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On September 19, 2013 the most expected autumn agrarian event – International conference «Large Farm Management: Organization and Strategy» has traditionally held. Every year the number of participants grows on – so, in 2013, there were over 500 registered representatives from European and CIS leading agricultural companies, service companies, and other institutions. All of them gathered together in the best conference venue in Kyiv to discuss a wide range of the most difficult issues in agribusiness management and to find successful ways of doing agribusiness.
Undoubtedly, the main modernity trend is not only business success, but also its efficiency, because under conditions of limited land and material resources, the ability to accumulate all opportunities to achieve maximum results takes first place. This opinion was supported by all the best international speakers who had taken part in the conference on September 19 in Kiev.
Nowadays, the distribution of forces in the global agribusiness is greatly affected by the ability of countries – the world's leading agricultural producers to increase production and to meet the growing global food demand. This opinion was expressed by John Shmorgun, the President of Harmelia Agricultural Holding.
"Even today we are able to see how actively the modern agricultural technologies are used in the world to increase production volumes in the limited land resources conditions. Leading Ukrainian agricultural companies also get high results owing to introduction of modern technologies. But Ukraine needs substantial investments in agribusiness" – he said.
However, the greatest problem of modern agribusiness, which considers Mr. Shmorgun, is control and management of macro risks. Government should provide clear, understandable working rules to improve the legal framework. In turn, companies have to maximize their efficiency. "Only due to fulfillment of this conditions Ukrainian business can become really successful", – commented President of Harmelia Holding.
Effective model of business organization was named as the best decision for risk minimization by experts. "Vertical integration is the most important and reliable way to ensure the stability of large agricultural companies. With this business model you can not be totally protected, but you can protect your business from risks", – says Mogens Lund, Research Director of Danish Research Institute of Food & Resource Economics, University of Copenhagen (Denmark). In addition, the expert pointed on the need of secured sale channels for such companies to sell their products and reliable supply of materials for production. "Good example of vertical integration is the creation of cooperatives and long-term contracts with reliable partners. This will help to maximize your position and generate confidence in the market" – he recommends.
This and many other advises and secrets for effective management of agricultural companies from 33 leading speakers all in attendance could get to know on 19 September in Kyiv. Hence, this event once again confirmed the title of the Conference number 1 in Russia and Europe for large agribusiness management.