14.10.2011
Lukashenko urges 12-13% profitability of Belarusian agriculture
CHERVEN DISTRICT, 14 October (BelTA) - In the coming years the agriculture industry needs to reach the return on sales of 12-13%, head of state Alexander Lukashenko said during a working trip to Minsk Oblast on 14 October.
According to Alexander Lukashenko, it is necessary to establish some performance benchmarks not only for gross production in agriculture, but also for return on sales. “Today 10% of return on sales is feasible; 12-13% is a dream which should come true in the next 2 or 3 years. Next year we need to do our level best to retain 10%. 11% will be a very good return on sales,” Alexander Lukashenko said.
In this connection, Chairman of the Minsk Oblast Executive Committee Boris Batura proposed to develop a rigid methodology of accounting for all costs in agriculture, as different approaches are used today. “This will not generate more money, but would enable an objective accounting,” he said. “Let us get it done during winter,” Alexander Lukashenko agreed.
The President once again drew attention to the need to ensure appropriate storage conditions.
During the trip to Cherven District, the head of state got familiarized with the operation of the agricultural branches “Agro-Box” and “Agro-Box-Zootekh” of the Belarusian-Italian joint venture “Unibox”. This group of companies is starting the production of modern machines and agricultural facilities that are tested at the companies. This group of companies may be the first in the country to start producing dairy farms on a turnkey basis. In addition, the company ensures necessary education and training of specialists, uses its own newest and experimental equipment to get high results in the production of agricultural products and reducing costs. In particular, the dairy farm “Chernova” of “Agro-Box-Zootekh”, which the head of state was given a guided tour of, uses resource-saving technologies and renewable energy. For example, it employs a system which uses energy obtained from milk cooling, water heating. The company also uses solar power and wind turbines.
Taking into account high performance of the company and its advanced technological level, Boris Batura suggested setting up a joint venture in collaboration with the Smilovichi Agricultural College. The head of sate approved of the idea but emphasized a necessity to meet a number of requirements. “First of all, budget financing is to be reduced. Secondly, the personnel training should remain at the same high level,” the President said.
The Belarusian leader was updated on the technologies implemented by the company. The President was shown modern import-substituting equipment for fodder conservation and mixing, mechanization of local cattle farms. For instance, owing to technical novelties, the milk sales margin exceeded 28%. A modern approach and world practices employed in cattle feeding has enabled the company to avoid cattle diseases and enhance the quality of products.
While getting familiar with the company’s showroom, Alexander Lukashenko stressed the necessity to establish industrial cooperation with other agricultural producers in Belarus.
“Well done. It is all and always about managing skills and discipline,” Alexander Lukashenko said addressing Unibox Director General Sergei Rusak.
The head of state emphasized that such valuable experience should be actively adopted across the country. “There are very few private entrepreneurs of such level in the country. We need iron discipline in what concerns technologies,” the Belarusian leader said.
“This is what we should aim for. This is our future,” the President added.
According to Alexander Lukashenko, it is necessary to establish some performance benchmarks not only for gross production in agriculture, but also for return on sales. “Today 10% of return on sales is feasible; 12-13% is a dream which should come true in the next 2 or 3 years. Next year we need to do our level best to retain 10%. 11% will be a very good return on sales,” Alexander Lukashenko said.
In this connection, Chairman of the Minsk Oblast Executive Committee Boris Batura proposed to develop a rigid methodology of accounting for all costs in agriculture, as different approaches are used today. “This will not generate more money, but would enable an objective accounting,” he said. “Let us get it done during winter,” Alexander Lukashenko agreed.
The President once again drew attention to the need to ensure appropriate storage conditions.
During the trip to Cherven District, the head of state got familiarized with the operation of the agricultural branches “Agro-Box” and “Agro-Box-Zootekh” of the Belarusian-Italian joint venture “Unibox”. This group of companies is starting the production of modern machines and agricultural facilities that are tested at the companies. This group of companies may be the first in the country to start producing dairy farms on a turnkey basis. In addition, the company ensures necessary education and training of specialists, uses its own newest and experimental equipment to get high results in the production of agricultural products and reducing costs. In particular, the dairy farm “Chernova” of “Agro-Box-Zootekh”, which the head of state was given a guided tour of, uses resource-saving technologies and renewable energy. For example, it employs a system which uses energy obtained from milk cooling, water heating. The company also uses solar power and wind turbines.
Taking into account high performance of the company and its advanced technological level, Boris Batura suggested setting up a joint venture in collaboration with the Smilovichi Agricultural College. The head of sate approved of the idea but emphasized a necessity to meet a number of requirements. “First of all, budget financing is to be reduced. Secondly, the personnel training should remain at the same high level,” the President said.
The Belarusian leader was updated on the technologies implemented by the company. The President was shown modern import-substituting equipment for fodder conservation and mixing, mechanization of local cattle farms. For instance, owing to technical novelties, the milk sales margin exceeded 28%. A modern approach and world practices employed in cattle feeding has enabled the company to avoid cattle diseases and enhance the quality of products.
While getting familiar with the company’s showroom, Alexander Lukashenko stressed the necessity to establish industrial cooperation with other agricultural producers in Belarus.
“Well done. It is all and always about managing skills and discipline,” Alexander Lukashenko said addressing Unibox Director General Sergei Rusak.
The head of state emphasized that such valuable experience should be actively adopted across the country. “There are very few private entrepreneurs of such level in the country. We need iron discipline in what concerns technologies,” the Belarusian leader said.
“This is what we should aim for. This is our future,” the President added.