"Krasnohirske" LLC (Cherkasy Region) has been a member of the Association of Milk Producers of Ukraine (AMP) since 2020, a client of Global Agro Finance (GAF) management support and technological support of the Advisory Center of AMP. On the farm, elements of the dairy farm reference model began to be implemented from 2021. During this time, milk productivity increased by 36%, profitability — by 4%, and target indicators improved. The experience of the farm regarding the implementation of the reference model was presented by the consultants of the Advisory Center of AMP and GAF during the International Dairy Congress–2023.
We share the details with you.
"Krasnohirske" LLC. The average annual number of milking cows is 316. It is located on the site of the former collective farm (kolhosp), founded back in 1968. The current owners bought it ten years ago and did not interfere with its work because they had no experience in dairy farming.
Understanding the prospects of this industry, the management involved specialists of Advisory Center of AMP (AC AMP) to develop the dairy business. Therefore, starting in 2021, the farm began to implement elements of the farm reference model. The experience of "Krasnohirske" is indicative.
What initiatives were implemented?
- In "Krasnohirske" they relied on ready-made policies, procedures, regulations of business processes, chose the most relevant ones, analyzed how to implement them in the existing conditions.
- General management business processes were improved. Management and key specialists learned to strategize and plan for the long term.
- The organizational structure was sreamlined. Resposibilities were clearly assgned to better understand the role of each participant in the process.
- Specialists have developed recommendations on how to improve the infrastructure of the farm and provide comfortable conditions for the animals with minimal investment. The policy of comfort and the steps of its implementation were determined.
- No new premises have been built. Two shelters for free-hausing have been built for keeping cows outside. Also, the farm has not yet invested in a milking parlor. Animals are herded for milking in one barn equipped with a milk pipe.
The results of the implementation of elements of the reference model at "Krasnohirske" LLC:
- The average monthly cattle population increased by 40%.
- The gross milked yield increased almost twofold over the year, by 90%.
- Milk productivity increased by 36%.
- Milk marketability increased by 10% (currently >98%);
- Pregnancy rate increased from 17% to 25%;
- Culling rate is 12%.
The profitability of the farm in 2021 was 19.7%, in 2023 it increased to 23.7%.
The farm has very good results and, at the same time, great potential for further development.
More about the reference model and its implementation experience - read in ‘Milk and Farm’ magazine (№6 (79), December 2023)".
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