10 agroholdings took part in the second wave of benchmarking by Agrohub BM
Agrohub BM completed the second wave of benchmarking of the Ukrainian agrarian industry, attended by 10 holdings, among others are Astarta Kyiv, Harveast, Agroprosperis (NCH), Continental Farmers Group, and UKRPROMINVEST-AGRO. The volume of the land bank now being analyzed is over 2 million hectares.
Michael Bertram, Ukraine Country Head, NCH: “We participated for the first time in the Agrohub BM research, both on the level of our holdings and on the level of some of our farms. The results which we received from Agrohub BM were very relevant for our operations. The benchmarking analyses by Agrohub is an efficient way for sharing best practices among Ukraine’s crop producers and contributes towards raising productivity of the sector”.
Georg von Nolcken, CEO of Continental Farmers Group: “To understand how to build effective business processes inside quickly and easily, it is no longer enough to own the competencies within one company. We need to keep up with the best practices in the sector and the best practices in the world, and we are well aware of that. The importance of the Agrohub project is also due to its timeliness, as we can see how the agrarian sector in Ukraine is changing and what new challenges these changes bring to us.”
To compare and identify best industry practices, more than 200 indicators are collected in four areas: agricultural efficiency and precision agriculture (110 field companies), human resources (30’000 employees), machinery (9’000 units).
Valeriy Sokolenko, Executive Director of Astarta Kyiv: “Participation of Astarta Kyiv LLC in benchmarking gave us an opportunity to look at the activity of both the holding as a whole and each company separately, in comparison with other participants of the agricultural producers market. Benchmarking shows the availability of equipment (its age, technological and innovative composition) and its level of utilization. Issues on the availability of human resources are fully covered. The comparative analysis of the structure of human resources in terms of the number and age, as well as the level of income of certain categories of employees is presented. On the whole, the benchmarking offered is a good tool that has given us the opportunity to see the best moments in the work of competitors and the direction to move in order to achieve better results.”
Yevgen Sayenko, General Director of UKRPROMINVEST-AGRO: “For several years, UKRPROMINVEST-AGRO has been practicing the exchange of information with other comparable agribusinesses. However, thanks to Agrohub BM we were able to see our company in a more global coordinate system, gaining access to more companies. Benchmarking confirmed we have chosen the right direction of increasing business efficiency, in terms of optimization of fixed costs, staff reduction, and productivity increase. In our opinion, Agrohub BM is beneficial both to companies, as it enables them to improve their strengths and minimize weaknesses by leveraging the relevant experience of others, and to the industry as a whole, as it promotes industry-wide efficiency by improving organizational and management standards. We welcome the decision of the Agrohub BM team to include our sugar beet culture in benchmarking next year and to make a separate comparison only between beet companies. This is important because the intensity of works in the beet industry (and the amount of equipment and people involved) is significantly higher than in the grain companies.”
Alex Kolbasynskyy, leader of Agrohub BM: “The approach and methodology we have developed in the first stage, which ensure correct comparison of indicators, have remained unchanged. The first learning curve has been successfully completed, I would say. The number of regions has increased, so we are deepening the analytical section of the study, taking regional characteristics into account”.
Yulia Poroshenko, founder of Agrohub platform: “According to the statistics of The Food and Agriculture Organization (FAO) of the United Nations, 30% of all food produced is wasted. And it’s not just about recycling. About 25% of losses happen during the production and logistics phase. Benchmarking helps to identify these losses and fight inefficiency, improving the result annually”.
Agrohub BM will continue its research in 2020, and it will have a temporal dynamic: now the data comparison will be conducted not only between companies, but also between the past and the current data.
The first wave of benchmarking lasted from March to July 2019, with five holdings (Kernel, IMC, MHP, LNZ and Cygnet) taking part. The total land bank analyzed at that time was 1 million hectares, the areas of analysis were the same.
The essence of benchmarking is in the analysis of the activities of competitors or different units of one holding, which allow anonymous comparison of their performance and identification of the best industry practices. Benchmarking gives the company an understanding of the position it holds in relation to its competitors and the market as a whole, helps to evaluate the effectiveness of the processes, to identify growth points that need strengthening.