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Annual Report 2017

Subsidiaries

Tambov Bacon LLC

Tambov Bacon LLC

The Company started project implementation in the Tambov region in 2010, the first production facilities were started up at the end of 2012. At present, the following Company’s assets are located in the Tambov region:

  • mixed feed production complex comprising the feed mill with the capacity of 50 tons per hour, the grain elevator for 120 thousand tons and auxiliary premises;
  • 7 commercial farms for 4800 sows each;
  • 2 nucleus farms (DanAvl genetics is used as breeding material);
  • 2 boar studs;
  • quarantine;
  • slaughter and meat processing plant (including rendering plant) with the capacity of 1.95 million pigs per year.

Belgorod Branch of Tambov Bacon LLC

Belgorod Branch of Tambov Bacon LLC started its operation in 2005, its structure includes:

  • mixed feed plant with the capacity of 40 tons/hour;
  • 6 commercial farms for 4800 sows each;
  • 1 nucleus farm for 2400 sows (PIC genetics is used as breeding material);
  • boar stud;
  • quarantine.

Mixed feed production in Shebekino, Belgorod region, and Zherdevka, Tambov region, represents the modern plant where all the operating procedures are computerized.

Each plant has two production lines, which produce granulated feed for animals of every technological cycle, from piglets 10 days of age up to finishers, as well as for sows and boars.

Totally produced by plants:

  • 11 recipes at the plant in Shebekino;
  • 13 recipes at the plant in Zherdevka.

Industrial laboratories of the plants are equipped with the most advanced facilities, which enable high accuracy chemical, technical and bacteriological tests. The following physical and technical parameters are determined in the course of incoming materials control: moisture, color and smell. The next step is the chemical tests on the content of protein, fat, fiber, calcium, phosphorus, ash and chlorine. For determination of the vitamins’ and amino acid composition there is a high-liquid chromatograph in use. The level of microelements’ content in the raw material and mixed feed is analyzed as well.

Pig farms of Tambov Bacon LLC are located in the Tambov and Belgorod regions. Their total designed capacity is 207 thousand tons of live weight pork per year.

The Company’s pig farms operate in compliance with world standards and use advanced pig production and feeding technologies. The production facilities of Meat Business Division of Rusagro Group represent modern and ecologically safe commercial farms with a high level of automation.

The facilities in the Belgorod and Tambov regions are operated in compliance with the principles of environmental protection. All the necessary incentives are conducted in accordance with the standard norms and regulations. Regular ecological and analytical measurements are performed at all the existing sites within the industrial environmental control procedure.

Special attention at the farms is given to observance of biosafety requirements. All the production facilities are operated in the closed-type mode and are equipped with the disinfecting barriers for trucks and cars and sanitary inspection rooms for the staff. In order to enter the operating area, it is obligatory for the staff to take a shower and put on a special uniform. The traffic of vehicles is also arranged with observance of bio-safety requirements. Depending on the route, a vehicle can be washed in the washing chamber, equipped with drying facilities, several times a day.

The system of manure removal and waste disposal is used at the farms. Manure is accumulated in the storage ponds for quarantine and further disposal. As a result, obtained organic fertilizers are applied to the agricultural lands using the system of delivery hoses and are injected into soil with the immediate covering, being equally distributed along the field. Manure application as a fertilizer to the fields of the Company allows to obtain synergetic effect from two business areas due to yield increase of the cultivated crops with preservation of soil fertility, as well as the reduction of costs for the purchase of fertilizers.

Manure application is provided by high-tech equipment within the soil. The technological process (the quality and quantity of the liquid fertilizer applied) is controlled by the indicators of the devices used for manure application and by the GPS-navigation system.

Before manure application to soil, it is accumulated and stored in the isolated lagoons, which helps to avoid environmental pollution. In order to provide ecological monitoring and follow the modern environmental requirements every commercial farm has its monitoring well to check the status of ground water and to have the immediate response to the possible environmental changes and as a result to take appropriate measures. The technology is environmentally safe and eliminates the possibility of soil pollution.

In 2016 Tambov Bacon LLC carried out voluntary certification of liquid and manure effluents at commercial farms, which is proved by the Compliance certificate “Liquid Organic Fertilizers”. Governmental Supervisory Authorities make regular inspections of the production facilities in our Company.

The construction project of new farms in the Tambov region has been executed since the end of 2016. In 2017 it was decided to increase the project capacity from 85 to 96 thousand tons of live weight pork per year. The new configuration of the project includes:

  • 5 commercial farms with a capacity of 96 thousand tons of live weight pork;
  • nucleus farm for 3,200 purebred sows;
  • mixed feed plant capacity increase from 370 to 710 thousand tons of mixed feed per year;
  • grain storage capacity increase by means of grain elevator construction with a capacity of 140 thousand tons and the storage area construction for grain storage in silo bags having the capacity of 70 thousand tons. The total volume of pork produced will be processed at the Company`s own Slaughter and Meat Processing Plant.

Slaughter and Meat Processing Plant  is located in Borshchevka village, Tambov region; it was started up in 2015. The plant consists of the following production areas: slaughter, deboning and packing areas, case ready, and a separate rendering plant, including all stages of processing and manufacture of final products.

The designed capacity of the slaughter facility amounts to 1.95 million pigs/year (450 pigs/hour for slaughter and 350 pigs/hour for deboning). There are envisaged potentials for slaughter capacity increase up to 500 pigs/hour.

The modern method of pigs slaughtering assumes absence of stress for the animals. The highest level of hygiene, work process safety and ergonomics are also integral parts of production process, along with a high speed of operational performance and economic efficiency.

Slaughter area: 450 pigs/hour The equipment of the slaughter area is produced in Europe using advanced technologies. All the equipment used for slaughtering and further deboning of carcasses is certified in accordance with the European and Russian hygiene standards and fire safety rules.

Products: half-carcasses, byproducts, raw intestines and endocrine material.

Case ready area: 50 tons/day. The automated lines allow to minimize manual work of:

  • deboning products slight freezing;
  • deboning products cutting;
  • deboning products packing;
  • labelling

The highest hygiene level, safety and ergonomics of the work process, compliance with the European quality standards enables production of meat up to every standard. Strong temperature control at all stages of the production cycle and products delivery, and the use of innovative “skin” packing extend products’ shelf life significantly and ensure visibility of the final product.

Products: chilled case ready products: 6 product ranges

  • large cuts;
  • portioned meat;
  • small cuts;
  • minced meat
  • kupati;
  • shashlik

Deboning area: 350 pigs/hour; 10 differentiated deboning lines allow to increase labor efficiency and deboning quality for:

  • fore ends (3);
  • middles (4);
  • hams (3).

Food products safety management system is implemented at the plant, which allows to reduce risks at all production stages. The principle of compliance with the technical regulation “On Meat Safety” is observed. Products are packed 30 – 60 minutes after deboning. The products are certified according to the international standards and sold in many Russian regions.

Products: chilled and frozen packed large cuts.

The rendering plant  is designed for rendering of inedible waste from Tambov Bacon slaughter plant and pig farming sites. The technology of rendering is based on a comprehensive solution of high-efficient, advanced and energy saving equipment lines. The plant territory and production facility rooms are divided into two veterinary and sanitary zones, which are securely isolated from each other using hygiene sluices and a disinfection post.

Initial raw materials (line-wise):

  • Meat and bones line – 75,400 kg/day;
  • Dead animals, hair, bones line – 18,300 kg/day;
  • Blood processing line – 26,400 kg/day.

Final products yield:

  • Meat and bone meal production – 27 t/day;
  • Fat production – 15 t/day;
  • Blood meal production – 14 t/day.

Rusagro-Primorye LLC

The Far East project of pig farms construction with the capacity of 82 thousand tons of live weight pork has been implemented by Rusagro Group since 2016 in Primorsky Krai, Mikhailovsky district, at the priority development area “Mikhailovsky”. The project is implemented by Rusagro-Primorye LLC.

The project configuration comprises:

  • six commercial farms (of monoblock type), 3,000 sows each;
  • nucleus farm for 3,000 purebred sows;
  • semen production facility;
  • feed production complex consisting of: feed mill with the capacity of 300 thousand tons per year; grain elevator for 120 thousand tons;
  • slaughter and meat processing plant with the capacity of 670 thousand pigs per year;
  • byproducts and waste rendering plant.

The total investments volume of the project amounts to 23.5 billion rubles without VAT (27.7 billion rubles with VAT), including 10 billion rubles invested in 2016-2017.

Farms will be constructed using best practices and dividing production processes into reproduction, nursery, fattening cycles, as well as production of guilts for replacement of the main breeding herd. Rusagro Group has already purchased more than 86 thousand hectares of land in the Far East to supply the feed production with its own corn and soya.

The start-up is planned for 2019, achievement of full capacity - in 2021.

The total capacity is 64 thousand tons of live weight pork per year. The total volume of pork produced will be processed at the Company’s own meat processing plant. Rusagro-Primorye LLC plans to sell around 20 thousand tons of half carcasses, 33 thousand tons of cuts and 8 thousand tons of byproducts per year. The sales will be aimed at the domestic market of the Far East, where local deficit of pork production is estimated as 70%.

The project is of strategic importance for the future agricultural holding growth. Provided export markets are opened, the project envisages the start-up of two more construction stages and the capacity increase up to 340 thousand tons, which will enable Rusagro to be one of the largest Russian pork exporting companies to Asia, including China, Japan and South Korea.

Contact details:

Legal address: 16, Krasnoarmeyskaya St., Mikhailovka village, Primorsky Krai, 692651

Actual address: 8, Timiryazeva St., office 301, Ussuriysk, Primorsky Krai, 692519

Tel./fax: +7 423 438 99 48
e-mail: info@MBNrs.ru

Regarding investments in the Far East Project:
Svetlana Kuznetsova
+7 495 363 1661
e-mail: ir@rusagrogroup.ru