NOMINATION 01: Sto Posto - Premix Factory

Company "Sto Posto" is the first company in Serbia to open the factory of vitamin mineral premixes for fodder production. The factory represents the last word in technology and, as such, it is recognizable all around the world. The proof of that are numerous visits of Western European experts in fodder production.

Development of the project is aimed at satisfaction of the needs for raw materials for production of concentrated fodder of company "Sto Posto" – ISO and HACCP standards, as well as at satisfaction of the overall needs of the local fodder market.

The installed capacities create the base for export of products whose quality is at the same level as the quality of products of the world’s renowned manufacturers. Development of the project is based on joining of the ideas of academic circles in Serbia (Agricultural Faculty in Novi Sad), the economy sector (company “Sto Posto”) and the world’s manufacturers of equipment and the advisers for production of vitamin mineral premixes.

INNOVATION

Company “Sto Posto” is the first in Serbia to open the factory of vitamin mineral premixes for fodder production. The factory represents the last word in technology and, as such, it is recognizable all around the world. The proof of that are numerous visits of Western European experts in fodder production.

Development of the project is aimed at satisfaction of the needs for raw materials for production of concentrated fodder of company “Sto Posto” – ISO and HACCP standards, as well as at satisfaction of the overall needs of the local fodder market. The installed capacities create the base for export of products whose quality is at the same level as the quality of products of the world’s renowned manufacturers. Development of the project is based on the pool of ideas of academic circles in Serbia (Agricultural Faculty in Novi Sad), the economy sector (company “Sto Posto”) and the world’s manufacturers of equipment and the advisers for production of vitamin mineral premixes.

According to the official data provided by the Chamber of Commerce of Serbia and RZS, production of fodder amounts to 3,250,000 T and, thanks to this project, the raw materials whose characteristics guarantee quality, accessibility and reliability will be provided for that production. At the same time, the factory’s capacities can satisfy the needs of certain part of surrounding markets. In this way, this project contributes to the raising of the food safety level (the problem of manual mixing of components for production of vitamin mineral premixes has been solved). This approach has confirmed the project’s slogan – QUALITY IN EVERY MILLIGRAM.

In addition to the activities that directly contribute to the growth of production and sales, “Sto Posto” has also developed the concept of education of agricultural manufacturers with the aim of creating optimal conditions for production and, together with the regular use of safe raw materials and food, they would improve production results and, thus, raise the competitiveness of the ready-made products – quality, price…

The project is not limited by time, and the aim of everyday work on implementation of new solutions, equipment, education of personnel and other factors is to make this project recognizable and useful to public.

PUBLIC USEFULNESS

The project has given great contribution and it develops high-security system in the chain of production of groceries. As a country with extreme agricultural potentials, Serbia must have this factor in the system in order to be able to create conditions for production of healthy, quality and competitive products.

The project (factory) has no negative influence on environment (there is no emission of by-products that can pollute environment – wastewater, etc.). In addition, the factory consumes very small amount of energy thanks to the application of the state-of-the-arts achievements, and 4 to 5 people are enough to serve the whole system.

Having in mind that, according to the official data, the level of use of fodder production amounts to 15%, this project has a great potential. In the most pessimistic scenario, Serbia should produce at least twice as much fodder as today (growth from 3,250,000 t to 6,500,000 t) in order to support development of cattle breeding. That means that 200,000 tons of vitamin mineral premixes will appear in the market. Nowadays, only 12,000 tons (396,000 tons of ready-made food or about 10% of overall fodder) are sold in retail stores. Fodder factories and mini mixers produce the rest of fodder by using vitamin mineral premixes. For all of its competitors in the fodder market, company “Sto Posto” has become a candidate for the partner in production and delivery of high-quality raw materials with predefined chemical ingredients at competitive price. The new aspect of cooperation in the market has been defined.

All this would not be possible without people. Great attention is paid to employees, partners and all other people, but the policy of the company implies that these activities are not to be used for the sake of promotion and strengthening of the brand. “Sto Posto” is the laureate of VIRTUS award for socially responsible business.

COMMERCIAL SUCCESS

The fodder market demonstrates wide gap between the numbers of potential and served customers. Closing of that gap requires much effort and work, but the precondition is the existence of this system. Both served market and the quantity of food that is produced nowadays demand the existence of the raw material base whose quality meets the standards of Western European countries.

The growth of production and sales provides realistic assumptions that the factory will achieve commercial success and that it will work at full production steam in the future.

Today, company “Sto Posto” is the leader in production of fodder, and it is a recognizable and favorite brand. Thanks to its quality, this company stands out from foreign manufacturers whose quality has been considered unquestioned until recently. Farmers and manufacturers can expect that the factory of vitamin mineral premixes will help them improve their position. The factory of vitamin mineral premixes, as it owners say, can expect to stronger market position and soon become recognizable Serbian brand.

OTHER INTERESTING INFORMATION ON THE PROJECT

Total value of the investment is about 3,850,000 EUR. The premix factory was put in operation at the end of year 2008, so that the production mainly depends on the internal needs of the fodder factory. Very small share of production is intended for external market, so that we can not speak about profit yet, although the factory managed to cover all costs even in these pioneer undertakings.

The plan of scope, dynamism and structure of production is made on the basis of information on technical characteristics of the installed equipment and technology and their capacity per unit of time. According to the presented data, the annual scope of production will be gradually enlarged from initial 1,680 tons in the first year to 2,519 tons in the second year. The assumption is that the factory will be working for six months in 2009, and that the total scope of production will amount to 840t, that is, 140t on monthly basis.

The balance of success of the project shows that the project is profitable even during the first six months of production, as well as in the following period. The profit before amortization and financial expenses amounts to as high as 52% of total incomes. The net profit, that is, the profit before amortization, funding expenses and taxes and fees, amounts to 16% of total projected incomes in the first six months, while the same ratio for the following period amounts to 24% and 27%. In addition to the growth of market participation, reduction of financial expenses, that is, repayment of loans, is of greatest importance to the growth of net profit.

The plan of balance of success of the project