Trade in farm products uses all the main consumption trends: buy Russian, buy healthy, save time on shopping. Shops with farm products are opening all over the country, while the quality of goods varies everywhere. What business on Russian eco-products has a future?
The fashion for natural products without additives covers large Russian cities. Someone is looking for healthy meat, milk and vegetables in online stores, someone several times a month organizes food requisitions in the surrounding villages. The first city stores of farm products appeared in Moscow about 10 years ago, but we can talk about any successful development of the segment only in relation to Moscow and St. Petersburg. What is this business, what consumer sentiment is built on, what are the prospects. Will try to figure it out.
Fashion or trend: boom on healthy
Is the demand for natural so great? According to Nielsen, Russians are primarily inclined to buy at home: meat (81%), milk (80%), vegetables (75%) and fruits (67%). Patriotism is explained only by the favorable price, but also by the desire to purchase a natural product with a short shelf life.
As a factor inducing to buy domestic rather than global production, the Russians indicate:
- 56% - favorable price;
- 43% - “have already taken it, liked it”;
- 32% - safer ingredients and manufacturing process.
According to the Romir research holding, despite the crisis, Russians pay attention to the composition and shelf life of products, preferring environmentally friendly and fresh products without GMOs. According to a 2015 TNS study, 67% of Russians agree to buy more expensive food products, provided that they are organic.
Concerns about health in general and healthy eating in particular lead people to look for locally produced products on store shelves: many are under the illusion that Russian technologies food production lags behind the world, so preservatives and nitrates are not used.
The growing interest of Russians in high-quality healthy food is also proved by Yandex statistics. For 10 months of 2015, compared to the same period in 2014, the number of requests increased:
- "natural products" - by 78%;
- "fresh products" - 3 times.
There is a demand for useful and natural products of domestic production and it is growing. Traditional networks and shops practically leave it unanswered.
Organic food market: in Russia and in the world
The prospects for farmers and their products are significant. However, today consumers and producers exist in parallel universes: farm products are hard to get on the shelves. retail chains due to the requirements for volumes, selling prices, packaging, and the mass of the buyer comes to shop here.
In general, the Russians are not alone in their desire to join natural food. Organic products without chemicals and artificial additives are a global trend. To date, 84 countries around the world have adopted laws on organic farming. The EU biofood market is growing by 15-20% annually.
Organic market leaders in the world:
- USA - $29 billion;
- France - $9.2 billion;
- Germany - $5.2 billion.
What is in Russia? Our trade in natural products is in its infancy, so it has not yet come to the attention of official statistics. According to the Union of Organic Farming (POPs), in 2013 the volume of the domestic market of certified bioproducts amounted to $148 million - less than 0.2% of the total market food products. At the same time, 90% of eco-products are imported.
With the concept of "farm product" in Russia today there is uncertainty: the legal framework for organic agriculture is just beginning to take shape.
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AT given time In Russia, an organic food product is called:
- grown in conditions that improve the ecosystem, preserve soil fertility, protect human health;
- processed by biological/physical/mechanical methods in nature;
- obtained without the use of pesticides, chemical. fertilizers, growth stimulants, antibiotics, hormonal/veterinary drugs, GMOs, not exposed to ionizing radiation.
The formation of a full-fledged regulatory environment in the field of production, determination of the composition, labeling and certification of organics will help clear the market of pseudo-farm traders and identify real natural products. In addition, POP experts expect the market to increase to $300 million from the regulation of the legal field.
Farm Trade Models
Today in Russia, the implementation natural products farmers themselves and intermediaries. Farmers use several ways: open specialty stores in production or online stores, sell to neighbors and through word of mouth, arrange deliveries to health food stores and restaurants.
There are three models of farm shops:
- Internet projects;
- traditional offline stores;
- projects using both sales channels: online and offline.
Features of traditional farm shops:
- Format. Most often used "At home" - a modest assortment is placed on a small area. Sometimes the store concentrates on only one type of product, such as dairy or meat products. For a small number of commodity items, it is easier to track the quality.
- Assortment and its structure. Wide or narrow, a large proportion of perishable products, up to 70%. For comparison: in large supermarkets, the share of products with a short shelf life is 7-15%. Outlets selling exclusively local farm products usually offer a seasonal selection.
- Markup and prices. Prices are higher than in supermarkets. Abroad, products labeled "organic" are 20-30% more expensive than their counterparts. In Russia, the difference in prices is greater: the markup on healthy products can be 50, 100 and 200%. The market is not developed, the culture of healthy food consumption is in its infancy - this is how a creative attitude to prices is born. In some cases, high margins are set deliberately high in order to support farm production.
- Selection of manufacturers, examination of products. Real farm shops set high standards for product quality and organize a rigorous selection of suppliers. This is done by technologists or specialists of the internal department of expertise, and at the stage of concluding a contract they check raw materials and production processes, then the goods monthly pass laboratory examination.
- Service. Available individual order products and other features.
A few words about network projects. Today in Russia there are few physical farms, so they simply can not cope with large volumes of deliveries. Some networks are forced to cooperate with small farmers other than farmers. industrial manufacturers. Calling such projects farming is hardly true. But if the goods are tested for quality and naturalness before being placed on the shelf, then we are talking about “healthy food” stores.
As for services for the delivery of fresh and organic products. The intensity of Internet use is not uniform across Russian regions. The share of active users is growing, but so far only residents of large cities are ready to place online orders for products. However, the future lies with specialized online stores of organic products that will cover the needs for healthy food and allow consumers to save time on shopping trips.
Successful farming projects
There are many players in the organic food trade today. Basically, entrepreneurial activity in this area is concentrated in Moscow and St. Petersburg. In the capital, for example, the number of stores selling farm products goes into the hundreds (including online trading). How is business organized in three well-known Russian projects?
Izbenka and VkusVill: a chain of eco-food stores
Andrey Krivenko's chain of traditional healthy food stores is developing simultaneously in two directions:
- "Izbenki" - small establishments (15-20 sq.m.) with farm dairy products with a short shelf life. Assortment - up to 70 items.
- "VkusVilli" - stores with an area of 60-120 sq. m with an assortment of 700-800 commodity items: meat, fish, fruits, vegetables, bread, juices, sweets, etc.
Are all products really from farms? No, but the network does not hide it. Of the 200 suppliers that VkusVill works with, 10-15% are large industrial enterprises, the remaining 85-90% are small industrial producers and farmers.
How the business is organized:
- the network's mission is to think about the buyer first;
- cooperation with trusted suppliers, 3-4 for each type of product;
- a small assortment (600 positions per 100 sq. m.), 70% of which is “fast port”;
- absence own production;
- strict quality control (collection of customer reviews, laboratory examinations, production audit);
- sale of goods under private label (own trademarks);
- low margin for the segment - 55-56%;
- average check- 500 rubles.
The network's indicators prove its effectiveness: the number of Izbenok opened in Moscow is 300, VkusVillov is 130, the network's revenue in 2015 increased by 40% compared to the previous one.
Moscowfresh: online store of market and farm products
Moscowfresh positions itself as an express delivery service for fresh produce. The founder of the company is Lev Volozh. The assortment includes farm dairy and meat products, poultry, quality goods from Moscow markets, imported chilled fish, vegetables / fruits, as well as pastries, tea, coffee, sweets.
How the business is organized:
- prices are higher than in supermarkets, but lower than those of competitors;
- minimum order - 1,900 rubles;
- delivery within the Moscow Ring Road costs 290 rubles. and takes 2 hours (urgent - 90 minutes);
- assortment - premium quality products from trusted suppliers (Moscowfresh confirms the quality with certificates from city markets, also guarantees its own control);
- Items you don't like can be returned or replaced.
LavkaLavka: for the sake of both the buyer and the farmer
The most recognizable farm brand in Russia is LavkaLavka. The project originated in 2009 in the form of a LiveJournal account, when not a single farm online store existed yet. In the first year of operation, the turnover of Lavka amounted to 900 thousand rubles, in 2014 - 250 million. The company was founded by Boris Akimov, a former artist and programmer, now a real farmer and ideologist of a return to organic farming.
Today LavkaLavka is:
- 5 offline Moscow farm stores and an online store with a developed network of pickup points;
- restaurant "Mark and Lev";
- farmers' market at Mega Khimki;
- a farmer's cooperative whose goal is nothing less than the revival Agriculture and lost gastronomic Russian traditions.
LavkaLavka is a farming association and a powerful communication channel between small agricultural producers and urban residents. Suppliers of "Lavka" - members of the cooperative - small and medium-sized farms that have been certified according to the Internal Standard LavkaLavka.Expertise. Large agricultural enterprises are closed to Lavka.
Prices for organic products here are high even by Moscow standards. However, the cooperative does not pay dividends, investing all profits in the development of the project. Therefore, purchasing goods at premium prices is a conscious choice of Lavka customers, and a kind of investment in responsible Russian agricultural producers. LavkaLavka regularly launches crowdinvesting (aka crowdfunding), the money raised goes to the development of farms.
Project idea:
- the consumer is 100% sure of the quality of Lavka's products;
- a certified farmer does not compete with a reseller, receiving a stable distribution channel and payment adequate to the labor invested.
Unlike Moscowfresh, Lavka considers farm products (healthy and useful) only those products that are produced with all the norms of eco-farming and does not trust the word of suppliers.
As an afterword
Dozens of regional and metropolitan farming projects, responsible producers and / or sellers providing citizens with safe and healthy food remained behind the scenes. The store of natural products is both a sought-after business and a socially significant project. Russia's turn to organic farming, and the population to natural food, is a matter of the near future. Therefore, farming, production and sale of healthy products is a long-term trend. Join.
When to eat fresh vegetables , not to mention imported, available all year round, you think that something is wrong with them, something is missing. Older people remember the “real” taste of vegetables and fruits, that was the TASTE, not like now ...
Believe me, the vast majority think so. Well, now the most important thing: how to make money on all this?
Stand "cancer to the top" in the garden, and then sell the grown products in the market? No, this is not a business! You say.
In general, a business can be developed in several directions, we will consider two of them.
First way.
Organize the delivery of vegetables and fruits directly from the village, of course, the village should be located not far from the City, so that it would be possible to bring fresh food every day.
To open your business, you need a retail space. Since we create completely new business, modern, then we will sell not in the market, but in a modern supermarket equipped with the latest technology. Well, of course, you can be more modest ... it all depends on the initial capital.
That is, the first type of business is a specialized fruit and vegetable store, the main difference from others is fresh and natural products every day.
How much can you earn? Earnings will be decent and the business will pay off in a couple of months or a year.
You need to understand that here you do not need to chase the number of sales, thinking at the same time: the more I sell, the more profit I will get ...
You will supply food from nearby villages, and there is a village, not a warehouse of vegetables!
You can grow ten times more vegetables than they currently grow there (in the village), all you need is a couple of tons of biological additives and other chemicals, but then your store will not be any different from thousands of others, and this is already a business failure.
Therefore, less is better, but better. It is better to raise the price of products than to sell stuffed products. As well as an option, you can supply products from different villages. And remember the motto of your company - The quality of products is above all. Although it sounds trite, but still :)
The second way.
We considered one option for a healthy food business, but the business does not end there. I like the second version of the idea better because it costs less and has little competition, which is very attractive these days.
The principle is the same as in the first case6, an agreement is concluded with farms or private individuals living in the village to grow organic vegetables and fruits. But then something interesting comes next6 we are not opening a store, but opening ... an office, yes, an office. What office do you tell us!
And here everything is tricky ...
The essence of the business is the exclusive supply of fresh products to private individuals, that is, the rich Pinocchio :)
There are quite a lot of rich people and people with average incomes in our country. Most of them care about their health and the health of their loved ones, buy filtered water, all kinds of air purifiers and other nonsense, forgetting what they eat.
Well, actually, I think the idea is clear: we open a company, conclude contracts, rent a warehouse, hire staff, including couriers (as you thought, the products will be delivered directly to your home), advertise, etc.
Summing up, I can say that both types of business can be very popular and profitable if approached wisely. So those who do not know what to do, go for it, there is little competition - the business is profitable, at a relatively low cost.
Regarding point 2, I can say that this is only in a few large cities of Russia. In the West, this business has been flourishing for several years.
Interest in eco-friendly products is growing year by year, and although the prices for it are by no means small, more and more people want to buy healthy food. Interest in such products can be observed at specialized exhibitions and food fairs, where they are sold out in a matter of hours.
Profit from the sale of organic food can be high if you have a lot of wealthy buyers among your customers. In order for the business to flourish, an extensive network of manufacturers and suppliers of such products should be created. Investment costs at the opening of the store will not be particularly large.
Establishing and promoting a health food store is not easy. The company must have a stable network of manufacturers, and it takes some time to establish it. Profit depends on the location of the store, so try to open it in an attractive location, for example, in the central part of the city.
Healthy foods (no additives or preservatives), such as meat, bread, vegetables, honey, cereals, vegetable oil, dairy products, typically cost 50 or even 100 percent more than mass-produced foods.
Selling organic food is one of the fastest growing industries in the country. Your main suppliers will be local farmers who are ready to supply their products for sale in your store.
A further increase in the popularity of new business depends on public awareness of the importance of good and healthy nutrition and can be a very powerful impetus for the development of organic production, which will result in the expansion of the network of stores selling natural products. People are becoming more and more aware of the health risks of chemicals found in food produced in large factories.
Investment costs
A health food store must have the right atmosphere and environment, and the goods are properly packaged to stimulate as much interest as possible among customers. At the initial stage, to open a store, you will need 600 - 800 thousand rubles. However, if you open a grocery store from scratch, as is usually the case, these costs will be much higher. For the normal functioning of the store, you will need at least 60 square meters of total area. About 800 - 1,000 thousand rubles will be spent on reconstruction and arrangement. If you are going to work in a rented premises, then in addition to the rent, you will have to pay for electricity, gas and water supply, which will approximately amount to 20 thousand rubles.
In this business, it is very important that your store is fully in line with the ever-growing sanitary requirements and fire safety.
To open an organic food store, like any other, you must buy a cash register, the cost of which ranges from 70 to 100 thousand rubles.
Then you need to find a trusted supplier of furniture and equipment for grocery stores and purchase everything necessary for normal operation:
- Shelving
- Industrial refrigerators
- Refrigerated counters
The cost of equipment ranges from 200 to 800 thousand rubles.
Also, to work in the store, you will have to hire at least two employees with a salary of 30 - 40 thousand rubles (40 x 2 = 80 thousand rubles for two employees).
How to make money on an eco-shop?
Although organic products are expensive, the demand for them is constantly growing, especially in large cities with a population of more than 100,000 inhabitants. At first it is possible big profit will not, but gradually the income will grow. This is a promising business.
You can earn from 100 to 600 thousand rubles a month. Establishment of a store selling ecological products - a good option for people who count on a solid, although not very high, income. The store is created based on regular customers who care about their health and want to buy good, sustainable products.
An entrepreneur who is going to trade such products may also consider selling on the Internet. In this case, you can count on quite impressive profits, sometimes even more than from traditional sales.
If you decide to expand your e-sales business, you first of all need to create your website, regularly promote it, be constantly in touch with interested customers, and conclude an agreement with a reliable courier service, which will deliver products to customers. Sending many food products by mail is simply unrealistic.
What to sell?
In a store with organic and healthy food, you can offer:
- Meat products without preservatives and stabilizers
- Organic Wheat Germ Bread
- Gluten free products
- Jams and jams without sugar and sweeteners
- Fruit and herbal tea
- cereals
- dairy product
- Pasta
- Vegetable and olive oil
- Dried fruits
- Muesli
- Bran
- Dairy
- soy products
- Juices, syrups, drinks
- Vegetarian products
- Cereals
- seeds
- Herbs
- Natural cosmetic
- Natural detergents
It is worth remembering that all products must be without any chemical additives. The eco-goods market, like any other, has its own tastes, fashion and the changing popularity of a particular product. It is worth remembering this, monitoring the market and reacting to its volatility accordingly.
In such stores, you can organize stands with various organic products, such as herbs or juices.
Investment costs:
- Repair and arrangement of the premises - from 800 to 1,000 thousand rubles
- Cash register and scales - from 70 to 100 thousand rubles
- Purchase of equipment - from 200 to 800 thousand rubles
- Salary of employees - 80 thousand rubles
- Utility payments (monthly) - 20 thousand rubles
Expected earnings:
Income before taxation is approximately from 100 to 600 thousand rubles. With optimistic forecasts, the payback of the business comes in a year and a half.
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- Business review
Farm goods as a concept for your shop. Natural product is tasty, healthy and profitable!
Business review
Today, business in the field retail food is becoming less profitable. Network hypermarkets have almost completely captured this market, leaving small entrepreneurs with only "stubs" of court trade in the form of convenience stores. And those, every year bring less and less profit. Almost the only option for building a successful business in this industry for a small and medium-sized business is specialization. That is, the opening of a grocery store, with its own idea, with a specific meaning, with a specific range of goods. One of these businesses can be considered a farm goods store - a retail outlet for the sale of natural products!
What do these shops sell? First of all, this is everything that is grown on farms and household plots: carcasses of chickens, geese, ducks, rabbits, quail, meat (pork, beef), chicken and quail eggs, champignons and oyster mushrooms, butter and sunflower oil, cheese, milk, cottage cheese, sausages, seasonings and spices, as well as, depending on the season, fruits and vegetables of local production. At the same time, the main emphasis is on the products of local producers, familiar to many residents of the city. It is the idea of "ecology" and naturalness that makes such stores popular among consumers.
Which taxation system to choose
Projects of shops for products of local producers today are beginning to open in some regions of Russia. For example, in the Belgorod region, a chain of stores called "Farmer" is actively developing. The project is organized with the support of the regional authorities and implies the creation of a market for local farmers and households. The sales area of such stores is no more than 150 sq. meters, which allows you to use the taxation system in the form of UTII. Vmenenka is a very convenient tax regime, primarily for suppliers - farmers who are not VAT payers.
Assortment of natural products store
A significant drawback of such outlets is the high price of products. At least higher than in many chain stores. This is explained primarily by the high wholesale price at which farmers import products. And the price is high for several reasons, including because of small lots and the distance of transportation of goods. In addition, it is known that it is much more expensive to produce an environmentally friendly product than any product with additives.
In addition, it is often not possible to replenish the entire assortment matrix with products from local manufacturers. Let's say fruit - very popular item in any grocery store, but in winter, not a single local producer will bring you apples, pears, and certainly bananas and kiwis.
Therefore, in the assortment of goods, in addition to natural local products, there are also “industrial” goods from a variety of suppliers. In the same Fermer chain, the share of natural products is only 30%, the remaining 70% are industrial goods.
How much can you earn by opening a natural products store
Grocery stores open in settlements and areas with a population of 20,000 or more and position themselves as convenience stores. The average markup on goods is only 20%. According to the CEO of the Farmer network, the outlet is reaching self-sufficiency with daily revenue of 90-100 thousand rubles a day. The average check in this case is about 140 rubles.
How to open a farm shop step by step
- Market analysis.
- Drawing up a business plan.
- Search for suppliers, farms.
- Room rental.
- Purchase of equipment, inventory, cash register.
- Advertising.
- launch outlet.
Farm shop profitability
Farm products are very popular. That is why such points of sale are very profitable. At the initial stage of activity, it may not be possible to make a big profit. But over time, the popularity of the store will grow, and accordingly, the profit will increase. Income from environmentally friendly products can exceed 500 thousand rubles. per month. Business payback occurs within 6-9 months.
How much money do you need to start
The cost of starting a business depends on several factors:
- Do you have your own premises or will you have to rent a store;
- Purchase of new or used equipment, racks;
- Are there any contracts for wholesale deliveries from farmers.
In total, it will take 500-700 thousand rubles to open a store.
OKVED farm products store
- 11 - retail food products;
- 19 - retail sale of a large assortment of products.
What documents are needed to open a business
To open a store, it is enough to register as an IP. For registration it is necessary to tax service submit an application in the prescribed form, a photocopy of the passport and pay the mandatory state duty.
Do I need permission to open
- Permission of the SES for the compliance of the store and the products in it with the standards;
- Permission from the fire inspection for the safety of the outlet;
- Agreement on the removal of household waste.
When opening a retail outlet in a supermarket, such permits will not be needed. It is important that food products must have quality certificates.
The Kalina-Malina chain of stores was launched by the team of the Peasant Farm Volkov A.P. - a well-known Kuzbass producer of sausages and meat delicacies. In two years, the project has grown to a major chain player, managing fifty stores throughout Siberia (90% in Kemerovo), and gathered around itself a cooperative of farmers, some of whom literally restarted production for the sake of Kalina-Malina. At first, the traditional farm set - fresh milk and a homemade egg - was located in Volkov's branded stores, where a department was set up for the products of peasant farms. Convinced that the project was profitable, the founders of Kalina-Malina moved outlets to other sites and began to develop the franchise. In an interview with Five o`clock, the head and co-owner of the project, Artyom Volkov, told how he selected the best farmers, what is the most difficult thing in partnership with rural businesses, does the Kalina-Malina cafe make a profit, and why online sales of fresh products remain “meager”. The publication "Smart Money" cites this interview on its pages.
Artyom Volkov
Co-owner of the Kalina-Malina chain, KemTIPP (meat and meat products technologist), 30 years old
- "Kalina-Malina" started against the backdrop of food sanctions coming into force, and you must have counted on the notorious import substitution. Not in vain?
Yes, there was such a trend, but we did not follow it, we did not catch the “recommendations” from above. There was an understanding that we were ripe for such retail. The idea arose even before the crisis, sanctions and prohibitions. It can be said that we are engaged in optimizing the sales of Volkov's meat products. We tried to make departments, find a place for a farm niche. And in general, how many imports are sold in the segment of farm products? Have you seen a lot of foreign eggs, milk, cottage cheese on the shelves? This is 0.0001% of the entire market. These are products that cannot be made in Russia under any circumstances, things that do not grow and take root here. So they left the market. I cannot say that we have replaced them.
Why did you decide that Kuzbass is ready for farm products? Did you have any customer demand analytics?
Well, analytics is a tricky thing. If you order it for someone, they will show you the numbers, but where are the guarantees that these people are not mistaken? There was confidence at the level of intuition and little experience: before launching Kalina-Malina with a wide range, we tried to sell the milk of one farmer whom we personally knew and respected. It was an experiment: the product cost more than the market average, but it was of better quality and fresher - will they take it? The buyer voted in rubles. As a result, the average check [Volkov] grew, sales went up. Everything indicated that it was necessary to continue and launch a separate direction. So there was "Kalina-Malina".
- How long did it take?
Six months. First, sour cream and cottage cheese were added to milk, then an egg. We started looking for other farmers. In parallel, we agreed with LavkaLavka on a seminar, began to develop design, prepare areas in stores, shelves, refrigerators. In principle, at the first point everything was already for sale, no big investments didn't need to. We just stylized one department as “eco”: we made everything from wood, even the floor. Naturally, if it were a separate someone else's premises, another store, everything would cost a multiple more. We met 600,000 rubles ( shop equipment, design, marketing, advertising) and opened 4-5 more similar departments in six months.
- How did you find suitable farmers? What were the selection criteria?
This is the value of our work, our main competitive advantage- search for the best. We went from the contrary: in supermarkets, all products are from dealers and wholesalers, which means that we will only have small farmers. In networks, intermediaries - we will work directly with the farmer. Preservatives, dyes, GMOs are everywhere - we are for a natural product. Everyone has a long shelf life - we have exactly as long as the product "lives" in natural conditions; it is usually "fast". Another important point: we work only with the Siberian product, we do not carry anything from other regions. Plus a subjective factor: we must like the farmer, otherwise we won't work together. After such a selection, we go “for an audit”. Our scouts regularly evaluate the level of local production: hygiene, dishes, appliances, temperature, documentation. It's such a mess! We wait six months for some of them until they correct all the shortcomings or draw up the documents. This is followed by laboratory testing. This is also important: a farmer can do everything perfectly once, and then start hacking, adding something, using chemicals.
- Don't all farmers work directly, don't use preservatives and have documents?
No, absolutely. To obtain documents, at least a veterinary certificate, you need to at least register your private household plot. This is if you have one cow or a garden, and you sell only in the market. If you decide to get confused with the sales market, go online, then you need to register an individual entrepreneur, LLC or peasant farm and pay taxes. And why, when you can just go to the market or sell to buyers? That's what most do. It is very difficult to persuade people to change the form of ownership, to switch to individual entrepreneurs and taxes. But there is no other way - they will not be allowed into the store. When we convince, it turns out cool. For example, they started a farmer for tea. He had cool tea, but without documents, without anything at all. We got hooked on him, let's persuade him to arrange everything, but he hesitates: yes, well, why, but I don’t know where that is. It really wasn’t all that simple there: was it medical preparation(there was oregano in the composition), or something else. We figured out for a long time how to register it, we were driven to all instances. It turned out that the medical industry in Russia is arranged in such a way that all these certificates and permits cost millions. We tried to register these herbs not as pharmaceuticals, but as food product. The whole topic cost 31,000 rubles. The farmer says: "No, it's also expensive." I offered to split in half. They bought everything, he made a product, and it was taken apart in an instant. Two years have passed, the declaration has expired, so he has already re-registered everything with his own money, made a new batch and thanked us ten times that we persuaded him then.
Sometimes farmers do not have money for harvesting, for packaging. Let's say you need 200-300 cans at once, but there's nothing to take them for. We buy cans, give them away and buy the finished product. Sometimes we pay in advance. It all depends on how tight the farmer is, in what condition his farm is.
- How many farmers are in your base now?
I think less than a hundred. (Pause). Here I have fresh figures for Krasnoyarsk: they found 200 farmers, called them - 58 remained, started working with one. Do you understand what kind of difference there can be? We filter the initial list very strongly, leaving 10-15%.
- How often do you stop working with a farmer? Because of which?
These are one-time cases. I remember there was a Lithuanian who sold sweets. And he had sky-high prices, something like 350 rubles for a box of cookies. Why? Well, they say, it is some kind of special, primordially Lithuanian - you can’t find anything like it anywhere except in Lithuania. And we immediately decided that we are not knocking down the prices of farmers: how much they have appointed, we will start from such figures. The cookies lay for two months, no one bought them. We stopped ordering, and six months later he put the business up for sale. Most often, farmers are not ready for quality requirements, for comments. Some listen, and some directly say: "Guys, we have customers without you, but you really got it with your claims." This is hard to deal with.
Hell itself is to convince hardened hardened farmers to make their product better or try to release something again. If something didn’t work out for them five years ago, you won’t swing them in that direction.
- What is your geography of purchases and sales now?
90% of retail is Kemerovo. Purchases - Altai, Kuzbass, Krasnoyarsk, Novosibirsk, Tomsk. In principle, we support a different approach: it is necessary to develop not the Kuzbass product in Krasnoyarsk, but to find cool farmers in Krasnoyarsk and sell them to Krasnoyarsk residents. Then there will be no problems with logistics, no need to dangle back and forth.
- Now there are such problems?
If you just need to go to completely remote areas. It is easier for us in this regard, we have also joined our meat business here, which has an even wider geography: part of the production in Altai, part in Novokuznetsk, part in Kemerovo. So it is more convenient to build logistics and go where it is expensive and unprofitable for others.
9%
logistics costs in the trade margin
- What are your purchase volumes?
Differently. I can say that we sell up to 20 tons of milk per month, and we buy products for about 20 million rubles. All this money goes directly to the farmers.
- What diverges best? Any hits in farm food?
This is all farm classics: milk, sour cream, cottage cheese, yogurts. In general, milk is 70% of our sales. The simplest traditional products always diverge well. Another cone jam: in a good season we sell up to 1000 cans.
Oh, it's our superfood. We couldn't get around this topic. Kuzbass is famous for its coal, so black bread with coal is, as it were, the most local cuisine (laughs). True, we did not invent it, it was before us. In the same LavkaLavka, by the way.
- You are trying to develop agro-tourism. There are already some results.
We just started this season. This is a strange format. I don’t like the name either: what is “agritourism”? About everything and nothing. We just developed a program for a trip to farmers, but this is not so much tourism as a quest "become a farmer for one day." So that a person gets up with the first roosters, goes to the chicken coop for eggs, makes himself breakfast, milks a cow in the afternoon, chop wood in the evening, floods the bathhouse, and goes fishing early in the morning.
It turns out a day of active rural recreation - or labor, how to look - with elements of farming, fishing, beekeeping. We let you live a simple rural life, switch and relax. There are few results so far, we poorly promoted this thing. The problem is different: people do not want to travel far from home. We cannot organize delivery, it is not always convenient for customers to travel by themselves. There are two options here: either look for bases closer, or “hang” delivery on farmers.
- Will they go for it?
I doubt. In general, they are interested in this story. Some, I know, have already begun to build guest houses, to somehow equip the household, remodel it taking into account the leisure of tourists. They understand what is their benefit. They get advertising for the place, the product, and themselves as a manufacturer. After all, what do they have to lose? You went and fed their goats, chopped firewood and paid some more money, that's cool (laughs). Seriously, while this is also an experiment, there is no profit.
- Does the farm cafe bring you anything?
So far, this is more of a promo for Kalina-Malina. The cafe was opened almost by accident. We had a store, we ran a farm department with a very high ceiling, and the design guys suggested a cafe: “Why do you need to lose height? Let us bang you on the second floor of the cafe, you will still pay the same amount for rent. ” In general, we fell for this adventure. And somehow it all happened so quickly, I don’t even particularly remember that we somehow took a steam bath. Everything was quickly drawn and done. It’s too early to talk about profit, but there are already good reviews, people like it. I don’t know, maybe we’ll move, maybe we’ll open a second one, but it definitely won’t be a network, we won’t go further to the regions with the cafe project.
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ruble costs 1 kg of mallard duck meat
- And where will you open new stores?
We will definitely open in Krasnoyarsk. We recently visited Tomsk, there are five stores there. In Novosibirsk - six, in Novokuznetsk - three, in Barnaul - one. But these are all franchise projects, we do not have our own branches. I don't believe in remote control.
- Were there any problems with franchisee partners?
In Barnaul, one Volkov franchise was taken away. We always ask you to coordinate with us the list of products in the store in order to understand how they fit our criteria. The guys [in Barnaul] ignored this and started importing shampoos and household chemicals. At the next audit, we said that this would not work, Volkov could not have such a line in principle. They say, "Then we won't survive." I replied: “Yes, you, on the contrary, will fall in sales! The buyer will not understand how this is possible. They continued to sell shampoo, and we canceled the franchise. They did not swear, they simply transferred them to a supply contract. They also bought sausage as wholesale customers and resold it, but without our brand, without a sign. Eventually they closed.
- Do you sell separate franchises: Volkov and Kalina-Malina?
No, only Volkova so far. Two weeks ago, they tried to attach Kalina-Malina to it in one city. Perhaps someday we will also sell Kalina-Malina separately, we must try. A purely farm food store, without our meat products - for now, in my opinion, this is a risk. It is more reliable with Volkov, there are payback figures, everything is clear: investments from 3.5 to 5 million rubles (equipment, repairs, first purchase of products), return in about a year, plus or minus the season. Attaching Kalina-Malina to it costs, as I said, 650,000 rubles.
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- Who do you consider your competitor?
There are no more farm cooperatives with their own retail network in the region. There are online stores, but as far as I can tell, their sales are much less than ours.
- Are you familiar with the Korovenok project? You have a very similar product line.
familiar. There are several online farming sites in Kemerovo. For example, "DereZA". They are very actively promoting themselves on the Internet, they have advertising everywhere. But, you see, these are all Internet projects, they are initially small. How do they work? They collect a pool of orders for a week and go for products on weekends. We transport every day, because we have other volumes, other possibilities. I don't know their sales figures, but it's unlikely that there's anything sky-high. Compared to regular retail, we also have ridiculous sales, so it’s too early to talk about competition. On the other hand, they are great - the future lies with online stores, in ten years all sales will be there. In addition to the natural evolutionary transition, price will also play a role.
The biggest cost in retail is rent, and in online sales they can be significantly reduced.
In ten years, in cities where you have five stores, there will be 25, which means that the need for online sales will disappear by itself. Isn't it easier to come to you after work than to place an order?
It really is. I think this is the reason for our low online sales. Surely, if there were fewer stores, the numbers online would be higher, but we are unlikely to close them because of this.
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