A Savvy Sales Strategy
Today one third of Belarusian meat and dairy products is sold in the Russian market via a commodity distribution network
The Effect of Summation
You will agree that even in Belarusian stores Grodno products occupy a special niche. First of all, they are the most numerous as Grodnomyasomolprom accounts for 30% of the country’s processing industry. Secondly, the offering range of meat and dairy products made in Grodno Oblast is not just wide but also exclusive. For instance, Volkovysk-based Bellakt is one of the biggest producers of baby formula in the post Soviet area. It would not be an exaggeration to say that several generations of the Belarusians and people from other EX-USSR countries were brought up on these products.
The year 2010 was quite successful for Belarusian producers and processors of agricultural products, with the exports going up 40% to exceed $2.2 billion. The Russian market accounting for over 90% of the Belarusian foodstuffs exports was more than welcoming in terms of both prices and sales. The commodity distribution network comprising trading centers, dealer and distribution companies, has surely played an important role in ensuring this success. Today 128 companies are involved in promotion, supply and sale of Belarusian goods in Russia. In 2010, they accounted for 30% of the Belarusian sales there. The experience of the Grodnensky Trade Center dealing in products of the Grodnomyasomolprom companies is an exemplary one.
And finally, this Grodno brand has been a mark of quality guaranteeing great taste and high consumer qualities. This can be credited to the fact that management quality systems of the processing shops are certified to ISO-9000 and some joint stock companies have all five international certificates issued to foodstuffs producers, including HACCP certificates. Supreme raw materials and efficient farming practices are also paramount in ensuring high quality of Grodno goods.
All the above-mentioned factors helped nine dairy factories and five meat factories that make part of Grodnomyasomolprom become leading producers and ex- porters of dairy and meat goods. About 60% of the goods are sold abroad, with the Russian Federation remaining the main strategic partner of the local producers. It goes without saying that the commodity distribution network has significantly helped to make inroads in the Russian market.
But not every producer can afford setting up a distribution network. Molochny Mir, which processes 250 tonnes of milk a day and makes over 250 various types of products, has both resources and supplies for its own commodity distribution network. The same is true for Grodno Myasokombinat, Belarus’ biggest meat processing factory with full production cycle. Its production capacities allow producing 2,000 tonnes of meat, 2,000 tonnes of sausages and 500 tonnes of ready-to-cook meat monthly. There are over 400 items (both traditional and gourmand meat) on its assortment range.
Grodnomyasomolprom has also small remotely located companies that export a great share of their produce. For instance, Oshmyany-based Syrodelny Zavod exports up to 90% of its output. In 2005, with a view to coordinating their export activities 14 processing companies founded The Grodnensky Trade Center.
At first, the center performed mostly representative functions