Seeds of Change: Adapting to the Evolving Landscape

Dmitry Toloknovskiy, an industry veteran with a wealth of experience in seed production, particularly corn, sunflower, and rapeseeds, serves as the Executive Director at Lidea Seeds. He plays a key role in managing the plant in the seed production factory at Lidea Seeds. In this capacity, he orchestrates the seamless functioning of diverse departments, including those dedicated to commercial operations and agricultural endeavors.

This article is based on an interview between Agri Business Review Latin America and Dmitry Toloknovskiy where he delves into the contemporary landscape of the seed industry, shedding light on the challenges it currently faces. In addition, he expounds on the innovative strategies that are driving a transformative shift in the industry's approach to various aspects of seed production. Through his insightful perspectives, Toloknovskiy provides a nuanced understanding of the dynamic forces shaping the trajectory of seed production, offering valuable insights into the industry's evolution and adaptation to emerging trends.

Can you shed more light on your role and how you lead Lidea Seeds?

I oversee the operations at our seed production plant. We specialize in producing various types of seeds. Including rapeseeds, for local cultivation and importing other seeds, like winter oilseed crops, to meet the demands of the Ukrainian market.

Our production process, spanning from growing seeds in Ukraine to the final stages of seed production, ensures the quality aligns with Ukrainian standards. Despite challenges, including the ongoing war affecting certain territories in the south, our factory operates around the clock during the high season, running from the end of August to mid-March. We employ approximately 350 people to meet the seed demands of Ukrainian farmers, adapting to the specific requirements of the local market. While the war has impacted some regions, we continue to provide essential seeds to support agriculture.

What are the hurdles that currently plague customers within this domain?

The primary challenge we face is ensuring business continuity amid the ongoing war, a critical concern given our strategic role in the country. Our contribution involves providing seeds essential for the upcoming harvests for Ukrainian farmers. Ukraine plays a significant role globally, contributing a substantial portion of the grain, with over 70 per cent earmarked for export. This export not only sustains our economy but also supports nations facing food crises, such as those in Africa.

The geopolitical situation, particularly with Russia, has posed obstacles to our export activities. Despite these challenges and the complexities involved in growing crops and organizing grain logistics during global turmoil, Ukraine has demonstrated commendable progress in export dynamics. Our role, although seemingly small in the grand scheme, holds immense importance for both Ukraine and the international community.

How is Lidea Seeds confronting these challenges, and what innovative initiatives are you spearheading to surmount them?

Our company places immense value on our employees, considering them the cornerstone of our organization. When the war broke out, our immediate focus shifted to ensuring the safety of our employees and their families. The initial days of the war were marked by severe challenges, particularly with substantial and widespread attacks, including rocket strikes. Demonstrating our commitment to social responsibility, we took a pause in our operations to prioritize the well-being of our colleagues.

Approximately a month later, recognizing the potential to resume operations despite the ongoing war, we made the decision to resume our activities. The resumption of our factory operations was not only a significant step from the business’s perspective but also a symbolic victory over the prevailing adversity

"Recognizing the difficulties in the agricultural sector, particularly with commodity prices and logistical issues, it is imperative for farmers to explore new markets and mitigate risks. Acknowledging the struggles farmers face and actively working on solutions that help deliver added value help change the situation positively"

The emotional impact on our people during the restart was profound. It felt like a crucial first step towards reclaiming normalcy after a period of intense emotional strain. Despite the challenges, our sales and commercial teams managed to achieve commendable results.

As of now, our company continues to prioritize the well-being of our employees. We have invested in the construction of bomb shelters to ensure the safety of our staff during challenging times. While we are gradually returning to a semblance of our pre-war routine, the reality remains that the war is ongoing. We are persevering through these circumstances, always aware of the ongoing conflict in Ukraine, and striving to operate at our best.

Our efforts include production milestones, such as producing additional tonnage of seeds. They provide us with hope that we can overcome these challenging times. The spirit of the Ukrainian people shines through as they remain resilient in the face of adversity. As a plant manager, I've observed a positive shift in our workplace dynamics, with increased camaraderie and willingness among our people to help one another during production processes.

Recognizing the toll the war has taken on our employees, we have implemented programs in collaboration with our HR department to provide psychological support and practical advice from experts to mitigate stress. In essence, we are committed to navigating these challenges and fostering a supportive environment for our team.

What, according to you, are the cutting-edge agricultural technologies that are poised to revolutionize the industry in the years to come?

The latest technology we've incorporated into our production process is the optical sorter. This equipment is instrumental in sorting seeds based on colour, especially for certain types of sunflowers. The significant advancement in our production lies in the automation of processes. Our factory utilizes specialized software that enables us to manage thousands of seeds at various stages. So, automation and specialized software, such as warehouse management systems and optical sorting software, stand out as key elements in our technological approach.

We significantly increased sunflower production volumes this year. We've raised our investments and focused on expanding local production. This is crucial because it instils confidence among Ukrainian farmers when they know that the seeds are produced locally. It enables us to deliver earlier compared to importing seeds, minimizing logistical risks, especially during uncertain times like the ongoing war.

Despite the challenges, we're actively investing and have ambitious plans to triple our sunflower reception capacity in the next three years. This demonstrates our commitment to not only sustain but also enhance our production despite the global circumstances.

What is your sage advice for individuals embarking on new ventures or entering the industrial realm?

My advice for those involved in agriculture in Ukraine is to persevere in their activities and contribute to the country's well-being in any way possible. Regardless of the challenging situation in Ukraine, it is crucial to continue working and on a global scale and focus on establishing sustainable businesses. Despite the difficulties faced by businesses in Ukraine, there needs to be an ongoing commitment to align with the European Green Deal, reflecting a broader perspective.

With the difficulties in the agricultural sector, particularly with commodity prices and logistical issues, it is imperative for farmers to explore new markets and mitigate risks. Acknowledging the struggles farmers face and actively working on solutions that help deliver added value help change the situation positively.