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Key Growth Question: Where Can I Add Value?

Recently I visited a customer of ours named JSC Lazarevskoye in Russia.  You can read more about this company as an Insta-Pro Success Story here.  This article is written around their success in processing their swine by-products to make value added feed.  But there is much, much more that Lazarevskoye does that is worth sharing.

What struck me about this company was the business philosophy of the owner Fyodor Romanovsky.  His operation is diversified and vertically integrated well beyond growing pigs and processing those pigs.  He has 7 extruders positioned around his property and in multiple buildings adding value for different purposes.  The question he regularly asks is:

 Can I add value to the locally available crops or by-products in the area?

If he can tie this added value to an unmet market need and financially justify it, he has proven that he will move on this opportunity.  Two extruders are dedicated to his slaughter house operation to process the pig by-products creating animal feed instead of creating landfill waste, he has three extruders processing grains in the area improving the digestibility for baby pigs, and he has 2 extruders processing field peas and canola creating a more digestible feed product to aid in the growth of the local animals.  Beyond pigs, he has expanded into cattle and is looking at other protein markets where he can fill a need.  So he is constantly looking for market opportunities where he can add value to grow his business.

In order to add value,  Mr. Romanovsky believes in utilizing high quality equipment, proven technology and equipment that is supported with  technical assistance and know-how.  He sees the high return on investment of supporting his value added mission with value added equipment.  Lazarevskoye has grown its farming operation to 54,000 acres.  You see John Deere tractors and other farm implements on his property as an example of quality that demonstrates their commitment to a value added equipment supplier.  In addition, the investments that he makes are for the long term and he expects those investments to last.

The technology/equipment that truly adds value gives him a unique selling proposition.  He wants to partner with companies that are technology leaders bringing processes and knowhow to add value in a way that gives him a competitive advantage.  These company relationships bring ideas to the table to help him consider growth opportunities for his market.  Doing business locally the way it always has been done, adds no value.  Utilizing technology that advances the performance of his production is what sets Lazarevskoye apart.

In closing, I think we all can learn from Fyodor Romanovsky.  Asking ourselves:

  • How can I add value in my market?
  • Can I acquire proven technology to separate me from my competition?
  • Does this technology or equipment come with support to help me succeed?
  • Does my value added product meet the market’s demand and at the same time make financial sense?

If we follow this approach, we too may achieve the significant growth that Lazarevskoye has enjoyed.

 

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