Ivaylo Lilov, Executive Director of the state-owned LB Bulgaricum EAD, said in a BTA interview that the enterprise is expected to start operating at 100% capacity, processing 25,000 liters of milk every day.
Lilov was appointed to this position in September 2023 for a limited term of six months until a competition is held for the job.
He was approached by BTA for comment after the company launched a public procedure for contracting suppliers of raw cow's milk for the needs of its production base in Vidin. The procedure is due to be completed on October 25, as well as the fulfillment of commitments assigned by the principal of the company, Economy Minister Bogdan Bogdanov.
Lilov indicated that these quantities will guarantee the full supply of products to the company's own store network, as well as the fulfillment of contracts with internal and external contractors. After covering the existing deficits, the company will also focus on new market expansion.
The LB Bulgaricum Executive director said that the main criterion for the selection of suppliers is that they are certified by the Bulgarian Food Safety Agency and the Ministry of Agriculture. The fresh milk must be Bulgarian, and meet all the criteria for a high-quality and natural product, without the presence of any additives from milk powders, emulsifiers, stabilizers, foreign milk and non-dairy fats. Currently, there is significant interest in the initiative.
Lilov recalled that the enterprise has already made a commitment to pay the local producers within three days, and not every two weeks, as it was previously.
Personnel and Management
Due to the planned full utilization of its capacities, it is expected that the company will gradually attract new personnel. Currently, the it employs about 150 people.
The Executive Director commented on the fact that the changes in the state-owned company coincide with the changes in the executive power, which affects the implementation of strategic goals and predictability with the work of international partners.
Lilov pointed out that as the executive director of the company he has a limited period of management, up to 6 months, "The time is not much, but with the Board of Directors we plan to use every day to stop some of the vicious practices that we find, to stabilize the company and turn it into a model of functioning of a company with 100% state participation," he said.
Although LB Bulgaricum is on the list of companies under the State Consolidation Company with positive financial results, the Executive Director indicated that compared to the previous year, a 50% decrease in the company's profit was reported. In the first quarter of the year, the profit amounted to BGN 1.4 million, while for the same period last year it was BGN 2.3 million, the situation is similar for the second quarter of the year (BGN 3.2 million and BGN 5.1 million, respectively).
Business Plan
At the end of August, Economy and Industry Minister Bogdan Bogdanov tasked the management of the subsidiaries of the State Consolidation Company, including LB Bulgaricum, to draw up business programmes for the respective companies for the 2024-2026 period. Lilov reported that it will be finalized by the middle of next month.
At the moment, LB Bulgaricum is focusing on catching up with the company's backlog, on the synchronization of business plans with those of the State Consolidation Company, as well as on preparations for joining the centralized system for the exchange of financial and accounting data, on the need for an active investment policy, the modernization and upgrading of its research base, etc., said Lilov.
Lilov pointed out that the business programme will focus on the expansion of the market share of LB Bulgaricum above the current 2%. The company's sales network will be expanded. A new LB Bulgaricum store will soon open in Gabrovo. The company will restore the production of its traditional yogurt product under the Bulgarian Institute for Standardization (BDS), which will be supported by the selection of Bulgarian milk suppliers.
"We will also bring back small cuts of our durable products, so that they can be accessible to people with lower incomes," said Lilov and specified that 200g and 400g cuts of the company's cheese and yellow cheese will be offered on the market after being discontinued. The two dairy products are currently only sold in 800g packs, and smaller sizes will be launched in the next few days. Lilov expressed hope that with the upcoming increase in production capacity of the company's base in Vidin, the full product range will be restored.
Innovation
LB Bulgaricum is on the threshold of registering a new strain of Lactobacillus bulgaricus in the Patent Office, which, in addition to its known qualities, also has a strong immunostimulating effect on the human body, said the company's Executive Director. The strain was discovered by the company's research and development team. The company's science team works on a number of projects under European and global programmes, they also partner with the Japanese Meiji Group, with which a new contract is expected to be concluded by the end of the year for the opening of a scientific research centre in Bulgaria, equipped with modern apparatus. Over the next ten years, Bulgarian and Japanese scientists will work on projects in the field of lactic acid microorganisms, Lilov said.
/DT/
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