Ukrainian agricultural holdings suffer from kickbacks and stealing. In response, the companies substantially increase the expenses on security services (the relevant department is often in the top 3 for the number of employees), but it does not help. About 70% of spare details for agricultural machinery and 30-40% of petroleum, oil, lubricants, veterinary medicines and feed additives are being stolen.

According to the participants of the agricultural market, stealing and kickbacks are often related to small parties of goods, the purchase of which is agreed on the spot without a tender.

"In cases of stealing security system works on a "find and punish" principle by proving the fact of embezzlement, but it does not solve security issues in general, - Alex Lissitsa, General Director of Industrial Milk Company mentions. – In general, most employees, who committed theft, were dismissed, but preventive measures to avoid crimes are rarely taken and they are not effective".

Another "hot" issue for agricultural enterprises is a system of kickbacks. According to representatives of agribusiness, 90% of such schemes are related to spare details for machinery. But if employee is caught in stealing, it is also a problem to make the case.

Manipulations with grain on elevators, e.g. overstating the humidity or the percentage of waste impurities in the laboratories, are common for agricultural producers. In addition, each agricultural holding has many information flows, so information security is the critical issue of building an effective security system.

"The task of management of the company is to build a security system in order not only to protect the enterprise from external dangers, but also to work on crime prevention so that the employee had no desire to commit theft. Its work should be invisible, but everyone should remember about it. Responsibility for the crime should be transferred from nominal to real", - Dmytro Aleksandrov, Managing Partner of Aleksandrov and Partners International Law Firm says.

The issues of prevention stealing and building effective work of security departments of Ukrainian agricultural enterprises will be discussed at the VI International Conference "Large Farm Management" which will be held on September 16-18, 2015 in Kyiv.

The representatives of the largest agricultural holdings of Ukraine - Deputy Chairman of Svarog West Group Inna Meteleva, CEO of Vinnytsia Agro-Industrial Group Volodymyr Bartsos, CEO of Mriya Agro Holding Simon Cherniavsky – will participate in panel discussion "Farm Security: Prevention of Fraud". Aurelio Pavinato, CEO at SLC Agricola, Brazil, will share the experience of building security system at Brazilian holdings. Dmytro Aleksandrov, Managing Partner of Aleksandrov and Partners International Law Firm, is going to be a moderator of the session.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

feschenko@ucab.ua 

Anna Feshchenko

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.