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Fresh breath for agro-business

Task

The owner of the agrocomplex, which combines apple gardens, vinelands, irrigated lands, the base of agricultural vehicles and storage with freezing cameras, has used services of IGM and requested the provision of self-sufficiency for enterprise and wanted to reach the level of expected profit.

This establishment was constantly facing the problem of stealing, the careless performance of obligations by workers. Each newly invited “expert” on agro-technologies had critiqued the work of the previous expert, however, his/her own results were far from successful as well. No one didn’t take responsibilities. There was no unified vision of development perspectives of such establishment, and the demand for additional investments was increasing with each year.

Spot opportunities

IGM consultants have helped the owner to look on his business, not from current problems point of view and constant everlasting fighting with those, but they helped to review the scenario or algorithm of success. Together they decided not to waste time and resources for the elimination of separate, old difficulties and deficiencies. There was offered an alternative technique for task solution, which has already had positive results of implementation on other similar establishments across the world.

Solutions

Owner of the complex, with the active support from IGM consultants, has implemented a complex program of enterprise transformation.

First of all, there was performed the revision of all assets available and assessment of perspectives and cost-effectiveness of their use. There was also conducted a study of similar enterprises in the region, as well as other objects with a similar climate. Also were studied the demand on products of this establishment, potential demand for recycling products, demand on source base along with supply conditions. At the same time, internal accounting and budgeting were normalized, was implemented the system of planning, control of plans execution became more strict and now was supervised by authorized persons.

The key task was to form a team, competent and sufficient for independent operation without the supervision of consultants. The whole first year was spent for substitution of about 70% of managers and adjustment of business processes. There were many consultancies performed with international industry experts, which allowed to come up with the optimal operation mode of agro complex and to design suitable development strategy.

Results

Within 2 years it was possible to adjust the management system and give the necessary impulse for the development of the agrocomplex.There was an income growth provided by 217,8%. About 70% of previously idling equipment was put back into work, which allowed to perform agricultural works in full measure and in time, in accordance with the developed agro map. Energy losses of storage were cut down by 1,5 times and the additional free space of warehouse was obtained. Business was diversified via the creation of separate divisions: gardens, vinelands, corn, storage with the use of freezing cameras, MTS, bee-garden, minor cattle breeding and processing of fruits and vegetables, trade and commercial line of business. Financial load on investor has been decreased dramatically due to the leasing purchase of new equipment. The map of risks has been developed. IGM has helped to obtain significant economic effect and strengthen the economy and team of agro complex, to form the understanding of strategic perspectives for the owner.

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