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Internship Report: Agricultural Cooperative “Tim Agro”

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Summary

Agricultural Cooperative “Tim Agro” is one of the most innovative Agricultural enterprises in the Kyrgyz Republic, which has shown an enormous development in Agrarian activity over 9 years. The company’s strategy is clearly built and works well. Each employee knows his duties and completes the assigned tasks. The company’s operations began from 23 hectares of land, today it processes about 1500 hectares and observes a crop rotation, which is quite important in the Agrarian sphere. The company also produces vitamins, minerals and fertilizers, which are absorbed by the soil, that contribute to the fertility of the cultivated soil. There are certain reasons for working in the Agricultural Cooperative “Tim Agro”, because everyone wants to work in a friendly and sympathetic environment. The internship in this company helped me to combine theoretical knowledge and skills that I received at the AUCA with practice. During the internship in the company I realized that not every theory can help in practice, as there are a lot of factors that can disprove the theory. I strongly believe that practice is needed in any kind of activity, especially if you have plans to set up your own Business. You need to acquire new information and knowledge and analyze these skills step by step. Everyone learns from their mistakes, therefore you should gain the experience from practice.

Introduction

It is well known, that according to the curriculum, each student is obliged to complete a 120-hour practice at the end of the 3rd year. The choice of company depends on student’s preferences. I was no exception and among the most suitable options, I’ve chosen Agricultural Cooperative “Tim Agro”. I was lucky to work for it from June 4 to July 20, 2018. However, this kind of choice was not accidental: I gave my precedence to the Agricultural Cooperative due to offers from my parents who have are pretty experienced in the agrarian field.

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I was interested not only in full dedication to the business, but also in the corporate culture within a private organization. It should be noted that this step was essential for me, since this was the first time I faced the need to prove myself in the working and business spheres. Also, I wanted to do my best in such a place, constantly demonstrating the knowledge gained during three courses, because all the programs, that I attended during different semesters, cover a really wide range of necessary disciplines, which I admit helped me a lot in work.

This possibility met all expectations: first of all, I could compare the practical approach and the learned courses (Career Skills and Personal Branding), which during the training was quite enthusiastic. Moreover, it was extremely tempting to have on hand what, in fact, we were taught in class on Micro- and Macroeconomics, and on the following disciplines: Math for Business and Marketing. I should point out how pleased I was to deal with the whole theory, which now boasts the wealth of the knowledge I have mastered.

I was really glad that I met the familiar formulas for calculating various macroeconomic indicators in the numerous commitments within Agricultural Cooperative. Why do I talk so much about business and processes directly related to it? It’s simple: this summer I was transferred to the sales department of the Agricultural Cooperative. I’ll tell you a little more about the department in the next chapter.

Company Profile

Agricultural Cooperative “Tim Agro” was founded in 2009 on the basis of seed farming. And I got a license for this kind of activity in the Ministry of Agriculture in advance. This is one of several farms that restored the agrarian industry after the collapse of the Soviet Union, whose collective farms were plundered by the local population. The capital of this company was not so big, but nowadays it achieved significant success and continues its stable development.

Company’s Products/Services

Agricultural Cooperative “Tim Agro” is primarily a seed farm that is engaged in the cultivation of Maize, Wheat, Barley and Lucerne.

The company focuses on the quality of raw materials, which will be used both in industrial and forage purposes. Agricultural Cooperative “Tim Agro” buys only imported seeds of the American manufacturer BIOTEK & PIONER, which are adapted to the climatic conditions of our Republic. To date, the Company ranks first in quality, producing raw materials that satisfy all positive indicators. Timely care of the culture brings a guaranteed result. Agricultural Cooperative “Tim Agro” also provides MTS services and grain drying.

Company’s Mission, Vision

Mission

The company’s mission is to develop Agrarian operations in the Kyrgyz Republic. Also, due to its opportunities and rich experience, the company consults other farms on how to grow crops properly and switch to new American, German, Austrian and Turkish production techniques. Agricultural Cooperative “Tim Agro” annually organizes Field Days in the village of Luxemburg in the Issyk-Ata district of the Chui oblast. Farmers, seed suppliers, representatives of local governments, agricultural cooperatives, financial institutions, international organizations and service companies – all take part in it.

During the presentation, participants will become familiar with the advanced methods of maize cultivation, will receive information about the corn hybrids of Fito

Semilias, Pioneer and Biotek that will help farmers to select the best options and increase their yield.

Vision

Agricultural Cooperative “Tim Agro” is a company that grows every day, and we intent to develop and restore all that has already been in our republic. We will boost the Agrarian activity to a new level.

Problem Definition

The main purpose of the internship was to learn how to work with clients, offer our products and know all the advantages over others.

My leadership was the following:

  • To study the general characteristics of the products;
  • Study the pesticides’ use;
  • Study the principles and productivity of the grain dryer,
  • Study the principle of working with clients;
  • Find the basic need for finance in the company;

The key problem of the company is the lack of assistance from the state in the following forms: Subsidies, Watering, and tax cuts. Since local landowners cannot reduce the cost of goods, for the above reasons, from the neighboring countries, the Customs Union imports products at a price lower than we can offer. To solve this problem, it is necessary to introduce new laws on supporting agriculture or reducing the interest rate for taking loans.

To begin with, my supervisor presented me all products, we sell, storage rules, transportation, GOST standards and customer database.

My main task was to find out why they are buying our products, what is important to them: price or quality, and whether they have their own farm for growing different crops.

Main Research

The result of my research is the proposals, the bases of which served the problems of agriculture in our country. The most important component is government assistance. Market and state regulation of prices allows: to increase the solvency of the population, to increase the competitiveness of the local product in local and foreign markets. The costs of this project will be minimal, as the state does not spend money on setting prices, but only stimulates domestic producers to generate large volumes and quality. The increase in tax benefits may also lead to an increase in the volume of output, since people can be invested in the development of the company with the money saved. For example, machinery, irrigation system (drip irrigation), qualified personnel from abroad, etc. The second problem of this industry is the lack of qualified personnel. It is necessary to improve the system of training new students, as there are many new mechanisms through which it is possible to grow different cultures faster and better, but this can be done with great difficulty, because the lack of knowledge of employees or the entire workforce greatly slows down the working process. The third problem is the complexity of technical maintenance of machinery. There are no service stations for agricultural machinery in the country. Not every company can afford ordering spares on its own, and knowledge from engineers is not always enough. Since in our country there are good opportunities to engage in rural economy (climate and land), the critical need is in state support. If it contributes to the development of this industry, there will be a lot of working places, products of its own production and the possibility of exporting quality food.

Conclusion

The main purpose of the company in which I was trained is to develop a competitive agricultural complex in the republic that provides food security, stable exports and income of working personnel employed in the agricultural sector of our country. Now in the country there is a financial crisis and state supports small and medium-sized enterprises. Taxes, lack of subsidies, problems with the import of spare parts and chemical fertilizers, and export are even more difficult to talk about now, since even in the local market prices are lower for products from the countries of the customs union than for local producers the prime cost of the finished product.

To sum up:

  1. The constant monitoring of prices by the state and their regulation is crucial for agriculture. This will promote the growth of fair competition between producers and increase production volumes. This project will take at least a year, as harvesting takes place every 12 months.
  2. Increasing the investment attractiveness of the agro-industrial complex through tax incentives, will contribute to the renewal of technology, methods of cultivation and the introduction of new crops in the winters of the Kyrgyz Republic.
  3. Regulation of the volume of imports to our country should not be based on the principle of substitution of domestic products, but only on the addition and the right to choose. Currently, due to the price attractiveness of foreign food, local companies are forced to declare bankruptcy, as the cost of local goods is higher, on the contrary to those brought in, including fundamental value, exports and net profit.

Based on the foregoing, we can conclude that the main aid to agriculture will not be financial assistance, but control of the state over food in our country. Encouraging local producers to increase competition, reduce taxes, allocate subsidies will significantly increase the chances for the successful development of this industry in our country.

Because now all the complexities are manifested in imported products in our country, since manufacturers bringing goods here have both state support and a stable income, which allows to reduce the price and compete fully and sometimes to be a leader in the neighboring republic.

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