Organization of the supply chain of fruit and vegetable products to Kazakhstan

10/05/2022
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Oleshko Darya Aleksandrovna
Research

Annotation:

Each country has certain competitive or comparative advantages over other countries in the production of a particular product, or such products are unique to their country. The article deals with a topical issue for the Kyrgyz Republic today. Export involves the sale and transfer of resources to a foreign country, in this case the Republic of Kazakhstan, and involves a relationship between a seller (exporter) and a buyer (importer). For companies, export is a way to increase profits and financial performance, and on a national scale - a way to develop the economy. Export is also a key factor in the development of international relations through the negotiation and implementation of trade agreements.

Keywords: export, fruits and vegetables, refrigerated vehicles, wholesalers, international trade, competition.

Introduction:

Transportation of vegetables and fruits requires a delicate and responsible approach to eliminate the risks of damage to the products during loading and unloading and its stay in the truck on the way from the shipper to the destination. The shelf life of vegetables and fruits is limited, as this type of product quickly loses freshness, elasticity and flavor. Also, an important condition is the correct packaging, loading and stacking of cargo, taking into account the density of the fetus. Such cargo can be packaged in wooden, cardboard or plastic boxes, which are stacked on top of each other, taking into account the provision of air access.

To preserve the freshness of fruits, the transportation of vegetables and fruits is organized in such a way that optimal conditions for storing goods are created inside the van, taking into account the distance and duration of the cargo's stay in transit. Since various fruits require special storage conditions, it is not recommended to transport mixed loads over long distances. In this case, separate transportation of fruits requiring special conditions is recommended. The rules of transportation of fruits and vegetables require careful attitude from the driver, movers and logisticians so that the fruits do not lose their presentation and retain their taste, color and elasticity. The integrity, maturity and density of fruits are very important in pricing, since damage to the skin contributes to the loss of attractiveness for the buyer.

Any entrepreneur will strive to develop his business. There are several ways to achieve growth, one of which is export. Export is a process involving the sale of commercial goods or services to another country. Exports depend on factors such as production costs, domestic markets, competitive and comparative advantages of production, distance, socio-economic conditions, logistics and government regulation. The biggest difficulty for the exporter is to overcome these factors due to the presence of an actual or perceived comparative or competitive advantage over products manufactured in this country or competing supplier countries. It is not enough to have a "better product" and a price, a better product and price are needed for a new market and consumer preferences, or if the needs of buyers differ, the seller should consider these needs not from the seller's position, but from the buyer's position. The decision to export goods should be made after a thorough assessment of the opportunities and problems arising in connection with the development of exports. Exporting, however, can be a very fruitful and profitable process, providing greater profitability than with sales in the domestic market, while increasing risks, if the process is well thought out and properly implemented.

Why export is important, you can consider several criteria:

1. To increase the turnover of the company: international trade may entail higher costs, but at the same time makes it possible to achieve a higher level of sales in general and a higher price per unit of goods

2. To maximize capacity utilization and reduce production costs: operating at capacity exceeding domestic demand and approaching full capacity utilization allows exporters to reduce marginal costs per unit of goods by allocating fixed costs to a larger number of products, thereby minimizing idle capacity and increasing production efficiency.

3. To sell surplus products: this may be necessary if the fruit and vegetable year turned out to be very high-quality, the number of stocks of vegetables and fruits in excess of demand in the domestic market. Selling the product outside the local market helps prevent the formation of a surplus by lowering prices in the domestic market.

4. To extend the life cycle of goods: existing goods will have an extended sales period in the presence of new markets. The ripening period of the crop differs depending on the climatic zone, sales of seasonal products in the "off-season" climatic zone can provide extended product sales periods.

5. To improve product quality: As competition increases, wholesalers have no choice but to improve the quality of their products.

However, before making any decision, it is necessary to evaluate the market, opportunities and determine a growth strategy. The Ansoff Matrix is a strategic planning tool developed by Igor Ansoff in 1957. The matrix provides a framework to help businesses develop a strategy for future growth. The Ansoff matrix provides four alternatives to growth in new or existing markets with new or existing products. The degree of risk differs depending on the alternative.

As part of the market penetration strategy, fruit and vegetable wholesalers seek to increase the market share of existing products in the existing market. This is achieved by finding new customers in the market or increasing sales to existing customers. This growth alternative is associated with the least risk. Market penetration strategy tools:

  • price reduction;
  • more active promotion (advertising) and distribution;
  • absorption of competitors;
  • minor change of goods.

Product development strategy. As part of the product development strategy, the company strives to introduce new products to existing markets. Since there are a very large number of wholesalers and farmers in Kyrgyzstan who are engaged in the export of fruit and vegetable products, a lot of competition is created. Thus, each of the sellers tries to make their product high-quality and kind of unique. This is achieved by modifying existing products by changing their positioning, properties or quality in order to make such products more attractive in the existing market.

Transportation of vegetables and fruits is not an easy process, as it has its own transportation features. Fresh fruits and vegetables are perishable products, therefore they require strict compliance with a number of rules and conditions regarding temperature, humidity, sanitary and other requirements for the transportation of this type of cargo. At the same time, fresh fruits and vegetables have valuable properties, because the task of the carrier is to ensure the delivery of such products with maximum preservation of high quality and minimal losses. For transportation, vegetables and fruits must be packed in appropriate containers and packaging for each type. Many of the wholesalers comply with all packaging standards, such products are mainly sent for sale to supermarkets and minimarkets, as they have a presentable appearance and appropriate quality. But there are exceptional moments when, in order to save money, wholesalers do not comply with the norms of packaging and transportation, for example, the transportation of potatoes. Based on the experience of working in a logistics company, there have been cases when wholesalers, having their own transport, transport potatoes without any packaging, without observing the temperature regime and sanitary standards. Upon arrival of vehicles filled with potatoes without packaging, large losses arise, since the potatoes that lie at the very bottom are crumpled, cracks form, all this leads to brocade and rotting. 10% of the affected potatoes are disposed of. Also, due to rotting, the flooring in the truck deteriorates, this is a violation of the sanitary norm. The same example can be given when transporting melons. In order to save money, a large amount of goods is loaded, which exceeds the norms of 20 tons, in the lowest layers the products deteriorate and cracks appear under the weight of the upper layers.

As mentioned above, when transporting fruit and vegetable products, there are a number of features: vegetables and fruits must be packed in the appropriate container and packaging for each type:

1. onion, garlic, cabbage - in the boxes there are;

2. beets and carrots - in canvas bags and boxes;

3. cucumbers, apples, quinces, pears, pomegranates, grapes, apricots, plums - in boxes and euro-trays made of corrugated cardboard or in wooden pallets, wooden boxes;

4. melon crops - in special containers.

Transport used during transportation:

  • Eurotent trucks, most often operated at plus air temperature for fruit and vegetable products at short distances.
  • Thermal vans with a special layer of thermal insulation made of foam. Such cars keep a stable temperature inside the van well during delivery.
  • The refrigerator is indispensable in cases when it is necessary to maintain a stable low temperature or provide heating of the body. Such cars are used in winter to save goods from frost, as well as in summer during the hot period to preserve freshness.

Also, the rules for the transportation of fruits and vegetables include recommendations for preventing fruit strikes during delivery. Shaking during the movement of the vehicle on the road is excluded, therefore, the highest requirements for qualifications and driving experience are placed on the forwarding driver. On federal highways, the maximum speed of freight transport with fruit and vegetable products is allowed to be no higher than 90 km/h. If regional roads with increased bumpiness are used, the speed of the car cannot exceed 60 km/h. Also, the driver should be guided by the condition of the road surface and avoid difficult places where there is a high probability of shaking the load and its damage.

Phytosanitary certificate

Phytosanitary certificates are issued to confirm that lots of plants, plant products or other quarantined materials comply with the established import phytosanitary requirements and the certification protocol of the corresponding standard certificate. Phytosanitary certificates should be issued exclusively for this purpose.

Standard certificates have a standard wording and format that should be followed when preparing official phytosanitary certificates. This is necessary to ensure the validity of documents, their easy recognition and provision of important information. Importing countries should require phytosanitary certificates only for regulated goods. These include plants, bulbs and tubers or seeds intended for reproduction, fruits and vegetables, cut flowers and branches, grains and substrates. In addition, phytosanitary certificates can be applied to certain products of plant origin that have been processed, if such products by their nature or nature of processing can potentially spread regulated harmful organisms (for example, wood, cotton). A phytosanitary certificate may also be required for other regulated goods, in cases where phytosanitary measures are technically justified (for example, empty containers, vehicles and organisms).

Documentation

In different cases, different documents may be required: it all depends on what kind of cargo the car is carrying. However, at the same time, there is a standard set of documents that must accompany each cargo transportation.

  • an invoice containing detailed information about the unit price, the number of units and the amount, as well as financial and address data;
  • insurance document (depending on Incoterms);
  • certificate of origin: it is necessary to check which competent authority is responsible for issuing such documents Export sanitary/phytosanitary certificates;
  • itinerary;
  • bill of lading.

When transporting vegetables and fruits, they must be accompanied by documents such as:

  • phytosanitary certificate;
  • quality certificate.

Firms engaged in the supply of products in Kyrgyzstan:

  1. INTERFRUIT LLC
  2. GLOBAL AGRO LLC
  3. PEASANT (FARMER) FARM "ECO FARM"

These firms are specialized in exporting not only to Kazakhstan, but also to other foreign countries.

Oddly enough, not all transport companies are able to fulfill all of the above requirements. And, entrusting the case to non-professionals or specialists who do not differ in responsibility, there is a great risk of getting additional costs, jeopardizing not only the supply, but also the business reputation, and even worse– the health of buyers.

Recently, survey services have become increasingly popular, the capabilities of which are neglected by most customers. This makes it possible to completely eliminate the possibility of losses during the loading of goods, their transportation and unloading at the customer's warehouse. Specially trained people (surveyors) gradually monitor all movements of the goods, as well as their quality and compliance with standards during loading and throughout the entire delivery. Despite its insignificant cost, such services make it possible to eliminate the probability of product damage by 99% and reduce costs. Thus, we can conclude that transportation and survey services are the item of expenditure on which it is not recommended to save. By reducing losses and investing in delivery today, wholesalers increase profits and customer loyalty.

List of literature:

  1. Albekov A.U., Gribov E.M. Patterns of development of transport and warehouse logistics at the regional level. Rostov n/A: RGEA, 1999.
  2. Technical regulations "On the safety of fresh fruits and vegetables" http://cbd.minjust.gov.kg/act/view/ru-ru/94993
  3. Handbook of fruit and vegetable products experts from Central Asian countries.
  4. Incoterms 2020
  5. Nerush, Yu. M. Transport logistics: textbook for academic bachelor's degree.
  6. Agreement on the International Transport of Perishable Foodstuffs and on Special Vehicles Intended for These Transportations (ATP)