Manure as a commodity

The European meat industry is breaking new ground in eastern Europe. For example in Ukraine, the meat industry has established a large number of  new pig farms which provide the local and regional market with meat products. As more and more operators invest in large-scale meat production, it will also become increasingly important to monitor the handling of manure.

A pig farm in north-western Ukraine or southern Poland can, in spite of the long distance from the coast, still contribute to eutrophication of the Baltic Sea as the rivers play their tricks in the run-off area. If the manure is not handled correctly, the farm can exacerbate climate change through methane emissions. Methane is a gas that contributes more than twenty times more to climate change than carbon dioxide. In 2005, methane emissions from the European agricultural sector (EU25) were as much as 9.5 million tonnes.

NEFCO has financed a score of agricultural projects in the Baltic countries and Russia within the framework of the company’s agricultural project fund. The latest addition to the agricultural sector is a project in Ukraine where NEFCO works in collaboration with the Danish company, Halychyna Zahid, which in 2006 purchased a pig farm that is now being modernised and renovated with foreign financing. NEFCO finances the project with money from the company’s investment fund.

The pig farm is located near the town of Kavske, about 70 kilometres southwest of Lviv. The farm currently has 50 000 production pigs. The company plans to double the number of pigs shortly, and also double the number of employees to over 400.

NEFCO plays a part in financing biogas reactors in order to generate energy for heating as well as energy-saving ventilation of the buildings on the pig farm. It is an investment favourable to both the well-being of the pigs and the climate. The project has other favourable environmental effects as the modernisation of the pig farm has entailed the removal of old insulation containing carcinogenic asbestos.

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Mao Agricultural Cooperative, Estonia

The project included construction of manure storage, renovation of stable for young stock, renovation of stable for milking cows and necessary equipment.

Investment cost: 660.000€ of which NEFCO loan was 64.000€, GEF grant 23.000€ and farms own contribution of 105.000€.

Environmental impact: The project will result in annual reduction of 200 kg phosphorus and 9.400 kg of nitrogen emissions.

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Jasulius Farm, Lithuania

The project included manure storage, manure removal system, milking parlor, pesticide sprayer and other equipment.

Investment cost: 184.000 € of which NEFCO loan 82.000 €, EU support 82.000€ and own contribution 20.000€.

Environmental impact: These investments will lead to 2.400 kg annual reduction of nitrogen emission and 300 kg of phosphorus emission.

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