quite obvious. Moreover, in addition to supplying piglets and feed, we provide full consulting support for such projects," summarizes Sergiy Kasianov.
