02.12.2020
In the conditions of pandemic and global crisis the agricultural market reacts so hard. The market and customers became demanding including a responsiveness to the conditions. Period for business is so vulnerable now. Modern grain processing manufacturers should develop and renew their technologies and processing facilities. It influences result as quality of finish product and profit. It needed to control and analyze as prices of raw so abilities of end user.
We spoke to chief specialist Mykhailo Babych (CEO of “AGRO-SIMO-MASHBUD”) about market development and control levels.
Author:
— Good afternoon, how are you, dear Mykhailo! Does today's economic situation influence acting of your company? How do you think?
М.Б.:
- Yes, it does! Of course. Any changes leave deep mark on the business. You should take it into consideration. Moreover, pandemic has left the mark on global business for many months already. I think, we have to react quickly. We should find compromises in order to succeed deal with our clients. We sometimes have the clients which don't know what do they need exactly! For example, they don't sure what finish product they offer to end user (burley or wheat, cereal or flakes). In this case we are ready to make marketing surveys for such companies. We take into account different regions and consumer properties. Therefore, we aren't boring this period. The more complex and unstable market is, the more non-standard and creative solutions have to be used.
- What exactly changes do you have in your business, and what specific arrangements do you make?
- Step by step. Let's look at each of us.
Nowadays, we need healthy lifestyles anywhere we live. Healthy food is the basic part of the healthy lifestyles. But we don't have free time for this. Taking into account these facts, we offer the technologies for processing lines of cereal fast preparation. It could be universal cereal flakes processing lines, for flakes doesn't requiring cooking, lines of boiled-dried cereals, lines for the production of basic components of cereal drinks. Gluten-free products also are of increasing interest in the world. By the way, in 2019 our Hungarian customer started universal groats mill for 100% gluten-free oats on basic of our technological equipment. They attained European certificate. This is fourth gluten-free mill in Europe. Therefore, we try not only to respond to market requests, but also to form and promote these requests according to our capabilities, of course, taking into account their benefits for the end consumer.
- How much has the number of customer countries changed over the last 5-10 years? In short, what about sales territory?
- Our sales territory was about 5-6 countries 10 years ago yet. Now we supply the equipment to 16 countries. We would like to note European market as well. Now we have good contractors from Austria, Italy, Hungary, Lithuania, Latvia, Poland and the Republic of Slovakia. We are going to conclude the new contracts with France and Federal Republic of Germany to supply equipment set for cereal processing complexes. Take it for granted, we are supplying many units of equipment for Ukraine, Belarus, Kazakhstan and Russia.
- What about your competition? What is the strength of your company?
- In last years, the competition in the market of grain processing equipment has increased many times. There are dozens companies in this market from China, Turkey, Federal Republic of Germany, Italy, Switzerland. According to demand, there are many manufacturer of grain processing equipment in Ukraine, Belarus and Russia too. Therefore this market is full of business offer for the equipment. But their price is different depending on quality and efficiency.
Our strong point is our team. Base of our team was founded 20-25 years ago. We've produced 96 turnkey plants for grain processing for 28 years. We've got large experience and practice in design, manufacturing, assembling and commissioning. This is our good smart team. Due to our experience we can do manufacture high quality equipment with good outlet of finish product taking into account minimum costs of energy and human resources.
It is also important for customer that we undertake the obligation to carry out its maintenance, technological support within 20 years after the launch of the facility. And we also ready to supply spare quick-wear parts on customer's demand. Now there are so companies as “one-day companies”. The customer cant find such companies after equipment supply. Besides, our great strength is so fact as ability to increase opportunities of customers production lines in terms of productivity and product range. We can do it with minimum cost for our customers in 2-3 years after start of processing line.
- In your opinion, which equipment will be in great demand?
- As I said earlier, this is about technological equipment for healthy food processing. It's one of the most interesting and promising trend for future 5-10 years! On the other hand, let's look at the gross harvest of grain in Ukraine and compare it with the volume of exports. This fact and figures let us see business area where we can organize success business not exporting grain, but processing it locally.
State statistics show us 75,08 million tons of gross harvest of grain for 2019. Export value consists of over 60 million tons for 2019-2020. Partly, corn export is over 30 million tons. Taking into account this fact, I think the corn processing line is perspective business direction. It means processing line from more simple (cereal and feedstuff mills) to more difficult and complex lines for bioethanol and starch-syrup mills. In general, the organization of grain processing line is more profitable than a simple trade in grain.
- And finally, please give our readers some advice on what is the key to the company's successful work?
- Well we understand that now nature plays with us with reflective control. We cannot change this external factor, therefore it is necessary to take it into account and accept the conditions of the present actuality.
Don't panic! Don't give into the state of frustration! Fair play, honest work and professionalism always are on your winning side. I don’t want repeat ultimate truths from modern coach trainings. I speak about my experience. It is necessary not count on the amount of profit and quick "easy" money, but on highly qualified professional performance of the work, service and business for which you have undertaken. Individual customized approach and love of your work lead to success and profit. Lao Tzu said: “The journey of a thousand miles begins with a single step».
