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Annual Report 2020

Oil and Fats Business

Rusagro Oils and Fats Business is one of the leaders in the Russian mayonnaise, oils and fats markets. Our key areas of business are the procurement and processing of sunflower seeds, production and sales of sunflower oil, sunflower meal, food industry fats and margarines, processed dairy products (including cheese and butter) as well as consumer food products.

In 2020, the Oils and Fats Business significantly strengthened its market position and became the largest producer of sunflower oil in Russia, the second largest producer of mayonnaise and food industry fats, and its share in margarine production grew to 52% (according to the public sources).

The assets owned by the OFB are located in six regions of the Russian Federation: Samara, Saratov, Ulyanovsk, Orenburg and Yekaterinburg regions as well as the Primorsky Territory. In November 2020, we launched a new mayonnaise production line in Atkarsk with a manufacturing capacity of 120 thousand tons per year. Investments made up 2 billion rubles in total.

The Oils and Fats Business produces sunflower oil from Russian raw materials only; we use cutting edge technologies at our 3 oil extracting plants – in Bezenchuk, Atkarsk and Balakovo. Our sunflower oil is in demand both in Russia and abroad. Raw sunflower oil is exported to China, Turkey, India, Iran, Egypt and other countries. Sunflower meal is sold to Turkey and the EU.

In terms of food industry fats and margarines for the food, bakery and confectionery industries produced, Rusagro's Oils and Fats business takes the second place in Russia with a market share of 22%. We produce food industry fats and margarines following our traditional recipes, but we also have innovative products. Following the latest market tendencies, we develop and produce Oil Palm Free margarines and Clean Label margarines without E-code ingredients to offer for our customers. In 2020, we presented a new line of premium products under the GRANDPRO brand.

In 2020, the sales volume of dairy products increased by 2% and reached 28 thousand tons. The product range includes cheese and cheese products, butter and spreads, cream and dry mixes under Milie, Syrnaya kultura (Cheese Culture), Buterbrodnoe utro (Sandwich Morning) and Zhar pechka (Wonder Oven), «Koshkinskoe» brands. Industrial products have the largest share in the sales structure, and the range changes in accordance with consumer demands and the current market situation.

Rusagro Oils and Fats Business also produces consumer goods in the following categories: mayonnaise and sauces, mustard, solid fats, vegetable (sunflower) oils and soap. Over the past five years, the OFB has significantly expanded its brand portfolio, including the umbrella brand of sauces Ya lublu gotovit (I Love Cooking) which includes three more brands. The OFB's brands occupy leading positions in home regions. For example, in 2020, in Yekaterinburg, the Mayonnaise Provençal EJC brand takes the first place and 69% of the mayonnaise market, the Schedroe leto (Bountiful Summer) brand takes the first place and 58% of the consumer margarine market, and the Saratovsky brand takes the second place and 28% of the consumer margarine market in the Privolzhsky Federal District. In Moscow, the first place and 31% of the mayonnaise market is secured by the Moskovsky Provençal brand. In February 2021, the OFB signed its first contract to supply packaged sunflower oil under the Leto Krasno (Red Summer) brand to the Century Mart hypermarket chain in China. And in December 2020, it made its first delivery of dried whey to China, becoming the first Russian company to enter the Chinese market with this product.

In general, the sales geography of Rusagro's Oil and Fats business is constantly expanding. We sell products in most regions of Russia and around the world. In 2020, the OFB exported products to 28 countries, including Poland, Germany, the United States, Central Asia and China. The volume of exports increased by 7% compared to the 2019 figure and exceeded 700 thousand tons.

Rusagro's dairy products business includes three product lines:

  • semi-hard rennet cheese, cheese product;
  • butter, spreads; and
  • powdered milk-containing mixtures.

Milk processing and production is carried out at the production site operated by Koshkinsky Cheese and Butter Factory, Koshki Village, Samara Region.

Every day, the factories receive milk from farms to produce cheese and butter. The farms are located in the Ulyanovsk, Samara, and Tambov regions as well as in Tatarstan, Bashkiriya and Mordovia. The combined production volume of cheese and cheese products reaches up to 750 tons/month.

Cheese and butter under the Milie brand can be found in many regions of the Central Federal District, Privolzhsky Federal District, in Ural and Southern Russia. The selection of cheese packages and types is a unique offer for both retail chains and the B2B sector.

The factory is designed to produce 1,800 tons of powdered milk-containing mixtures per month.

Key production principles:

  • a competent approach to the selection of milk;
  • risk minimization; and
  • customer focus.

   

Management and contact information:

General Director of Oil and Fats Business:

Vladimir Alexandrov

 

Financial Director

Uliya Lakhmotkina

 

Head of cosumer goods division:

Nataliya Koroy

  

Head of B2B division:

Alexey Kuznetsov

 

Head of Industrial fats division:

Alexandr Khokhrin

 

Head of Procurement department:

Alexander Polyakov

 

General Director of Dairy Products Rusagro LLC

Oleg Loginov

 

HR Director

Irina Yabreeva

 

Contact details:

Telephone: +7 800 700 7900

E-mail: off@rusagromaslo.com