How the Postavy Agro-Industrial Association Works
What are the advantages of the agro-industrial association in the Postavy district. And the disadvantages, which... simply do not exist
In February 2020, Decree No. 70 "On the Development of the Agro-Industrial Complex of the Vitebsk Region" was issued. On May 15 of the same year, Alexander Lukashenko made a trip to the Vitebsk region to personally assess the progress in creating integration structures in agriculture. The Head of State's conclusion is as follows: "Perhaps we have found an earthly form – an integration structure. Thanks to all of you, we have found it. My job was to analyze and say yes or no. I see that it is earthly. Feed comes from the land, and then milk, meat – for processing. Processed, sold, cash flows go back to where the milk and meat came from. This is normal. And in this way, we can revive the Vitebsk region in five years."
In the Vitebsk region, seven agro-industrial associations have been created on the basis of dairy and meat processing plants, which include more than 100 farms. The benefit is mutual. Processors help to purchase fertilizers and plant protection products on credit, carry out sowing, fodder harvesting, and crop harvesting within optimal deadlines, and support the reconstruction and construction of farms. As a result, agricultural enterprises produce more products, their economic situation improves, and the staff's salaries grow, while processors' capacities are utilized.
An agro-industrial association based on JSC "Postavy Dairy Plant" was created in April 2020. However, processors already had experience working with agricultural organizations: they had their own mechanical detachment, which helped farms with sowing, fodder harvesting, and crop harvesting. However, those relationships could be described as simply partnerships. After the creation of the holding company, the five agricultural enterprises that joined it began to be treated like their own children.
Sergey Chepik, Chairman of the Postavy District Executive Committee, noted that the weakest farms in the district joined the agro-industrial association:
— If it weren't for such a step, half of them would no longer exist. And thanks to the support of the dairy plant, they have strengthened and feel more confident financially, which has also had a positive impact on the district as a whole. It is enough to say that in 2020, compared to the previous year, gross production mThe yield increased by 6 percent. For the first time, a cow produced 4170 kilograms. In 2021, we will add about 200 more. And milk is the most profitable product, on which the economy of any farm primarily relies.
How are the relationships between farms and the plant structured? Does it support them, or do they have to pay for everything?
In February 2020, Decree No. 70 "On the Development of the Agro-Industrial Complex of the Vitebsk Region" was issued. On May 15 of the same year, Alexander Lukashenko made a trip to the Vitebsk region to personally assess the progress in creating integration structures in agriculture. The Head of State's conclusion is as follows: "Perhaps we have found an earthly form – an integration structure. Thanks to all of you, we have found it. My job was to analyze and say yes or no. I see that it is earthly. Feed comes from the land, and then milk, meat – for processing. Processed, sold, cash flows go back to where the milk and meat came from. This is normal. And in this way, we can revive the Vitebsk region in five years."
In the Vitebsk region, seven agro-industrial associations have been created on the basis of dairy and meat processing plants, which include more than 100 farms. The benefit is mutual. Processors help to purchase fertilizers and plant protection products on credit, carry out sowing, fodder harvesting, and crop harvesting within optimal deadlines, and support the reconstruction and construction of farms. As a result, agricultural enterprises produce more products, their economic situation improves, and the staff's salaries grow, while processors' capacities are utilized.
An agro-industrial association based on JSC "Postavy Dairy Plant" was created in April 2020. However, processors already had experience working with agricultural organizations: they had their own mechanical detachment, which helped farms with sowing, fodder harvesting, and crop harvesting. However, those relationships could be described as simply partnerships. After the creation of the holding company, the five agricultural enterprises that joined it began to be treated like their own children.
Sergey Chepik, Chairman of the Postavy District Executive Committee, noted that the weakest farms in the district joined the agro-industrial association:
— If it weren't for such a step, half of them would no longer exist. And thanks to the support of the dairy plant, they have strengthened and feel more confident financially, which has also had a positive impact on the district as a whole. It is enough to say that in 2020, compared to the previous year, gross production mThe yield increased by 6 percent. For the first time, a cow produced 4170 kilograms. In 2021, we will add about 200 more. And milk is the most profitable product, on which the economy of any farm primarily relies.
How are the relationships between farms and the plant structured? Does it support them, or do they have to pay for everything?
— Every agricultural enterprise has a bank account, — explained Georgy Kosten, First Deputy Director of JSC "Postavy Dairy Plant". — The farms manage their own money, but all actions in this matter are coordinated with us. They send payments and report the sources from which they are planned to be made.
The plant management decides whether to give the go-ahead or not, that is, they control that everyone lives within their means. We regularly pay for the milk sold to us.
Since the agro-industrial association was created, in part, to improve the situation in the farms, it is important to hear from their representatives how this has specifically manifested.
Heads and specialists of agricultural enterprises are primarily grateful to the holding's mechanical detachment.
— It has high-performance equipment that allows all work to be carried out within the best deadlines, — said Alexander Shimkovich, Manager of JSC "Yanovicha-agro". — The grasses do not overstay, they are harvested in the optimal phase when they contain the maximum amount of nutrients. As a result, with the same amount of feed, more milk can be obtained. Naturally, we pay the mechanical detachment for their work.
There was also gratuitous assistance: the plant allocated 150 thousand rubles to the farm for the construction of a calf barn. This is an opportunity to raise not only good young stock, but also future high-yielding cows. Consequently, more milk, and therefore, benefits for the farm and the plant.
First results: thanks to the support of processors, milk production in the farm this year will increase by 10 percent.
Vasily Kosten, Manager of JSC "Kuropolie-agro", is grateful to the holding for lending a hand in purchasing plant protection products, mineral fertilizers, and corn seeds:
— It is difficult for weak farms to cope with all this. Previously, lacking resources, they sowed in empty land, obtaining low yields. Year after year, everything repeated itself. Now there is an opportunity to break out of the vicious circle. But most importantly, these resources are given to us on credit, and we can pay with milk in the off-season. As you know, fertilizers are needed in the spring here and now.
The plant also helped on credit, and partially as a sponsor,the farm repaired four roofs of livestock buildings. Now they can function normally. All this had a favorable impact on milk, the gross production of which has increased by almost 9 percent since the beginning of the year. An additional 248 tons were sold for over 200 thousand rubles – a good addition to the bank account. As a result, the average salary was raised to 719 rubles, and milkmaids receive 1-1.2 thousand. The chief economist of OJSC "Kuropolie-agro" Lyudmila Lackotka also spoke favorably about the methodological assistance from the parent enterprise. Employees of the economic and accounting services constantly turn to their colleagues at the factory for valuable consultations. They know the market better, so they advise the farm where and what can be bought cheaper. Although farms buy equipment themselves, the factory does not stand aside either. "Due to the weak financial condition of agricultural enterprises, they sometimes cannot make lease payments on time," said Georgy Kosten. "Therefore, they were often denied the purchase of machinery and equipment on credit before. Now we act as a guarantor, and the lessor is confident: the factory will pay for the farm if it doesn't have money at some point. And we will then deduct these funds from the milk sold to us. It's good for all three parties. But the main thing is that the purchased equipment works in the fields and farms, producing products." Another aspect of successful cooperation within the holding is construction. OJSC "Kamaysky-Agro" is building a new dairy complex for 800 head of dairy herd. Money, as usual, is not enough. "We partially use our own funds," said manager Vladislav Shershnev, "we plan to take a loan from the bank. Although it is preferential, we still have to pay interest. But great gratitude to the dairy plant for providing 2 million rubles interest-free. Of course, they need to be returned, but only after the farm is commissioned. We will pay with milk." The chief zootechnicians of OJSC "Znamya Pobedy Agro" Tatyana Grod and KUSP "Dunilovichi-Agro" Emma Gasyuk particularly noted the methodological and practical assistance of the agricultural management department of the agro-industrial association inabout the head of the department, Natalia Lovshenko. Her employees are constantly on farms, working in the fields.
Natalia Lovshenko herself explained:
— Our department has been tasked with improving the technology for raising young stock and milk production. Two teams of veterinarians have been created: one deals with gynecology, the second with orthopedics. Specialists are engaged in the treatment and prevention of hoof diseases. We understand that there is still a lot of work ahead, but the first success is that we have managed to reduce livestock losses.
Of course, it is too early to talk about significant achievements of the agro-industrial association, but there is progress nonetheless. In a year and a half, gross milk production in the farms that initially were part of the holding has increased by 6 percent. And considering one more farm that joined, by 16 percent. Now there is less need to travel outside the region and transport raw materials from afar for processing. Another important fact is that the sales of premium grade milk have increased from 30 to 50 percent. The benefit is mutual. Farms receive more money, and the enterprise gets high-quality milk for cheese production.
Farms within the integration structure supply about 30 percent of the milk to the plant, another equal amount comes from other agricultural enterprises in the district. The rest has to be purchased from outside. And transporting it, for example, from Smolevichi or Logoisk is not cheap.
– The task has been set to increase the production of our own milk in the district to 80 percent of the plant's needs by 2025, — said the Chairman of the Podosky District Executive Committee, Sergey Chepik. — To achieve this, after the construction of the dairy complex at OAO "Kamaysky-Agro", it is planned to build two more. Work began several years ago at OAO "Kuropoly-Agro" and "Znamya Pobedy Agro", but was suspended due to lack of funds. With the help of the dairy plant, it is planned to resume construction.
By the way, the assistance from the plant and the improvement of the financial condition of the farms have allowed more attention to be paid to the renovation of livestock premises and their construction from light structures. For example, at OAO "Kamaysky-Agro", two calf houses (each for 200 heads) were reconstructed, and prophylaxis rooms were built at two dairy farms; work is also underway in theonstruction for the dairy herd. There are many such facts in other farms as well.
COMMENT
The plant management decides whether to give the go-ahead or not, that is, they control that everyone lives within their means. We regularly pay for the milk sold to us.
Since the agro-industrial association was created, in part, to improve the situation in the farms, it is important to hear from their representatives how this has specifically manifested.
Heads and specialists of agricultural enterprises are primarily grateful to the holding's mechanical detachment.
— It has high-performance equipment that allows all work to be carried out within the best deadlines, — said Alexander Shimkovich, Manager of JSC "Yanovicha-agro". — The grasses do not overstay, they are harvested in the optimal phase when they contain the maximum amount of nutrients. As a result, with the same amount of feed, more milk can be obtained. Naturally, we pay the mechanical detachment for their work.
There was also gratuitous assistance: the plant allocated 150 thousand rubles to the farm for the construction of a calf barn. This is an opportunity to raise not only good young stock, but also future high-yielding cows. Consequently, more milk, and therefore, benefits for the farm and the plant.
First results: thanks to the support of processors, milk production in the farm this year will increase by 10 percent.
Vasily Kosten, Manager of JSC "Kuropolie-agro", is grateful to the holding for lending a hand in purchasing plant protection products, mineral fertilizers, and corn seeds:
— It is difficult for weak farms to cope with all this. Previously, lacking resources, they sowed in empty land, obtaining low yields. Year after year, everything repeated itself. Now there is an opportunity to break out of the vicious circle. But most importantly, these resources are given to us on credit, and we can pay with milk in the off-season. As you know, fertilizers are needed in the spring here and now.
The plant also helped on credit, and partially as a sponsor,the farm repaired four roofs of livestock buildings. Now they can function normally. All this had a favorable impact on milk, the gross production of which has increased by almost 9 percent since the beginning of the year. An additional 248 tons were sold for over 200 thousand rubles – a good addition to the bank account. As a result, the average salary was raised to 719 rubles, and milkmaids receive 1-1.2 thousand. The chief economist of OJSC "Kuropolie-agro" Lyudmila Lackotka also spoke favorably about the methodological assistance from the parent enterprise. Employees of the economic and accounting services constantly turn to their colleagues at the factory for valuable consultations. They know the market better, so they advise the farm where and what can be bought cheaper. Although farms buy equipment themselves, the factory does not stand aside either. "Due to the weak financial condition of agricultural enterprises, they sometimes cannot make lease payments on time," said Georgy Kosten. "Therefore, they were often denied the purchase of machinery and equipment on credit before. Now we act as a guarantor, and the lessor is confident: the factory will pay for the farm if it doesn't have money at some point. And we will then deduct these funds from the milk sold to us. It's good for all three parties. But the main thing is that the purchased equipment works in the fields and farms, producing products." Another aspect of successful cooperation within the holding is construction. OJSC "Kamaysky-Agro" is building a new dairy complex for 800 head of dairy herd. Money, as usual, is not enough. "We partially use our own funds," said manager Vladislav Shershnev, "we plan to take a loan from the bank. Although it is preferential, we still have to pay interest. But great gratitude to the dairy plant for providing 2 million rubles interest-free. Of course, they need to be returned, but only after the farm is commissioned. We will pay with milk." The chief zootechnicians of OJSC "Znamya Pobedy Agro" Tatyana Grod and KUSP "Dunilovichi-Agro" Emma Gasyuk particularly noted the methodological and practical assistance of the agricultural management department of the agro-industrial association inabout the head of the department, Natalia Lovshenko. Her employees are constantly on farms, working in the fields.
Natalia Lovshenko herself explained:
— Our department has been tasked with improving the technology for raising young stock and milk production. Two teams of veterinarians have been created: one deals with gynecology, the second with orthopedics. Specialists are engaged in the treatment and prevention of hoof diseases. We understand that there is still a lot of work ahead, but the first success is that we have managed to reduce livestock losses.
Of course, it is too early to talk about significant achievements of the agro-industrial association, but there is progress nonetheless. In a year and a half, gross milk production in the farms that initially were part of the holding has increased by 6 percent. And considering one more farm that joined, by 16 percent. Now there is less need to travel outside the region and transport raw materials from afar for processing. Another important fact is that the sales of premium grade milk have increased from 30 to 50 percent. The benefit is mutual. Farms receive more money, and the enterprise gets high-quality milk for cheese production.
Farms within the integration structure supply about 30 percent of the milk to the plant, another equal amount comes from other agricultural enterprises in the district. The rest has to be purchased from outside. And transporting it, for example, from Smolevichi or Logoisk is not cheap.
– The task has been set to increase the production of our own milk in the district to 80 percent of the plant's needs by 2025, — said the Chairman of the Podosky District Executive Committee, Sergey Chepik. — To achieve this, after the construction of the dairy complex at OAO "Kamaysky-Agro", it is planned to build two more. Work began several years ago at OAO "Kuropoly-Agro" and "Znamya Pobedy Agro", but was suspended due to lack of funds. With the help of the dairy plant, it is planned to resume construction.
By the way, the assistance from the plant and the improvement of the financial condition of the farms have allowed more attention to be paid to the renovation of livestock premises and their construction from light structures. For example, at OAO "Kamaysky-Agro", two calf houses (each for 200 heads) were reconstructed, and prophylaxis rooms were built at two dairy farms; work is also underway in theonstruction for the dairy herd. There are many such facts in other farms as well.
COMMENT
Chairman of the Committee for Agriculture and Food of the Vitebsk Regional Executive Committee Sergey Egorov:
— Approximately half of all agricultural enterprises are part of the region's agro-industrial associations. Their support from processors is significant. First of all, the technical aspect should be noted. The parent enterprises have many different machines and mechanisms at their disposal, and by maneuvering them, they help ensure that field work is carried out within optimal deadlines in all farms. Thanks to the contribution of agro-industrial associations and their technical assistance, the winter crop acreage has been increased this year: 23 percent more rapeseed has been sown than in 2020, and grain crops – by 18 percent. This will allow for a good increase in yield in 2022, as winter crops are always more efficient than spring crops.
— Approximately half of all agricultural enterprises are part of the region's agro-industrial associations. Their support from processors is significant. First of all, the technical aspect should be noted. The parent enterprises have many different machines and mechanisms at their disposal, and by maneuvering them, they help ensure that field work is carried out within optimal deadlines in all farms. Thanks to the contribution of agro-industrial associations and their technical assistance, the winter crop acreage has been increased this year: 23 percent more rapeseed has been sown than in 2020, and grain crops – by 18 percent. This will allow for a good increase in yield in 2022, as winter crops are always more efficient than spring crops.