September 2020

In the context of the Pandemic and the difficult financial situation, many journalists of the Kazakhstani media ask similar, but at the same time, relevant and important questions, to which we publish some answers below...

In the context of the Pandemic and the difficult financial situation, many journalists of the Kazakhstani media ask similar, but at the same time, relevant and important questions, to which we publish some answers below:

 1) How has the worldwide coronavirus pandemic affected the company's operations?

 It was not easy to work under the conditions of the Pandemic, a lot of costs and resources were spent on compliance with the quarantine measures, ensuring the stability of the quality of raw materials, keeping cost prices down irrespective of the unpredictability of the market and not raising the selling prices.

 Pandemic, of course, had a strong impact….. starting from mid-March 2020 - the functioning of the company was completely rebuilt, colossal costs were spent on:                                                                           -the provision of all preventive measures of a sanitary and epidemiological nature, such as: installation of tunnels with disinfectants, masks, gloves, regular COVID testing of employees, regular sanitization of the premises and vehicles etc;

- re-structuring the activities of the departments – shifting to the online-management mode;

- financial resources were optimized, by reducing low-demand products and increasing the output of those of  a higher demand among consumers.

 The situation with the Pandemic - proved that the Adal Company - is able to adapt to change in a highly changeable economic environment, without reducing the quality of its’ products!

 2) In the future, is Adal planning to produce any additional types of products?

 In a difficult crisis period, when the volume of production in the world is decreasing, the output of goods with reduced demand is optimized. Adal keeps pace with the times and we also optimize our production, reducing the output of those goods that are not demanded by the market. It is important for us - not to allow the price increase. If it is planned to expand sales, it will only be for the large regional retail chains. We restrict wider access and implementation of sales to the markets of the neighbouring countries. Of course, investment support and assistance is required, since the conditions of “Pandemics” and “Financial Crises” make it challenging to implement and develop new and exciting projects for customers.

 3) According to the version of the Kazakhstan Health Care System, how much more did Kazakhstanis start using dairy products? (in particular, on the example of the Adal companies).

 It would be better to ask this question to the Ministry of Health…. .There are no exact indicators of how much more dairy products are consumed in Kazakhstan, but according to our analytical data on sales, we see the following picture: consumers started to consume more dairy products in the spring during the “stay-home” quarantine period. In the dairy industry, generally, there is a "Seasonality of Sales" i.e. in the summer  there is a decline in sales, in the winter - an increase. In the summer period of 2020, sales are no different from the average, compared to previous years.

 A huge role in maintaining the volume of our current sales can be given to our selling prices, low selling prices and the absence of a price increase in 2020 - this of course affects our consumer, who chooses the principle: “Best Product at an Inexpensive Price!”

 A consumer in quarantine is aimed at buying high-quality dairy products, so the company's sales are good!

And this very much characterizes us and our “Adal’s” products!

 4) In order to be more competitive what does “Adal” pay special attention to?

 A) We pay special attention to quality control of the incoming raw materials. The quality of the milk must be the best, the highest grade milk! This is the kind of milk we use in our production, a lot of parameters have to be tested by our laboratory before staring the processing!

 B) Cleanliness, sterility throughout the production process inside the dairy plant  is also an important aspect, which we pay special attention to.

 C) Compliance with the sanitary regime at all control points of production, logistics and sales.

 D) Preservation of the costs…..we keep the prices down, realizing that during the pandemic - consumers choose the most necessary, most nutritious food products i.e. dairy products in the first place.

 In addition, each employee, from management to an ordinary manager, understands that in order to be in demand and competitive in our conservative, challenging dairy market - you need to work…. work hard, putting maximum effort into the development of the quality of the dairy products. That is why our company constantly modernizes production lines by installing the most advanced milk-processing equipment, conducts personnel training, following the best norms and rules advised by the Food Safety Management System. We also pay special attention to working with the consumers on the satisfaction with our products through the work of the quality and product control departments!