Zhidkov on import substitution, new industries and promising export directions

Despite the sanctions pressure, Belgospischeprom enterprises manage to produce high-quality products, renovate production facilities, increase EXPORT deliveries, and also meet other performance indicators. Oleg Zhidkov, Chairman of the Belgospischeprom Concern, spoke about import substitution, ongoing projects, as well as priority goals and objectives for the current year in an interview with a BelTA correspondent.

- Oleg Nikolaevich, tell us how the enterprises of the concern worked last year? Were you able to meet the forecasts? How do you evaluate the results in general?

- Organizations that are part of the concern showed good results in 2022 and made a worthy contribution to the development of the country's economy. The indicators and tasks brought to "Belgospischeprom" were fulfilled in full.

All enterprises of the concern started working effectively. As early as January 1, 2022, Belgospischeprom included six unprofitable enterprises.

According to the results of work in January-December, the volume of exports of our organizations amounted to 115% compared to 2021. Of course, our sweets, fruits and vegetables, alcoholic and non-alcoholic drinks are in demand abroad. There is always an increased demand for SUGAR and SALT. By the way, Mozyrsalt OJSC products occupy a quarter of the Russian salt market, including more than half in the extra salt market segment. In addition to the Russian Federation, salt is exported to 14 other countries.

As we can see, international economic and political turbulence did not have a negative impact on the export activities of Belgospischeprom enterprises.

The group’s average monthly wage also increased: the growth rate of real wages was 110.2% compared to the corresponding period of 2021.

- How sensitive are the sanctions restrictions for the enterprises of the industry? How quickly did they adapt to new realities, reorient themselves to new markets?

- Even the time of the pandemic showed that in the modern world it is necessary to navigate immediately and quickly respond to all changes. Therefore, the period of reorientation to new markets for our enterprises was short. We reoriented primarily to the markets of the CIS countries, increased exports to the countries of the Middle East.

- Which countries are the most promising for the export of Belarusian products? Do you plan to expand the geography of deliveries?

- The geography of deliveries of the concern's enterprises is quite wide - it is about 50 countries. Of course, export reorientation continues. In 2022, the share of exports to the EAEU countries was 68%, to the EU countries - 14%, the share of other countries - 18%.

As before, our main market is Russian. At the same time, we continue to diversify exports. For example, last year our enterprises began to supply more products to the countries of the Persian Gulf. ALCOHOL , malt and vegetable oil were shipped to the African continent .

- One of the promising export directions is the Chinese market. Do businesses adapt their products to it? Are the taste preferences of residents of different regions taken into account in general?

- Today we have more than 30 active contracts with CHINA. We export almost the entire range of our products to the Chinese market: rapeseed oil, confectionery (chocolate, chocolates, biscuits), strong alcoholic drinks, and sparkling wines have been supplying sugar for several years in a row.

In 2022, we expanded the range of export products: the first batches of fruit baby food and oatmeal were shipped.

Two of our flagship enterprises in the confectionery industry, SOAO Kommunarka and JV OAO Spartak, already have representatives in China , which indicates a growing demand for our products from both the Chinese consumer and the Chinese business.

Most of China is a European-oriented population with its own culture, centuries-old traditions and original taste preferences. Therefore, we, as manufacturers, are faced with the task of not only producing a high-quality Belarusian product that meets the state food safety standard of the PRC, but also adapting it to the taste preferences of the people of China.

In order to study the demand and better understand the Chinese consumer, before the pandemic year of 2020, we participated in all Chinese international exhibitions. In 2022, our products were exhibited at the 5th China International Import Expo in Shanghai. As part of the presentations, we always arrange product tasting so that potential consumers can appreciate the taste and quality of our products.

As for taste preferences, our technologists always analyze the target audience and study the preferences of potential buyers. Before entering a new market, we come up with something that can be developed unique. Adding pepper to orange jam or, for example, producing sugar-reduced sweets - our factories are ready for any experiment.

- How is the process of import substitution now established? What results have been achieved? What enterprises offer for import substitution?

- In 2022, the total output of import-substituting products by Belgospischeprom enterprises increased by 10%. The share of import-substituting goods in the total volume of industrial production of the concern amounted to about 34%.

There are interesting projects in the alcohol and brewing industries. The leader in updating the assortment line and introducing import-substituting projects is, of course, the confectionery sector - in recent years, more than 30 projects have been implemented, as a result of which more than 100 new types of chocolate have been released in the confectionery industry, including analogues of well-known brands.

In February, at the international exhibition "Prodexpo-2023", which was held in Moscow, our developments were highly appreciated. More than 2,000 manufacturers and suppliers of food and beverages took part in the exhibition, including 16 enterprises that are part of the Belgospischeprom concern. As part of the exhibition, new types of products were awarded laureate diplomas and gold medals of the international competition "Best Product - 2022", and Impresso chocolate with praline filling from the Spartak confectionery factory was awarded the honorary prize "Achievements in Import Substitution". SOAO "Kommunarka" and JSC "Krasny Pischevik" won the Grand Prix of the competition.

- Are there enough sugar reserves for the needs of the domestic market? What volume are you planning to ship for export?

- If we compare the amount of sugar reserves in February 2022 and 2023, then today this figure is 50 thousand tons more.

As for export shipments, the free resource of sugar from the 2022 harvest will be sold.

To supply the domestic market in 2023, sugar industry organizations plan to sell about 400 thousand tons, including 200 thousand tons to retail chains.

- Sunflower oil has always arrived on the shelves of Belarusian stores from neighboring countries. And how much do we produce this product ourselves?

- Oil-producing enterprises of the concern do indeed partially purchase sunflower seeds in neighboring countries. Then they are processed, refined, deodorized and bottled into PET bottles. Butter is supplied to the shops by the enterprises of the concern - the MINSK Margarine Plant, the Gomel Fat Plant, the Bobruisk Plant of Vegetable Oils.

The share of sales of domestic sunflower oil in the republic is about 1%, and the share of rapeseed oil has grown to 10% over the past two years.

Due to the fact that mainly rapeseed is grown in Belarus, the sown area for sunflower occupies a small amount. But already this year it is planned to increase the sown areas of an important oil crop - sunflower.

- How are things going with the production of rapeseed oil? Is the demand for this product growing among Belarusians? Which countries are interested in supplies of Belarusian rapeseed oil?

- In Belarus, with its soil and climatic conditions, the only reserve for increasing the production of oil, as well as fodder protein, is rapeseed.

Based on the current price situation and demand for vegetable (sunflower, rapeseed) oil in the domestic and foreign markets, domestic rapeseed oil is the main oil and fat raw material in food production.

Today, the work of the oil and fat industry is aimed at the maximum possible self-sufficiency of the republic with vegetable oil and finished products.

In order to popularize rapeseed oil, the concern implemented a large-format social advertising project in 2021-2022, which has already brought certain results.

In 2022, the sales of bottled rapeseed oil on the domestic market increased by almost 1.5 times compared to 2021 and 5.5 times compared to 2020. For 12 months of 2022, the enterprises that are part of the Belgospischeprom concern supplied more than 5 thousand tons of bottled rapeseed oil to the domestic market of the republic.

In 2022, crude rapeseed oil was exported to China and European Union countries. The main buyer of domestic rapeseed oil in PET bottles is Israel, where supplies of finished products are increasing from year to year.

- Enterprises of "Belgospischeprom" present their products at various exhibitions. What effect do you see from participating in such events? What products are of the most interest?

- International exhibitions enable our enterprises to convey information about their products directly to consumers and partners. By participating in such events, you can study the attitude of visitors to the exhibition, their preferences, in order to further adapt the design and composition of products to the requirements of a particular market. The economic effect of participation can be long-term, as many enterprises find their permanent counterparties.

When it comes to products, everything depends on the market. For example, in the CIS countries, our confectionery and alcoholic products are in demand, in Muslim countries only confectionery products are preferred, in African countries, fast food products are in demand - mashed potatoes and cereals are among the leaders.

- What are the goals of the Belgospischeprom concern for this year?

- Goals and plans, of course, always a lot. For example, in the spring we plan to hold an international confectioners' symposium - the largest event in the confectionery industry. The event will be held as part of the Food Prom Confectionery exhibition.

In addition, in 2023, the technical re-equipment of the concern's organizations continues, which will undoubtedly affect the expansion of the product line.

In particular, JV JSC "Spartak" is implementing a project that provides for the installation of equipment for the production and packaging of bar chocolate. At the Krasny Mozyryanin factory, it is planned to reconstruct the iris section with the introduction of new equipment.

JSC "Confectionery factory "Slodych" is implementing a project for the production of wafer rolls with filling. The equipment has already arrived at the production site in Molodechno. It is also planned to implement a project to purchase and install a line for the production of soft caramel with access to additional production facilities and the creation of 40 jobs when organizing two-shift work.

The Kommunarka Confectionery is implementing an investment project to create an innovative import-substituting full-cycle production for processing cocoa beans, using digital online quality control systems that meet the requirements of international standards. The volume of production of semi-finished products is planned to be more than 30 thousand tons per year. Only cocoa beans will be purchased. Everything else at the factory will be able to produce themselves - this is grated cocoa, cocoa butter, cocoa powder.

BELTA.