Loginova: “This project is the first stage of the project on creation of industrial complex on processing of corn grain, according to which the construction of a complex of granaries is planned to be built, to open workshop for corn processing with capacity of 144 t of corn grain per day, and also to open production workshops for production of food of quick preparation.” The Private Production Trade Enterprise "JNL" is among important and reliable milling enterprises and grain suppliers of Ukraine. Realizing flour and grain export to nearly 20 countries, the company’s mills have daily 160 tons of grain processing capacity. The company aims to complete its new project for corn processing in the next 10 years. Stating that the project the first stage of the project on creation of industrial complex on processing of corn grain, according to which the construction of a complex of granaries is planned to be built, to open workshop for corn processing with capacity of 144 t of corn grain per day, and also to open production workshops for production of food of quick preparation; JNL Director Lyudmila Loginova answered our questions on their company, future goals and Ukrainian grain market. Mrs. Lyudmila Loginova, your company JNL is one of the leading flour mills and grain suppliers of Ukraine. Firstly, could you please give us some information on your company and how you have come to today? The Private Production Trade Enterprise "JNL" was founded in 1992, according to a primary activity it belongs to grain-milling industry; it is the producer and exporter of cereal production. The administrative industrial complex is placed in Chernigov (Ukraine). The complex for production of grain products and mixed feedings as well as grain elevators with storing capacity up to 15 thousand tons are located 20 km away from the city. According to the results of the National Business Rating PPTE “JNL” occupies a leading place in grain-milling industry for many years and is multisectoral. Mission of our enterprise consists in production of cereal and flour products of the wide list of grain crops, guaranteed of high quality and for reasonable prices, ensuring flexibility in volumes of deliveries to each concrete market and advance of such production to the international markets with different consumer ability. What can you say about your flour processing facilities, capacity, product variety and the position in the Ukrainian market? Quality of cereal and flour depends on quality of grain and the production technology. Process of production consists of two stages – preparatory and directly the crushing (grind) of grain. At a preparatory stage there is a careful grain purification of impurity. Also moistening process, thermal treatment of weight is very important. If process is made ideally that quality of production will be on the top. The technological laboratory is created at the enterprise. All arriving grain and finished products pass through careful control. The laboratory has the attestation certificate No. A07-212 dd 22.08.2007 given by the Ukrainian state center UDUS according to attestation criterions it was certificated for carrying out measurements and indicators of grain and processing products according to accreditation branch. On production area the modern equipment allowing reaching the best quality is used. The plant is equipped with the modern highly effective equipment: air - sieve separators, stone separator, pneumatic duct, the equipment on allocation of hardly separable impurity. The equipment passed tests on the basis of which the certificate of conformity No. UAA1.003.01173-00 in Ukrsepro's system was issued. For expansion of cereal and flour range and quality improvement, on the basis of market and consumers’ needs monitoring, reconstruction of the available equipment is carried out now, applying advanced technologies. Nowadays at the enterprise the quality management system according to ISO 9001-2001 standard “The quality management system” is introduced and “The system of management of foodstuff safety NASSR (DSTU ISO 22000:2007)" is being introduced. As we know, you produce other products like semolina and bran besides wheat and make grain trade. Could you give some information also on the service variety of your company? Capacities of our groats mills allow to process to 160 t of grain per day. The main group of goods - cereals in assortment (peas polished (whole, split), defatted corn grain, corn flour, millet polished, buckwheat (unground buckwheat), wheat grits and feedstuff. The second direction in commodity turnover is wholesale of grain trade, beans and foodstuffs. We deliver soybeans, corn, millet, sunflower confectionery, lupine, coriander, mustard, vetch, faba beans, and flax seeds. The raw materials are grown up on Ukrainian fields, according to the technological instructions approved according to the established procedures with observance of health regulations that are operating in Ukraine. Are you working only for the Ukrainian market in the flour milling industry? Are there any export activities or do you have any goals for export? The enterprise’s production is in demand both on national, and the international markets. The geography of deliveries of our enterprise’s goods is more than twenty countries of the world. Production differs for its optimum ratio - price/quality, with a high biological and nutrition value and is intended for direct consumption by the population and for industry. Quality optimization is reached due to ensuring stability of quality and safety of production at all production phases, starting from the moment of raw materials’ selection. Achievement of this purpose is promoted by the quality management system introduced at the enterprise ISO 9001:2008 and NASSR Could you give some information also on the flour industry in your country and the consumption habits of Ukrainian people? What is the position of Ukraine in the world in terms of usage milling technologies, flour production amount, quality and consumption? Ukraine takes the 2nd place in the world market among suppliers of wheat flour for export. The main import countries of the Ukrainian wheat flour are CIS countries. Perspective sales markets for Ukraine are also the countries of the African continent. Traditionally the flour was considered in the country as the depersonalized good. About ten years ago some producers tried to break stereotypes and to offer retail branded production. Partially experience was successful, and on shelves of shops it is possible to see both anonymous and nominal flour. And among the first it won't be possible to find premium goods any more. On the whole the domestic flour-mill market is divided between local producers, and each region has its own leader. First of all it is connected with a shoulder of grain delivery. In Ukraine wheat flour is generally produced, because annually our landowners grow up more than 20 million tons of wheat. Rye flour is produced very little: the crop of rye makes about 500-600 thousand a year. All other types of flour (buckwheat, corn and so forth) in industry are of little demand and are issued only for retail. Now for consumers the rational choice is defining. The factors influencing the consumer’s decision about commission of purchase, changed too: during the pre-crisis period 50% were for the goods image, 30% were for its consumer characteristics and only about 10% were for the price. Now defining role is played by the price, then goods structure, an expiration date and personal experience of products consumption of a concrete trademark. What do you think about that how will your country progress in terms of the flour industry? Analysts believe that flour products in Ukrainian ration will become less. Therefore millers hope for strengthening of export, and the main part of flour goes for production of social grades of bread. Among the main reasons which are slowing down the development of Ukrainian flour export is remoteness of sales markets. Besides in some countries the import duty on wheat flour is entered. Main buyers of a domestic “white product” are in Central Asia and in the Middle East. It is more favorable to them to buy the Kazakhstan and Turkish flour sometimes made of Ukrainian and Russian raw materials. The matter is that grain is transported in holds of the ships whereas special containers are necessary for flour. Thus, at the expense of cheap logistics, other standards of profitability and better knowledge of the market Ukrainian competitors win. As the main competitor of Ukraine concerning the prices and quality is Turkey, volumes of export of Ukrainian flour also will depend on a state of affairs on Turkish export-oriented mills. Certainly, it is necessary to take in consideration the factors which can’t be changed especially weather conditions. Only in case of receiving of great wheat crop it is possible to speak about competition of flour prices. As JNL, what is your future goal for the investment and market objective? In 2013 PPTE “JNL” for the purpose of expansion of kinds of activity and giving requested services to agricultural enterprises of region, effective usage of a property complex of mill of bakeries and compound feeds in village Gorbovo Chernigov region and increase of the enterprise’s profitability the investment project "The Organization of Elevator Farm business" was developed. This project is the first stage of the project on creation of industrial complex on processing of corn grain, according to which the construction of a complex of granaries is planned to be built, to open workshop for corn processing with capacity of 144 t of corn grain per day, and also to open production workshops for production of food of quick preparation. In full the project will be realized in 10 years, with stage-by-stage of production’s capacity operation. Finally, what would you like to add? Investment in production is made by own means received from profitable activity. Payment of taxes, collecting, payments to budgets of all levels is made promptly that confirms PPTE “JNL”’s stability. The enterprise is the reliable partner in relationship with suppliers, buyers, banking and public institutions. The enterprise constantly does charity work. The main direction of charity is the help to orphan children and children from needy families, to veterans of the 2nd World war. PPTE “JNL” is the member of Chamber of Commerce and Industry of Ukraine and the Chernigov Chamber of Commerce and Industry and is brought in the national register of Chamber of Commerce and Industry of Ukraine of reliable partners. The sign of trust of buyers and recognitions of experts are numerous awards of our production at competitions, exhibitions, etc. The director of PPTE “JNL” is the vice-president of the Chernigov city League (club) of business and professional women, the Congressman of business women of Ukraine, the member of council of the Chernigov regional association of businessmen and employers, Council of the Chernigov RCC, the member of regional council of businessmen at RSA Chernigov region, the member of council of WSOTS Association of taxes payers of Ukraine in the Chernigov region. We would like to thank Mrs. Loginova for taking time for our magazine and answering our questions.