OREANDA-NEWS. ABH Miratorg, the leading producer of Russian meat market, announces increase of key operating activities for January-September 2013 in comparison with the same period year earlier.

Pork production

The company increased production of pork by 34.5% up to 265,5 thousand tons in live weight basis from 197,4 thousand tons last year and strengthened leadership in this segment of the market. Production increase is connected with reaching the project capacity of new pig-breeding complexes together with increase of production performance in neighboring business units under vertically-integrated structure of the Holding.

The Company continues implementation of its long-term strategy aimed at improving operational performance in pork production and further growth of manufacturing capacity with opening 4 new farms in year 2014.

Meat processing

The volume of production of meat processing company ABH “Miratorg” Ltd. Pig complex “Korocha” (Belgorod region) for the first 9 month of 2013 amounted to 190,3 thousand tons, showing 55% increase compared to 122,6 thousand tons in the same period in 2012.

The Company with performance indicators at the level of the world's leading manufacturers is completing construction of high-tech production releasing ready-packed products with a capacity of 72 thousand tons per year. Start-up of new production lines will provide growth in output ready-packed products more than 4 times.

Intermediate production

LLC “Miratorg West”, a subsidiary of ABH “Miratorg” producing frozen meat products in high-tech plant in Kaliningrad region increased the volume of production and sales up to 15,7 million tons in January-September 2013.

The Company indicates a steady increase in production in the second half of the year of production of their own brands as well as products for major clients: McDonald's, Burger King, Carl's Jr.

The Company has also attracted new major partners: a network of fast-food restaurants SHAKE SHACK, KFC, Pizza Hut, IKEA restaurants and expanded the range of products developed by the specialists of “Miratorg West” ”customized”: the products of premium segment of the elite varieties of beef, a wide range of meat intermediates with fillings and branded pickles.

The Company has successfully passed the Traceability Exercise and received high scores during passage of international audits SQMS (Chicken), SQMS (Beef) mandatory for suppliers of McDonald's.

Distribution

The volume of sales of ABH “Miratorg” for 9 month of 2013 amounted to 319 thousand tons, up 22% from the same period in 2012. Holding continued to consistently increase sales of own products under the strategy of import substitution.

Implementation of beef production project

ABH Miratorg implements the Europe's largest project as a vertically integrated manufacturer of meat breeds of cattle with a target amount of the maternal livestock of 110 thousand heads.

The operator of the project “Bryansk Meat Company” as of 30th of September mompleted construction of 28 farms for cattle breed Aberdeen Angus, 26 of them are inhabited by cattle. The total volume of the maternal livestock of cattle in the farms of Holding in Bryansk region exeeds 94 thousand heads.

In the fourth quarter of 2013 the Company completed construction of five farms in Dubrovsky, Klimovsky, Rognedinsky and Pogarsky districts of Bryansk region and will increase the volume of maternal livestock up to 110 thousand heads.

The Company is also implementing a project for production of meat breeds of cattle in Kaliningrad region: as of 30th of September 2013 there were commissioned three farms in Ozersky district of Kaliningrad region, and the volume of maternal livestock is 11,6 thousand heads. The Holding is planning to increase the total volume of maternal livestock up to 17,6 thousand heads by commissioning the fourth farm in the region.

Implementation of poultry project

The company continues to implement the project on start-up of vertically integrated poultry production in Bryansk region in the framework of the strategy of business diversification for long-term efficient development of the Holding.

The total number of poultry as of 30th of September 2013 amounted to 288 thousand - there were commissioned 4 rearing stock sites and 2 poultry farms with parental flock out of 12 under the contract.

The company continues construction of 7 broiler chicken farms and modern meat processing complex and hatchery in Vygonichsky district of Bryansk region.

Up to the end of 2013 is scheduled commissioning 10 out 12 poultry farms with parental flock and 3 broiler chicken farms. The planned amount of breeding flock by the end of 2013 is 432 thousand heads.

Compound feed industry

The total volume of feed stuff production by plants of Holding in Belgorod region amounted to 770,1 thousand tons, which is 46,1% more than in 2012. “Miratorg” within the vertically integrated structure of meat production “from field to fork” is a leading manufacturer of feed stuff in Russia. After start-up of high-tech feedmill in Bryansk region in May of 2013 the assets of Company grew by 25% to 1,46 million tons of feed stuff per year.

Crop growing

The aggregate amount of harvested crops by ABH “Miratorg” in the framework of crops harvest campaign for 9 month of 2013 amounted to 740 thousand tons up 48% from the same period in 2012.

The are of cultivated land by Holding increased during the first 9 month of 2013 by 96 thousand hectares and reached 361 thousand hectares and reached 361 thousand hectares. The increase over the same period of 2012 (264,9 ha) is 36% more.

The company has increased the area of cultivated land in Belgorod and Kursk regions by 22% to 110 thousand hectares compared to January-September 2012. LLC “Agricultural Holding Ivnyansky” and LLC “Pristensky Grain Company”, key producers of crops within the Holding, harvested 224 thousand tons of grain, up 2,3% from the same period in 2012.

LLC “Bryansk meat company” implementing the largest project in Europe as a vertically integrated manufacturer of meat breeds of cattle, for 9 month of 2013 increased the cultivated area in Bryansk region on 35% to 237 thousand hectares and increased its total production of hay, haylage and silage on 74% to 487 thousand tons.

LLC “Kaliningrad company”, the operator of the project by broduction beef cattle in Kaliningrad for 9 month of 2013 produced 28 thousand tons of hay and haylage, the area of cultivated lands is 14 thousand hectars.