Secret Behind Success
Investments, innovations, import-substitution are the ingredients for the success story of Borisov Bread Factory
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
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
branch has considerably
upgraded manufacturing and packaging lines in recent years,
making the processes more automated