Manufacturers are ready for tough competition, but on equal terms
Domestic meat market undergoes serious challenges. After the collapse of the Russian ruble, Kazakhstan experiences an immense flow of cheap products from neighbouring countries. In these circumstances, local producers have a hard time. To learn how to survive in the competition and not to lose your customer, we talk to the director of one of the largest meat-packing plants in Kostanai region LLP "Karasu-Em" Baurzhan Kuschugulov.
- Baurzhan Asylkhanovich if before the creation of EAEU and the events in Russia, our meat businesses could easily benefit, while today many are suffering. But the President has repeatedly warned businessmen: get ready, while there is time. Your plant was ready for such an event?
- Our advantage is that we managed to deserve the consumer's trust before these events. I was almost for ten years engaged in meat industry, I am the head of LLP "Karasu-Em" as of 2011. During this period, our products have become famous and highly demanded by consumers. Of course, the creation of the Customs Union and the EAEU increased competition many times, and now we somehow have to develop, to improve, to introduce new technologies. In general, we must keep up with the pace of the market. And it is sometimes very difficult. I think that now we have internal problems and we solve them successfully. But external pressure is strong, and it is pushes us to move forward and not to stand still.
- Why our companies did not anticipate such developments and, accordingly, did not take preventive measures?
- I must admit that there are a lot of imported meat products on the local market. Price wise these products are cheaper than local products and, alas, the first thing that draws the attention of the consumer - is the price tag. We recorded a drop in sales in some segments. Why do we overcome the fall of the ruble easier than others? Just because we anticipated and prepared for it, we have developed our own mechanisms of combating it. For example, now we supply our products to the neighbouring regions of our country, Astana, Karaganda region. So that Kazakhs could try and evaluate it.
- Can we say that the whole industry is going through a crisis?
- If we compare the results of 2013, the volume of our indicators did not fall. Over the past 2014 there was observed an increase of 10-15%. Of course, this year started easy, but January and February are always the most difficult. And since the spring, we will increase sales, as I said, by 10-15%. We constantly seek and find new partners, it allows us to develop. I think that our colleagues have no reason to raise a panic.
- Currently the Government and the National Chamber plan allocation of funds that will cover the costs of enterprises in terms of promotion of their products on the domestic market through the stores, retail chains. What do you think, will such a measure help our businessmen?
- It will definitely help someone. Wider distribution network of a particular firm provides more opportunities for sales. It is important that today the voice of business is heard in this respect NCE undertook the difficult but very important consolidated function. We meet periodically at round tables, talking about the problems, we offer solutions.
- There is an opinion that business asks too much support from the state, for example...
- We must understand that we are ready to work with any competitors, but on equal terms. And while these conditions are not equal due to various, including economic realities, support is needed. This is the position of a healthy partnership. Subsidies, loans are available. The main thing that is that aid is available, and in this case the policy of banks decides a lot.
- One thing to count on the support, the other thing to render it. Do not forget about the social obligations. How close do you think should be a partnership of business and society?
- In no case should not suffer employees. I believe social responsibility is one of the essential components of a modern entrepreneur. "Karasu Em", for example, annually provides assistance in sporting cultural events. We try to financially support the society of women with disabilities, deaf society. Consistently participate in the celebration of Victory Day, we help children within the campaign "Road to school". We can’t stay away from such things, because business is people. On their shoulders all the success and achievements.
Aslan Kudabaev
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