“Rēzeknes Dzirnavnieks” RSEZ AS receives the major award

  blog/“Rēzeknes Dzirnavnieks” RSEZ AS receives the major award

“Rēzeknes Dzirnavnieks” RSEZ AS receives the major award

December 22, 2020

For the seventh year in a row, “Rēzeknes Dzirnavnieks” RSEZ AS has won the 1st place in the competition organised by Rēzekne Special Economic Zone “Company of the Year” in the category of small enterprises. The company has doubled its turnover, reaching 4.1 million euros. The company has established stable cooperation with 1,200 conventional grain growers and 260 organic farms from all over Latgale, which has allowed to achieve a grain turnover of 153 thousand tons this year.

This year, the Rēzekne Special Economic Zone’s honourable award “Company of the Year” in the category of small enterprises was bestowed to the company “Rēzeknes Dzirnavnieks” RSEZ AS. The company is also the 1st in the nominations “Service Provider of the Year”, “Largest Taxpayer”, “Investment of the Year”, “Most Socially Responsible Company”, “Partner of the Year” and has got the 3rd place in the nomination “Fastest Growing Company”.\“Rēzeknes Dzirnavnieks” RSEZ AS has doubled its turnover in 2019 reaching 4.1 million euros. The company's three core values are excellence, participation and partnership, which is evidenced by the recognition of its partners. Rezekne Academy of Technologies (RTA) has nominated the company for the award “Partner of the Year” for a significant contribution to the academic staff professional development, as well as for support in the development of RTA study programs and the opportunity for students to do internships in the company. The Rezekne Entrepreneurs' Association has also nominated the company as a "Partner of the Year" for active involvement in the association's activities.

"Energy and perseverance overcome everything!" - this Benjamin Franklin’s quote is applicable to “Rēzeknes Dzirnavnieks” RSEZ AS, and these words truly describe the management and team of the company. That’s why we have invited Arvīds Zelčs, the head of “Rēzeknes Dzirnavnieks” RSEZ AS, to the conversation.

Answering the question about the company’s performance in 2020, Arvīds Zelčs says that the year has been good for grain growing, as well weather conditions during the harvest season has been very favourable. The first grain cargo to the company was delivered on July 13. As every year, the company had organized the reception on a 24-hour basis during the harvest season. "Many years of experience show that it is necessary to work in such a mode for an average of 14 days a season. I believe that the line of cargo transport was moving fast - if the last season we were able to accept 20 transport units per hour, then this year - even up to 25 transport units. This is an unprecedented record - 356 cargo and 6.6 thousand tons in a day!” points out Arvīds Zelčs. Thus, this season, the company has received 153 thousand tons of grain together with organic grain, which is 10 thousand tons more than in the previous year. The major crop delivered was wheat - 90 thousand tons, including 65% corresponding to the quality of food.

The main cooperation partners of “Rēzeknes Dzirnavnieks” RSEZ AS are four grain companies: “Scandagra Latvia” SIA, “Latraps” LPKS, “Elagro Trade” SIA, “Baltic Agro” SIA. These companies procure all the grain that is processed by the “Rēzeknes dzirnavnieks”. As Arvīds Zelčs notes: “We have decades-long and mutually successful cooperation with these companies. However, the farms are equally important cooperation partners. Grain is delivered to us even by the farms located 100 km from Rēzekne, including 1,200 conventional grain growers and 260 organic farms.” Services related to the pre-processing of grain are seasonal in nature and account for 55% of the company's total turnover.

An important cooperation partner is “Latvijas dzelzceļš” VAS. During the year, 7,000 wagons are provided to the company's railway access roads, 800 of these are used to transport grain. The other wagons are distributed to provide services to the wood pellet plant “NewFuels” RSEZ SIA, and these are 10-12 wagons per day. As Arvīds Zelčs notes, the company's employees load wood pellets into wagons, as well as perform the necessary manoeuvring to transprot production to the port. Thus, a successful and mutually beneficial cooperation has been established.

Answering the question why during the grain harvest season there is a day when grain is not accepted or grain acceptance volumes are very limited, Arvīds Zelčs explains: "There is no such a delivery point in Latvia to store the entire season’s harvest without removing grain from the elevator or warehouses!" The grain storage capacity of the company “Rēzeknes Dzirnavnieks” is 85 thousand tons, including 15 thousand tons at the open-air storage areas. Therefore, grain purchasing companies start transporting grain to the ports at the beginning of the season, although there is also a shortage of warehouses there. "It is almost impossible to set a date when the ship has to be ordered for loading 70 thousand tons of grain. Ship’s downtime is very expensive,” admits Arvīds Zelčs. The manager is pleased to hear that there are companies that will increase storage capacity in the ports for next year's harvest. This means that it will not be necessary to slow down the acceptance of grain also in “Rēzeknes Dzirnavnieks” RSEZ AS. "Company “Latvian Railway” is often blamed, but in reality, wagons that have not been unloaded for weeks stand in ports. “Latvian Railway” is doing its job perfectly!” summarizes Arvīds Zelčs.

Asked to answer the question, what is the key to the company's long-term success and stability, Arvīds Zelčs points out that this is the advantage of well organised team, the professional and individual approach of each employee to the customers. “A great benefit is joining the Rezekne special economic zone, which means not only significant tax relief and co-funding for various projects, but also help in attracting cooperation partners. Today, it is unthinkable to work successfully without cooperation with local municipalities. “Rēzeknes dzirnavnieks” has established a long-term and mutually successful cooperation with local municipalities, promoting the achievement of the goals of “Rēzeknes dzirnavnieks” RSEZ AS,” admits Arvīds Zelčs.

As Christmas and New Year are approaching, at the end of conversation, Arvīds Zelčs wishes the readers and cooperation partners: “In this difficult, perhaps even hardly understandable time, let us be more tolerant, let us say good words to each other, smile and be sure - we can do everything! Happy Holidays!"