You Must Know How to Get Re­sults

Yuri Moroz is cred­ited for the suc­cess of OJSC Belovezh­sky

Economy of Belarus - - CONTENTS -

Yuri Moroz is cred­ited for the suc­cess of OJSC Belovezh­sky

In this is­sue of the Econ­omy of Be­larus Mag­a­zine we are open­ing a new sec­tion ded­i­cated to re­mark­able Be­laru­sian busi­ness lead­ers whose tal­ent, skills and vi­sion have al­lowed their com­pa­nies to oper­ate ef­fi­ciently and their em­ploy­ees to stay so­cially se­cured thus keep­ing their busi­nesses afloat dur­ing these trou­bled times and bring­ing ben­e­fits to the Be­laru­sian peo­ple and the coun­try at large. We are kick­ing it off with an ar­ti­cle about Yuri MOROZ, Di­rec­tor Gen­eral at OJSC Belovezh­sky.

Have Good Role Mod­els

To be suc­cess­ful in agri­cul­tural busi­ness is no small thing. But Yuri Moroz has found his way to suc­cess in this in­dus­try. Since 1982, Mr. Moroz has been the di­rec­tor of a large agri­cul­tural com­pany (with a

Who is he, an ef­fi­cient di­rec­tor of an agri­cul­tural busi­ness? What are his ma­jor chal­lenges and con­cerns? Imag­ine you are the one. In this case you have to know how to man­age your land and re­sources ef­fi­ciently, how to or­ga­nize the pro­duc­tion process to make it ef­fi­cient, keep an eye on the so­cial side of things and make sure there are no so­cial is­sues, be flex­i­ble enough to re­spond quickly to eco­nomic changes in­side the coun­try as a whole, know how to su­per­vise peo­ple (you have to find the right peo­ple and see what they are best at and give them the right jobs, lis­ten to them and be able to re­late to their con­cerns and fix what needs fix­ing). You have to be omnipresent, be there ev­ery day, ev­ery minute, with no hol­i­days, no days-off.

six-year in­ter­val). Now his com­pany’s staff ap­proaches 2,000 peo­ple.

In 1996 he took the steer­ing wheel of the com­mit­tee for agri­cul­ture and food of the Brest Oblast Ex­ec­u­tive Com­mit­tee; then he was ap­pointed Min­is­ter of Agri­cul­ture and Food of the Repub­lic of Be­larus…

There are many ex­am­ples when strong com­pa­nies went bust as they got into the wrong hands, which was nearly the case with OJSC Belovezh­sky. Who knows what would have be­come of it had Yuri Moroz not re­turned there to turn it around.

To­day his di­rec­to­rial skills are an ex­am­ple to fol­low in Be­larus. It is for a rea­son there­fore that the pres­i­dent of the coun­try has re­peat­edly urged other agri­cul­tural chiefs to fol­low Mr. Moroz’s ex­am­ple and learn from him how to run an agri­cul­tural busi­ness.

There is an opinion that at­tach­ing low-profit or even loss-mak­ing busi­nesses to large pros­per­ous pro­duc­ers saves the former and sinks the lat­ter. Well, maybe there is some­thing to it. But one should learn how to do busi­ness by the ex­am­ple of those who can re­ally de­liver, who can work ef­fi­ciently.

Tra­di­tions Are A Good Thing, But…

Every­thing has its his­tory. You must use your knowl­edge and ex­pe­ri­ence, in­stead of throw­ing them away. Some­times you might think it is eas­ier to start the whole thing again from scratch. But how much will it cost you? This life les­son is some­thing we keep in mind ev­ery day in our busi­ness, says Yuri Moroz.

In one of the meet­ings I ex­pressed an opinion that it would be less costly to re­con­struct and re­fit the ex­ist­ing build­ings. Do not de­mol­ish what you have; mod­ern­ize what you

have in­stead. And keep in mind the need to pro­vide hous­ing and so­cial fa­cil­i­ties for your staff and keep your peo­ple so­cially se­cured.

Belovezh­sky was de­signed as a hog farm for breed­ing 108,000 hogs per year. The pro­duc­tion tar­gets set in the So­viet times have long been out­per­formed. It is not what we are talk­ing about now. We are now talk­ing about ways and ap­proaches to grow­ing the busi­ness.

It has al­ways been clear to me that buy­ing feed for an­i­mals is more ex­pen­sive than to ac­tu­ally man­u­fac­ture it your­self. You could also dab­ble with milk pro­duc­tion for a change, too. So, what we needed was the land and milk farms. Hav­ing made some cal­cu­la­tions, I fig­ured it would be cheaper to take un­der our su­per­vi­sion a cou­ple of loss-mak­ing busi­nesses and put some money into them and make them ef­fi­cient in­stead of buy­ing grain on the side; and the prof­its from the pro­duc­tion of milk could also come in handy.

Be­tween 1999 and 2002 we took over three former kolkhozes and made them two Belovezh­sky branches, Minkovichi and Karolin. We started to put money into them. We bought new ve­hi­cles and equip­ment. We de­mol­ished not a sin­gle build­ing. We re­fit­ted the ex­ist­ing ones. We as­phalted the roads to the farms. We cre­ated the nec­es­sary con­di­tions for the per­son­nel such as shower rooms, WCS, can­teens, locker rooms.

We tried to mo­ti­vate peo­ple thus cre­at­ing strong teams.

We were do­ing all this quickly and ac­cu­rately. Ev­ery­one knew their job and what they had to do. As a re­sult, ev­ery­one is happy. I am happy we ex­panded our prop­erty and ac­quired new lands for grow­ing feed, have more profit that we can in­vest in fur­ther de­vel­op­ment; our per­son­nel are happy about their work­ing con­di­tions and de­cent salaries.

To prove my point, I will give you some fig­ures. When we took over the kolkhoz Lenin­sky Put in 1999, it had a prof­itabil­ity of 3.8%. The yield per cow was 2,240kg, grain har­vest 17.4 cent­ners per hectare. To­day this is the Minkovichi branch. The milk yield per cow in 2010 was 7,529kg, grain har­vest in 2011 was 40.1 cent­ners per hectare.

The kolkhozes Ro­d­ina and Ros­siya had a prof­itabil­ity of 4.8% and 3.4% re­spec­tively. Milk yield per cow was 1,838kg and 2,105kg re­spec­tively; grain har­vest 19.3 and 31.0 cent­ners per hectare re­spec­tively. To­day this is the Karolin branch where the milk yield is 6,733kg and the grain har­vest 43.3 cent­ners per hectare.

The com­pany’s ag­gre­gate prof­itabil­ity has reached 23%. Do I have to men­tion any­thing more?

By in­vest­ing into our own com­pany we have turned around once low-profit com­pa­nies, re­duced an­i­mal feed­ing costs and made a profit on sell­ing milk.”

Why Stop­ping?

“When I was asked in 2011 to take over an­other com­pany, I weighed all pros and cons and de­cided to give it a try. Nat­u­rally, I thought that what once was the fa­mous across

the U.S.S.R. kolkhoz Sovi­et­skaya Belorus­siya would be bet­ter off. But as it turned out, you never know…

To cut the story short, we got a new branch, Ryasna. It added 5,983 hectares, in­clud­ing 3,110 hectares of plowed field, to what we had had. The lands were good, fer­tile, a tad ne­glected, but we are deal­ing with it now.

How­ever, all sec­tors of the new branch turned out to be loss-mak­ing, with a prof­itabil­ity of mi­nus 20.5%, and a grain yield of 36.5 cent­ners per hectare in 2010.

Look­ing at that mess, you might feel like burn­ing the whole lot to the ground and just re­build­ing every­thing anew. Giv­ing it a sec­ond thought, we fig­ured it would re­quire some se­ri­ous in­vest­ment and time which you sim­ply do not have in this busi­ness. So we rolled up our sleeves and got down to re­fit­ting and ren­o­vat­ing and re­viv­ing things there.

We have al­ready spent Br4.3 bil­lion to re­fit the farms Oberovshchina and Lumna. I will once again give some fig­ures for you to com­pare: in Jan­uary-july 2011 we spent 29 times more money on these farms than we did on Sovi­et­skaya Belorus­siya dur­ing the en­tire year 2010. The milk yield per cow has dou­bled at least.

Here are some more fig­ures. Last year Sovi­et­skaya Belorus­siya pro­duced merely one per­cent of ex­tra-grade milk. This year the well-su­per­vised work of the per­son­nel, rigid san­i­tary con­trol made it pos­si­ble to pro­duce 86% (!) of ex­tra-grade milk. The daily av­er­age in­crease in weight of bovine cat­tle was 737 grams, 248 grams more than last year. The feed spend­ing re­duced from 1.26 to 1.08 points. In 2011 the Ryasna branch re­ported the best grain yield, 51.99 cent­ners per hectare. Now that is what I call an achieve­ment! Ex­clud­ing the re­fit­ting and ren­o­va­tion ex­penses, to­day this branch is prof­itable and con­trib­utes to the fi­nan­cial sta­bil­ity of the whole com­pany. That said, this branch will, of course, slow down our growth a lit­tle this year, but the main thing is that this branch is no longer loss-mak­ing.

Now we have got to deal with the so­cial side of the busi­ness and con­tinue to in­vest in pro­duc­tion.

It is All About Peo­ple

We call our com­pany the com­plete-cy­cle agri­cul­tural and in­dus­trial com­plex. Our com­pany op­er­ates a 108,000-head hog breed­ing farm; three branches with plowed fields, seven bovine cat­tle farms, eleven milk farms, ve­hi­cle parks, grain-dry­ing fa­cil­i­ties; a feed fac­tory with a modern feed pro­duc­tion line; a meat fac­tory mak­ing 250 prod­ucts ready for con­sump­tion; a slaugh­ter shop with a ca­pac­ity of 55.5 tonnes per shift; a sausage shop, 16.5 tonnes of ready-made prod­ucts per shift. At the meat fac­tory, we have in­tro­duced the STB ISO 90012009 stan­dards and the HACCP to meet the re­quire­ments of STB 1470-2004. The qual­ity of all raw ma­te­ri­als and prod­ucts is con­trolled rig­or­ously at our lab­o­ra­to­ries. Our prod­ucts are branded Bel-moris and sold via our chain stores that we are now ex­pand­ing.

Fu­ture Plans

This year we have 72 young spe­cial­ists com­ing to us af­ter grad­u­a­tion from their vo­ca­tional schools and tech­ni­cal uni­ver­si­ties.

We have a tra­di­tion: ev­ery Septem­ber we give all our new peo­ple a crash course into how our com­pany works. It helps the new guys get to know each other bet­ter and take a look at how the busi­ness op­er­ates. It is not un­com­mon that young peo­ple meet their fu­ture spouses dur­ing such crash-course par­ties. Ev­ery new fam­ily gets a present from us, a house with all the fa­cil­i­ties. Why not live in the town of Belovezh­sky?

Of course, we do have cer­tain dif­fi­cul­ties, but these are com­mon for ev­ery­body. Consumer prices grow, and it is get­ting in­creas­ingly dif­fi­cult to keep spe­cial­ists by virtue of salaries. Peo­ple have got used not only to spend­ing money, but also to sav­ing it.

Ear­lier we could more or less eas­ily pro­vide our em­ploy­ees with hous­ing due to the national ru­ral hous­ing con­struc­tion pro­gram, which of­fered pref­er­en­tial loans at a min­i­mum in­ter­est rate and a 40-year in­stall­ment plan. To­day if we wrap up this pro­gram, we will not man­age to per­suade young peo­ple to stay. And young peo­ple are ab­so­lutely es­sen­tial for the coun­try­side, as well as the en­tire agri­cul­tural in­dus­try, to pros­per.”

What else can be added to what Yuri Moroz said? OJSC Belovezh­sky pros­pers, as does the town of Belovezh­sky. Flow­ers in home gar­dens are abun­dant, there are Euro­pean-style well-kept pa­tios. Ev­ery morn­ing the com­pany’s buses take em­ploy­ees to their work places, take them to lunch and back home. As ac­cu­rately as clock­work. One thou­sand and seven hun­dred em­ploy­ees work fruit­fully, earn de­cent money. OJSC Belovezh­sky pro­vides a wor­thy level of life for the res­i­dents of the whole re­gion that in­cludes 35 pop­u­la­tion cen­ters. All this is closely over­seen by Di­rec­tor Gen­eral Yuri Moroz.

This year

OJSC Belovezh­sky, Brest Oblast, has al­lo­cated 3,080 hectares of land for corn crops. The com­pany har­vested over 2,000 hectares of crops to stock up on green ma­te­rial for the cat­tle. Corn har­vested from the rest of the area went into the com­pany’s stor­age

En­large­ment of agri­cul­tural enterprises con­trib­utes to im­prov­ing their ef­fec­tive­ness, said Pres­i­dent of Be­larus Alexan­der Lukashenko as he vis­ited the agri­cul­tural com­pany OAO Belovezh­sky on 6 April. In his words, OAO Belovezh­sky is a good ex­am­ple of mod­ern­iza­tion of ex­ist­ing fa­cil­i­ties

OAO Belovezh­sky

is a com­plete­cy­cle en­ter­prise.

It gives the com­pany an ad­van­tage over most meat­pro­cess­ing enterprises that im­port raw

ma­te­ri­als. The com­pany

of­fers over 180 pro­pri­etary

prod­ucts to cus­tomers

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