Over 25 years, Viliya has grown to 65,000 hectares of farmland, 600,000 tonnes of simultaneous storage capacity, as well as its own trading business, processing facilities, seed plant and dry port. The company’s investment approach is based on long-term ownership of strategic assets, synergies with existing infrastructure and financial resilience.
1. Land can be bought at a high price if it strengthens the existing business
Viliya acquired around 6,000 hectares from MHP at an estimated price of $3,500 per hectare. Dudka acknowledges that the price was high, but explains it by the quality of the land, sufficient moisture levels and the ability to integrate the asset into existing infrastructure without a proportional increase in costs.
The company expects the investment to pay back in approximately seven years, which Dudka considers an acceptable timeframe.
“We think long term.”
2. The scale of assets matters less than management efficiency
The company does not set a formal target for increasing its land bank to a specific figure. The main criterion is whether new land can be added without a proportional increase in personnel and administrative costs. Thanks to digital monitoring and modern machinery, a single management unit can now handle up to 10,000 hectares compared with 5,000 hectares previously.
“The quality of management is what matters.”
3. Agriculture remains a clear reinvestment opportunity
With limited opportunities to move capital abroad, Ukrainian businesses are looking for assets within the country. According to Dudka, agriculture attracts investors because of its predictability, understandable business model and tangible asset base.
“Where else should you reinvest? In agriculture.”
4. Land is a long-term asset and an inflation hedge
Despite nominal price growth, Dudka does not consider Ukrainian farmland overvalued when accumulated US dollar inflation is taken into account. His view is that landowners are better off holding on to their land because it is a finite asset that preserves value over the long term.
5. During the war, capital was redirected into logistics
Funds originally planned for the construction of a dairy farm were redirected toward developing a dry port and terminal. The reasons included:
- the urgent need to restructure export logistics;
- difficulties in attracting bank financing during the war;
- the long payback period of livestock complexes;
- the low attractiveness of building a farm with borrowed funds.
As a result, logistics became a priority as critical infrastructure supporting the company’s entire core business.
6. New assets should be built to future standards from the outset
During the full-scale war, Viliya implemented three major projects: a dry port, a mill and a seed plant. The company designs new facilities in line with stricter European requirements so that it will not have to spend heavily on large-scale reconstruction in the future.
Dudka’s investment principle is not to build a temporary low-cost solution if it will have to be rebuilt several years later.
7. Reputation and market access are also investments
The company sometimes sells grain in Europe at around $5 per tonne less than it could receive through port sales. Across total volumes, this represents more than $1.5 million in foregone revenue, but it provides long-term contracts, partner trust and a stable presence in the European market.
“I am buying reputation and long-term relationships.”
8. Processing is a long-term but strategic investment
The payback period for the mill is estimated at more than 15 years, while processing margins are lower than those in crop production. Nevertheless, the company invests in this segment in order to achieve:
- production of value-added products;
- access to new export markets;
- vertical integration;
- better quality control;
- diversification;
- reduced dependence on a raw-material business model.
A low-margin business also forces the group to exercise stricter control over costs and overall efficiency.
“This is an investment in the future.”
9. Free capital should be invested not only in land
Land remains a priority asset, but improving farm efficiency also requires:
- more productive machinery;
- automation;
- processing;
- logistics infrastructure;
- assets that allow the business to operate with fewer people.
Investments should do more than simply increase the company’s balance sheet; they should strengthen the core business and create operational synergies.
Viliya’s Investment Formula
The company uses the following benchmark: a project is attractive if it can pay back in approximately seven years. Profit is allocated as follows:
- 30% — reinvestment into the business segment that generated the profit;
- 30% — reserve fund;
- 20% — new projects;
- part of the investment budget, around 5–10%, may be allocated to startups and higher-risk ideas;
- 10% — support for the Armed Forces of Ukraine;
- 10% — owners’ funds.
Conclusion
Dudka’s model is based on the long-term accumulation of strategic assets combined with strict financial discipline. The company is willing to pay a premium for a high-quality asset if it can be integrated into the existing system; invest during a crisis; sacrifice short-term margins for market access and reputation; while at the same time building reserves and limiting the share of high-risk investments.
