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Annual Report 2023

Meat Business

Meat Business Division (MBD) of “Rusagro” Company is in top-3 largest pork producers in Russia with a 6.4% market share as of 2022 year-end.

Our business can be described in terms of four principles of work that allow us to remain successful and strengthen our positions every year.

Commitment to quality

Modern production. The excellent quality of finished products is achieved due to modern technologies and strict control over compliance with standards at all stages of production. A high degree of automation and process standardization is the basis of our production configuration. Vertical integration allows to trace the product path from feed ingredients to consumer packaging.
Production control system. The production control system of MBD is certified by the Federal supervisory authority (Rosselkhoznadzor). This allows to supply products for export including the Southeast Asian countries.
Customer focus. We meet the needs of customers and consumers and develop interaction processes. The company has a system for tracking requests and claims: each request and claim gets a unique number and is dealt with by the company's management. This allows us to take the position of the client in controversial issues

Business model sustainability

Supply chain continuity. Vertical integration of the business - own feed mills, breeding and commercial farms, boar studs, as well as slaughter, meat processing and disposal plants - allow the production chain to operate without interruptions and have a high autonomy degree.
Strict adherence to biosecurity requirements. Pig farms are equipped with modern high-tech equipment and correspond to the highest - IV compartment of biosecurity (the level of biological security of a pig farm). All sites are equipped with disinfection barriers for cars and sanitary checkpoints for personnel. Production sites are located in several regions of Russia (Tambov and Belgorod regions, Primorskiy Krai) at a sufficient distance from each other to ensure biosecurity. The business mainly uses its own vehicles for animal and feed transportation, all territorial zones are equipped with their own car washes.
Risk management. MBD has a modern risk management and internal audit systems, which ensure a high degree of control over the safety of assets and the safety of decision-making.

Dynamic development

Organic growth. The construction and commissioning of new modern pig farms in Tambov region (up to 58 thousand tons of pork per year) and Primorsky Krai (over 75 thousand tons of pork per year), as well as constant efficiency improvement, contribute to an increase in production volumes. Over the past 5 years, sales growth exceeded production growth by more than 20% due to the creation of its own successful brand "Slovo Myasnika” (“the Butcher’s Word”) (2016), the launch of new products, the development of sales channels (online and offline retail, distributors) and the active promotion of products in export markets (the export share increased to 12.2% in 2020).
Inorganic growth. The successful acquisition and subsequent integration of “СapitalAgro”, a major player in Belgorod Region in 2018, consolidated MBD Rusagro's reputation as one of the leaders in pig breeding in Russia and an active player in terms of acquisitions.

Human capital

Career development and succession system. One of the priorities of the strategy is the creation of a succession pool - promotion stories from starting positions to plant directors, department heads and management directors are not unique for MBD. All key managers have a succession selection and training program that provides candidates with the opportunity to prove their efficiency and get promoted. A class system is provided for employees, which allows them to increase their income by more than one and a half times within the framework of one position.
Diversity and equal opportunity. MBD cooperates with leading universities and colleges, attracting students and providing them with the opportunity to implement their own projects within the framework of practical training. Citizens of Russia, the CIS countries, the USA, Cameroon, the Central African Republic, etc. successfully work in the international team in various positions.
Training and development system, mentorship. An annual individual development plan is provided for each employee, mentors and trainers are assigned to help. Everyone has access to the online learning system - an electronic library with access from a mobile application and more than 300 courses using modern technologies (gamification, VR / AR).
Employees benefits and safety. The employees are provided with voluntary medical insurance, accident insurance, food, transport and high-quality overalls at work. Safe working conditions are ensured by constant monitoring of a special service, as well as regular focused training and testing of managers of all levels