NIBULON is a vertically integrated Ukrainian company and a leader in the domestic agrarian market. It is one of the largest agricultural commodity producers, investors, and exporters. On December 5, 2021, the company will celebrate its 30th anniversary. Established in 1991, when Ukraine declared independence, NIBULON, together with the country, continues to improve and to become stronger.We are used to considering the agro-industrial sector to be a leader of the Ukrainian economy. Having been resurrected from the ruins, it allowed our country to overcome the entire economic crisis. Ukraine is one of the leaders on the agricultural commodity market and an absolute guarantor of the world food security. This year the country has achieved a record yield of grain and leguminous crops. NIBULON, an agricultural commodity producer, exporter, and tax payer, has played an important role in it. Two thousand out of its total of seven thousand employees work in the agribusiness. This follows as NIBULON is an agricultural company.We spoke with Kostiantyn Khmelnytskyi, the Deputy General Director of Agricultural Production, about agricultural activities at NIBULON, agriculture development, and future plans. – Mr. Khmelnytskyi, what are NIBULON’s agricultural activities? – Ukraine has been a powerful agrarian state. At present the domestic agro-industrial sector has achieved success on the domestic and foreign markets due to many Ukrainian agrarian companies fulfilled their mission to farm. I am proud that NIBULON has become a part of this success, by making efforts and using its knowledge. I am not going to say that the company does not face any problems now. However, we have introduced high-level technologies to produce high-quality agricultural commodities over the years of operation. NIBULON has been using modern technologies and machinery, paying competitive wages, and creating proper working conditions for village employees since it commenced operations. The company has increased not only production volumes, but also grain quality, whilst preserving the environment. The global food market dynamically developed and required relatively cheap and at the same time high-quality grain in the twenties. Ukraine lacked grain storages, and NIBULON started to build a network of elevator complexes, being ahead of world standards. The company persistently developed logistics and increased exports, thereby enabling Ukrainian agrarians to obtain competitive prices for the products that they cultivated. At present the company has 20 separate production divisions in 8 regions across Ukraine, leasing more than 77 thousand ha of land, 72 ha of which are sown areas. The remaining land comprises pastoral fields. The company’s products meet the strictest requirements of Ukrainian and foreign consumers, as high-quality food grain comprises 90% of all grain grown. In addition to growing agricultural commodities, the company is engaged in livestock farming and meat processing (sausage production). The company’s strong points are its high-quality products, the use of modern techniques, the cultivation of new crops in compliance with the global market demands, high export capabilities, a unique logistics infrastructure, and a well-coordinated team. This enables the company to be a leader, showcasing its progress and development to many Ukrainian agricultural producers during the 30 years of its operation. Our highly qualified agrarians inspire others.- NIBULON is well-known as one of the leaders on the domestic agrarian market. It seems the company has been a leader since it was founded. What were its first steps in the agricultural commodity production? – We were pioneers in creating a powerful Ukrainian agro-industrial sector. In 1990, Ukraine harvested about 51 million tons of grain, with a gross harvest of 35,1 dt/ha. At that time Mykolaiv, where NIBULON was established the following year, harvested more than 2.7 million tons at a gross harvest of 35,4 dt/ha. Although the company was not engaged in agriculture at the beginning, our founders were experienced in bread production. Thus, they clearly realized the potential of Ukrainian agrarians and knew what to do. The company, together with Ukraine, transitioned from a planned economy to a market one. It witnessed a land reform and the destruction of collective farms. It faced poor harvests, economic and political crises when the government tried to regulate the market. Thus, Ukraine only managed to revive the domestic agro-industrial sector and to achieve the required production volumes after 20 years. Ukrainians have started to harvest more than 60 million tons of grain and oilseeds since 2011. In 1996, when the Constitution of Ukraine was adopted, the company created 4 production branches in Mykolaiv and Luhansk regions. 6 branches were created in the eastern region the following year. The company sowed about 7.5 thousand ha in 1998. In 1998, NIBULON, an agricultural commodity producer, was the first non-governmental Ukrainian company to receive a loan of USD 5 million from the International Bank for Reconstruction and Development to implement the “Export Development Project”, thereby enabling the company to purchase agricultural machinery with the total amount of about USD 9 million. The company’s land bank was 38 thousand ha the following year. All the fields are now cultivated in our country, and it is difficult to imagine that collective farms were destroyed, property and land were given to villagers as shares, and the fields were covered with shrubs at the end of 1990. When I say the company increased a land bank, I mean that NIBULON helped farmers and villages to survive. We had to lease and renovate the entire property complexes of the former farms that were practically destroyed. To be patriotic means to love the country by working persistently.The company did not just cultivate fields, it also revived the destroyed production facilities, renovated machinery and tractor fleets, reequipped them with new equipment, and trained specialists. The company has practically saved and reconstructed livestock farms. Thus, NIBULON created new Ukrainian standards of agricultural production, following the best world examples. At the same time, the company revived villages to encourage people to farm there, rather than leaving their homes and working abroad. The company renewed village infrastructures, namely roads, pipelines, street lighting, schools, kindergartens, medical and obstetric centers, libraries, clubs, and stadia. As a socially responsible business, the company continues to do this. NIBULON was like a laboratory to test new principles of leased land relations. The company signed agreements with every landowner, helped thousands of villagers to obtain proper ownership documents. Every agreement was registered in the State Registration Service of Ukraine. The company made payments and paid taxes based on these agreements. Thus, NIBULON always fought the shadow market in land and grain sales.- To what extent have been yields increased at NIBULON since it commenced operations? What is the gross harvest? – As it is well known, agricultural commodity production depends on weather conditions, as well as an agrarian's ability to adapt to these conditions to harvest a crop. The company started the entire range of agricultural works in the 1997/98 marketing year. I can say the company harvested 26 dt/ha of wheat, 20 dt/ha of barley, 11,5 dt/ha of soybean, and 39,6 dt/ha of corn in 1998. Concerning production volumes, the company harvested 100 thousand tons of grain and oilseeds on an area of about 40 thousand ha in 2001.The company harvested 331 thousand tons of grain and oilseeds in 2013 and 332 thousand tons the following year. 2019 was the most productive year in Ukraine; the company harvested 367 thousand tons of grain, cultivating 82.4 thousand ha. The leased areas have been reduced this year. 2020 was a difficult year for all agrarians. Despite unfavourable weather conditions, an economic crisis, a pandemic, and other obstacles, the company has prepared for this year’s season properly. In 2021, NIBULON has harvested about 140 thousand tons of wheat and barley, 130 thousand tons of winter wheat, achieving the highest result in the company’s history. The average yield has been increased over the previous year to 46,2 dt/ha. The leaders in harvesting high yields were Kamyanka branch (Cherksy region) with 56,1 dt/ha, Kamyanets-Podilska branch (Khmelnytskyi region) with 54,9 dt/ha, and Mriia branch (Khmelnytskyi region) with 54,5 dt/ha. NIBULON harvested more than 7.2 thousand tons of winter barley, mostly from branches in the southern region. Prybuzhanivska branch harvested 60,7 dt/ha. The harvesting of late grain crops is next in turn. The branches located in Mykolaiv and Luhansk regions are now harvesting sunflower, which we forecast should yield a record harvest of 50 thousand tons.The annual volumes of grain cultivated have always exceeded 5 million tons since the company commenced operations. https://www.nibulon.com/data/pro-kompaniyu/napryamki-diyalnosti/virobnictvo-ta-pererobka-silgospprodukcii.html- How does field location influence the agriculture? How are sown areas chosen? – Most sown areas cultivated by NIBULON are in the steppe zone – in Luhansk region (5 branches) and in the south of Ukraine (4 branches). It would have been better if they had been in the forest-steppe zone. Two branches are in Cherkasy, Vinnytsia and Khmelnytskyi regions; three branches are in Zhytomyr, one branch in Sumy region, and another one in Kharkiv region. The structure of sown areas is determined by the global market needs. No one doubts that Ukrainians can cultivate any crop. For example, we have been successfully cultivating corn, sunflower, and rapeseed for decades. At present it is economically reasonable to sow more rapeseed and barley. Thus, the company starts to increase areas sown with these crops. Certainly, every region has its specificity. The company grows corn and winter barley in the western region but does not cultivate them in other regions. NIBULON’s specialists cultivate wheat and sunflower in the south and sorghum in the eastern region, in addition to wheat and sunflower. The structure of sown areas is planned by the agrarians at each branch and then coordinated at the regional level. We try to use crop rotation.The company used to sow crops without the required soil moisture. It no longer does so. If it is not possible to grow rapeseed, the company changes the crop structure by sowing more sunflower. The company manages to cope with the land location drawbacks. At the same time, the wide geographic area of cultivation has its advantages if technologies are used. Every year we can measure yields and grain quality in various regions, and forecast grain prices. NIBULON’s own high-quality grain is a required reserve to ensure that the company’s elevator complexes and its logistics chain of export supplies operate efficiently. – It is well-known that NIBULON chooses and operates its machinery effectively. The company manages not only to sow and harvest grain according to schedule time and without losses, but also to assist others. How do you manage to do it? – At present NIBULON’s agricultural machinery fleet numbers about 2,300 units of modern agricultural machinery; it is constantly renewed. The company annually purchases about one hundred items of new machinery, gears, and devices. Since the company commenced its operations, it has invested more than USD 100 million in modern agricultural machinery, such as high-capacity import tractors, grain harvesters, sowing complexes, self-propelled sprayers, and other agricultural machinery produced by the world’s best suppliers. The company has been successfully working with renowned U.S., European, and other producers of agricultural machinery for a long time. Speaking of harvesters, these are John Deere, CASE, Massey Ferguson; tractors – CASE and mostly FENDT. The company has been working with FENDT for more than 23 years. In 1998, the company purchased the most modern FENDT machinery (German) using funds from the loan granted by the IBRD. These tractors successfully operate at NIBULON, having had about 35 thousand running hours, which testifies that it is the best agricultural machinery. The main criteria to choose machinery and fittings is reliability and operational efficiency. The same cannot be said about machinery produced by domestic suppliers. At the same time, the development of the domestic machine industry creating a competitive final product makes agrarians choose Ukrainian products. This mostly concerns tillage machines and cultivators for primary care.The agricultural machinery fleet satisfies NIBULON’s needs completely to conduct technological operations optimally. The company also renders growing and harvesting services to other companies. How do we manage to do it? Firstly, due to the company’s highly qualified specialists at all production levels – from managers to operators. It concerns not only agricultural machinery or agriculture; we are talking about the successful operation of the entire company. I want to highlight that NIBULON’s production branches have machine and tractor stations that ensure that the full cycle of agricultural works is conducted. Service centers to maintain and repair machinery also operate efficiently. Each one is equipped with tools and special equipment, thereby enabling the company to conduct high-quality repair and maintenance of machinery. The branches constantly conduct training and seminars with the participation of foreign specialists, where the company’s specialists share their experience in agricultural commodity production. – What soil processing technologies are used by the company?- We have various technologies. The company uses a tillage technology mostly in Vinnytsia region. We partly use surface disc cultivation in the southern and central regions.We have No-till at the company. The company uses intensive technologies of agricultural commodity production – to use main production means efficiently whilst preserving soil fertility and the environment. – Do you plan to increase production volumes? – High yields will increase production volumes. We realize that yields depend on seed-types and hybrids. Thus, we try to maintain the potential and to increase yields by applying fertilizers reasonably depending on soil moisture (increased quantity or drought conditions), as well as using foliar forms – the application of stimulators and growth regulators. The company makes efforts to harvest high-quality yields. Thus, we hope to achieve the highest yield during the company’s 30th anniversary. – You have mentioned livestock farming and meat processing at the company. Please tell us about this direction. – Seven separate divisions in four regions of Ukraine (Vinnytsia, Zhytomyr, Mykolaiv and Khmelnytskyi regions) are involved in livestock farming. The livestock development sector has created and preserved 400 workplaces.Cattle comprise about 2.2 thousand head. The branches farm the following breeds of cattle: Ukrainian black-spotted dairy, Ukrainian red-spotted dairy, Holstein, Angler, and Simmental. Last year and the year before last, the company produced about 5.7 thousand tons of milk with a fat content of 3,73%. Pig farms have 4.2 thousand head. The large white pig and landrace are used for breeding at pig farms and specialized Hungarian-bred and Ukrainian-bred meat boars are used for commercial cross-breeding. Natural and ecological products under NIBULON’s “Bystrytski Kovbasy” trademark are produced using traditional recipes in compliance with DSTU 4435:2005, DSTU 4436:2005 and DSTU 4591:2006 at its production facilities in Bystryk village (Ruzhyn district, Zhytomyr region). NIBULON’s sausage and meat products are made from natural raw materials, without the addition of soya or synthetic flavours. – High-quality grain is an important component for high yields. Do you produce your own seeds and how do you select them? How do you choose seeds, fertilizers, and plant protection means? – The company both produces and purchases seeds, depending on the type of crop. Concerning sunflower and corn, we have test fields in every region. Based on the seedlings on the test fields, the branch agronomists analyze and choose hybrids which are more suitable. They prepare applications and send them to the central office. Analyzing this data, the specialists start to sign contracts with suppliers. The number of contracts to supply seeds can vary from 4 to 7-8. The company changes seed variety, renews crop types, and purchases elite seeds. The company does not sow 4th generation seeds.There are branches in every region which grow seeds for the company’s production branches. Every region used to have its priority seed types, depending on its location. At present this boundary is symbolical, as weather conditions are practically the same everywhere. Steppe-type wheat (selection by the Selection and Genetic Institute in Odesa, the Institute of Irrigated Agriculture in Kherson) prevails both in Vinnytsia and Mykolaiv regions. I can confirm the domestic selection of spiked crops is totally competitive and even predominates over foreign sorts in some cases. Snihurivska, Lidiyivske RE and Chygyryn branches are engaged in agriculture in the southern region, Kamyanets-Podilska, Khmilnyk, Pivdennyi Bug and Chudnivska branches in the western region. Grain can be harvested from certain areas at all branches located in the east. It is then treated and brought to standard conditions by Starobilskyi elevator.Corn and sunflower are purchased on a centralized basis; grain batches differ in their hybrid content, depending on the area and seeding density (the density of corn seeding will be higher in Vinnytsia region than in Mykolaiv region).The plant protection means are purchased by an agronomist from the production department, based on the applications received from the branches. To ensure the high quality of grain, yields and to preserve soil fertility, the company applies modern complex mineral fertilizers and uses the best seeds and plant protection means produced by domestic and foreign suppliers. NIBULON constantly tests innovative products and techniques to maintain high level of production. – We have heard much about the death of bees caused by chemical pesticides applied by agrarians to protect fields. How do you cooperate with beekeepers and inform them about plant protection means? – Firstly, we use only permitted plant protection means, because the preservation of people’s health and the environment is our priority. The chief agronomist at the branch is responsible for the application of plant protection means by using modern self-propelled sprayers near or on the areas sown with nectarous crops. He informs beekeepers beforehand by using telecommunication connection and the local self-government authorities in written form. It is prohibited to apply plant protection means in the protection zone near rivers, settlements, and etc.; thus, the company strictly follows these rules. The biological methods, such as growth stimulators and microelements, have become popular nowadays. The company prefers to apply them. At present this program is implemented by the company. This year the company has purchased biological products with the total amount of UAH 8 million. We work with many Ukrainian companies and apply products, for which the stimulating and treating effects are based on microbiological activity, amino acids, humic acids, plus foliar microfertilizers that significantly increase yields. This program continues to be implemented and is used on more than 10 thousand ha. – At present people talk about the use of remotely piloted vessels, for example, the application of plant protection means by using drones. Do you use such technologies?- We have been discussing this issue for a long time. The company involves third parties in case of force majeure. Fortunately, we have had few such situations over recent years. At present drones have several disadvantages, such as the short duration of handling, the absence of multipurposeness (only 60 products are officially permitted to to be applied by this method). These are mostly insecticide products. The company uses drones in case of force majeure, such as corn-bug, locust, and moth. – You have been engaged in agriculture for more than 20 years. Can you tell us whether the agriculture has changed for 20 years? – It has changed greatly! Certainly!We have created a powerful agro-industrial complex which generates about 40% of the monetary revenues in Ukraine. The company’s leadership positions on the global food market arisen because of revolutionary changes in agriculture. The efficiency of agriculture machinery has been greatly increased. The accuracy in doing operations has been increased as well. At present it is possible to sow with the accuracy of one hundred seeds per hectare. It used to be measured in tens of thousands. The number of field-specific products has been increased, which can be used in various combinations. Earlier we had ammonium nitrate, superphosphate, and ammonium nitrate phosphate fertilizers. The company now uses starting small-pelleted fertilizers, liquid fertilizers, foliar fertilizers, and various humates. The application of amino acids in agriculture used only to be only in theory. It is now quite available. It is possible to avoid stress conditions during the plant growth and to overcome their consequences. The types of plant protection means have also increased. Now it is possible to choose any method. It is important to realize what result you want to receive. A schedule to apply plant protection means was made one year in advance. It is now possible to inspect a field and to correct the application of plant protection means if required. Precise technologies, monitoring, forecasting and drones have appeared. Machinery will soon substitute for people. In ten years, operators will operate machinery via computers to conduct an entire range of operations – from fertilizing to harvesting. People will still be involved in agriculture, but their participation will be considerably reduced.