OREANDA-NEWS. ABH Miratorg, leading operator of the Russian meat market, informs of the key operational performance indicators growth n 2014.

Distribution

Sales volume of the vertically-integrated holding amounted to 493 thousand tons in 2014, which exceeds the indicator for 2014 by 14%. Miratorg has continued to increase the share of its own products in the total sales volume under import substitution strategy.

Pork production

Miratorg keeps its leading position in pig farming: the Holding increased pork production by 7%, up to 393 thousand tons in live weight against 360 thousand tons in the previous year. This growth is caused by reaching of production capacity and efficiency improvements on new farms in Kursk region and by efficiency increase of all division activities.

The largest Meat Processing Plant "SK Korocha" produced 292 thousand tons of products in 2014 against 274 thousand tons in 2013. The output of products in consumer package is outstripping: 33,3 thousand tons in 2014, which exceeds the indicator for the previous year by 42%.

Holding's strategy in this market segment is focused on further improvement of efficiency key indicators, cost saving, product range extension and production cost control.

Poultry production

Following the results of 2014 the Holding produced more than 30 thousand tons of broiler chicken chilled meat. Vertically integrated production that ranks among five largest facilities in Russia will reach its full capacity that is 105 thousand tons of products per year in the first quarter of 2015. Company started poultry meat production in the high-tech factory in Bryansk region in the first quarter of 2014. Production chain includes hatchery for 75 million eggs, five poultry sites of parent stock and seven broiler farms. Total poultry population on sites of "Bryansk broiler" exceeds 6,3 million heads and continues growing.

In 2005 Miratorg plans to expand distribution of this meat due to delivery increase of poultry semi-finished products of own raw material to catering networks.

Beef production

ABH Miratorg continues to develop the largest vertically integrated high-quality beef production in Russia according to the business plan.

The Holding successfully finished the first stage of the project and built from scratch entire production chain "from the farm to the shop counter". Project land bank exceeds 250 thousand hectares of agricultural lands intended for pastures and croplands. Following the results of 2014 total population of special cattle breed Aberdeen-Angus in Bryansk regions grew up to 250 thousand heads and mass calving in 2014 became the highest in the Meat farming industry in Russia - 74,8 thousand calves were born on company farms.

In Autumn 2014 Cattle slaughtering and processing plant, which is a key link of the production chain, started its operation. High-tech factory, that has no analogues in Russia by process automation level and beef processing depth, has supplied the market with 3300 tons of high quality beef since October 2014. Miratorg became one of the largest suppliers of premium primals to Russian restaurants and the first company proposed a wide range of chilled packed ANGUS BEEF meat to Russian consumers at affordable price.

In the second half of 2014 with credit support of VneshEconomBank Miratorg proceeded with a project extension that foresees cattle population increase up to 500 thousand heads, construction of more than 30 new farms and increase of agricultural lands intended for pastures and croplands by 200 thousand hectares.

In December 2014 within extension of Cattle Division capacity the Holding started up the second feedlot with the capacity of 50 thousand heads housed simultaneously in Orel region.

Production of semi-finished products

"Miratorg Zapad", Miratorg's subsidiary producing frozen meat semi-finished products in Kaliningrad region produced over 30,9 thousand tons of products in 2014, which exceeds the indicator in 2013 by 33%.

Production growth is ensured by high demand on high quality semi-finished products in retail segment as well as in public catering networks and restaurants. Company continues successful partnership with big public catering networks such as McDonalds, Burger King, Carl's Jr., IKEA, SHAKE SHACK. More than 50% of products are produced for big corporate customers.

Two of four factory production lines are running 24 hours a day. The Holding also decided to construct the 5th process line for semi-finished products, its start up will increase factory capacity by 33% up to 80 thousand tons of finished products per year by the middle of 2015. Investments into the project will amount to over 11 million Euro.

In 2014 the factory received European registration number that gives the right to export products into the European Union countries. Company successfully passed an audit confirming compliance of current quality management and safety system with international standards.

"Miratorg Zapad" also received the Certificate for production of poultry products that comply with relevant "Khalyal" requirements.

Feedstuff production

Total volume of feed production by Holding's factories in 2014 grew up to 1 million 187 thousand tons which exceeds the result of 2014 by 12%. Calculated capacity of company feed assets amounts to 1,46 million tons of products per year and fully covers the need of Miratorg livestock division due to long-term plans of meat production increase.

The main factor of feed division indicators growth is the high tech factory in Bryansk region aimed to supply feed stuff for Miratorg's poultry project. In 2014 Bryansk region produced 160,5 thousand tons of feed stuff which exceeds the indicator of 2013 by 128 thousand tons. The factory will reach its full capacity in the first quarter of 2015.

Crop production

Consolidated crop production in 2014 amounted to 100% of planned indicators. Output yield grew by 18% up to 608 thousand tons due to average crop yield growth for all cultivated crops as well as cultivated area expansion. In 2014 total area of croplands for grain crops exceeded 130 thousand hectares in Belgorod, Kursk, Bryansk and Orel regions.

The Holding also prepared 956 thousand tons of tailings (hay, silage, haylage) for vertically integrated beef production which exceeds the amount of feed prepared in 2013 by 45%.