Se­cret Be­hind Suc­cess

In­vest­ments, in­no­va­tions, im­port-sub­sti­tu­tion are the ingredients for the suc­cess story of Borisov Bread Fac­tory

Economy of Belarus - - CONTENTS - Ta­tiana IVANOVA

In­vest­ments, in­no­va­tions, im­port-sub­sti­tu­tion are the ingredients

for the suc­cess story of Borisov Bread Fac­tory

Mr Askerko, the Be­laru­sian flour mar­ket of­fers sev­eral Be­laru­sian and Rus­sian brands. What is the mar­ket share of Borisov Bread Fac­tory?

In terms of pro­duc­tion vol­ume, our com­pany is among the top five bread pro­duc­ers in Be­larus. From Jan­uary to Au­gust 2011 we made 45,123 tonnes of flour prod­ucts (flour, semi-fin­ished con­fec­tionery).

Borisov Bread Fac­tory sells its prod­ucts un­der the Uladar brand. Minsk Oblast is our main cus­tomer with 60% of pro­duce be­ing sold in this re­gion.

this year Be­larus has gath­ered a good grain har­vest. this is good news for bread and fod­der fac­to­ries re­spon­si­ble for meet­ing the do­mes­tic de­mand for bread and mixed fod­der. Vik­tor askerko, di­rec­tor of Borisov Bread fac­tory, one of the big­gest com­pa­nies af­fil­i­ated with the ce­real prod­ucts depart­ment of the Min­istry of agri­cul­ture and food of Be­larus, tells us how it works.

What makes Uladar flour and con­fec­tionery com­pet­i­tive is pri­mar­ily their supreme qual­ity. Thanks to it we are suc­cess­fully com­pet­ing in the do­mes­tic and for­eign mar­kets. Prof­its are chan­neled into up­grad­ing pro­duc­tion fa­cil­i­ties which, in turn, helps im­prove the qual­ity and ex­tend the of­fer­ing range.

It goes with­out say­ing that the suc­cess of your com­pany greatly de­pends on the har­vest qual­ity and quan­tity…

This year the har­vest was quite good. We can be con­fi­dent that its qual­ity is much higher that last year’s although the har­vest­ing cam­paign was not easy as the weather was quite un­pre­dictable. Ow­ing to ef­fi­cient co­or­di­na­tion of all the sec­tions of the fac­tory and Minsk Oblast agri­cul­tural com­pa­nies we man­aged to achieve our har­vest­ing tar­gets. Thus, as of early Septem­ber more than 120,000 tonnes of grain were har­vested, of which over 76,000 tonnes were de­posited in grain el­e­va­tors. Some 44,000 tonnes were de­liv­ered to our grain re­cep­tion cen­ters in Zhitkovichi, Gorodeya, Stolbtsy as well as grain re­cep­tion cen­ters of Kletsk Mixed Fod­der Fac­tory and Timkovichi pro­duc­tion fa­cil­ity.

As much as 65,815 tonnes of milling wheat were stored (well above the tar­get of 57,000 tonnes) as well as 24,735 tonnes of milling rye (tar­get of 20,250 tonnes).

The main grain sup­pli­ers are Kopyl, Nesvizh and Kletsk districts that pro­vided 16,785, 15,750 and 11,915 tonnes re­spec­tively. Har­vest­ing of bar­ley, oats, trit­i­cale, peas and buck­wheat is now in progress.

I am happy to say that 84% of milling wheat used for pro­duc­tion of bread and pasta meets the nec­es­sary stan­dards. About 50% of grain con­tains 26% of gluten.

Den­sity of grain av­er­aged 750 grams per liter. So high-qual­ity bread is guar­an­teed!

Not long ago the pasta pro­duc­tion in Be­larus was on the verge of ex­tinc­tion. But when Borisov Bread Fac­tory got in­volved it got the sec­ond lease of life. How did you man­age to do it?

We have in­vested a lot of funds and ef­forts to im­prove and ex­tend the as­sort­ment range of our pas­tas. We have de­vel­oped a mar­ket­ing strat­egy and started its step-by-step im­ple­men­ta­tion. Our Bori­mark branch in­stalled a Buller short pasta pro­duc­tion line (Switzer­land) with the pro­duc­tion ca­pac­ity of 7,500 tonnes of pasta a year. Thanks to that we ex­tended our as­sort­ment range with new types of pasta, in­clud­ing im­port-sub­sti­tut­ing ones (B group). On top of that we bought an Ital­ian spaghetti pack­ag­ing line, which al­lowed us to dou­ble ef­fi­ciency of pack­ag­ing pro­duc­tion as well as im­prove a pack­age de­sign.

We also started a pro­mo­tion cam­paign of the Pas­toral trade­mark among the whole­salers and con­sumers by or­ga­niz­ing sam­ple tast­ings and ad­ver­tis­ing events in su­per­mar­kets, pub­lish­ing ads and sell­ing sou­venirs with the Pas­toral logo. We took part in var­i­ous fairs, exhibitions, con­tests where Pas­toral re­peat­edly won the high­est hon­ors. All these ef­forts bore fruit. To­day pro­duc­tion and sales of im­port-sub­sti­tut­ing Pasta So­lare and Pas­toral is a re­li­able source of in­come for the com­pany.

In­no­va­tive projects re­quire money, in­clud­ing for­eign currency. To­day, this can be re­ally ex­pen­sive. Maybe it would make sense to put in­vest­ment projects on hold for now?

No way! Back in 2008 we in­stalled an au­to­mated Ital­ian mill to process do­mes­tic wheat into the high­est­grade flour. The project al­lowed Borisov Bread Fac­tory to in­crease the flour ex­trac­tion rate to 62%, and get high qual­ity flour. Thus, we man­aged to ful­fill the task of national im­por­tance – to se­cure our foothold on the pasta mar­ket.

Af­ter the up­grade of the mill, along with the tra­di­tional pro­duc­tion of flour, we be­gan to make more wheat germ ed­i­ble flakes, semolina MKR-28. We in­creased pro­duc­tiv­ity, re­duced the num­ber of staff and cut en­ergy-in­ten­sity by 25%.

To­day we are in the mid­dle of in­stalling a Czech au­to­matic line to pro­duce dry food mixes. Af­ter its com­mis­sion­ing we will ramp up the pro­duc­tion of semi-fin­ished bak­ery prod­ucts, start mak­ing new prod­ucts which will be sold do­mes­ti­cally and in­ter­na­tion­ally.

We also plan to build a grain el­e­va­tor com­plex with ware­houses for 25,000 tonnes of grain. This will re­duce our costs on stor­ing grain, as so far we have been us­ing the ser­vices of third par­ties. We will also retro­fit the feed-mak­ing plant to in­crease its ca­pac­ity to 380 tonnes per day.

We have se­ri­ous in­vest­ment plans in agri­cul­ture. In par­tic­u­lar, we are cur­rently de­vel­op­ing de­sign es­ti­mates for the sec­ond phase of the dairy farm con­struc­tion project at the sub­sidiary “Bol­shie Novoselki” for 200 head of cat­tle. The first phase for 500 head of cat­tle was put into op­er­a­tion in 2010. The third phase for 500 dairy cows with a milk­ing shop is in the pipe­line. Af­ter its com­ple­tion, the ca­pac­ity of the sub­sidiary will be ramped up to 1,200 head of cat­tle.

We also in­tend to build a pig farm for 35,000 head. And this by far is not a com­plete list of our projects. In ac­cor­dance with the tech­ni­cal up­grade pro­gram for 2011-2015, we plan to im­ple­ment a num­ber of other in­vest­ment projects.

To re­duce pro­duc­tion costs, lo­cal com­pa­nies are try­ing to cut on en­ergy con­sump­tion. How are things in this area at Borisov Bread Fac­tory?

We have long and quite suc­cess­fully been work­ing to re­duce the en­ergy con­sump­tion of tech­no­log­i­cal pro­cesses. Thus, by con­struct­ing a 0.6MW boiler run­ning on lo­cal fu­els (non-feed waste pro­duced by grain el­e­va­tors) we solved the prob­lem of waste dis­posal. In ad­di­tion, in 2010, we com­mis­sioned a steam gen­er­a­tor with the ca­pac­ity 1.0 steam/hour for an­i­mal feed pro­duc­tion fa­cil­i­ties. Ear­lier, we used to pur­chase it from third par­ties. A co­gen­er­a­tion plant (CHP) for com­bined heat and power will come on stream soon. The 1 MW mini-chp plants will sat­isfy 50% of

the com­pany’s needs in elec­tric­ity and will help us save Br1.9 bil­lion a year.

In re­cent years, the Be­laru­sian cat­tle in­dus­try has been con­sis­tently reporting good re­sults, in­clud­ing in terms of pro­duc­tion vol­ume and range of feed. What re­sults can the com­pany boast here?

Prop­erly bal­anced feed not only con­trib­utes to­wards higher weight gains and milk yields, but also re­duces the cost of pro­duc­ing 1 tonne of an­i­mal prod­ucts. This is ex­actly the type of feed for dif­fer­ent species that our mixed feed shop man­u­fac­tures. Its ca­pac­ity is 300 tonnes per day. Feeds ac­count for 31.3% of the prod­uct range. An­nual pro­duc­tion of an­i­mal feeds is 93,000 tonnes.

By in­stalling the feed gran­u­lat­ing and ex­pand­ing line we have ex­tended the range of prod­ucts. These are all-in-one feeds and con­cen­trates for pigs, fod­der con­cen­trates for cat­tle (young live­stock, fat­ten­ing an­i­mals, milk cows), feed for poul­try, fish, dogs. In or­der to in­crease the en­ergy value of feeds and re­duce the use of im­ported com­po­nents, we put into op­er­a­tion a fat in­put line in 2008. The ad­vanced tech­nol­ogy pro­vides for a wide range of for­mu­las.

Our feeds are well-bal­anced across all key in­di­ca­tors: ex­change en­ergy, amino acid com­po­si­tion, pro­tein and mi­cronu­tri­ents. In 2011 we pro­duced 6,706 tonnes of feed for young cat­tle and high-yield­ing cows. I would like to point out that al­most 60% of feed we pro­duce is supplied to our own hog-breed­ing and live­stock farms. Borisov Bread Fac­tory op­er­ates agri­cul­tural units in Borisov, Lo­goisk, Vileika, Berezino, Krupki and Cher­ven Districts. You can see the ge­og­ra­phy is quite ex­ten­sive.

I should add that a lot of work is done by our ex­perts to de­velop tar­geted feed for young cat­tle and high-yield­ing cows. Com­pound feeds are pro­duced for agri­cul­tural enterprises of Minsk Oblast. In the long term we plan to re­con­struct the feed plant and in­fuse it with ad­vanced feed pro­duc­tion tech­nolo­gies and in­crease the ca­pac­ity to 380 tonnes per day.

We are con­fi­dent that the money in­vested in the de­vel­op­ment of all busi­ness units will pay off hand­somely in the fu­ture.

In or­der to ac­cel­er­ate grain

de­liv­ery to the fac­tory and to re­duce the

num­ber of grain trucks in the queue, the au­to­matic “con­troller”

em­ploys the aid of Maria Len, a technician of the man­u­fac­tur­ing lab. She takes a batch of grain to

the lab to de­ter­mine

its qual­ity

Grain el­e­va­tor No. 2 uses the lat­est tech­nolo­gies to store grain. It is one of the largest and most im­por­tant in­stal­la­tions of the Borisovbased bak­ery. The grain the el­e­va­tor stores will then be used to make com­bined feed

The Bori­mak

branch has con­sid­er­ably

up­graded man­u­fac­tur­ing and pack­ag­ing lines in re­cent years,

mak­ing the pro­cesses more au­to­mated

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