As an experiment, free pricing on milk raw materials will be introduced in the Mogilev Region. If successful, this experience will be extended across the country.
During a recent trip to the Belynichi District, the President of Belarus Alexander Lukashenko visited a cheese factory, which is part of the Mogilev dairy company, Babushkina Krynka. It is a rather big and modern enterprise. Its modernisation is a good example for replication at similar enterprises. The project, which according to estimations should pay for itself in four years, has justified itself already in one and a half years. Production is selling like hot cakes! Only one and a half percent of monthly production is stored in a warehouse. The factory studies the requirements of the market and according to this data, develops production policy. Shipments for export are made only on advance payment. Thus buyers, for example in Russia, are ready to pay 20-30 percent more for our production, than for production of their own manufacturers. Belarusian cheese, as well as other dairy products, are the goods for which people are ready to pay more as the quality is always excellent.
On the factory floor of the Mogilev dairy company, Babushkina Krynka
The Babushkina KrynkaHolding develops dynamically. Farms of 21 districts in the region produce milk. At the beginning of the formation of the holding, it completely consumed the raw materials of 9 districts; today it’s raised to 19. In Shklov and Gorki districts it takes 32 and 19 percent accordingly. Production increases, but demand for milk also grows. The task should be solved at by an increase of the efficiency of livestock breeding, but also in an atmosphere of healthy competition in order that it remains profitable for farms to deliver their production to the enterprises where the best conditions are offered.
The President asked the Director of the holding, Igor Kononchuk, how to stimulate farmers to give their raw materials to Babushkina Krynka. It’s a simple process. The determining factors are price, conditions of payment and prepayment for agricultural manufacturers. Moreover, Krynka also participates in the construction of modern dairy complexes and helps farms to replenish their livestock populations. It means that the enterprise works towards the strengthening of the raw-material base.
Whilst there, the President made a decision. “Mogilev Region will introduce free pricing and access of milk manufacturers to consumers. If you win, then you will get the milk in the Mogilev Region. And nobody will reproach us. We have given the opportunity to secure the raw materials zone,” said the President.
Milk has become one of our main strategic resources. Dairy products provide a considerable inflow of currency from exports into the country. The competition among processors for the supply of raw materials becomes more intense. And now it is time to place this situation at the service of the villagers. If factories start to compete against each other, as to who will pay more, then maybe farms will receive additional benefits too. Superfluous administrative pressure is not needed here.
Alexander Lukashenko insistently warned against one thing — there should not be any cases of corruption or collusions of suppliers and consumers. However, it is easy to reveal such cases. If one factory gives obviously better conditions, but the raw materials are supplied to another factory, then it is an occasion to look into it more deeply.
During his working trip to Belynichi, the President gave a number of important instructions.
Personnel
Alexander Lukashenko demanded better work on the formation of the reserve of managerial personnel. He asked Igor Kononchuk whether he prepared the replacement for himself in case he will change his job. The director was at a loss with an answer. And the President noted that the problem has a wider interpretation. At times, it is difficult to find candidates in the country to fill vacant positions of various levels. However, it does not mean that there are no good specialists. Alexander Lukashenko is convinced that it is the system of appointment of successors for responsible posts, which malfunctions. It should be noted by corresponding Heads who are responsible for working with personnel.
Harvest campaigns
Alexander Lukashenko called the forthcoming harvest season ‘very hard’. Crops have grown excellently and they should be harvested lost-free.
Cement holdings
The President supported offers on the creation of a single company based around Belarusian Cement Plant JSC with a branch in Klimovichi and two industrial platforms in Krichev.
Both enterprises are only 30km from each other, but compete between themselves. Each of them has their own repair and marketing services. At the expense of optimisation, they will be able to essentially reduce costs and to raise overall performance.
