Stefan Duerr's “EkoNiva” will invest more than 15 billion rubles in expanding production

Источник: The DairyNews
The largest producer of raw milk in Russia, “EkoNiva”, will increase its raw milk production and processing capacity in the next two years, according to a representative of the company and the Rosselkhozbank, which will finance the project.

The company will build three new dairy complexes for 10,650 dairy cows in Tatarstan, Kaluga and Moscow regions by the end of 2021. The group's total dairy herd will grow by 10% to 120,000 head, and raw milk production per day will increase by 28% to 3,300 tons. The company will also start construction of two new feed mills in Novosibirsk and Ryazan regions by 2021. In addition, the company will build a cheese production plant with a capacity of 2,000 tons per year in Voronezh region and modernize the Anninsky dairy plant, which produces milk, cottage cheese, butter and ice cream. So far, the company produces 180 tons of semi-hard cheeses at a plant in Kaluga region. In 2021, plants under construction in Voronezh region (2,000 tons of cheese per year) and Novosibirsk region (36,000 tons per year) will also start operating. This is the first stage of the company's long-term strategy, which the bank has approved together with the company, explains the representative of Rosselkhozbank.

As a result, the company will increase its processing capacity almost four times to 1,880 tons of milk per day and will be able to process about half of its own raw milk by the end of 2021. The agricultural holding intends to process all its raw milk independently in the medium term, the company reported. This will reduce the dependence on prices for raw milk and take a more favorable position in negotiations with its consumers, as well as allow it to become the leading vertically integrated producer of finished dairy products in Russia.

The company will finance the project using its own and borrowed funds. The Rosselkhozbank will provide 15 billion rubles for this project, a representative of the company said and a representative of the bank confirmed.

In 2019, for the first time in 7 years, the consumption of dairy products per capita in Russia increased, while imports also increased and its share in commodity consumption is 29%, says Irina Zhachkina, first Deputy Chairman of the Board of the Rosselkhozbank. According to her, it is now important for Russian producers to master the processing of milk, but in addition to financial support, it is important to help in promoting products on store shelves, she added.

Revenue of EkoNiva's parent company Ekosem-Agrar in 2019 increased by 64% to 402.7 million euros, while net profit decreased by 23% to 14.4 million euros, according to the company. In 2019, the agricultural holding produced 759,000 tons of raw milk. Sales of processed products last year increased by 39% to 38.3 million euros. But the bulk of the revenue (63%) comes from the production of raw milk, the company reported. The company's main shareholder is its founder, Stefan Duerr.

Read more at © DairyNews.ru

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