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www.konovalovo.com
A speaker: Konovalov A.S.
An agro-tourist centre “Konovalovo ecofarm” – a new standard of
ecobusiness in the country
An agro-tourist centre (ATC) “Konovalovo” ecofarm is:
www.konovalovo.com
• A family peasant farm enterprise with 4 years of experience • 42 ha of a leasehold land for harvesting forage herbs, vegetables and for cattle grazing• 12 buildings in area of 2 600 m2, among them 5 private premises and 7 industrial premises located at 5 ha
of a private territory • A mini milk department with productivity of 500 liters per shift• An ecofarm with 20 heads of cattle for getting a milk superior quality• 2 ponds, 2 greenhouses• A mini-hotel, one guesthouse, Russian sauna; an accommodation of 48 guests at one time; high-speed
Internet and a satellite television• A family café with 48 seats and a presentation room• A department for producing prepared food• 3 retail stores and our own delivery service• summer-houses, fireplaces, outdoors grills, «a path of health», beach• Children’s playground and sports ground, kiddies’ play room• Training center of ecobusiness and agro-tourism• Car parking and a helicopter platform
A cost of a twin room including breakfast is 4500 rub., and an average bill in cafe is 900 rub.
Organic agriculture and agro-tourism in Russia – a new rising trend
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• Today on the Russian territory organic agriculture is practiced already in 65 farmsteads and it’s growing every year on 9%.
• There are 3 680 ha of land in Russia that certified according to European organic standards. • Every year about 700 millions of people travel around the world, and about 20% of them prefer agro-
tourism.• Agro-tourism is in the top five main strategic directions of the development of tourism in the world till the
year 2020.• In 2012 proceeds of the sale of organic products in Russia reach the amount of 148 million dollars, and it
is more then in 2011 on 7,8%.• There are 34 farmsteads in Russia that have already got certificates allowing them to produce organic
products and 16 farmsteads that now are in process to get such certificates.
• Russian market size of selling eco-products form 0,2% of gross share of food product sales.• A demand for organic food products nowadays is satisfied on 30%.• According to sociologists’ estimates, 40-70% of Russians are ready to pay for quality and for
ecological safety of products.• Sales of eco-products in Russia may reach 167 million dollars in the year of 2013. And in 2015 -
even 225 million dollars. • A part of tourism in GDP of a country in 2012 was 6,3%, that means that the potential of tourist
sector is used only on 20%. • The potential of Russian market of agro-tourism constitutes a part of 50-60 milliard rubles per
year.
Russia – is a new prospective market of organic products and of agro-tourism development
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• Russia has huge resources for the development of organic agriculture and agro-tourism. It includes pure uncultivated land, fresh water, forests, and the variety of weather conditions.
• There are 40 million hectares of fields in Russia that is not used, and on some fields mineral amendments were not used over 20 years.
• Russia has unique resources for exporting organic food products. And at the same time Russia has a potential to take in foreign guests in the country.
• Organic agriculture will allow small and medium farmers to survive in conditions of the World Trade Organization (WTO) and will conduce foreign substitution.
• Russia may quickly pass a transition period of learning to use technologies of organic agriculture and a period of agro-tourism service establishing.
• In 10 or 20 years Russia may occupy 15-20% of the worlds’ organic product market.
• To control a legal base, in other words – an adoption of a law, certification of technical rules and rules of work.
• To start a special national program that will support manufacturers of organic food products and agro-tourism.
• To inform a population, on a massive scale, about the advantages of organic products and agro-tourism. Social advertising in mass media.
• To create a scientifically evidential base about benefits of organic products and advantages of agro-tourism.
• To move a cost of organic products and agro-tourism services closer to middle class.
Goals that should be reached for the better development of organic agriculture and
agro-tourism:
The advantages of organic agriculture
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Factors that influence on the prime cost of organic
products
• Additional expenses on conversion (3 years minimum)
• Additional expenses on certification of all technological production chain.
• More expensive natural feed and fertilizers.
• More hand work and twice or thrice less of yield .
• More complicated logistics because of little shelf-life of natural products.
The cost of organic products higher in the world on 30-40%, in Russia – on 40-300%.
In the whole world the real prize of organic products is hiding, due to government support.
• In comparison with a traditional farming, organic technologies need less energy on 50%.
• Organic agriculture does not pollute earth, air and ground water with chemical fertilizers and protection means for animals.
• Organic food products are safe for health, contain more vitamins and minerals, as a result - improve the health of population.
• Organic agriculture restores disturbed ecosystems by using biological methods of soil enrichment and plant protection, and also by using methods of increasing agro- and bio-variety. • Organic agriculture – is a modern management of agricultural resources, taking into account the ecology, the health of people and the development of rural area.
“Ecocuster” – is a voluntary union of producers and suppliers of organic products, in order to solve their common problems and
reach common goals.
Over 100 partners
• In Russia (90%): the Moscow Region, the Samara Region, the Lipetsk Region, Karelia, the Irkutsk Region, the Tula Region, Dagestan, the Novgorod Region, the Penza Region, Altai territory, Buryat Republic, the Leningrad Region, Mari El, the Tver region.
• In the world (10%): the USA, France, Germany, Finland, Austria, Switzerland, Spain, Greece, Morocco, England, Ukraine, Kazakstan, Latvia.
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“Konovalovo” Ecofarm is the first successful eco-brand in Russia
• The assortment consists of more than 85 product names
• A multi-stage system of quality control
• A system of sales, logistics and internet trading
• Common trademark, design and style
• A brand packaging and product marking
• Common marketing policy and information policy
• Electronic data management system of products, prizes and booking
• International eco-certification system «ECOGLOBE»
An annual turnover of agro-tourist complex “Konovalovo Ecofarm” and of “Ecocluster”
stores reached an amount of 48 million rubles by the end of the year 2013.
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“Konovalovo” Ecofarm is the first in Russia full range vertically-integrated
agro-tourist complex (ATC)
• ATC “Konovalovo” Ecofarm successfully combines producing, processing, sales of eco-products and agro-tourism, controlling the whole trade cycle from a field till shelves.
• A certifying authority: ECOGLOBE.
• A farm area: 5 ha in ownership and 42 ha on lease.
• Investments made in 2009: 32 million rubles (have already paid off on 80%).
• Investments made in 2013: 67 millions rubles.
• A payback period: 6 years.
• A staff: 9 people.
• A rofitability: 35%.
• A breakeven results: in 6 months after begining the project.
• Tourist steam: 2 500 people per year.
• An amount of processed milk: over 100 tonnes per year.
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A franchising chain of retail stores of natural Ecocluster products within walking distance
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• 3 stores are located: in 25 km away from Moscow in “Knyazjie Ozero” Village; in 10 km away from Moscow in “Iliinskoe” Village; in 30 km away from Moscow in “Nikolina Gora” Village.
• Investments in opening one store: 2 900 000 rubles.• A payback period: 1 year.• Getting an operational profit from the first month; the
increase of sales volume during 3 month of work is 300%.
• The assortment of one store consists 850 product names.
• Average revenue of one store per day is 40 000 rubles.• Average check of one customer is 1 500 rubles. • Average amount of customers a day in one store is 25
people.
Common social projects of “Konovalovo” ecofarm and “Ecocluster”
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• A laboratory of research center, named after Bakulev A.N., that produces biological prosthesis – a delivery of organic biomaterials of animals.
• Constructive-exploratory beraue of national research of nuclear University MEPhI – testing the system of radio-frequency animal identification.
• A fund of social-regional programs “Our future” – the development of social enterprises.
• A book publisher “Alpina Publisher” – printing books for children “A travel to ecofarm”.
• The State Duma of Russian Federation – working out draft law about producing organic agriculture products.
A social work of “Ecocluster” on forming a market of organic products in Russia
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Pubic speaking and participation in different events: •The state Duma•The Ministry of Agriculture of the Russian Federation, provinces, CIS countries and other countries worldwide •The Public Chamber of Russian Federation•Health Ministry of the Moscow Region•Russian Union of Industrialists and Entrepreneurs•Territorially manufacturing company•Events of big industrial groups, public organizations, Universities, schools, kinder gardens•Participation in different conferences, meetings, roundtable discussions, disputes
Publishing books: «A travel to ecofarm», «A business in eco-style», « A life in eco-style».
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Famous people and sportsmen support “Konovalovo” ecofarm
“People have become smarter, they understand now that health is a blessing that money cannot buy. The main, thing is not to be late”, - Kostya Dzu.
“Organic products must be delivered in kinder gardens and schools”, - Elena Hanga
“Konovalovo” ecofarm delivers products for Olympic athletes into a training center of Olympic National teams of
Russia called “Round Lake”.
Over 400 packages about “Konovalovo” ecofarm on TV, radio stations, publications in federal, regional, specialized and foreign mass media
www.konovalovo.com
THANK YOU FOR YOUR ATTENTION!
www.konovalovo.com
Alexander Konovalov - a head
of “Konovalovo” ecofarm and
a founder of “Ecocluster”
mobile telephone:
8-985-920-08-92
With the support of
the Moscow Region Government,
the Ministry of Agriculture and
the Fund “Our Future”
