Yet More Investments!

Yet More Investments!

8 March 2019 News from the Company

At the regional administration of the Voronezh Region a meeting was held between Governor Aleksander Gusev and the President of EkoNiva Group Stefan Duerr. During the meeting, issues related to the current activities of the company and plans for the future were discussed.

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The Governor also congratulated the head of the agrarian holding on his recently celebrated anniversary, and presented him with a prestigious award – the badge of honour "For merits in the development of agriculture in the Voronezh Region". Aleksander Gusev thanked Stefan Duerr for his active investment policy in the region.

In the period from 2006 to 2017, EkoNiva's total investment volume in the livestock industry of the Voronezh Region amounted to more than 12 billion rubles. Eight cattle farming units each with a herd size of between 1,200 and 2,800 head were built, existing cowshed facilities were reconstructed, pedigree cattle were imported, a dairy plant with a capacity of 30 tonnes raw milk per day was commissioned. The assets of Megaferma Berezovka LLC (Krasny Vostok Group of Companies), APK Rusich LLC, Razdolnoe-Angus LLC and the Anninsky branch of Wimm-Bill-Dann were acquired.
In 2018, the investment activity of the company amounted to 15 billion rubles. Agrofirma Shipova Dubrava LLC was acquired, two cattle farming units (in the Liskinsky and Bobrovsky districts), started in late 2017, were completed, two more cattle farming units (in the Liskinsky and Bobrovsky districts) were built, construction of the first phases of another three cattle farming units (in the Liskinsky, Bobrovsky and Anninsky districts) was commenced, a feed mill is under construction in the Bobrovsky district, agricultural equipment was purchased to the amount of 1.3 billion rubles, the second stage of a (grain?] elevator and the first stage of a cheese plant with a processing capacity of 60 tonnes raw milk per day, both in the Liskinsky district, were erected.

The regional head also expressed confidence in the further successful implementation of the company's projects in the region. Stefan Duerr informed the Governor that in the autumn of 2019 a plant for the production of whole-milk products, cheese and butter with a capacity of 60 tonnes of milk per day is scheduled to be commissioned in the village of Shchuchye, Liskinsky District. The volume of investments will be around 800 million rubles. In addition, a major modernization of the dairy plant in Anna is currently underway. In the context of this investment project, the milk processing capacity will be increased from 300 to 440 tonnes per day. The company is to open new units for the production of curd cheese with a capacity of 20 tonnes per day.

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This year cattle farming units will also be put into operation in the Bobrovsky, Liskinsky and Anninsky districts, each for 2,800 head of cattle, and the construction of two new units each with a capacity of 3,300 head of cattle is also planned in the Bobrovsky and Buturlinovsky districts. In the autumn, the construction of a feed mill in the Liskinsky District and a feed mill in the village of Korshevo, Bobrovsky district, is scheduled for completion. The total planned investment will amount to 13 billion rubles.

Stefan Duerr noted that from 2017 onwards, the holding has been actively expanding its own processing capacity. After originally marketing its dairy products under the brands “Academy of Dairy Sciences”, which is aimed at a family audience, and “Big Change”, in autumn 2018 the company introduced its own new flagship brand, EKONIVA, featuring the face of the company chief himself. The brand concept focuses on the highest quality and the greatest possible benefit from the natural dairy product. At the end of last year, EkoNiva launched a product line for HoReCa professionals: production of the "Professional Line" of milk and cream, which was developed using a special technology for the restaurant and cafe industry, was commenced at the Anninsky plant.

- We produce not only a pure product, but we also offer people our concept “from the pasture to the counter”. Our land, our feed, our cows, our experts producing the milk, our own processing plant and, as a result, our finished product. That's what counts,- the head of the company underlined.

Currently, there are two processing enterprises operating in the Voronezh Region. This year, the holding plans to complete projects to expand these facilities. A site has been purchased for the construction of a new large-scale milk processing plant in the Bobrovsky District. The enterprise with a processing capacity of 2,000 tonnes of milk per day will produce baby food (dry formula), whole milk and sour milk products, and desserts. The planned budget of the project is set at over 20 billion rubles.
All EkoNiva projects are included in the socio-economic development program of the Voronezh Region, under which the holding is granted state subsidies in all areas of its agricultural activity.

from Yana Ryabinskaya
Source:
Website EkoNiva APK-Holding
Translation of the Russian article