In 2022, the process of procurement of raw materials at PELLEGREEN LLC takes place considering the circumstances in the country. Fortunately, the Vinnytsia region, where the company’s production facilities are located, was not bombed, and the fields were not mined, which is critical for agriculture. However, certain negative consequences still occur. Yaroslav Samaryk, director of PELLEGRIN LLC, talks about how the procurement will take place and what problems arise on this path, in connection with active military operations on the territory of Ukraine:
«Before the harvesting season, we enter contracts with large farmers for the purchase of straw from the fields. After wheat is threshed, mounds of the cut mass of cereal stalks are formed in the field. The raw material baling process is handled by our own and leased equipment (balers), which press straw into rectangular bales. The next step is transportation and proper storage to maintain the moisture content of 10-15%, which is required by the production technology. As with all farmers, the harvest season is the most important and everyone works full time. PELLEGRIN LLC always approaches the procurement process responsibly, especially this year. We have increased the number of equipment and workers for the most efficient straw collection. This, in turn, will make it possible to qualitatively prepare for the new production season and overcome today’s challenges with joint efforts.
However, the collection process is always accompanied by processes and factors that affect the results of the collection and which are difficult to predict, weather conditions or, for example, the state of war. Currently, we are experiencing certain difficulties with human resources and the availability of equipment. A lot of equipment remained in the occupied territories, and a significant number of drivers who worked on this equipment are serving in the Armed Forces of Ukraine. In addition, significant inflationary pressure is observed: the prices of diesel, logistics and materials of imported origin have increased significantly.
For quite a long time, the PELLEGRIN company has established itself as a high-quality manufacturer and reliable supplier of straw pellets as bedding for animals. A wide range of clients has been developed both in Ukraine and in Europe, which allows for the development of an export-oriented business. At the same time, we feel that autumn will be a rather difficult heating season (for both Ukraine and Europe), and we predict a significant demand for fuel pellets as an alternative source of energy. Despite this, we plan to procure almost 2 times more raw materials than in the previous year. This will happen mainly due to an increase around fields, as well as the number of equipment units that we will rent for the period of the harvesting season. »
PELLEGRIN LLC exports more than 70% of products, the rest is sold to national customers. At the same time, packaged pellets are very popular, especially in retail chains in Ukraine and in Germany, Poland, and other European countries.
