Primary production of Delta Agrar
For years, Delta Agrar Group has been investing in the latest technology, the application of advanced farming methods and education of people. Such consistent approach resulted in terms of yields which are on the level of best agricultural systems in Europe.
In 2014, the following average yields were realized on the surface of 13.409 ha under field crops:
- corn 12,4 t/ha
- wheat 7 t/ha
- soybeans 4,3 t/ha
- sugar beet 76.4 t/ha
- rapeseed 3,8 t/ha
These results are above the average ones in the European Union, and far above the results achieved in Serbia and the region.
In the orchard of Delta Agrar, namely on the 350 ha estate Podunavlje in Čelarevo, the average apple yield is 62.1 t/ha.
This result is equal to the average yield in South Tyrol, the Italian region famous for apple cultivation. The total production of Delta Agrar of 16.000 tons of apples represents 6% of Serbian and 0.11% share of European production.
The first commercial harvest of Kiku club apples was in 2014. Kiku apple is of extraordinary taste, high in nutrition and low in calorie value, and as such it is very popular with consumers.
Delta Agrar invested in the expansion of the storage capacities in 2014. On the estate Podunavlje, the second cooling system with reduced level of oxygen (Ultra Low Oxygen) was built, facilitating the freshness of fruit up to 300 days. The total storage capacity is now 13.000 t.
On 5 pig farms of Delta Agrar Grup, 36,1 piglets per sow were bred according to Dan Bred technology.
These results top the average in Denmark (31.5 piglets per sow), which is considered the most developed European country in the field of animal husbandry.
In July 2014, the research station was established on the estate Napredak in Stara Pazova in collaboration with the company Pioneer Hi-Bred. The research station enables quality testing of the newly created hybrids of corn and sunflower in the cultivation conditions which are prevailing in Serbia. The results of the trial will help in the selection of the best hybrids, to be introduced in the production and placed on the markets of Serbia and Southeast Europe. This facilitates high quality and high yield of corn on the farms in Serbia, and export of certain quantities of the seed corn. This joint project is a confirmation of 18 years of successful cooperation between the companies Delta Agrar and Pioneer Hi-Bred.
Delta Agrar has launched an initiative for the implementation of irrigation plan for Eastern Srem area. By providing complete project documentation and construction permits, the PU company Waters of Vojvodina has secured the basis for the continuation of the irrigation project.
The entire production on farms and estates of Delta Agrar takes place in accordance with GLOBAL GAP system. GLOBAL GAP involves the management of primary agricultural production in the way that reduces negative impacts on the environment, with optimal use of plant protection products and the efficient use of natural resources, while achieving high yields of high-quality and safe agricultural products.
ISCC standard (International Sustainability and Carbon Certification) is also applied on the estates and farms, thus meeting the EU requirements for achieving sustainable production of biomass used as a raw material for renewable energy – biofuels. Furthermore, the operation on the estates is conducted according to the guidelines of ISO 14001 standard, although there is no official certification.
Within primary production, Delta Agrar plans for the future period include the following:
- construction of a new Ultra Low Oxygen cooler
- improvement of irrigation systems in crop and vegetable production by 35%
- increase in the surfaces under intensive crops
- introduction of new technologies for monitoring crops and more precise farming for better cost control and monitoring of all phases of production. This system will contribute to environmental protection and maximization of yield
- raising new apple orchards on the area of 55 ha
- further improvement of the system for sorting and packaging of apples
- construction of facilities for drying plums in Kruševac
- construction of new and the renovation of the existing facility for breading piglet due to the increased number of piglets
Through cooperation and the buyout, Delta Agrar facilitates the following to individual farmers:
- purchase of seedlings, seeds, fertilizers and pesticides at market prices
- professional monitoring of the crop and livestock farming technologies
- secured placement of products on the market
- purchase of surplus crops
- storage services
In this way, Delta Agrar allows individual farmers to apply international standards in production and ensure export quality of their products at the same time.
The following is planned for 2015:
- inclusion of additional small producers in the system of cooperatives
- increase of the supply of fatlings through cooperatives with individual manufacturers to 20,000
Delta Agrar helped their subcontractors and other individual farmers in the rehabilitation of the effects of catastrophic flooding. At the critical moment, when the animal feed was destroyed and crops flooded, Delta Agrar sent 1,500 bags of corn seed and 190t of fodder as an emergency aid for resuming production to 7 municipalities that suffered the most. The donation was distributed in cooperation with local self-government and farmers were visited by Delta Agrar experts who advised them on how to apply the measures necessary for the survival of plants and animals. The buyout of the entire production was guaranteed to all affected farmers who received this donation.
Delta Agrar contributes to the development of agricultural production and improvement of the quality of life of rural population through participation in various socially responsible projects. In 2014 Delta Agrar joined the implementation of the project “Women Entrepreneurs in Agribusiness” organized by licenced FAO trainer for entrepreneurship, Media.com d.o.o. from Belgrade and the Centre for equal business opportunities Eduka Plus Association from Belgrade. The aim of the project was to teach the women in agriculture and legal entities in the rural areas about the basic rules and forms of entrepreneurship, in order to help them acquire the necessary knowledge, skills and confidence to develop their own business.
Within this project, seven workshops were realized in different parts of Serbia, and the representatives of local self-governments and the Ministry of Agriculture participated in them as well.
The employees of Delta Agrar gave lectures on:
- the system of cooperatives and the cultivation of apples in accordance with the latest technologies
- usage and implementation of Global GAP system and its relation to safety of food on the market
- the production of healthy raspberries using the latest methods
- the way in which Delta Agrar cooperation program can ensure placement of products and secure payments.
Other companies and associations also participated in the project, and the participants gained knowledge about the funds collecting system, registration of entrepreneurial firms, marketing activities, etc.
In 2014, Delta Agrar helped in the realization of the project supporting young people in rural areas called „Towards the young people from the rural areas“ organized by the Centre for Promotion of Youth Entrepreneurship and Ministry of Youth and Sports. The lectures on „Strategic and business planning in agriculture“ were held in Zrenjanin, Bačka Palanka and Subotica .The young people and the representatives of local authorities were informed about the advantages of starting own business in support of rural development as well as with the role of the manager as a leader of an agricultural holding. Delta Agrar experts explained the importance of the application of modern technologies in production of fruit, vegetables and in animal husbandry for the successful development of individual production and agriculture in general.
Food production in Delta Agrar
Food is produced in four factories of Delta Agrar. The share of their products in the domestic market was increased in 2014, while significant cooperation was achieved in the segments of meat products, pasta, cereals and appetizers with a distributor in Russia.
Danubius factory has been operating since 1918. The main production units of the plant include grain silo, mill and pasta factory.
Annual production of the factory totals 7.000 tons of different types of pasta. The mill’s daily production is 300 tons of high quality flour with a maximum utilization of capacities and thanks to the benefits of modern equipment.
- the quality management system was improved through the implementation and certification of FSSC 22000 standard
- new production line for short pasta was installed, thus facilitating the production of pasta of better quality for a clas
- two new products were marketed: Cornetti Creste and Tubetti Elicoidali
According to research by specialized external agencies, Danubius is a definite leader in the pasta market with 20.5% market share, and it also retains its leading position in the market of flour sale per kilo with 28% market share.
In 2014, the customer satisfaction surveys were carried out. A total of 257 customers in five cities (Belgrade, Novi Sad, Čačak, Kragujevac, and Niš) were surveyed.
In the total sample, men accounted for 30,7% and women for 69,3%. The majority of the surveyed customers, 82% of them, belonged to the age group 20 to 60. With the scores ranging from 1 to 5, the consumers ranked the following features of products: quality/safety; price of the product; packaging; positioning; and the range of products.
The scores of all the features were analysed in detail by the factory director and representatives of departments for quality, sales, marketing and development. The quality of the products will be improved by the new production line, allowing the production of new shapes of pasta. Due to the requests for correction of prices, frequent promotional sales are planned in retail stores. The redesign of packaging was implemented in 2014.
One of the demands of consumers was to improve the range of products, that is, to introduce small pasta for soup. Since the range consists of 25 types of pasta, the departments for sale and development will consider the market and commercial viability of this request in the following period.
The goal for 2015 is to increase the average score of consumer satisfaction from 4.13 to 4.15.
The 2015 plans:
- procurement of new packing machines for long pasta that will increase the capacity and efficiency of packing
- retaining leadership position in the market
- development of private label segment
- development of new types of flour
- growth in production of durum pasta
- launching of new types of short pasta
Factory of meat and meat products Yuhor is the largest meat industry in Serbia. In has been operating since 1902. It holds the second place according to the share on Serbian market. In its operation, it applies ISO 9001, ISO 14001, ISO 22000, and HALAL standards as well as the food safety system HACCP.
- Yuhor established cooperation with leading meat industries in the European Union
- in cooperation with foreign industries, new manufacturing technologies were developed, resulting in new products of particular tastes
- the ratio of exports and imports of products was 55% against 45% in favour of exports
Meeting the needs of consumers, in 2014, Yuhor factory introduced the following new products:
- chicken and turkey fillet, pressed ham, chicken breast and mortadella with olive oil
- chicken Parisian and mortadella with chopped olives
- Cabanossi classic and hot Cabanossi
In 2014, a satisfaction survey of 50 customers was conducted, resulting in average score of 4.39 (satisfaction indicators are qualified ranging from 1 to 5, where 1 represents the lowest and 5 the highest mark)
Very good scores are the result of care and responsible approach to customer needs. The quality of distribution, being the lowest evaluated indicator, will be improved by better organization of storage and transportation of goods in the new distribution centre DTS, and in 2015 we expect to increase customer satisfaction in this segment of services.
The plans for 2015 include:
- strategic export and growth in new markets
- growth in market share of meat products by 20% and of pâté by 30%
- the introduction of 5 new delicatessen products in modern and attractive packaging
- entry into the category of premium cooked products with 4 new flavours
- repositioning of ham categories through the redesign and improvement of recipes
- improving the range of classic pâté with four new flavours
Florida Bel is the factory owned by Delta Holding since 2007. Nowadays, Florida bel markets the range of products divided into four groups of products: appetizers (peanuts, hazelnuts, almonds, and cashews), muesli (tropic, classic, and digestive), basic foodstuffs (rice, wheat, and lentil), and dried fruit (raisins, figs, dates, and apricots).
The work process in the factory is organized in accordance with ISO 22000 and IFS guidelines, which ensures the preservation of the quality and safety of products up to end users. HACCP food safety system is applied in the work process.
- The factory expanded its portfolio of muesli products by developing the limited edition of FUN & FIT REMIX items
- FUN & FIT retained its leading market position in the muesli segment
The natural mineral and spring water bottling plant Mioni was built in 2007. Aqua Gala water is filled from the wells with capacity exceeding 20 l/s.
In 2014, the factory achieved:
- growth in income and market share compared to 2013
- growth in sale of non-carbonated water by 43%
- export growth by 18% compared to 2013
In order to meet the needs of customers, the new packages of water were marketed in 2014:
- Aqua Gala PET 4*0,5l * super price
- Aqua Gala PET 0.75l flat cap
- Aqua Gala PET 5l bottle
Factory Mioni invested in the improvement of the quality system as well. IFS Food V6 standard was recertified and the external inspection performed in accordance with FSSC 22000 and HACCP requirements gave positive reviews.
The plans of Mioni for 2015 are the following:
- launching of the new product – Aqua Gala PET 1,5 l carbonated
- increase in the distribution by 100%
The number of complaints in all four factories decreased in comparison to 2013:
- in Danubius by 64%
- in Florida Bel by 8%
- in Mioni by 56%
- in Yuhor by 8%
In order to encourage constant and open communication, the official web sites of factories within Delta Agrar have phone numbers and email addresses listed for comments and suggestions of clients, consumers and other interested parties about the products. All conversations are recorded and the calls are free of charge. Emails are responded within 24 hours.All recorded comments are regularly reviewed and used when making decisions on improvements in certain product segments.
The rules of procedure are adopted in each factory defining the procedures for resolving complaints. This procedure determines the method for the receipt, recording, response and resolution of customer complaints regarding delivered products in order to provide quality services and comprehensive support. Upon the receipt of a complaint, sales representative is obliged to make on-site visit, within 24 hours (or 10 days for remote areas), in order to determine the type of defect and quantity of goods on which the defect occurred.
If the subject complaint is about the safety and quality of products, the sales supervisor forwards such information to the quality manager as soon as possible. If it is impossible to determine the cause of damage and the justification of complaint on the spot, then the necessary analyses are carried out in the laboratory of quality department.
If the complaint is related to the method of distribution, the logistics manager is informed. Logistics officer handles the complaints regarding the distribution of products (quantity, type, time, etc.) and coordinates the replacement of such goods. The officer then informs the sales coordinator on the completed activities.
Sales coordinator informs the customer on the outcome of the complaint, based on the written statement of the quality manager and logistics manager.
In 2014, there were no irregularities regarding health and product safety.