Before looking at «Efficiency»

« profitability
remember that:
First duty of any State What I said to you in June 2017
Elite is to be a moral after Jean Tirole
Nobel Prize of economy, 2016
model for the country

Аграрная конференция 10 XI 2017

 Аграрная конференция 10 XI 2017

= эффективность
>
Прибыльность <
?
Contrasts...

... Who is more beneficial?

Аграрная конференция 10 XI 2017

Contrasts...

... Who is more efficient?

Аграрная конференция 10 XI 2017

"Прибыльность и эффективность"!
• Is Profit only financial? • Is financial profit realistic and fair

• What is the efficeincy of each • What are the optimum for efficiency
input? of each input?
(Back to Liebig’s law…and to modern
crop modeling)

Аграрная конференция 10 XI 2017

Is maximising the profit
compatible

with sustainable farming

and employment in rural areas

Аграрная конференция 10 XI 2017
How far efficiency depends on
Investment
• In the context of a lack of
investment
• In other words « get a larger
share of the cake or increase the
size of the cake? »
• Investment should increase the
size of assets and not
only the value of assets;
• That means:
• Invest in food and non food
Industries
• Invest in soil and logistics
improvements
Аграрная конференция 10 XI 2017
Аграрная конференция 10 XI 2017

…is there a future for that lady?

 Ukrainian Agricultural
economy: CONTEXT
Positive Négative
• Huge natural capital • Little interest to sustainability
• High export potential • Price volatility, logistics, lack of
confidence among operators
• Real increase of • High dependency on imported
productivities key technologies and inputs
• High margins if good • Bankrupt of « visible » large
management holdings, UNSTABILITY

Аграрная конференция 10 XI 2017

 Grandes parcelles Ferme privéІІІ Аграрная конференция специалистов по закупкам 23rd of June,
2017 Kyiv
e lopins

Page 10 - 00/00/00 - Financial Services

Аграрная конференция 10 XI 2017

What will be the Ukrainian Agri sector
in 15 years?
• Evolution of large western
cooperatives shows many
fruitful connexions with private
sector,

• Nowhere agriculture has

developed without cooperatives
and rejecting SME’s

Аграрная конференция 10 XI 2017

HOPE
For better perspectives to
provide equal conditions to every
efficient farm
• SAME RATE of INTEREST FOR CREDIT LOANS
• BETTER PRICES FOR INPUTS,
• BETTER PRICES FOR SALES,
• Larger ACCESS TO EXPORT FOR SME’S,
• EFFICIENT ADVISORY SERVICES,

HOW?
Аграрная конференция 10 XI 2017
A vision is needed
3 main words for the EU reforms
New generation of farmers in the 60ies

Looking for best efficiency •MAN

Looking for sustainability
with social responsibilities
•PRODUCT
•TERRITORY

Аграрная конференция 10 XI 2017

Support to mutualism, cooperatives,
education,
• Strongly connected to support
to farms and to their Lycées agricoles
evolution
• Stability of farm structures Rural home and familly training
“Privileged” special Tax centers
Stable long term land leases
• Transparency and Cinema, books, news papers
monitoring

Аграрная конференция 10 XI 2017

MERCI POUR VOTRE ATTENTION
THANKS FOR YOUR ATTENTION
• Jean-Jacques Herve

Member of French, Russian and Ukrainian

Academies of Agriculture
Vice president of French Chamber of
Commerce and Industry in UKraine

« AgriAuditJJ »
jj-am.herve@wanadoo.fr
+38 067 230 96 84

Аграрная конференция 10 XI 2017