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"Kieselmann Bel" Supports the XII Road Rally in Kyrgyzstan

Kazakhstan 14.08.2024
Source: DairyNews.today
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The large German company "Kieselmann," specializing in the production of equipment for the food industry, has become the Gold Sponsor of the XII "Road to Milk!" Road Rally, which will take place from August 19 to 23, 2024, in Kyrgyzstan.  
"Kieselmann Bel" Supports the XII Road Rally in Kyrgyzstan
Founded in 1937 in Germany, "Kieselmann" has been actively expanding on the international stage. In 2014, an official sales office was opened in the Republic of Belarus, and since 2020, "Kieselmann Bel" has been responsible for the markets of Kazakhstan, Kyrgyzstan, and Uzbekistan. In an interview with DairyNews.today, the company's CEO, Sergey Isaev, highlighted the key challenges and potential of the region. He also explained why "Kieselmann" decided to focus on the Central Asian market and how the company helps local enterprises solve critical issues, fostering their growth and development. Sergey Isaev also shared his expectations for the upcoming Road Rally. Read the full interview for more details.


Sergey, "Kieselmann" is a successful company with a long history, but you have entered the Central Asian market relatively recently. Could you tell us about your company's activities in this region?

— Yes, our company was founded in 1937 and has a long history of success. We are a German engineering group that specializes in producing and implementing solutions for the food industry. While we were not widely represented in Central Asia before, we have always been present in one way or another. In addition to direct collaboration with enterprises, we work through our partners, integrators, and engineering companies. These partners produce certain types of equipment and complement their solutions with our components, such as tank equipment, cleaning heads, sight glasses, valve technology, and other elements. We are also widely represented in multinational companies like PepsiCo, Danone, and Coca-Cola, where our products play a key role in technological solutions. Thus, even before our official entry into the Central Asian market, we were actively involved in its development through our partners and clients.

Why did you decide to enter the market of this region?

— The decision to enter the Central Asian market was driven by the need to provide high-level pre-sales and post-sales service, as well as the importance of communicating with clients in their native language. Russian is practically our second native language, as it is for most people in Central Asia, which greatly facilitates communication and makes interaction more convenient and effective compared to, for example, communicating with European clients. The Belarusian office took the initiative to lead this direction, and today we are successfully developing in this region. The market has changed, and modern customers require turnkey solutions that include not only equipment but also automation, engineering, and service. To meet these demands, it is necessary to actively engage in dialogue with the customer, understand their needs, and offer solutions that can be provided independently or in partnership with other companies. This motivated us to focus on Central Asia and actively develop our presence in the region.

What are the features of working with local dairy producers that you could note?

— A lengthy approval process. Working with local dairy producers requires patience, as the approval process can be quite long. Fr om the initial acquaintance to signing a contract, a lot of time can pass, and usually, several meetings are required. This is because it is important not only to present your proposals but also to confirm your seriousness several times, which is probably related to the specifics of the national mentality and the importance of personal relationships in business. Globalization and market consolidation, which are occurring worldwide, also affect this region. In Belarus, Russia, Kazakhstan, Uzbekistan, and Kyrgyzstan, although there are certain differences—for example, in Belarus, state ownership predominates, whereas in other countries, there are more private enterprises—the approach to building business relationships is generally similar. The approval process with local companies takes more time, possibly due to caution and the desire for additional confidence. However, when it comes to multinational companies, standards and regulations remain the same regardless of the region, which allows tasks to be solved more quickly and efficiently.

What approach or method do you use to interact with local enterprises to address this issue?

— Working with local dairy producers indeed requires a specific approach, especially due to the specifics of the approval process and cultural differences. We understand that in these regions, personal relationships play a significant role. Therefore, we focus on building trust-based relationships with our partners. This includes regular meetings, participation in local events, and openness in communication. We take into account the specifics of each market and adapt our proposals and solutions to local conditions and requirements. This can include both technical and commercial aspects. We are prepared for the fact that the approval process can be lengthy and multi-stage. Therefore, we plan our work to ensure maximum flexibility and readiness for possible changes during negotiations. We offer training and technical support for our partners to facilitate the integration of our solutions into their production processes. This also helps establish us as a reliable partner and supports long-term relationships. We actively monitor the process and gather feedback fr om local partners to respond promptly to any emerging issues and improve our proposals and approaches. These strategies and solutions help us work effectively in the Central Asian markets, considering their features and specifics.

What achievements on this market could you note during your presence, and what have you managed to accomplish?

— This depends on what we consider achievements. The market does not tolerate quick fixes, and one-off sales or the implementation of a single set of equipment I would not call an achievement. A real achievement is when we implement an interesting and innovative solution at an enterprise, and it then brings tangible results, allowing the enterprise to reach new production indicators. However, it is too early to talk about this since many projects are still in the approval stage. One of the latest projects that we can mention is the one we implemented together with our partners at one of the TOO "DEP" enterprises. This project is just being launched, so it is premature to talk about specific results. But when the solution is implemented and its effectiveness is confirmed in real operating conditions—whether it is savings, rationality, optimization, or increased productivity—then we will be able to truly assess our achievements.

What services does your company provide?

— We design, manufacture, and develop custom solutions for the food industry, as well as provide after-sales service. Our developments are unique and patented, as confirmed by European, American, and Russian quality compliance certificates. Our supply program covers a wide range of products, including the entire range of valves and shut-off fittings, starting fr om classic models. We are also actively developing the field of deep milk and whey processing. This area is particularly relevant in the context of global trends, as it focuses on the production of dairy components such as protein, lactose, casein, lactoferrin, and others. These components not only have high export potential due to their easy transportability and long shelf life in dry form but are also key to producing final products such as cottage cheese and cheese. We believe that the factory of the future will not need to receive milk because the use of dry dairy components, such as casein, will avoid overpaying for milk that contains unnecessary water and trace elements for production. Additionally, we provide safety equipment for tanks and offer enterprise audit services. Our specialists conduct comprehensive assessments of production sites, identify critical points, analyze the final product recipes, and propose development strategies for the enterprise, taking into account its production capabilities. We help optimize costs and implement modern technologies to improve production efficiency. Thus, we offer comprehensive solutions aimed at cost optimization and the implementation of advanced technologies, making us a reliable partner for enterprises striving for growth and development.

What are your competitive advantages in the market, and why should customers choose you?

— Our competitive advantage lies in the fact that we do not just sell equipment; we provide turnkey solutions. We accompany the customer at every stage—fr om supplying and implementing the equipment to integrating it into the production process and obtaining the final product. When we sell a type of equipment, we do not leave the customer alone with it; we go with them to the end, help integrate it into their production site, and obtain the final product. This is a comprehensive solution. For us, the product itself is not the only important thing, but also its successful use, so we guarantee full support at all stages. For example, if we offer equipment for deep processing of milk and whey, if it concerns whey, we do not lim it ourselves to supplying nanofiltration or ultrafiltration. We take responsibility for the final product and its quality, which confirms our reputation. We strive for impeccable quality and are confident that reliability is more important than price. Our partners are production and engineering companies that value reliability and stability. We offer solutions that ensure maximum flexibility for the enterprise and readiness for any changes in the market. We also care about the future and the environment by creating solutions that promote environmental safety. Leading in the field of deep milk and whey processing, we work according to the quality standards of the EU, the USA, and Asian countries.

How do you assess the current competitive environment in the market for dairy processing and food industry equipment?

— Competition in the market for dairy processing and food industry equipment certainly exists. This is a positive phenomenon, as healthy competition benefits both suppliers and customers. I believe that competition stimulates innovation and improves the quality of services and products. However, I would like to emphasize the importance of fairness and transparency among all market participants. Equipment suppliers must be honest and fully transparent in their relationships with customers. This builds trust and ensures quality interaction. The market has different segments—fr om economy class to premium. This allows customers to choose a supplier depending on their budget and needs. We adhere to a strategy wh ere the main goal is a satisfied customer. We strive to provide not just products but comprehensive solutions that meet our customers' needs at the highest level.

What challenges do you see in the local market today?

— Today, several key challenges can be identified in the local market. For example, Kyrgyzstan is facing a surplus of milk, while Kazakhstan has a shortage. These two countries have entirely different challenges, and their solutions require distinct approaches. However, a common issue in Central Asia is the quality of milk that reaches enterprises. Improving this metric is critically important for raising the overall production level. Additionally, another major task today is the significant amount of manual labor involved in milk processing. It is crucial to reduce manual labor and implement more extensive automation. In this context, private companies providing solutions for dairy production, as well as government support, play a key role. Implementing deeper process automation is essential to reduce dependence on human factors. Reducing manual labor means decreasing the amount of handwork at enterprises. For instance, a facility that processes 200 or 300 tons of milk per day and employs 120 people will have more competitive advantages compared to a similar facility wh ere 800 people work. More automated enterprises have lower production costs and can reduce risks associated with human errors. Automation helps avoid unpleasant surprises and minimize them. Here, it is worth noting that our company is precisely focused on solving these issues by offering effective and modern solutions to optimize processes and improve quality.

What potential do you see for the dairy industry in Central Asian countries?

— The potential for the development of the dairy industry in Central Asian countries is indeed significant. Take Kazakhstan, for example. It is necessary to clearly determine which regions are best suited for the development of dairy farming and which are better for traditional local livestock, such as camel and goat breeding. In some regions of Kazakhstan, which are geographically suitable for these animals, camel and goat milk production is successfully developing. Meanwhile, in other regions more suitable for cattle breeding, the focus should be on the production and processing of cow's milk. It is essential to recognize that sometimes enterprises start building dairy farms in areas wh ere it is not advisable. Therefore, the proper allocation of resources and the selection of suitable regions for different types of dairy farming are critically important.

Moreover, the possibility of purchasing dairy components, such as powdered milk, proteins, and casein, should be considered to increase dairy production and reduce imports into the country. This opens up vast potential for processors in Kazakhstan. The use of dairy components and powdered milk is already widespread, and there is a point in expanding this direction by applying more specialized components to improve the product range and reduce dependence on imported supplies. The market has manufacturers offering membrane filtration systems, homogenizers, sterilizers, and pasteurizers. These components and solutions are used at various stages of milk processing, providing ready-made solutions for enterprises. Our components and solutions also find wide application in the milk processing process.

There is a belief that powdered milk is less nutritious and even harmful compared to regular milk. Is this really true?

— Yes, there is a belief that powdered milk is less nutritious or harmful compared to regular milk, but this is a misconception. In reality, the use of powdered milk is neither harmful nor dangerous. In Soviet times, especially in northern regions wh ere fresh milk was scarce, powdered milk was actively used and successfully reconstituted for consumption. This confirms its safety and usefulness. When we talk about milk, it is essential to consider its beneficial properties: proteins, fats, trace elements, and other nutrients. During the reconstitution of powdered milk, when water is added, we obtain a product similar in its properties to fresh milk. This is not related to the use of chemical additives. Freeze-dried products have traditionally been used and were never considered chemical. For reconstituting powdered milk, traditional technologies are used without chemicals, provided that we are talking about conscientious producers.

However, it is worth noting that in some cases, vegetable or animal fats may be added to powdered milk, which is due to the dishonesty of processors and is a separate problem. This phenomenon has nothing to do with the quality of powdered milk itself.

Fr om an economic perspective, using powdered milk is advantageous for processors. For countries like Kazakhstan, wh ere there is a milk shortage, powdered milk is an effective solution. The use of powdered milk allows compensating for the lack of fresh milk and maintaining dairy production. Kazakhstan is not New Zealand, Australia, or India. If there is a milk shortage, why not use powdered milk?

Sergey, please share your company's future plans in the context of Central Asia and the dairy industry. What can your clients expect in the future?

— Our clients can expect, first and foremost, stability and reliability. For four years now, our company has been officially present in the Central Asian market, and we will continue our work here with confidence and dedication. We do not just sell equipment or solutions; we provide full-cycle support—from consultations to implementation and ongoing maintenance. Our distinguishing feature is that we do not disappear after selling equipment or leave clients with problems; our company guarantees continuous presence and support. We help our clients not only implement equipment but also optimize its operation, improve production processes, and resolve any emerging issues. Clients can rest assured that we will not leave them alone with the purchased equipment or solution. We are always in touch, ready to provide assistance, consultations, and technical support, regardless of the complexity of the task. Our reputation is confirmed by many years of experience in the global market, which is crucial in the context of frequent problems with other suppliers. Moreover, our equipment has proven itself to be reliable and efficient. This is the main argument we present to our clients: everything we offer works flawlessly and brings results and profits to our clients. We guarantee that our solutions will serve long and effectively, providing our partners with stability and confidence in the future.

Your company "Kieselmann" is the Gold Sponsor of the XII Road Rally for Dairy Enterprises in Kyrgyzstan. What are your expectations for the upcoming event, and why did you decide to support it?

— First of all, we traditionally support events organized by the DairyNews.today team. This event promises to be very interesting: visits to significant enterprises in the dairy industry in the region are planned, and meetings with key players and business representatives from Kyrgyzstan and other countries will be organized. For us, this is an excellent opportunity to communicate with participants, learn about their plans, and understand which solutions and proposals from our company may be most relevant to them now and in the future. Participation in such events is important to us because they serve as a platform for discussing current issues and exchanging ideas. It is a great place to consolidate opinions and form new solutions. In such rich discussions, important ideas and discoveries often emerge that can help all participants achieve their goals. We are confident that participation in the Road Rally will provide us with the opportunity not only to showcase our solutions but also to better understand market needs, which, in turn, will help us more effectively develop and adapt our proposals.

Sergey, thank you very much for the interview! See you at the Road Rally in Kyrgyzstan!


From August 19 to 23, 2024, the XII Road Rally will take place in the Republic of Kyrgyzstan. The event will feature 50 participants from the dairy market across nine countries. Registration for the Road Rally in Kyrgyzstan has now closed.

Gold Sponsor: KIESELMANN
Bronze Sponsor: Alfa L Service
Partner: "Dairy Union of Kyrgyzstan"

Prepared by: Zaure Mederkhanova

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