on advantages
Power to be
on the upswing
OF 2013

In 2013 the “Pig farming and pork processing” division focused on cost optimization and reduction of product cost, feeding program development and livestock capacity increase. We carried on working out the priority project of the division aimed to advanced meat-processing of high marginal profit development.

In 2013 we reconstructed and launched “Krasnokamsky meat processing plant” a branch of “Vostochny” LLC in Perm Region. In 2012-2013 146.3 million rubles were invested in the plant modernization and development. We equipped the plant with automated package line of world leading manufacturers: +G Wetter, Vemag, Autotherm, Fessmann, Multivac, Delta. Today’s plant production capacity allows to produce 4 400 tons of sausage products and 372 tons of processed foods annually. Modernization program of “Krasnokamsky meat processing plant” comes to an end in 2014. We will have increased production volume in 1.7 times by 2015.

At the same time we carried out driving-down-cost and effectivization project at meat plants of “Vostochny” LLC, by means of 36.9 million rubles investment in technical re-equipment. Through this process in 2014 we will launch production of ready-to-cook meat for HoReCa segment (restaurants, cafes, fast food outlets) and social catering at schools and kindergartens.

In 2013 we worked in conditions of historically high prices for grain and historically low prices for pig, which was due to Russia WTO accession and droughts in 2012. For this reason we concentrated our efforts on cost optimization and reduction of product cost. Being sensible to the fact that feed in pig farming makes 70-75% of production cost; we worked at plant science effectivization by investing in seed farming equipment and agricultural machinery. We also upgraded feeding programs: at “Kigbaevsky bacon” LLC we switched to feeding of livestock with protein vitamin-mineral premix content of “Cargill”. At “Vostochny” LLC we improved nutritive base by means of “DSM Nutritional Products” premixers.

Cooperation with world leading companies gave us an opportunity to cut feeding program cost, and to shorten pig housing from 188 to 182 days at “Kigbaevsky bacon” LLC, from 193 to 187 days at “Vostochny” LLC. Average daily gain at animal stock has rose from 582g to 605g (+4% by 2012) at “Kigbaevsky bacon” LLC and from 537g to 556g (+3.5% by 2012) at “Vostochny” LLC. In 2014 we will continue to optimize feeding programs at pig farms of “Vostochny” LLC by combining” Cargill” premixers of “DSM Nutritional Products” premixers.

Thank to completing pig farms with own breeding stock and systematic selective-genetic work we gain high-producing young fat stock. In the same time we work on genesial features improvement: in 2013 commercial conception rate made 89% at “Vostochny” LLC and 89.4% at “Kigbaevsky bacon” LLC that is

more than industry-average-indicators. That allowed us to optimize the number of pedigree stock by increasing pig sales at 1 sow per year by 5% at “Vostochny” LLC and 6% at “Kigbaevsky bacon” LLC in comparison with 2012.

In 2014 we will enhance production capacity in meat processing, extending work on feed ruble cost reduction and production of pig farming cost saving in the same time. That will permit us to maintain the leading posture at the meat market within the Volga territory and Ural.

We believe that the Company’s further development will also be provided by energy- and resource-saving technologies implementation. In the end of 2013 the energy efficiency raise project was accomplished, by means of that the gas flow reduced by 11%.


INDICATOR 20092010201120122013
Sales revenue, million rubles 3 4073 2493 8753 9993 682*
Net profit, million rubles 18561163264-362**
Net assets, million rubles 1 5921 5341 8161 7131 351
EBITDA, million rubles 604503639756150
EBITDA, % 17.715.516.518.94.1
*Index fluctuation is conditioned upon sales price reduction
**Index fluctuation is conditioned upon grain cost increase and sales price reduction


Pork (live weight), tonnes
36 000
36 121
38 766
38 990
39 535
38 578*
*Production target decrease is conditioned upon negative operating profitability in 2013