Improving product quality at Kyrgyz dairy

The EBRD promotes the Business Advisory Service (BAS) which facilitates and assists growth by improving product quality for remote export dairy.

Promoting local products for the export market

PE Joloev is a small dairy located in a remote area of Talas Oblast. The main focus of the business is processing locally sourced milk as well as manufacturing cheese and butter. The convenient location at the border creates the perfect conditions for exports and the company sells about 60 per cent of products in the neighbouring Kazakh market.

The company’s management has a strong interest in further expanding exports, including the possible introduction of new goods into their lines of products.

Business Advisory Services support

One problem impeding the company from expanding operations is the unstable quality of goods. This created two issues: wasted produce and customer dissatisfaction. The company was keen to eliminate these issues and in 2009 addressed the Kyrgyz BAS team for assistance.

BAS identified a suitable consultant, Klara Sheishekeeva from Sparklets LLC, and provided technical assistance in the development of terms-of-reference and project oversight. The project focused mainly on production lines, technology and production cycles, equipment inspection and training on food safety procedures.

Improvements and outcomes

The project helped the owners to reassess their production cycle and make significant improvements in two major areas: the installation of missing equipment and fine-tuning production technology to the required standards. Implementation of the consultant’s recommendations helped the company to significantly increase the quality of cheese produced.

This resulted in a 20 per cent shift in production and sales and an additional 10 per cent increase in export figures. Further, a new product, a processed cheese spread, was introduced, which helped to eliminate the problem of spoiled goods and drove down the cost of goods. Another positive aspect of the company’s expansion is social in that two new job vacancies have been filled by locals.

The company is still actively working with the consultant and is thinking of adding more items to its product range.