{"id":754,"date":"2023-12-21T14:36:07","date_gmt":"2023-12-21T12:36:07","guid":{"rendered":"http:\/\/binfield.ua\/articles\/pershi-sered-rivnykh-binfield-yakyy-mitsno-vstoyav-na-nohakh-vydavnytstvo-zerno\/"},"modified":"2026-09-03T12:28:48","modified_gmt":"2026-09-03T09:28:48","slug":"pershi-sered-rivnykh-binfield-yakyy-mitsno-vstoyav-na-nohakh-vydavnytstvo-zerno","status":"publish","type":"articles","link":"https:\/\/binfield.ua\/en\/news\/pershi-sered-rivnykh-binfield-yakyy-mitsno-vstoyav-na-nohakh-vydavnytstvo-zerno\/","title":{"rendered":"\u201cFIRST AMONG EQUALS \u2013 BINFIELD, WHICH HAS STOOD FIRMLY ON ITS FEET\u201d \u2013 Zerno publishing house"},"content":{"rendered":"
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\u201cFIRST AMONG EQUALS \u2013 BINFIELD, WHICH HAS STOOD FIRMLY ON ITS FEET\u201d \u2013 Zerno publishing house<\/p>\n

No fertilizers?\u201d \u2013 \u201cYep,\u201d the farmer nods, \u201cwe\u2019ll grow without fertilizers.\u201d \u2013 \u201cBut it won\u2019t grow!\u201d \u2013 \u201cYep,\u201d the farmer agrees sadly. \u201cWithout fertilizers it won\u2019t even come up\u2026\u201d<\/strong><\/p>\n

Unfortunately, there are things in life that are inevitable. A tractor won\u2019t go without fuel, a tractor driver won\u2019t work without a salary, a plant won\u2019t grow without fertilizers. That is why fertilizer imports over the first 10 months of this year amounted to about 2 million tonnes. And importers\u2019 warehouses are empty \u2014 fertilizers are taken straight off the trucks.<\/i><\/p>\n

Companies that bring fertilizers into Ukraine stand firmly on their feet. Although competition is high, this market does not like newcomers or grabbers.<\/i><\/p>\n

The specialized publication Infoindustry, which tracks the market, ranked the ten largest importers of nitrogen fertilizers, three-component and two-component fertilizers and potash fertilizers \u2014 four tables. And BINFIELD is in the top ten in all of them: first in some, third or fourth in others. This made me ask for a conversation with BINFIELD Chief Operating Officer Vsevolod Benitskyi<\/strong>, although it was not easy to catch him in Kyiv. Because logistics are the same for everyone \u2014 and that includes those who bring fertilizers to Ukraine\u2026<\/i><\/p>\n

New companies, new quality<\/h2>\n

\u2013 You are to be envied\u2026 You have had such a strong year\u2026<\/strong><\/p>\n

\u2013 We did quite well. Many factors contributed to that.<\/p>\n

\u2013 Probably, above all, the demand for fertilizers?<\/strong><\/p>\n

\u2013 There were certain problems with demand. Last year we saw an unstoppable rise in fertilizer prices and, at the same time, a fall in prices for agricultural products. Demand also fell because some territories became unsuitable for agriculture, and in some territories the harvest was stolen by the occupiers\u2026 People left the market\u2026 And some farmers, because of blocked logistics routes, could not sell the 2022 harvest and therefore had no money. The main consumers of fertilizers in 2023 were agricultural holdings, which guaranteed volumes. Small and medium-sized businesses had an extremely hard year.<\/p>\n

\u2013 Yes, I know that from my own experience\u2026<\/strong><\/p>\n

\u2013 So agricultural holdings were our anchor base, and since we had established logistics routes through the western border back at the end of 2021, we got through 2022 successfully compared to our partners and competitors and worked out the right logistics. Last year we brought in about 100 thousand tonnes of fertilizers. This year we exceeded that volume. There are no final figures yet, but I think it will be 130\u2013135 thousand tonnes. The rankings reflect the real picture. The Ukrainian market needs potassium, and Belarusian potash has left the market. We started looking for new channels and created the company \u201cCRAFT MINERAL<\/a>\u201d, which joined our group and specializes in potash products. We signed an agreement with Arab Potash, a large Jordanian company, and received two ships this year \u2014 20 thousand tonnes.<\/p>\n

\u2013 And where did you receive them?<\/p>\n

\u2013 In Gda\u0144sk. And from Gda\u0144sk we delivered them to Ukraine in rail-car batches. Partly by truck, but road logistics are even more expensive. This project turned out to be successful, the product is of very high quality, and we plan to continue the cooperation and increase volumes. The market will appreciate it \u2014 large holdings and distributors received the product, and the results will not be long in coming. Granular potassium chloride is one of the key plant nutrition products. We brought in Israeli phosphorus and NPK, where we hold leading positions and intend to keep them.<\/p>\n

Growth during the war<\/h2>\n

\u2013 Your success is remarkable because in both countries where you were active there is a hot, large-scale war\u2026<\/strong><\/p>\n

\u2013 Yes, at the end of the year, when we were contracting products, the risks were very high. A ship with phosphorus stood in the roadstead for a month before entering the channel to Izmail. Thanks to God and our Armed Forces, everything worked out, we received these cargoes, and our customers got them. However, the situation is very difficult, and I do not see any improvement next year. Ukrainian agricultural production is threatened with shrinking volumes unless product prices rise and efficient logistics corridors are built. We may go through a serious crisis.<\/p>\n

\u2013 I remember you positioned yourselves as a specialty fertilizer supplier.<\/strong><\/p>\n

\u2013 We are now a broad-profile company and supply all types of fertilizers: from basic classic ones to specialty ones. Life forced us to expand the range; demand for specialty fertilizers is falling because farmers lack the funds for basic fertilizers. So we focus on those.<\/p>\n

\u2013 Do you work with all the holdings?<\/strong><\/p>\n

\u2013 With all those that have no problems.<\/p>\n

\u2013 I don\u2019t know of any holdings that have no problems\u2026<\/strong><\/p>\n

\u2013 Indeed, everyone has problems, but not everyone\u2019s problems affect their operating business and core activities. We take part in tenders \u2014 it is an ideal way of working. We work only with transparent, sensible businesses. Nothing can be hidden now; there is information about every movement in a company. Business is open in nature, and by working transparently you move forward.<\/p>\n

\u2013 And do small and medium-sized companies also work with you, or do they go for cheaper, questionable fertilizers?<\/strong><\/p>\n

\u2013 They do; about 80 percent of our customers have stayed with us. Some may have reduced application rates, but we will not lose these customers. People who saved on technology will feel it in their yields, and yields affect economic performance.<\/p>\n

\u2013 But miracles do happen \u2014 sometimes someone who did everything by the book and invested a lot gets a 10% return, while someone who applied nothing gets a smaller harvest but a much higher return.<\/strong><\/p>\n

\u2013 That happens one year in ten, and we have to plan for the long term, calculating over three to five years.<\/p>\n

\u2013 However, the planning horizon is now measured in days.<\/strong><\/p>\n

\u2013 I wouldn\u2019t say so. We will feel it in the land market. There is a shortage on the market now. When we see that there are many land offers and nobody is buying, it will mean the market is falling. So far we see the resilience of the agricultural sector. The planning horizon is considerable if people invest money in land, considerable money, and buy land from each other at prices that are inadequate today. There is no economic gain from those sales.<\/p>\n

Windfall profits went to military units<\/h2>\n

\u2013 The land market is another paradox\u2026 Once in Austria, a farmer whose farm has been known since the 12th century boasted to me that he had bought another 20 ha of land at \u20ac100 thousand per hectare\u2026<\/strong><\/p>\n

\u2013 That is aristocratic capital; his cushion has probably been stuffed with gold ducats since the 12th century, since the Crusades.<\/p>\n

\u2013 Did you hire people this year?<\/strong><\/p>\n

\u2013 We hired people selectively. Many people did not return from abroad, mostly women. An accountant can work remotely, but a salesperson cannot.<\/p>\n

\u2013 How do you sell your products?<\/strong><\/p>\n

\u2013 Our company has two divisions: one works with agricultural holdings, and there is internal distribution with direct sales to customers. After all, we are focused on selling fertilizers to the end consumer.<\/p>\n

\u2013 And if you compare 2022 and 2023? How do they compare in terms of energy and mood?<\/strong><\/p>\n

\u2013 2022 had a stressful start to the season. There were hopes for a quick end to the war, and it ended with the autumn sowing by the old standards, despite the unstoppable rise in resource prices. 2023 brought sobriety\u2026<\/p>\n

\u2013 That spike in fertilizer prices probably brought windfall profits to some\u2026<\/strong><\/p>\n

\u2013 Perhaps someone did get unplanned profits, but we did not notice, because we spent them on volunteer work and helping the army: we handed over the necessary resources to military units and brought vehicles for the military from our partners in Europe \u2014 one air defence unit had neither generators nor compressors, and after firing a missile they had to drive somewhere to get pressure. Banal things, but they had to be found and delivered. We gave part of that year\u2019s energy to the defence of the country. This year we continued this work, but the state got involved and Western aid arrived. We also supported our employees. For several months we generated no income, but people received their salaries.<\/p>\n

Two success factors<\/h2>\n

\u2013 If you compare the two seasons, spring and the autumn sowing of winter crops, how do you assess the state of agriculture?<\/strong><\/p>\n

\u2013 People are trying to keep up the level. There were those who declared they would sow without fertilizers, but in the end they still took fertilizers and sowed. Corn plantings fell \u2014 it is the most expensive crop. This will be noticeable this year; people are switching to soybeans and rapeseed. Wheat is more stable; it is a deeply traditional crop for Ukraine. Corn will be partly replaced by soybeans, but the soybean market is not unlimited.<\/p>\n

\u2013 So what is the secret? How did you manage to grow in an absolutely extreme situation? Even half of the top ten agricultural holdings have losses.<\/strong><\/p>\n

\u2013 Agricultural holdings suffered more. We are not tied to a specific place. We are dynamic. We can store cargo in Europe and sell everything straight off the trucks; only about 10 percent of the products go through a warehouse. Flexibility is the first factor. And, I think, the second factor is manual management. That is how we managed sales: we met every day and discussed who we could ship to, with whom it was not worth the risk, which routes to use \u2014 it helps when the business does not just run on its own. We are shareholders and managers, and at the right moment we take control. A hired manager may not make a decision. I may make the wrong decision, but I will make it. The worst decision is not to decide anything at all.<\/p>\n

\u2013 The year is coming to an end\u2026 What was in greatest demand this year?<\/strong><\/p>\n

\u2013 You know, probably ordinary fertilizers after all, commodities. Demand for them grew most noticeably \u2014 you cannot sow without nitrogen fertilizers. NPK sold with more difficulty; only large companies used NPK in the same volume as before the war. Most reduced their NPK application volumes; it was the hardest year for this type of fertilizer. Especially NPK with micronutrients, for specific crops\u2026<\/p>\n

BINFIELD is preparing, BINFIELD is on its way<\/h2>\n

\u2013 And what was the hardest thing this year?<\/strong><\/p>\n

\u2013 Probably logistics. We did not know what to expect; unpredictable problems arose, and we had no idea such circumstances could occur. For example, the situation on the Polish border. It was impossible to predict; it is illogical and contradicts all agreements between Ukraine and the EU. The Polish government is incapacitated, there is a transition period, and political operators are using the situation to their advantage. Ukrainian politicians must approach the situation with a cool head so as not to spoil relations with the Polish people. Slovak carriers are joining the strike, and in Slovakia the government is also still being formed.<\/p>\n

\u2013 Who would have thought this could affect fertilizers\u2026<\/strong><\/p>\n

\u2013 It affects everything. We were lucky that it is not the delivery season now. If the blockade had happened during the delivery season, contracts would have been disrupted; it would have been very difficult. Transport flows need to be diversified, but there is little room for manoeuvre: three or four corridors remain, and they let through as much as they can \u2014 the window cannot be widened.<\/p>\n

\u2013 If you are so daring that you can plan three to five years ahead, what are you planning for next year?<\/strong><\/p>\n

\u2013 We plan to invest in Ukraine\u2019s industrial complex. A crisis is the best time to invest. We believe victory will come. It will not be simple. It will not be easy for us. But we need to invest in both the agricultural and agro-industrial sectors. I do not see a rush of investment in Ukraine into, say, fertilizer plants. And they are badly needed. So perhaps we will think about building a plant after the victory. We need to invest in processing.<\/p>\n

\u2013 And where do you plan to be located?<\/strong><\/p>\n

\u2013 Western Ukraine, central Ukraine \u2014 all our business is concentrated in these regions. We did not go deep into the east and south, not for political reasons \u2014 these are zones of risky farming; even the south of Kyiv Region is already an arid zone. The lack of moisture there is severe. I think vegetable growing from the Kherson region will be replaced in Cherkasy Region; we will watch and keep our finger on the pulse. We will expand logistics capacity and invest in production. We are preparing, working with investment funds \u2014 we are on our way.
__________________________________________________________________________________<\/p>\n

I really love it when a person talks to you looking you in the eye and does not look away. That only happens with people of real action \u2014 you won\u2019t find it in politics, try it yourself. For me, the guys from BINFIELD are a model of Ukrainian business; they are people who create life and an environment. Everything we love so much about Ukraine \u2014 lush greenery and generous fields, honest people and sincere friendship, energy and inspiration \u2014 is at their foundation. They supply fertilizers, but more than that \u2014 hope and confidence in victory. Because such a foundation does not collapse; everything stands and rises on it. Solid as a wall.<\/i><\/p>\n

Interview by Yurii Honcharenko. <\/i>
The text of the article is taken from the website of the Zerno publishing house<\/i><\/a><\/p>","protected":false},"featured_media":755,"parent":0,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false},"sections-articles":[38],"class_list":["post-754","articles","type-articles","status-publish","has-post-thumbnail","hentry","sections-articles-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/articles\/754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/articles"}],"about":[{"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/types\/articles"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/media\/755"}],"wp:attachment":[{"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/media?parent=754"}],"wp:term":[{"taxonomy":"sections-articles","embeddable":true,"href":"https:\/\/binfield.ua\/en\/wp-json\/wp\/v2\/sections-articles?post=754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}