Interview of the President of the company for newspaper ,,Business and Finance,,

4. September 2014.

Interview: Milovan Kocic, Yumis

And at home, guests

Milovan Kocic, the owner of a low nutritional industry “Yumis” which exports to 18 countries on three continents, worry about the future of domestic manufacturers, in whose ranks “game” for 24 years, not because of lack of capacity, investment or business ideas, but because of the narrowing of the internal market . Therefore, in addition to Russia, Belarus and Somalia, preparing the ground for their products in China and Kenya.

By: Milica Rilak

By the time 2012 came in the final E & Y selection for Entrepreneur of the Year, the owner of Nis-based company Yumis Milovan Kocic warned that the volatile business conditions, which in his case meant an increase in the price of packaging by 30% in just one year, businessmen can hardly to make any business strategy. Today, two years later, the pricing policy and the exchange rate is estimated as better, because predictability. “I do not belong to those who advocate a” stimulus “course that are supposed to increase the competitiveness of our goods to foreign markets. However, I sincerely hope that they will continue this policy of prices and the value of the dinar since the only way to make quality and plans to conquer foreign markets, “said Kocic.

B & F: “YUMIS” products are present in twenty countries, including Russia, which is now especially important domestic companies. How did you manage to enter the Russian market?

So what we have worked for years, build contacts and create opportunities in trade fairs, exhibitions and direct negotiations that in February this year began with the first deliveries of our products. All in all, it took us 5 to 6 years to appear on such a specific “slow” market that is hard to win. Suppose, too, that the expectations of local businessmen of this market is quite exaggerated due to political developments around the mutual sanctions of the EU and the US on one side and Russia on the other. In the Russian market will simply find those Serbian companies that have such a strategic orientation, which are working on it and are aware that this is no longer a centralized economy where someone will do what from whom you purchased or imported. The Russian market is no different from any “western” or modern market. There do business, and domestic and international trade chains and policymakers product placement. If we have not managed to find there hardly are we going to do something different. Now have the opportunity, in my judgment, only one of our companies that offer primary products: apples, pears, cherries, milk, sugar, flour, corn … Others, if they are not already working on the “conquest” of Russia, it is difficult will now be able to make a significant job.

B & F: Russia is not the only “specific” market where you can find. How do you come to the customer in, say, Somalia?

Earlier this year we sent to Somalia for the first “test” a container with goods relatively recently, we sent another, which means that our products and to find their place. We hope that the same will happen in Kenya. African market is, I believe, a great space in which the Serbian economy can sell its products, and with far less sick than those faced by trying to enter the markets of European countries. As soon as he says “Africa” many first count with the vast distances and the height of the transport costs. In these countries, however, first of all there is a great demand for food and the food industry is very weak. The cost of transportation, it can be “offset”, and our products to be competitive in the African markets. I think that the strategy of the state should go in the direction of facilitating cooperation with African countries,

B & F: How could the state to help in conquering new markets?

Or can learn from their own past or administration of the countries with which it wants good economic ties. As far as the old-time, country once had its “export carriers”, companies like Genex or Inexa who had the task to reach the customer, which is today the most important goal. The state today has no such relationship with the economy, but my recommendation is to make the most of it should be considering. States must make a strategy for manufacturers, for those that currently exist and work in Serbia, to enable them to reach customers. The best example is precisely the countries with which Serbia wants to cooperate and of which today can learn, Germany, USA, Russia – these are countries that all that work on a global level, working in the service of their own, domestic production: Germany Mercedes or its “technological “sector of the US defense industry, Russia’s energy sector … We, Unfortunately, we do not do anything in this most important field. The state should make it possible to find buyers, a great torment faced by Germany and the United States and Serbia and African countries is the same – customers are few and hard to find.

B & F: That you do not discourage yourself looking for the entrance to the huge markets such as China’s. When you financially monitored in these projects?

China is by far the world’s largest manufacturer and exporter in the future will be the largest importer and consumer. Will also have an increasing lack of products for consumption. That we recognize, and we see the markets there is a similar type of goods such as ours, we participated in a fair in the city of Ningbo, which is the fourth largest port in China, and our first results say that there is interest in cooperation. In the next few months we expect an invitation to resume negotiations with a group of distributors from China. We can not say that we have finished the job, but we opened the door, and in this market. As regards financial support, “Yumis” there is no problem to provide support to banks, but note that there are more free money with the bankers, and less cost-effective high-quality projects and business plans for the companies that aspire to that money. Sometimes the businessmen complained of too expensive loans, and today we talk about interest rates of 4% to 6% per annum which is a decent price for a loan. I hope that other businesses will be able to use the resources of the Development Fund, as “Yumis” could-a. Given the context of what is today referred to the Fund and those who use this money, I want to emphasize that we get the money in strict compliance procedure that we have provided guarantees that we fully fund the loan paid off.

B & F: Do you intend to participate in the privatization of some of the remaining 502 companies?

We review a list published by the Agency for privatization, but unfortunately in this list do not see the company acting perspective, even with some additional investment in the revival of production. This situation is no exception, but has become the rule and for the other, “real” private part of the local economy. Moreover, other companies-manufacturers in Serbia, not only do not develop rather than stagnate, increasing them from bankruptcy and liquidation, and I fear that this trend will continue. And why? We have no market. Our company, regardless of whether they are in Niš, Novi Sad, Uzice and Belgrade, they have nowhere to sell their products. We also have a plant, and equipment, technology, quality products, low prices, we have a marketing, but do not have the market, both local and foreign. When they “share the map” – quotas, shelves, procenti- we had the opportunity to participate, and now it comes to payment. Soon will come from global retail chains, Lidl, Careffour, ..they are bringing their established suppliers, so the room for our producers no or minimal space. Simply, the state has not won for its producers than we own market provided a grandstand, so that today we can only sell in small towns, small chains, smaller shops. It is a paradox that “Yumis” easier negotiating contracts with major chains in Macedonia, Montenegro, Albania, Bosnia and Croatia, but with retail chains in Belgrade. With regional chains, however, be at least to negotiate-with those who are coming talks will be. They bring with them their established suppliers, so the room for our producers no or minimal space. Simply, the state has not won for its producers than we own market provided a grandstand, so that today we can only sell in small towns, small chains, smaller shops. It is a paradox that “Yumis” easier negotiating contracts with major chains in Macedonia, Montenegro, Albania, Bosnia and Croatia, but with retail chains in Belgrade. With regional chains, however, be at least to negotiate-with those who are coming talks will be. They bring with them their established suppliers, so the room for our producers no or minimal space. Simply, the state has not won for its producers than we own market provided a grandstand, so that today we can only sell in small towns, small chains, smaller shops. It is a paradox that “Yumis” easier negotiating contracts with major chains in Macedonia, Montenegro, Albania, Bosnia and Croatia, but with retail chains in Belgrade. With regional chains, however, be at least to negotiate-with those who are coming talks will be. smaller shops. It is a paradox that “Yumis” easier negotiating contracts with major chains in Macedonia, Montenegro, Albania, Bosnia and Croatia, but with retail chains in Belgrade. With regional chains, however, be at least to negotiate-with those who are coming talks will be. smaller shops. It is a paradox that “Yumis” easier negotiating contracts with major chains in Macedonia, Montenegro, Albania, Bosnia and Croatia, but with retail chains in Belgrade. With regional chains, however, be at least to negotiate-with those who are coming talks will be.

Antrfile: Kosovo stamp

Domestic producers of food for two years can not export to the territory of Kosovo because of unresolved problems with the recognition of veterinary seal. Factory “Yumis” not to export its best-known and most sought after of the production soup, as their products can not qualify nor domestic factories of meat and meat products, dairy … Our country is terribly damaged because of this, and now that the space , which was left empty after the Serbian manufacturer, won the goods from Turkey, Macedonia and Croatian all the way and that the issue of seals resolved, the question is whether they managed to regain lost market share.

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