OREANDA-NEWS. ABH "Miratorg", Russia's leading meat market operator, announces key operating results growth in 2013.

Pig farming

The company increased pig farming volume by 31, 5% up to 356 thousand tons in live weight compared to last year's 270,8 thousand tons and remains an absolute leader in this market segment. Four pig farms started by the company in Kursk region in 2012 have reached full capacity of 50 thousand tons in live weight per year. The company opened four more pig farms in the fourth quarter of 2013, increasing production capacities in the region to 80 thousand tons per year.

"Miratorg" will continue to implement the strategy aimed at improving efficiency and cost reduction in pig farming division, as well as improving performance indicators of neighboring business subdivisions within the framework of the Holding's vertically-integrated structure.

Meat processing

The production volume of CJSC "SK Korocha", Miratorg's meat processing plant (Belgorod region) amounted to 274,6 thousand tons in 2013 showing 41% increase compared to 194,6 thousand tons in 2012.

The Company with performance indicators at the level of the world's leading manufacturers launched Russia's first high-tech "Case-Ready" plant with a capacity of 72 thousand tons of product in consumer package per year in the fourth quarter of 2013. Start-up of new production lines will ensure growth of high value-added and retail market oriented products output more than 4 times.

Also in 2013 the company put in operation a new high-tech chilling chamber with a capacity of 8,31 thousand half carcasses increasing the overall storage capacity by 40% up to 20,3 thousand half carcasses which allowed to increase the slaughtering capacity up to 8,2 thousand heads per day.

Production of semi-finished products

LLC "Miratorg Zapad", a subsidiary of ABH Miratorg producing frozen meat semi-finished products at the most up-to-date plant in Russia located in Kaliningrad region increased it's production volume and product sales up to 23 thousand tons in 2013.

The Company increased the production volume by 30% in the second half of 2013 compared to the first half of the year. One of the breaded product processing lines was transferred to a twenty-four-hour operating schedule.

The Company has increased production of its own brands (Miratorg, Gurmama), as well as the products for mutually profitable long-term partners: McDonald's, Burger King, Carl's Jr., and for new clients: SHAKE SHACK chain restaurant, IKEA, KFC, Pizza Hut restaurants.

In 2013 "Miratorg Zapad" has been IFS (International Food standard) and SQMS (supplier quality management system) certified, as well as passed product quality traceability audit at all production stages - from raw material intake to finished products shipment to client (Traceability Exercise)

Distribution

Miratorg's sales volume amounted to 434 thousand tons in 2013 which is 18,6% higher than the last year. The holding continued to consistently increase sales of its own products under the strategy of import substitution.

Implementation of beef project

The largest project in Europe on vertically integrated production of high quality beef is being implemented in accordance with the business plan. As of the end of 2013 the project operator “Bryansk Meat Company” finished to form breeding stock of special meat cattle breed Aberdeen Angus amounting to 110 thousand heads.

Total livestock population amounts to 155 thousand heads.

In 2013 the Company increased the number of farms in the region up to 33, and throughout the project implementation period returned more than 200 thousand hectares of land into agricultural operation.

In 2014 Miratorg will move to full production cycle including intensive fattening, slaughtering and meat processing of cattle. In the first quarter, the company is launching Russia's first feedlot capable to handle 45 thousand heads at once, and puts into operation a high tech slaughtering and deep processing plant with a capacity of 400 thousand heads per year in the next half of the year.

Implementation of poultry project

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

The total poultry population exceeds 490 thousand heads. 4 rearing zones and 3 parent stock farms out of 12 poultry farms under the project were put into operation. The company finished the installation of the equipment and started commissioning of 2 broiler chicken farms out of 7 under the project.

Miratorg is completing the construction of a up-to-date meat processing plant with a capacity of 12 thousand heads per hour and a hatchery for 75 mln. eggs per year in Vygonichsky district of Bryansk region. The sites are planned to be launched in the 1st quarter of 2014.

The planned production capacity of the project is 100 thousand tons of poultry meat per year, it is planned to increase poultry breeding population up to more than 850 thousand heads and to produce 30 mln. broiler-chickens in 2014.

Feedstuff production

The total volume of feedstuff produced by Holding's plants amounted to record volume of 1067 thousand tons, which is 40% higher than in 2012. Miratorg is Russia's leading feedstuff manufacturer within the vertically integrated structure of meat production “from the field to the shop counter”. After the start-up of high-tech feedmill plant in Bryansk region in May 2013 assets design capacity of the Company grew by 25% up to 1,46 million tons of feedstuff per year.

Crop growing

The aggregate amount of harvested crops by ABH “Miratorg” in the framework of crops harvest campaign in 2013 amounted to 512 thousand tons which is 73% higher than in 2012. (297 thousand tons). The company harvested 660 thousand tons of non-cereal crops (hay, silage, haylage) which is 57% higher than feed stuffs volume harvested last year. The area of land cultivated by the Holding was increased by 65 thousand hectares and amounted to 381 thousand hectares which is 21% higher than 2012's figure.