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Solid Nine-month Results for Miratorg

31 October 2014

RUSSIA - Russian meat and agrifood giant, Miratorg, has recorded solid operational results for the first nine months of the year.

Pork production

The company increased pork production by eight per cent, up to 273,000 tonnes, on live weight basis against 265,500 tonnes compared to the previous year.

This growth is conditioned with new sites in Kursk region attaining their production capacity.

Miratorg is expecting to establish a new vertically-integrated pig breeding division in Kursk region with the capacity of up to four million head a year.

The holding will also continue to focus on increased efficiency, control of production costs, as well as improvement of the production indicators.

The meat processing facility SK 'Korocha' produced 199,000 tonnes of products within the first nine months of 2014, which exceeds the indicator of a similar period in 2013 by six per cent.

The production of products in retail packaging grows at a fast pace: 25,800 tonnes in the period of January – September of 2014, which is 40 per cent more than the similar period of 2013.

Poultry production

'Bryanskiy Broiler', the operator of the vertically-integrated production of poultry meat is increasing its supply to the market – 17,000 tonnes of products produced within the period of January to September 2014, compared to 5,300 tonnes within the first half-year period of 2014.

The volume of eggs set for hatching went over 20 million, which is 70 per cent of the planned capacity.

The company has started five of the seven projected broiler sites.

The total number of birds at all of the companies sites is more than 3.7 million and will continue to grow, with the start-up of two new sites, by the end of the year.

The company plans to bring vertically-integrated poultry production to full capacity of 100,000 tonnes of products a year by February 2015.

Beef production

Miratorg is continuing to carry through the biggest project in Europe to create vertically-integrated high-quality beef production according to the company’s business plan.

Following the results of the nine month period of 2014, the total amount of the specialist breed, Aberdeen Angus cattle, at the company’s 33 farms in the Bryansk region has increased to 250,000 head, including 80,000 calves born in 2014.

The company is to continue extending the animal breeding division.

New investment of 7.7 billion rubles (RUB) has been agreed and signed with the Bryansk region, and Miratorg will construct five new cattle breeding farms in the region.

Miratorg will also develop a cattle breeding division in Kaliningrad region, where the total herd of Aberdeen Angus cattle in the five farms will exceed 30,000 head, of which 16,000 will be breeder stock.

The company has started a new beef cattle breeding project in Kaluga region with investments totalling RUB6 billion.

It is planned that eight farms for 32,000 head of breeder stock, and more than 40,000 hectares will be returned into agricultural processing by 2018.

The feedlot in Bryansk region is at 80 per cent of full capacity – 36,000 head of cattle are receiving a grain fattening diet, which provides weight gains of 1.8 to 2.0kg per day.

Cattle slaughtering and processing at the high technology plant, which is leading the way in Russia for automation, is expected to start processing in October.

The company plans to supply to the market with more than 5,000 tonnes of high quality nationally produced beef from the Bryansk region by the end of the year.

Further Processed production

'Miratorg Zapad', Miratorg’s subsidiary production unit, which produces frozen meat products at the comopany’s high technology facility located in the Kaliningrad region, has produced more than 21,000 tonnes of products within the first nine months of 2014, which exceeds the same period in 2013 by 33.6 per cent.

The company is continuing to develop and start new products under its own brands Miratorg and Gurmama, for clients in the HORECA segment, whose numbers are constantly growing.

The Company switched another production line to a three-shift schedule in August to satisfy customer demand for quality products: now two of the four lines operate 24 hours a day.

'Miratorg Zapad' made the decision to construct a fifth technological line for increased production of further processed products.

Start-up of the new line will increase plant capacity by 33 per cent, up to 80,000 tonnes of ready-meal products by the middle of 2015. Investments into the project will come to more than €11 billion.

The plant has successfully passed an audit to achieve the McDonalds' standards (Audit Supplier Quality Management System) and an audit by the KFC fast food chain restaurants, covering document control to the dispatch of ready products.

Feed production

The total volume of feed production by the Miratorg plants in Belgorod and Bryansk region has increased in the first nine months of 2014 up to 867,000 tonnes compared to 770,100 tonnes in the same period in 2013.

This increase is due to the production increase at the high technology feed mill in Bryansk region which is aimed to supply feed for Miratorg’s poultry project.

The calculated capacity of the company’s feed mill assets is 1.46 million tonnes of products per year.

Crop production

The total volume of crop cultures harvested by Miratorg within the first nine months of 2014 reached 1.365 million tonnes exceeding the same period in 2013 by 84 per cent.

The area of cultivated land owned by the company increased by 86,000 hectares in the first nine months of 2014 and totalled 447,000 hectares.

The company increased the area of cultivated land in Belgorod and Kursk regions by three per cent to 113,000 hectares.

'Agroholding Ivnyanskii' LLC and 'Pristenskaya zernovaya kompania' LLC, key producers of grain crops within the company, harvested 257,000 tonnes of grain, which exceeds the 2013 harvest by 14 per cent.

The land area in Oryol region is 19,000 hectares and the grain harvest was more than 70,0000 tonnes.

Within the beef production sector, Miratorg increased the area of cultivated land by 20 per cent, up to 285,000 hectares, and increased the total volume of hay, silage, and grain crops in the Bryansk region by 98 per cent, up to 964,000 tonnes.

The 'Kaliningrad Meat Company', the operator of the beef cattle production project, produced 73,000 tonnes of hay and silage in the first nine months of 2014 and the area of cultivated land was up to 30,000 hectares.

Distribution

Sales volume of the vertically-integrated holding have increased to 342,000 tonnes within the first nine months of 2014. This exceeds the 2013 figure by 7.5 per cent.

ThePigSite News Desk



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