And other productivity gains are expected

Cement irrigation canals criss-crossing the former kolkhoz of Nuche, which extends to loss of sight on 3,500 hectares. Nikita Khrushchev had been digging in the great plain to the Black Sea near chernozem in the 1950s to agricultural tank: rice, wheat, corn, sunflower... It is, in the district of Krasnodar, Bonduelle had built its first plant of preserved vegetables in Russia four years ago.

The summer heat gave way to a soft and the corn harvest is in full swing. Giant harvesters eat about 6 ranks of front spikes. Later, seen the great broad arm of 80 metres from the machines to irrigate. The material is measured by the immensity of the farm where Bonduelle has invested EUR 5 million. It is the only place where the Group of Villeneuve - Ascq live operates land to grow vegetables. "It was too complicated to find farmers competent, able to meet our specifications, explains Jean-Michel Besse, the agronomist watching over this former kolkhoz.". On a completely renovated facility, created for staff dormitories, a dining room. "But the expenditures have borne fruit. By managing its own operation, Bonduelle has escaped the consequences of commodity boom, which led the farmers, especially France, to drop the vegetables for cereals, more attractive, forcing the group to strongly increase the level of the contracts of its producers. On the Russian farm, "production costs are half lower in what they are France," view Jean-Michel Besse. And other productivity gains are expected.

A new plant

Yet, nothing is simple, despite the undeniable richness of the Earth. Temperature variations over the year of 30 C to 45 C require significant maintenance of hundreds of kilometres of roads that pass through the operation. "We should buy a grader". "It must redo it three times a year," said Jean-Michel Besse. Machinery blades must be foolproof robustness to work very clay Earth, retaining water. The fields must be guarded by security officers accompanied by dogs. "Before this provision, the corn fields were looted by the people around", yet note Jean-Michel Besse. The competent staff is cruelly lacking. "We have great difficulty in finding mechanics for maintenance of the equipment," adds Philippe Cohen, CEO of Bonduelle in the countries of the East.

Benoît Bonduelle, Director General of Bonduelle Development, is not less satisfied than the Russia and the surrounding republics are for the group "the area of growth and profitability of tomorrow". The region in the broad sense has 270 million inhabitants. "The potential is enormous," adds Philippe Cohen.

An annoying competitor

The King of the pea is margin of 25 with the sale of canned vegetables and emerged there as the leader with a market share of 17.5. Profitability, the best of the group, is four times greater than what it is in Western Europe. Bonduelle is soon committed to East after the collapse of communism starting install a sales force in Germany of the East since 1990. Today, the company owns 4 plants: one in Poland, two in Hungary and one in Krasnodar in Russia. This remains a site of medium capacity with its production of 50,000 tonnes and does only cover half of the Russian application in canned corn and peas. The rest is imported, for 35 of Hungary and 15 of France. The plant has been built to allow a rapid rise, but it will not be enough to cover demand for annual growth of 15.

Very annoyed by the arrival of the Cecab (mark Aucy) near Krasnodar two years after his installation, Bonduelle wants to accelerate its development and is seeking a new site. Its choice should be on the Ukraine for many reasons. Agronomic first but also for the frozen market. In Russia, the frozen market held by Polish Hortex, who practice prices very low. "Attack Hortex head-on cost us too", says Benoît Bonduelle. On the other hand, by producing frozen in Ukraine, the French group would be better armed to compete with this annoying competitor in Russia.