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Annual Report 2020

Agricultural Business

Rusagro Group is Russia’s largest vertically integrated agricultural holding company. Our agricultural business-line consists of five agricultural companies:

  • Rusagro-Invest LLC owns land and runs operations in the Belgorod region;
  • Kshenagro LLC owns land and runs operations in the Kursk region.
  • Agrotechnologies LLC owns land and runs operations in the Tambov and Voronezh regions;
  • Otradaagroinvest LLC owns land and runs operations in the Orel region.
  • PrimAgro JSC owns land and runs operations in the Primorsky region.

Agriculture business line land bank consists of 637 thousand hectares with total storage capacity of grain elevators and yards exceeding 1 million tons. Our land bank is concentrated around sugar plants, animal feed mills and storage facilities.

We grow and harvest sugar beet, wheat, corn, soy, sunflower and rape. Our sugar beet is processed at our sugar plants. We supply our meat business line with grains (for feedstock) and sell other products at the “free market” to local consumers (meat and poultry farms, millers, oil extraction facilities, etc) and to traders as well as export to our customers abroad. We also provide grain storage services at our facilities to 3rd parties.

In 2017-2018 agriculture business-line developed digitalization concept and set out digital transformation strategy for 2018–2022. Our current focus is operationalization of the digital management system and rolling it across the business. Key areas of our digitalization are:

  • strategic planning of our main operational activities in the ERP-system using multiple data sources, modeling and optimization algorithms and linking it to budgeting;
  • operational planning of the key processes and activities through algorithms and optimization tools (e.g. dispatching of the machinery and workforce, inter-field logistics, trucks routing, harvest allocation algorithm, maintenance planning algorithm, etc.)
  • operations control (e.g. control systems over supplies and harvest flows).

We are also digitalizing auxiliary business process such as electronic workflow management, track&trace systems (inlc. QR-coding) covering major supplies etc.)

We are constantly working at the next digitalization frontiers such as image recognition and neural networks applications and continue experiments with new technologies and startups.

Rusagro agriculture business line is in the TOP-3 largest sugar beet producers in Russia. In 2020 we harvested 2.9 million tons of sugar beets and reached record-high 1.2. million tons of grains. Our total harvest amounted to 4.5 million tons. In contrast to the market average results, Rusagro managed to increase the sunflower yield by 24% - this became possible thanks to the correct choice of hybrids and optimal nutrition.

High-performance machinery

Cutting edge technologies are used in the fields for agricultural crop production on the basis of using wide-coverage high performance agricultural machinery.

The machinery park includes 1.6 thousand units of self-propelled equipment and 3.8 thousand units of trailed equipment. The choice of machinery brands follow the total cost of ownership principles (TCO) and is based on the quality of field operations, energy consumption and soil conservation.

RUSAGRO AND SHCHELKOVO AGROCHEM's BREEDING AND GENETIC CENTER

Since 2017, Rusagro in cooperation with Shchelkovo AGROCHEM has been participating in the development of increased yields for sugar beet. The SoyuzSemSvekla breeding and genetic center was opened in the Voronezh Region in 2019.

Key objectives: the creation of new highly productive and disease-resistant sugar beet hybrid with uniformity of biological and morphological characteristics. The first hybrids were registered in 2019.

As of the end of 2020, 21 self-breeding sugar beet hybrids were registered in the State Register of Breeding Achievements approved for use in the Russian Federation.

The Company is going to sell about 40 thousand seeding units in 2021. The work of the selection and genetic center "SoyuzSemSvekla" is carried out within the Federal Scientific and Technical Program for the Development of Agriculture for 2017-2025, the subprogram "Development of selection and seed production of sugar beet in the Russian Federation", according to the developed complex scientific and technical project "Creation of highly competitive hybrids of sugar beets and the organization of their seed production system ”. In 2019, the project was selected by the commission of the Ministry of Agriculture of Russia to receive state support. It was supported with state in 2020.

Contacts:

General director: Roman Shkoller

tel.: +7 4722 231 850

e-mail: receptions@rainvest.ru