Fashion for “nemoloko” and selling at a loss: an interview with the head of “Zalessky milk”

Безымянный

Andrey Romanov, the head of the Zalessky Milk Group of Companies, told about modern approaches to doing business, price restraint and the fashion for refusing milk.
— At the round table organized by the Royal Gate magazine, at the end of last year, you said that the marginality of sales of dairy products in the outgoing year has decreased significantly and some positions have to be sold at a loss. Has the situation changed?
– It has changed, the marginality has decreased even more. There are a number of positions that we are currently selling at a loss. In general, the marginality of both dairy farming and dairy processing continues to decline. The trends that developed at the end of 2020 have worsened in 2021. We continue to record an increase in the cost of high-protein feeds: soy meal, rapeseed meal, beet pulp. The cost of mineral fertilizers and packaging is growing. We are holding on with the last of our strength and are trying not to radically change the cost of our products yet. I want to emphasize that this is determined not by the cost of the product, but by the real solvency of the population. We produce social products, and this indicator directly affects our sales opportunities. The current state of affairs encourages us to look for new products, new markets. At the same time, it is impossible to work with such a falling marginality for a very long time, so we expect that the situation will somehow stabilize during 2021. Now a certain hope is inspired by the decline in the exchange rate, because there is still a fairly large currency component in the cost of our products.

– Digital labeling of dairy products began in Russia on January 20. From June 1, it gradually becomes mandatory. Does this label already appear on your products? How did this affect the price for the final consumer?
– Since June 1, labeling is mandatory for products such as cheeses and ice cream. “Mozzarella” and processed cheese, which we produce, are already labeled. We have invested and are acting within the new rules of the game. This did not affect the price of finished products, but we already bear these costs today.
— In your opinion, will these measures really help to defeat falsification? Have you ever encountered falsification of your products?
— The dairy industry has got into a very interesting situation. We have two product tracking systems working almost in parallel. The Mercury system, which was implemented by the efforts of the Rosselkhoznadzor and the Ministry of Agriculture of the Russian Federation, has already shown its effectiveness. The mandatory labeling system is a parallel system that controls only finished products. Before the introduction of Mercury, we had a problem with falsification. When, under the guise of dairy products, they tried to sell products using milk fat substitutes. “Mercury” has successfully worked out the problem. The task of labeling is the fight against counterfeit goods. When someone else produces products under the name of a well-known brand. This problem is irrelevant for the region. Maybe it is relevant in the country as a whole. Let’s see, within a year and a half it will be clear whether this has given something to the market and the consumer in terms of increasing transparency and quality.
— How many products of “Zalessky milk” are currently supplied outside the Kaliningrad market? How promising do you think this direction is for yourself?
— We are slowly growing. If in 2020 we had 8-9%, now it is 12-13%. The share of products will increase. The additional volume that appeared last year is primarily intended for foreign markets, because the Kaliningrad region is provided with milk. Of course, maybe we will introduce some new product lines, this is also being discussed, but this is not a prospect for 2021.

— What types of your products do you consider to be a priority?
— Here the consumer determines. We consider it a priority that the consumer buys more. Of course, the lion’s share of our line is still occupied by milk in different types of packaging. This is more than 50% of the total sales volume, our main locomotive, but there is a minimum marginality. For example, long-term sterilized milk is sold at a loss — this is how the market has developed.
— Are you planning to open a chain of your own stores?
– no. We discussed this ten years ago, when we started to engage in milk processing. We periodically discuss when we sum up the results of the year and make plans for the next one. After all, the consumer in the store should see the assortment. Making a store only with dairy products is pointless, and making a supermarket is a separate type of business that professionals should be engaged in. Today, the competition in the retail market is very high.
– Often local small cheese factories complain about the quality of raw materials. How do you rate it?
— This topic is separate, we were also very closely engaged in it at the time. They even planned to build a milk processing plant, but so far they have left this idea. Here the question is primarily about a serious technologist and building a technological process. Of course, some specific raw materials are required for cheeses. For example, we are ready to do this. Today, several small enterprises buy raw materials for cheeses. If someone has specific wishes and criteria specifying what indicators they need in milk, we are ready to work in this direction. These are issues of certain feeding diets and certain genetics. Now, using genetics, it is possible to form a herd in which there will be more raw milk.
— How do you feel about the growing interest in vegetable milk and the rejection of cow’s milk? Can vegetable products compete with traditional dairy products in Russia?
— It seems to me that sometimes people are led to openly advertising things. A person surrounded himself with domestic animals at the dawn of his life, and the cow was always there, she was one of the nurses. Why it suddenly became fashionable to refuse milk, I don’t really understand. Secondly — we do not feel that the demand for milk and dairy products is steadily falling. The trend for the appearance of dairy products not from milk is not so massive yet. Although the growth rates are quite high, they are high relative to the minimum base, which was, say, five years ago. Probably, in the future, these consumers will have some market share, but we do not see this yet.
— What areas do you plan to develop?
— First of all, this is a new project with our Moscow partners, the VMI company. The project is related to the production of exchange-traded goods, these are not B2C, but B2B goods, for further processing. It is planned to produce skimmed milk powder, whole milk powder, butter. This is a product that will go either to the rest of Russia or for export.
— Is the development of exports being considered?
— We are working with this constantly. We have products without preservatives, with a short shelf life. Here, the limiting factor for us is logistics. At one time, we were working on the market of Southeast Asia, China, but we are not yet able to enter there. Now we are discussing some reconstruction, the purchase of new equipment, which, due to new technologies and higher sanitary requirements, allows us to slightly increase the life of products without the use of preservatives. After that, we will receive new products, with which we will make another attempt to enter new markets.

— You are one of the mentors of the new season of the Business Battle startup competition, organized by the Western Press media Group. Why do you, an already successful entrepreneur, need this project?
— The very word “entrepreneurship” was born from “undertake”. You need to look ahead, learn new things that are not always related to your type of activity. For me, participation in the” Business Battle ” is primarily an acquaintance with the trends that exist in the youth environment in terms of entrepreneurship. I will not hide it, I told my team members this: despite the high rank of mentors, we ourselves learn, communicate, learn something new. This is probably the general philosophy of the project.
— As part of the previous stage of the “Business Battle”, you and another mentor, Evgeny Morozov, supported the participants who did not go further. What interested you in their projects?
— We have said that we are ready to provide certain, including financial, support for the implementation of these projects. They are, of course, relatively small, but interesting. I do not know how much they will shoot and will be economically profitable, but we will make such attempts.
The general partners of the Business Battle project are the government of the Kaliningrad Region, VTB Bank and the Institute of Business and Business Administration (IBDA) of the RANEPA.
Project partners: My Business Center, Kaliningrad Chamber of Commerce and Industry.

Organizer: media group “Western Press”
Partner material

 

Безымянный3 Безымянный 2 Безымянный4

TOP-30 milk producers in Russia

 

GC “Rusmoloko”, APH “Zalesye”, GC “Agropromkomplektatsiya”, GC “Damate”- we have dramatically strengthened our positions by actively investing in the construction of new industrial complexes.

 

imgonline_com_ua_Resize_q1BHFEBMbXjD_0

The three leaders in the production of commercial milk in Russia included the company “Rusmolco” with a yield for 2020 of 131 thousand tons. In the first place is still “EkoNiva” by Stefan Durr (924.7 thousand tons), in the second – the Firm “Agrocomplex ” named after N. I. Tkachev (312.1 thousand tons). The three leading companies together produced about 1.37 million tons of milk last year, or about 6% of the total commodity volume. This is evidenced by the data of the rating of the largest milk producers prepared by Soyuzmoloko, the Milknews news agency and the Streda Consulting consulting company.
The top ten in terms of raw materials production also includes the Agro-industrial holding “Doronichi” , the Holding company “Ak Bars”, “Kirov Dairy Plant”, the Concern “Detskoselsky”, “Piskarevsky Dairy Plant”, the Concern “Pokrovsky”, as well as the Agricultural Holding “Krasny Vostok”, which last year took third place in the rating.
“There have been serious changes in the positions of players even in the top five,” said Artem Belov, CEO of Soyuzmoloko. – Firstly, the positions of companies that actively invest in the construction of new industrial complexes – Rusmolco Group of Companies, Zalesye Agricultural Complex, Agropromkomplektatsiya Group of Companies, Damate Group of Companies have sharply strengthened. Secondly, there was a decrease in the volume of companies from Tatarstan due to the optimization of livestock. Third, all the players are successfully working to increase efficiency and increase volumes due to the increase in livestock productivity.” As a result, the most successful players, according to him, strengthened their positions. In particular, the success of “APK Prodprogram”, GC “Shakhunskoe moloko” and Agrogroup “Good Business” allowed them to significantly increase their positions in the rating.
“In general, the production of raw commercial milk remains positive, in 2020 the growth was 5%, up to 23.5 million tons, and in 2021, according to our forecasts, the volume will grow by another 3% – up to 24.2 million tons,” Belov believes. “However, an increase in the cost of production will lead to the withdrawal of small weak players from the market and its further consolidation.”
The Dairymaster company became the general partner of the rating of milk producers. The official partners are the companies “VERUMBIO”, “ATP TLP architects and Engineers” and “Zoetis”. The parterre of the rating is “Mustang of Feeding Technology”.

The agro-industrial Holding “Zalesye” takes the 17th place in the rating. Congratulations!

See the RATING of the TOP 30 milk producers in Russia Source: https://milknews.ru/index/moloko/rejting-krupnejshie-proizvoditeli-moloka.html?utm_source=yxnews&utm_medium=desktop&utm_referrer=https%3A%2F%2Fyandex.ru%2Fnews%2Fsearch%3Ftext%3D
© Milknews-Dairy market News

 

 

 

 

 

 

Happy Russia Day!

Dear friends,
congratulations on the upcoming holiday!
Happy Russia Day!
This is a significant day for all who are true citizens
and true patriots of Russia, who dearly love their country and are proud of its centuries-old history,
spiritual and cultural heritage, and work tirelessly for its prosperity.
This holiday is a great occasion to remember the importance of national unity.
Together, going to the goal, we are sure to find success, well-being and prosperity.
I wish you confidence in the future, good health, happiness, peace and goodness!

12 июня

Happy International Children’s Day!

Congratulations on the International Children’s Day!

Let every child be loved and happy,

let the parental love and attention of the whole family always make childhood an unforgettable and bright period in your life!

maxresdefault_

Happy Victory Day!

Happy Victory Day!

Please accept my sincere congratulations on the great holiday – Victory Day! This holiday has become a symbol of the heroism of our people, their unyielding fortitude and invincibility of spirit!

The caring attitude of the older generation to the fate of their homeland should become for everyone a shining example of patriotism and the strength of the people’s faith!
The veterans paid a great price for the Victory, many are no longer with us today! But we remember their military glory! I wish you health, warmth, attention and care of your loved ones!

May the sky always be peaceful and the sun shine brightly!
Low bows to all our Veterans!

imgpreview

Happy Easter!

 

Happy Easter!

We cordially congratulate you on the joy of the Most Holy holiday of the Resurrection of Christ!

Let this majestic holiday fill your heart with bright feelings of hope and love, give you happiness and kindness.

We wish you joy, health and prosperity.

Christ is Risen!

 39adf007209d423ad07c75edd8f0b3ad_2

fonstola.ru_101106

Happy Spring and Labor Day!

Happy Spring and Labor Day!

We wish you that everyone’s work is in demand and appreciated, brings joy and prosperity, contributes to family well-being and the realization of ambitions.

Let these spring days fill your life with joy and happiness, give hope for good changes, give a new charge of cheerfulness and optimism, fill you with the desire to change your life for the better.

Let spring live in the heart of everyone, May blooms in the soul, and love and mutual understanding reign in the house!

I wish you peace, kindness and warmth!

Happy May Day!

2_

The exhibition “Prodexpo-2021”. Results

Dear friends!
The next, 28th, largest international exhibition of food, beverages and raw materials for their production, Prodexpo-2021, which was traditionally held at the Expocentre Fairgrounds in Moscow from April 12 to 16, has come to an end. This is the most authoritative exhibition in Russia in the food production industry.
The agribusiness holding “OVA”, the Russian leader in the market of canned meat, has traditionally occupied one of the leading positions, representing the entire range of products, from the traditionally popular “Russian delicacy” to the updated positions of canned fish “Golden Network”.
We were happy to meet again with our partners, colleagues from the regions, and meet new potential customers.
OVA became a bright and strong participant, once again confirming the status of the production leader in its industry.
Within the framework of the exhibition, the international competition “Best Product-2021″was held. The plant of JSC KMPP “Deima” of the Kaliningrad region was awarded with gold medals for canned food” Beef stew “GOST Top grade and” Pork stew “GOST Top grade under the trademarks “OVA”, “Russian Search”and” Favorite House”.
We thank all the employees of our Holding!

IMG_9975_ IMG_9934_ IMG_9921_ IMG_0194_ IMG_0089_ IMG_0055_ IMG_0246 IMG_0229 IMG_0214 IMG_0204 IMG_0182 IMG_0178 IMG_0100 IMG_0099 IMG_0157 IMG_0071 IMG_0065 IMG_0026

A new milk processing plant will be built in the region

03-1024x683

01

 

The corresponding agreement was signed in the regional government on March 18. The document was signed by the Governor Anton Alikhanov, the General Director of JSC “Development Corporation of the Kaliningrad Region” Andrey Tolmachev and the General Director of LLC “DMS Vostok” Mikhail Breitman.

The company “DMS Vostok” is a new investor for the region, which intends to build a plant for the production of dairy products, including butter, whole milk powder and skimmed milk powder. According to the plan, the production of butter will exceed 5.4 thousand tons per year, whole milk powder and skimmed milk powder will amount to more than 22.5 thousand tons.

“Dairy cattle breeding in the Kaliningrad Region has been showing high growth rates over the past few years. The investments made and the state support for the construction of modern livestock complexes of the European level have created a solid foundation for a new stage of development of the industry – deep processing of milk, the creation of products with a high degree of processing, which are in demand not only in the Russian, but also in foreign markets. The construction of a new milk processing plant, as we hope, will give a synergistic effect of stable demand for the products of local dairy farms, create new jobs in rural areas, ensure the development of the food industry, increase investment and tax deductions,” Anton Alikhanov said.

“I hope that this will be a mutually beneficial project, and we will achieve good results. Of course, we create new jobs, produce exchange-traded products that will go both to the domestic market and for export. We very much hope to open this plant in 2023, ” Mikhail Breitman said.

The construction of a dairy processing plant will begin this year in the Chernyakhovsky city district. About 3 billion rubles will be invested in the project. The company’s management also clarifies its intention to launch a full cycle of dairy production in the region, including the creation of livestock complexes. The company’s partner in the region is one of the leaders in the dairy industry of the Kaliningrad region – the Zalesye Group of companies.

“The territory of the Kaliningrad region is most effective in the production of raw milk, the cost of production of a liter of milk here is one of the lowest in our country. If we talk about exports, the Kaliningrad region is a port, a sea, so from the point of view of logistics, it is also a very profitable territory, ” said Tatyana Obukhova, a representative of the group of companies.

“Dairy farming is the driving force of agriculture in the Kaliningrad Region. The climatic conditions and the long growing season allow us to grow high-quality feed and, accordingly, to obtain high-quality products in demand: both dairy products and breeding young animals of the dairy direction. We will continue to develop the dairy industry. I hope that this work will bring benefits in the form of taxes, which will help the region to develop as a whole – – said the Minister of Agriculture Natalia Shevtsova. – In the next three years, we plan to allocate about one billion rubles to support the development of the dairy industry. This money will be used for the construction of livestock complexes and milk processing enterprises. All potential investors who express a desire to work in the region in this direction can participate in this program.”

For your reference:

In the Kaliningrad Region, livestock farms of all categories received 212 thousand tons of milk in 2020 (an increase of 14.6% compared to the level of 2019), including agricultural enterprises – 130.4 thousand tons (an increase of 18.6% compared to the level of 2019), peasant (farm) farms – 12.2 thousand tons (19.7% higher than the level of 2019) and households – 69.3 thousand tons (7.1% higher than the level of 2019).

The milk yield per feed cow in large, medium and small agricultural enterprises as of January 1, 2021 amounted to 8,506 kilograms, which is 636 kilograms more than the same period in 2019.

With the increase in milk production in the Kaliningrad Region, the production of dairy products increased (in % compared to the same period in 2019), including:

– butter – 3,7 thousand tons (172 %);

– cheese and cottage cheese, including cottage cheese and cottage cheese products for young children – 16.5 thousand tons (143 %);

– fermented milk products (except cottage cheese and cottage cheese products) – 29.5 thousand tons (131 %).

http://mcx39.ru/main/v-regione-budet-postroeno-novoe-predpriyatie-po-pererabotke-moloka/