Serhii Bykov, Deputy Minister of Agrarian Policy of Ukraine, about the prospects of the dairy sector in Ukraine

Bykov, Serhii Viktorovych, graduated from Kharkiv Veterinary Institute (1984) and the Dnipropetrovsk Regional Institute of Public Administration (2002).He started his work experience as senior veterinarian at state farm-mill “Vuglegirskyi” (Donetsk region). He has held senior positions in agricultural enterprises and local authorities in Ivano-Frankivsk, Luhansk and Donetsk regions. Since April, 2006 to May, 2010 — Director, CEO, Chairman of the "Ukrainian Dairy Company" (Kyiv), the largest dairy complex in Ukraine. Since May, 2010 — Deputy Minister of Agrarian Policy of Ukraine.

Serhii Viktorovych, you have been the first in Ukraine to have built a new complex for more than 3,000 heads of dairy cattle, brought the livestock from abroad, reached the global rate of production. What are the feelings?

Frankly speaking, it was scary. The investments were in tens of millions of dollars — I was the first who did it in Ukraine. Pessimistic mood of my surroundings raised the fear feeling, as agricultural science and practice witnessed that our project was Utopia, livestock grave. You see, you feel uncomfortable when the project cost exceeds $ 50 million, and around you there are only negativism and prophecies of failure. The only support was received from partners who have asked me to ratify the direction for development by myself. Of course, the pig breeding seemed to be more attractive. And the investments payback is higher there. However, the competition is much sharper.

I deliberately chose dairy cattle as livestock and milk production are declining in the country, while demand for quality products is growing. And it is business. Risk, or risks, to be more specific, were high: veterinary and technological ones. There was no certainty that we would achieve the planned productivity. We were afraid of anything, literally. But otherwise nothing would have been achieved. Fear drove us just ahead. After those large capital investments there was no way back was not. Only a year after the complex work was started, fear gradually expired. We proved to everyone that such projects have their place.

How big should a farm be?

It all depends on how much money you want to earn. The more profit aspire, the greater the farm should be.

How do you see the development of dairy cattle breeding in Ukraine?

The specialization of agricultural enterprises will continue, and the industry will be divided into two directions. The first one will be an industrial production of milk, the basis for it will be existing agricultural enterpises and new complexes that will have been built. Industrial production includes technology improvements and increased production of quality milk. This philosophy has to become the basis for milk production in our country. The second direction of development is farming.

See full version in Milk and Farm Journal, № 2, September, 2010.