2021 for the Volodymyr-Volyn poultry farm: taxes, crises and construction
At the Volodymyr-Volyn Poultry Factory, they told how 2021 passed for the enterprise, what crisis situations they faced, how they sought solutions and fulfilled obligations to the state.
Last year, the poultry farm was one of the major taxpayers both at the level of the state and the Volyn region. This was reported by the press service of the enterprise on the official page of the Volodymyr-Volyn poultry farm.
Thus, in 2021, the amount of all taxes paid by the company amounted to more than 220.4 million hryvnias. Of this amount, more than 3.6 million hryvnias were military levies, and more than 52.7 million hryvnias went to the budgets of local communities where the company operates. Volodymyr-Volyn territorial community received the most – 39.2 million hryvnias. Also, communities (eight in total) where the feed plant and poultry houses are located received taxes in their local budget.
In 2021, the Volodymyr-Volyn poultry farm produced more than 48,400 tons of chicken, of which 96% were sold on the domestic market of the country, and 4% were exported.
In an interview for “Poultry” magazine, director of the Volodymyr-Volyn poultry farm Svitlana Sobipan noted that the level of chicken consumption per capita in Ukraine in the third quarter of 2021 compared to the third quarter of 2020 decreased by 3.2%. The reason for this trend is the decrease in the purchasing power of the population and the number of domestic products in general. The reduction of Ukrainian production is partially compensated by cheap imported goods, which as a result has a negative effect on the pricing of products.
“The cost of chicken in the previous year, on average, increased by 19.6%. The price was influenced by a number of factors that we observed in 2021. One of the main ones is the increase in prices for raw materials, in particular grains, which have increased by more than 2 times, and accordingly affected the cost of fodder. If we take the cost of chicken, then 70% of the price depends on feed,” added Svitlana Sobipan.
In addition to the challenge with rising prices for raw materials, the trend of a rapid increase in gas prices for industry began in the fall of 2021. And for the second time in a year, the entire poultry industry faced a crisis situation and openly announced the possibility of reducing production. The situation was stabilized in January 2022 by order of the Cabinet of Ministers.
“Today, the poultry farm is operating at 100% capacity. In 2022, we will carry out a slight reduction in poultry breeding, which is primarily due to a change in breeding technology. According to the results of the year, such reduction will result in 1.1 million fewer poultry heads, compared to previous years,” emphasizes Oleksandr Sovych, Director of Breeding.
In 2021, there were also pleasant events for the company. One of them was the opening of a workshop for the production of meat and bone meal. The launch of this workshop means new jobs for the residents of this region, and new opportunities for the company.
“Equipment for the workshop was purchased in the Netherlands, Italy, Turkey and the USA. Its production capacity is 11 tons of meat and bone meal per day. The cost of the purchased equipment was almost 50 million hryvnias, and the cost of the entire workshop was over 130 million hryvnias. It will primarily process leftovers from its own production and will be able to fully operate with the launch of the entire complex as a whole,” the company’s official website notes.
Meat and bone meal production plant – a plant that was not previously at the enterprise. It will allow processing the leftovers from production, which were previously sold as raw materials to other enterprises. From now on we can produce meat and bone meal and sell it to animal feed companies.
In 2022, the company continues the construction of a new Processing Complex, the cost of which is predicted to be 1.5 billion hryvnias (over 700 million hryvnias worth of work has been completed to date), expanding sales channels both within the state and exporting to new countries, and continuing to conduct social – responsible activity.
The Volodymyr-Volyn Poultry Factory opened a workshop for the production of meat and bone meal. It is part of the construction project of a new processing complex, which the company started in 2019.