Goran Stoparic, director of raw materials department at Imlek – We invest millions of euros in our farms every year

(Goran Stoparic)

Yesterday, their birthday cake had 60 candles. This is how long the Imlek company has been operating in Serbia. Last year, they were almost acquired by Campina but the contract was terminated at everybody’s surprise. Still, these days, negotiations with potential buyers have continued.

While they are waiting for the new contract, they are focused on innovations in the field of practical and developed packaging and penetration to smaller dairy product market segments which still have not taken their position, dr Goran Stoparic, director of the raw materials department at Imlek says in his interview for eKapija.

eKapija: You are awaiting for the 60th anniversary of Imlek in a year when a dairy industry is not at its peak. To what extent have the latest market turbulences influenced it or has the crisis been constant as of 2008 and this situation would be inevitable?

- Despite all crises which in the previous period affected our economy and, among other things, dairy industry in Serbia and the region, Imlek succeeded in generating objectives and celebrating its successful anniversary. During the past ten years, we invested almost EUR 60 mil in production, quality development as well as milk production in the farms we cooperate with. We maintained the leading position in milk processing at local and neighboring markets and stabile import of our products at the markets we operate in, delivering over 100 different dairy products. We presented new, alternative, dairy product range made of organic milk and “moja kravica” has been a favorite brand in Serbia, according to consumers, while “balans” has been in the first five. Although unfavorable economic situation should be taken into account which has negative effects on purchasing power in Serbia, numerous products of Imlek still get to many households.

(Photo: Imlek.rs)

eKapija: There have been talks on sales of Imlek for years. The last thing we could hear about is the fact that” sales negotiations continued”. Can you be more specific about that?

- Regardless of ownership structure, Imlek is a domestic company which builds its strategy on penetrating local markets by expanding its mother company. Our long tradition presets continuous investment and development. Therefore, we continue investing and develop the work of all company departments in order to contribute with more quality products and better recognition at the market. The policy of long-term investing proved to be successful and generated numerous results. Although in the past ten years we have been owned by the investment fund, negotiations with potential buyers have always been and will remain a current topic.

eKapija: The competition protection commission accused you of monopoly in purchase of raw milk. The situation went to court and at the end it was proved there was no monopoly? How did it influence business of Imlek?

- As far as I know, the case ended up at the court. In the trial procedure, we were declared as non-monopolists, the status imposed on us by the Commission for competition protection, without taking into account in the proper manner milk and dairy products market at the territory of the Republic of Serbia. Every negative news and campaign must have negative effect on business but through our activities we annulled negative effects of this campaign.

eKapija: What is the cooperation with farmers you buy milk from like? A couple of years ago they were not satisfied with the price. Are they satisfied now?

- We agreed with the Association of farmers to meet every year on quarterly basis and adjust price in line with the previously agreed formula based on raw milk price in EU. This way, milk price at our market is aligned with the raw milk price in the neighborhood and EU. This was well-accepted by the farmers so we do not have any major dissatisfaction issues in the past two years since this model is applied.

Every year we invest million euros on our farms in order to increase milk production to higher level and get more quality raw materials for processing.

eKapija: Is there place for some new farmers at the market?

- There is a trend in our country as well as in other countries with developed production of milk. The number of farms is decreasing; number of cattle is on the increase as well as daily production. Milk production is in technical and organizational sense the most demanding type of agricultural production with the largest investments. Whoever can invest in necessary facilities and equipment with minimum of cultivating areas for certain production level and whoever is ready to apply new knowledge will find its place at the market for sure.

eKapija: What is the situation with your dairies in the region?

- Imlek is one of the biggest companies with its own production sections in Macedonia and Bosnia and Herzegovina. In these countries as well as in Montenegro, we became a market leader and since last year, we have been gradually expanding our positions in Croatia. For now, we have five plants equipped with the most modern equipment and technology with more than EUR 20 mil invested in production Today, Imlek is processing over 370 million liters of milk per year in the ex-Yu region (Macedonia, BIH and Serbia).

eKapija: Is there a place for production expansion and new Imlek products?

- Imlek is present at the market in all categories of dairy products which makes it equal to all the biggest world milk processing companies. As I have already mentioned, Imlek already produces over 100 different kinds of dairy products and this year, apart from jubilee, is important for the fact that we were the first at our market to launch a 100% organic milk product range called "bello organic". This proved to be successful move and the right reply to the needs and consumers’ demands. In the upcoming period, we will focus on innovations in the field of practical and developed packaging and conquering smaller dairy products market segments where Imlek has not taken its position yet.

eKapija: What plans do you have for the seventh decade of business? Will you invest in the upcoming period?

- Long Imlek’s tradition is featured by numerous innovations and investments at the field of agriculture and technology and we are planning to continue with investment policy. We will continue with investments in research, staff, technology, developing business system and quality of existing products as well as production of new ones. As well as we have done so far, we will continue to deal with the corporate social responsibility issues and boosting social awareness in order to contribure better and more quality life of the citizens of Serbia.

Jelena Djelic