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MODERN PIG PRODUCTION IN UKRAINE

The Danish-owned company Danosha, which produces 300,000 slaughter pigs annually and owns 12,000 hectares of arable land, is the second largest pig producer in Ukraine.

In 2004, Danosha bought a closed down pig farm in Ukraine. Today, Danosha operates 12 modern pig farms and a cattle farm in eight locations in Western Ukraine and is in the process of expanding production further. Part of the equipment used for building new farms is produced by Danosha’s own construction department.

Danosha produces 300,000 slaughter pigs and approximately 130,000 piglets annually, and the company employs approximately 700 local employees. In addition to the pig breeding and a small production of milk, Danosha owns 12,000 hectares of arable land, the crops of which are primarily used for animal feed.

“Our investment in Ukraine has been a success, and we now have very efficient production”

Tom Axelgaard, chairman of Danosha’s board.

Sustainable production

Danosha, which is part of the Axzon group, has focused on sustainable production of slaughter pigs from the very beginning. The pig farms are fitted with modern equipment and meet Danish environmental and animal welfare standards. The slurry is stored in sealed lagoons until it is used as manure in the fields. To reduce the hazards of transportation with heavy vehicles through the villages, the slurry is most often distributed in the fields through long closed pipelines.

Part of the slurry is used in a biogas plant, producing electricity and heat to the farms and a feed factory. The residue from the biogas production is less smelly and is also used as manure in the fields.

More farms to come

Danosha’s current objective is to increase production to nearly 600,000 slaughter pigs. This requires the establishment of additional six to eight pig farms. Furthermore, agreements will be entered into regarding tenancy of additional farm land. Danosha also plans to build biogas plants near a number of its farms, and construction of the second biogas plant began in 2016. Finally, Danosha plans to build its own slaughter house during 2017-18.

IFU has invested in Danosha several times

The Investment Fund for Central and Eastern Europe, which is now being closed down, invested in Danosha for the first time in 2006. In 2012, IFU contributed DKK 30m in loan and equity and in 2016 with approximately DKK 75m as a loan.

– IØ and IFU are important partners, and their investments have contributed significantly to our expansion, said Tom Axelgaard.

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