BIOTECHNOLOGICAL DYNASTY: HOW A FAMILY OF SCIENTISTS BUILT A SUCCESSFUL BUSINESS AND RESTORES UKRAINIAN SOILS — INTERVIEW WITH THE DIRECTOR OF BTU BIOTECH COMPANY

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Vladyslav Bolokhovskyi, CEO of BTU Biotech, was named Entrepreneur of the Year by ProCredit Bank. How does a high-tech business operate in Ukraine, and why are drones and AI already essential in agriculture?

"For us, this award is not only recognition of achievements but also respect for the values we share with BTU Biotech Company. Vladyslav Bolokhovskyi exemplifies responsible entrepreneurship, long-term vision, openness to collaboration, and faith in science. His business approach combines innovation, sustainability, social responsibility, and the development of Ukraine’s future. Vladyslav is a winner who not only builds a business but also shapes the country's future.

BTU Biotech Company is a family business with deep scientific roots. Its founders were scientists working in research laboratories during the Soviet era. After the dissolution of the USSR, they decided to create their own company.

BTU’s core specialization is biopreparations for soil restoration and fertility preservation. For over two decades, the company has set standards in the field of ecological farming. It is not just a manufacturer of microbial and enzymatic products but a full-fledged biotechnological group with more than 26 years of experience and a clear mission — to keep the soil alive.

ProCredit Bank became BTU’s financial partner during the company’s transformation into one of the most innovative players in the biotech market back in 2019. Besides working capital, the bank supports BTU’s investment initiatives within the “Affordable Loans 5-7-9%” program. This has helped the company implement large-scale projects focused on sustainable development, energy efficiency, and energy independence amid blackout conditions.

"These investments are not just about technology but also about responsibility to society and the environment. They demonstrate how financial support can become a catalyst for sustainable growth and positive change," the bank emphasizes.

They assure that biotech companies in Ukraine have significant growth potential, and BTU’s example confirms this.

In an interview with NV Business, Vladyslav Bolokhovskyi shared the company’s history, the market situation during the war, and land degradation that can be healed with biotechnology.

Your personal story is interesting. How did you develop?I never considered myself a businessman. I am a bioengineer by training and graduated from the Ukrainian State University of Food Technologies in 1998. In 1999, along with my parents, we founded the company — we are a biotechnological dynasty.

My parents worked at a state enterprise that, like many others, was quietly going bankrupt. They couldn’t bear to watch it happen without taking action. So, we decided to create our own company. We started with a team of like-minded individuals — about 12 to 15 people. Most of them are still with us. Overall, we have very low staff turnover.

We believed in ourselves. We accepted orders and searched for production facilities, initially without our own manufacturing. The first projects focused on ecological efforts — bioremediation of soils after industrial accidents in cooperation with Ukrnafta. We demonstrated how microorganisms can restore the soil. We began with two hundred square meters and then expanded to a few hectares. This gave us a chance to prove our effectiveness. Later, projects for intensified oil production emerged — our biopolymers help extract more oil, and the technology is still in use.

When did you get your own production?At first, we rented space at a distillery in the Cherkasy region. Later on, we purchased small plots of land and began construction. In 2011, we acquired a site near Ladyzhyn in the Vinnytsia region—several hectares in an industrial zone.

There, we built one of the largest biopreparation production facilities in Eastern Europe, featuring bioreactors, laboratories, packaging lines, warehouses, and workshops for dry product manufacturing.

Is your production only in Ukraine?Yes, in the Vinnytsia region. Thanks to this location, we have a logistical advantage, which is especially important for a biotech business. This also helps us promote our products. Some partners even ask, "Are you building a factory in Germany yet?" But we do not plan that for now.

Germany is an expensive country. Producing one ton, ten tons, or a hundred tons there versus Ukraine involves completely different costs. Instead, we reinvest in our Ukrainian plant: developing workshops not only for liquid products but also for dry formulations, which are better preserved and suitable for export to hot regions like Latin America, Turkey, and Africa. We have been building and continuously improving this plant for years.

What are your plans for global expansion?We have been moving in this direction for a long time, and we are now 26 years old. Ten years ago, we began systematically developing this area. In 2017, we established a dedicated department. Before that, we primarily exported through partner initiatives. Since 2017, we have been systematically studying markets in Eastern and Western Europe and became the first Ukrainian manufacturer in the international biocontrol producers organization, IBMA.

It turns out that in Ukraine, biopreparations are used in open fields more often than in some Western countries, where they are mainly associated with greenhouses. In 2019, we registered our own company in Germany, and in 2022, we expanded it by acquiring half a hectare of land, office space, and temperature-controlled warehouses.

Currently, we supply products to about 20 countries, while research and registration processes are ongoing in another 20 countries. In our field, you cannot just start selling immediately; you must conduct local studies, prove effectiveness, complete registration, find partners, and build marketing strategies. Only after 3–5 years can deliveries begin. It is a long process we have systematically initiated, and it is now yielding results, but it requires constant investment.

How has the full-scale invasion affected your plans?We adjusted some plans. For example, we planned to enter new markets with broader expansion. But after the invasion started, we changed our approach: we began selecting regions and countries more carefully. We focused on stabilizing operations, preserving the team, and supporting our partners.

At the same time, we reviewed our internal plans. We realistically assessed our team's ability to travel and support partners and realized we could not be simultaneously in Eastern and Western Europe, Asia, and Latin America. So, we reprioritized our efforts and concentrated on partners with whom we already had working relationships. We also responded more quickly to new requests.

We are very grateful to our large international partners for increasing orders. In 2022, we even recorded our highest exports ever. This was both an emotional response from partners and a demonstration of solidarity. They consciously ordered more from us despite working with producers from various countries.

What changed in your business approach?We became more flexible and faster in decision-making. Looking at 2022–2024, we use resources more efficiently — raw materials, funds, logistics. For example, before we allowed large stockpiles of packaging and large warehouses; now we optimize all that.

Was the enterprise damaged by shelling?Yes. The blast wave damaged numerous windows and deformed walls of sandwich-panel warehouses. Some older buildings, including those set for demolition, were also impacted. However, this did not affect our production plans.

How do your prices compare with large international companies?Our prices are fair and competitive. We strike a balance that works. With a favorable geographic location, efficient logistics, and adaptability, we tailor our products to meet the specific needs of each market—considering farmers’ requirements, climate nuances, cultural attitudes, and economic conditions. Thanks to our commitment to quality, speed, fair pricing, and flexibility, we confidently compete both in Ukraine and on the international stage.

Have Ukrainian farmers' requests changed since the invasion?Certainly. Landowners have suffered huge losses due to mine contamination, explosion damage, and pollution; some territories remain occupied. According to the Ministry of Environment, war damage to the environment exceeds UAH 2.6 trillion, of which UAH 1 trillion is attributed to soil contamination.

Farmers are also heavily impacted by the economic situation. They not only need to think about demining and restoring their soils but also how to modify cultivation technology to conserve resources and remain profitable. Today, they are increasingly integrating biological products into traditional technologies, reducing fertilizer rates by 20–30% without yielding a loss.

How does the company respond?Before the war, we created the BTU Soil Health platform to restore soil fertility. Since 2020, we have launched a national Soil conference, supporting it annually. We bring together government officials, business representatives, leading scientists, and educators to unite efforts and draw maximum public attention to this issue.

Do you develop solutions specifically for combat-affected zones?Yes, over the past two years, we have conducted model studies — laboratory and field trials. We collect samples from explosion sites in the Kharkiv, Kherson, and Khmelnytsky regions. We study the impact on soil and test biopreparations with sorption properties that restore fertility. Of course, the results depend on the type of ammunition, fuel, and machinery used. Our research demonstrates that bioremediation is effective. It is also crucial to choose plants that aid in rehabilitating the soil.

At conferences, we share these solutions. For us, it is not just business — it is a contribution to preserving life in the soil.

How much do you invest in R&D, and what projects are you currently working on?We have a multi-level R&D system. One focus is on studying the effectiveness of biopreparation during production and developing new formulations. Another aspect is the Institute of Applied Biotechnology, which we established about eight years ago. It investigates product efficacy under lab conditions, pilot plots, and industrial sites, assesses the compatibility of preparations, and conducts a wide range of agrochemical and microbiological analyses.

We invest an average of 2 to 4% of our turnover: approximately 2% funds the R&D center, while about 2% is allocated for development, including the construction of new offices and labs. We have partially built these facilities and are conducting internal work.

This is not much; we would like to invest more. Yet, despite the war, we have not only maintained but also increased these investments. For instance, we added five scientists over the past few years, increasing our staff from 17 to 22, which includes five doctors of science.

Where do you get investment funding?We have worked with ProCredit Bank for 5 to 7 years. It is a reliable bank that helped us achieve energy independence by investing in electric generators and steam generation, which allows us to operate fully during power outages. We installed two 800 kW diesel generators and steam generators necessary for microorganism cultivation, as steam sterilizes all processes.

We also invested in solar energy, launching a 450 kW solar power plant in 2024 that saved us over one million UAH on electricity within months. For our new office premises, we acquired ventilation equipment, pellet boilers, and more. All of this was made possible by the swift and effective financial solutions in recent years.

Obtaining a loan used to be challenging due to high interest rates, but the situation has changed. Now, there are programs with low rates, such as 5-7-9%. Furthermore, ProCredit Bank shares our values, which gives us confidence in our partnership. They are environmentally focused, which is important to us since we work with a bank that supports green economy strategies. They actively promote eco-friendly projects, and we highly appreciate their approach. A loan is always a responsibility, so we discipline ourselves and carefully plan our financial decisions.

We grow approximately 15% annually.

What is the industry average growth rate?The global biotech sector in fertilizers and plant protection is growing at an annual rate of 12–17%. In Ukraine, the biotech sector holds significant potential, particularly in agriculture. While we hope to see growth in this area, the sector currently remains at a standstill due to considerable challenges, such as decreasing arable land and war-related issues affecting agriculture.

What innovative technologies will help agriculture become more efficient?Innovative agrotechnologies encompass drones, IT solutions, biotechnology, and AI implementation across various production processes. Drones enhance the efficiency of pesticide application, conserving both water and fuel.

Modern satellite solutions enable farmers to quickly assess potential crop threats posed by weather fluctuations and obtain analytics on the accuracy and quality of essential operations — from soil cultivation to fertilization and plant protection.

GPS technologies facilitate transparent management of agricultural machinery, covering fuel consumption, machine location, treated area size, and a detailed history of all fieldwork.

Overall, digital tools transform agricultural production into a precise, manageable, and predictable system. In contemporary Ukraine, this shift represents not merely a trend but a strategic necessity.

Biotechnology is expanding globally, significantly impacting productivity — increasing yields by 0. 28 to 0. 0.5 tons per hectare through the mobilization of phosphorus and potassium in the soil. Nevertheless, agriculture continues to face significant challenges: the spread of diseases and pests, reduced soil moisture retention, and erosion processes.

In this context, biological fungicides are particularly relevant. They effectively prevent and control a wide range of diseases, possess a safe ecological profile, do not accumulate in plants or soil, promote beneficial microbiota development, and are not susceptible to resistance from pathogens.

Practices of regenerative agriculture, including biopreparations, assist in preserving and restoring soil fertility. Each year, more agroenterprises in Ukraine and beyond adopt soil- conserving tillage technologies — Mini- Till, Strip- Till, No- Till. These methods maintain natural soil cover, positively influence soil structure, enhance moisture retention and absorption, and reduce risks associated with erosion, carbon loss, and CO ₂ emissions. Such systems also promote the development of soil microbiota and increase biological activity in the field.

What are the most common problems in your industry?Financial, mobilization, and staffing issues persist. Large agrocompanies have more stable funding and currency resources, while small and medium enterprises face significant challenges. Many must allocate their limited resources to essentials: seeds, fuel, and fertilizers. This leaves little room for experimentation and the implementation of innovations like biotech.

In terms of staffing, Ukraine is experiencing shortages of specialists due to mobilization, migration, a lack of awareness about biotech in agriculture, and the low attractiveness of agricultural jobs. This issue affects both biotechnologists and production specialists. To tackle this, we started cooperating more with central and regional educational institutions and created internship programs for students.

Addressing these challenges necessitates comprehensive support for both the agro sector and the biotech industry, including financial programs for SMEs, the development of human resources, and the promotion of innovative technology adoption.

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