- Interview with the General Coordinator of AZ Group, Drini Zusi
The General Coordinator of AZ Group, Drini Zusi, explains that in recent years three companies have been established, all of which deal with the processing of animal by-products, where the final products are destined for different industries.
When you decided to apply the circular economy model in your company, was it from the need to increase profits, or to be at the forefront of a model that is spreading rapidly in developed countries?
In fact, the application of the circular economy model in our company developed very organically, not as a premeditated strategy from the beginning. In its operational philosophy, our company is based on a well-known concept: the “Triple Bottom Line”, or as it is otherwise known, the “3P: People, Planet, Profit”.
The concept encourages companies to look beyond revenues and focus equally on their social and environmental impact. In terms of development philosophy, our company has always invested with the aim of integrating vertically — both in securing raw materials and in expanding product offerings or opening new markets.
After more than seven years of experience in processing animal by-products destined for human consumption, we identified that in Albania these by-products were not being processed, but instead treated as waste, often buried or improperly deposited in the environment, causing pollution. In this context, our first applications of the circular economy came as an effort to integrate vertically and secure our own raw material supply.
In 2015, we decided to invest in building capacity and logistics in Albanian slaughterhouses and in our own facilities to collect and process several types of by-products. Afterwards, all final products were exported and reintroduced into their usage cycle, with no need to be deposited as waste, but instead treated as added value for many businesses.
Specifically, how does the circular economy model function in your company, from raw material to markets?
The implementation of the circular economy started in 2015. Over the last three years, the company has expanded so much that we are now in a process of managerial restructuring and rebranding. From one company, we have now reorganized into three separate companies, each operating in the field of animal by-product processing, with final products destined for different industries.
INCA (Industry of Natural Casings Albania) – processes animal by-products for human consumption, such as natural casings used as raw material in the sausage industry.
Cheer Chews – created in 2018, formerly Albafish, now rebranded, processes specific animal by-products that cannot be used for human consumption, turning them into products for pets.
AZ Rendering – completed in 2020, processes all other animal by-products that cannot be used for human or pet consumption. Beyond by-products from the meat industry, this company also processes waste from the fish and poultry industries. The closed-cycle processing produces protein and animal fat, later used in the livestock feed industry or as biodiesel in the hydrocarbon industry.
In this way, the application of the circular economy across all three companies reuses all animal by-products, transforming them from waste into value-added products.
What percentage of revenues come from processing animal by-products that were previously considered waste?
INCA: its activity is also based on processing imported by-products, since by-products collected in Albania represent only 10% of its processing capacity.
Cheer Chews: 100% of revenues come from processing animal by-products, where about 60% of the raw material is collected in Albania.
AZ Rendering: 100% of revenues also come from the sale of final products obtained from animal waste processing. However, the raw material collected in Albania makes up only 30% of total production, as many operators are still not aware of proper disposal methods.
Do you have plans for expansion in the region and to scale this model further in Albania?
Absolutely. Since the end of 2020, we have expanded our operations into Kosovo and Montenegro, where we are currently collecting raw materials for Cheer Chews and AZ Rendering. Meanwhile, we are in discussions to secure partners in North Macedonia, and our goal for 2021 is to expand there as well.
The expansion of the model in Albania is also one of our key objectives. While operating with such a circular economy model is currently a “niche” and therefore a competitive advantage for us, scaling its application more widely would be an even greater advantage, not only from a business perspective.
Sustainable development is not a “trend” without reason. Today, reducing environmental impact and creating energy/resource-efficient processes, just like cost-efficient processes, should be part of every company’s strategy. In fact, thinking about resource efficiency or the use of renewable energy should be part of every family and individual lifestyle, as a way to reduce environmental impact and contribute to solving the problems of global warming or ecosystem destruction.
The problem, in Albania and worldwide, is not that people don’t want to contribute. Psychologically, it is proven that people feel more satisfaction when giving rather than receiving, or when contributing to a common goal. However, in most cases, they don’t know how. For this reason, spreading this model and educating society and aspiring entrepreneurs towards a business model that creates added value and impacts beyond just the economy is, for us, a very big victory.
This article was originally published by Monitor.al on August 28, 2021. You can read the original publication here: https://monitor.al/grupi-az-si-u-krijuan-bizneset-qe-kthejne-mbetjet-ne-produkte
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