Agro Oven Corporation, launched 16 years ago, illustrates the potential of Ukraine’s agriculture sector. The dynamic, vertically integrated enterprise is involved in a wide range of activities, from growing crops and raising livestock to food-processing and distribution. With around 5,000 employees, Agro Oven is also a major player in the Ukrainian economy.

Victor Zavorotniy, President, explains that Agro Oven grows grain on around 20,000 hectares of land and produces 60,000 tonnes of poultry products and 7,000 tonnes of pork products per year. The corporation also operates its own distribution chain, Dom Myasa. He says, “We have an extensive distribution network throughout Ukraine and we also export to Saudi Arabia, Moldova, Vietnam, Iran, Georgia, Azerbaijan and Armenia. By the end of this year we will be distributing our products in Russia.”

Top poultry producer

Agro Oven is one of Ukraine’s top three poultry producers and its equipment and technologies for poultry production are the most modern in the country. Victor Zavorotniy points out, “We have implemented European equipment and technologies from the Netherlands, Germany, France and Italy as well as innovative practices from the US. We are now at stage two of a major expansion programme for our poultry production. Our goal is to boost our capacity from the current 60,000 tonnes of poultry meat per year to 200,000 tonnes. We already have all the necessary infrastructure in place and now need to build more buildings for feeding poultry.”

The company sells most of its pork products in the local market, around 60% through its retail stores and 40% to meat-processing facilities. “Agro Oven’s meat is available in all big and small retail stores all over the country,” Victor Zavorotniy points out.

Focus on human resources

Agro Oven is committed to developing its human resources. It operates its own in-house centre to train specialists to meet the highest international standards, and provides grants to employees who wish to be trained abroad and come back to work in the company. Victor Zavorotniy says, “We place a priority on hiring people trained in the company and the children of our employees. We also hire the children of farmers who rent us their land. We are playing a key role in creating jobs for people living in rural areas.”

Victor Zavorotniy has ambitious growth plans for Agro Oven. He says, “We know that we have the capacity to increase our production totals, expand into new markets, and produce more raw materials for meat-processing plants. These are our priorities. We are interested in long-term solutions, not short-term ones.”

Around 25% of the company’s meat goes to meat-processing facilities, with 37% to retail chains, 10% to Agro Oven’s own retail stores, and 47% to other outlets. Now Agro Oven is concentrating on increasing its exports. Victor Zavorotniy explains, “Our main export markets will be the CIS countries, the Middle East and the EU. The quality of our products is very high and we are able to provide our products at lower costs than European producers can offer. We are very interested in establishing partnerships to supply European markets with our products.”

Open to international partnerships

In fact, Agro Oven welcomes international partnerships in many areas as it continues its drive to employ cutting-edge practices and the latest equipment and technologies. Victor Zavorotniy says, “We are very, very focused on quality. We make major investments in our equipment and technologies, including our quality-control systems, because we are determined to keep our quality high. There is always a human factor and we understand that we need to control our processes very well to avoid human mistakes. We also choose our partners really carefully after in-depth research. We always work with the best and most reliable suppliers, for example from the US, where there is no Asian bird flu.”

Agro Oven

Thanks to its commitment to high standards, Agro Oven has earned a stellar reputation in Ukraine and in its export markets. Victor Zavorotniy says, “Quality is the reason our brand name is so strong in the Ukrainian market and beyond. For example, the influential magazine Poultry International singled out Agro Oven as one of the leading poultry producers in Ukraine, and the EBRD has named us one of the most reliable companies in the country.”

Victor Zavorotniy praises the Ukrainian government for its low-interest-rate loans for the agriculture sector although he would like to see tax reductions for agricultural enterprises. He concludes, “The Ukrainian government is doing its best to help the agriculture sector and as soon as it has the financial means, it will do even more. Ukraine is a very beautiful country, rich in natural and human resources, which is still in the development phase. Come here and see for yourself everything this country offers.”

Agro Oven

Agro Oven
St. Quay 53, Office 3
49022 Dnepropetrovsk 3
Tel: +38 0562 334590
[email protected]
www.agrooven.com.ua