The news of Agribusiness Development Agency of Kaluga region

Mosmedynagroprom won't be closed


As it was mentioned in the Press Service of the department, such a decision had been accepted to support domestic production and to supply food security. The deputy of a director, Sergei Rezunenko, told us that holding was profitable, gave Moscow schools milk production «Bolshaya peremena» and planned to increase retails in the capital.

TheDairyNews announced t in August.

Moscow has 99, 9 % of the shares of PLC «MosMedinagroprom». These are 12 thousand Ha in Kaluga region, more than 7, 2 thousand cows, more than 250 units of equipment and more than 120 units of transport. The holding gives Moscow schools milk products «Bolshaya peremena». People can buy it in such retail nets as «Metro» and «Atak».

The first auction for agroholding selling was appointed in April, 2013. It cost 4, 9 mln RUB. At that time there were no applications and the auction failed. Then the price was 1, 9 mln RUB, but still nobody wanted to participate. In February, 2014 the city administration decided not to sell it.

Luzhkov and bees.

The agroholding was opened 8 years ago by the ex-mayor of Moscow, Yuri Luzhkov – it cost 8,6 bln RUB. 6 ex-state farms, which were not far from Medin, were included, it got new equipment, its workers lived in townhouses and cottages, the school for their children and kindergarten were also built.

Since the time when Luzhkov liked that city, Medin has felt that it belonged to the capital. The church with ecoparking and lighting was built. A lot of other buildings with Moscow business began to appear there, but when Luzhkov stopped being a mayor, many of them were closed.

There are many things which are associated with Luzhkov, first of all they are honey symbols. Beehives are everywhere, and there are not only usual beehives but also special ones, for example, bookcrossing.

For whom embargo is profitable

When the holding began to work, as Sergei Rezunenko said, the equipment was the best one. During 8 years nothing has changed. Speaking about the government support  he says:

-    Who, thinking about the company’s sale, will invest money in it and develop it?

Now Moscow invites the holding for some events. For example, the holding showed its products at Moscow agricultural fair in September, participated in «Zolotaya osen» in October.

Cottages and townhouses, the school and the kindergarten, which were built with the help of capital budget, were given to Kaluga region. It pays taxes and is responsible for all the expenses.

According to Sergei Rezunenko the property of the holding - the plant with equipment, land, cattle – may cost 5 bln RUB.

-But if this price is not suitable, the real one is that which is determined by a customer,- Sergei Rezunenko said.

Though there were no applications, a lot of companies, including PepsiCo, were interested in it.

-PepsiCo processes 1-1,1 thousand tons of milk a day, we process 60-70 tons,- Sergei Rezunenko said.

He supposes that if PepsiCo had bought the holding, only the plant would have left, foreigners would have had no need to buy cattle and agricultural equipment. The quality of the production could have changed.

-Many private companies use dry milk and palm oil to economize and get more money,-he said.-We can’t let it as we are a public factory.

According to SPARK net profit for the 2d quarter of 2014 was 898 thousand RUB. There was loss before besides 2010, 2011.

Nearly 35-40 % of production go to schools. Half of it is being sold at the plant. Even at a workday there are always new customers there.

The situation about sanctions is beneficial not only people stopped to sell it.

Net retailers became more tractable. Nowadays the holding is discussing with X5 Retail Group (the company which owns «Pyaterochka», «Perekrestok») and «Diksi».

-We can increase the production but we need more serious government support speaking about marketing, - he said. Now to advance at a retail market, rebranding of the pack is necessary.

«It’s OK to earn 20 thousand RUB.»

According to Sergei Rezunenko, nearly half the employees of the agroholding is countryside, nearly 30% have come from other districts of Kaluga region, 20 % are from different regions of Russia. They are all interested in the economy’s destiny. -If people had sold the company , it’s unknown where we would have been, we could have just been fired,- the cattleman Vitaly said

From 5 a.m. till 5 p.m. he is cleaning the cowshed. There are other people at a farm, but most of his time he spends with cows. -I came here when I was 14, from Kazakhstan, -he says. – My parents have been working in agriculture during their whole life. Mother was a dairymaid, father was a cattleman. Now they are retired on a pension. I was working here for 1, 5 years, and then went to the army. When I returned, I worked at another farm, then returned here. I’ve been working here for 3 years already.

Vitaly doesn’t dream about the capital.

-Maybe there are more opportunities in Moscow, but here I have a job and salary more than average in the city, - he says. – The highest salary in the city is 8-9 thousand RUB, my one is 15 thousand.

The prices in Medyn are different from those which are in Moscow. But Vitaly says, that there are other needs in Moscow, life in the countryside is easier, there is kitchen-garden, people get free meat at work.

-The employees know that agroholding won’t be sold, - the head of a part of the company «Romanovo», Andrei Zevakin, says. – The director was in Moscow, he announced then that during 2-3 years the company won’t be sold, what will be next is unknown. It is not principal, who will be our head. The most important thing is that he shouldn’t prevent us from working. I know how to produce milk, to grow cows, I was been taught it not for one year, I saw how they did it in the West. This part is my work, when I came here, everything was different. I gave of much time and efforts with my wife.

According to his words, people work in the countryside because they need it.

-    200 thousand are normal in Moscow, and here 20 thousand are normal. I like everything here, - he says. – I have a car Opel. I like it; it is old, of 1993. But I also have a forth Pajero to go to the city. I’m a hunter in the third generation. I’m from the city, a small district centre of Tula region. But I don’t want to live in Moscow. Every person is urban or not.

«I don’t have 5 mln RUB»

-    I think that the first decision to sell the company «Mosmedynagroprom» was unfounded, - the ex-mayor of Moscow, Yuri Luzhkov, mentioned in his interview. – This company meant to be a producer of school meal of 100 % natural milk. And «Mosmedynagroprom» could provide 30 % of Moscow schools with meal of high quality. It was forbidden to sell it, because every customer would continu to exploit this company, and it would become to exist in the terms of marketing, everybody would forget about school meal.

According to the ex-mayor, the company doesn’t need additional investments.

- The company was working successfully and had a profit, though it was not big, - Yuri Luzhkov said. – It was not a subsidized one; it didn’t produce troubles for Moscow government about the mess about financial situation. Effective administration, good collective, technologies…It is one of few companies of high level, with good herd, agrotechnologies, milk production and manure processing.

The ex-mayor thinks that the absence of customers is because businessmen don’t want to work with the companies with long return of capital.

-    From businessman’s point of view it’s necessary to return the money within 5-7 years. And in this situation it will be within 30 years. Of course, it’s not that collection rate which investors want to see, - Luzhkov thinks.

According to the ex-mayor, he has never thought about the buying of the agroholding, - «I don’t have 5 bln”.

© The Dairynews