OREANDA-NEWS. Miratorg, Russia's leading meat market operator, announces key operating results growth in first quarter of 2014.

Distribution

Miratorg's sales volume in first quarter of 2014 amounted to 110 thousand tons which is by 21% exceeds the indicator of 2013. The company continues to increase consistently share of its own products in total sales volume under the strategy of import substitution and increase release of products intended for retail market.

Pig farming

The company increased pig farming volume by 3, 7% up to 89,7 thousand tons in live weight compared to last year's 86,5 thousand tons. Miratorg remains an absolute leader in this market segment and will continue increasing production achieving full capacity of pig farms launched in the fourth quarter of 2013 in Kursk region.

Miratorg proceeds to the next stage of strategy aimed at developing pig farming division after stage of active growth and expansion of production base. The company focuses on efficiency improvement, cost reduction, product cost control as well as on improvement of performance indicators of neighboring business subdivisions within the framework of the Holding's vertically-integrated structure.

Meat processing

“SK Korocha” CJSC, Miratorg's meat processing plant in Belgorod region produced in the first quarter of 2014 67,1 thousand tons of finished products which is by 12% higher than for the same period in 2013.

The Plant with performance indicators at the level of the world's leading manufacturers continued increasing release of chilled meat and meat semi-finished products in consumer package. Production of this type of product aimed at retail market increased in the first quarter of 2014 by 50% in comparison with the same period of the last year - up to 6,2 thousand tons.

Production of semi-finished products

LLC “Miratorg Zapad”, Miratorg's unit producing frozen meat semi-finished products at the most up-to-date plant in Russia located in Kaliningrad region produced more than 6,0 thousand tons of products for the first quarter of 2014, which exceeds the indicator of the first quarter of 2013 by 11%.

The Company continues developing and launching new types of products under its own trademarks Miratorg and GurMama, as well as for Customers in HORECA segment, among which there are such restaurant chains such as McDonalds, Burger King, Сarl's Jr., Shake Shack and others market participants.

In the first quarter the company started supplying beef chops for restaurants of Hardee's chain in Kazakhstan.

Beef project

Miratorg continues implementing the largest project in Europe on vertically integrated production of high quality beef in accordance with the business plan.

Based on the results of the first quarter of 2014 total livestock (cattle) population of the special meet breed Aberdeen Angus on 33 farms of the company in Bryansk region increased by 3,3 thousand tons up to 158,7 thousand animals.

In January the company started unique for Russia feedlot capable to handle 45 thousand animals at once. At the present moment over 5,6 thousand animals are handled at feedlot gaining in weight by special grain fed for further slaughtering and processing at Meat Processing Plant of the company, start-up of which is planned on July 2014.

Miratorg also implements the project on growing cattle in Kaliningrad region where four farms are put into operation and settled by cattle in the territory of Ozersk district, total livestock population exceeds 21 thousand animals. “Kaliningrad Meat Company” project operator for the first quarter of 2014 has brought back in agriculture more than 1000 Ha of abandoned land and will continue expansion of cattle run to insure feeding base for further increase of cattle population.

Poultry project

The company continues to implement the project on vertically integrated broiler chicken meat and semi-finished products production in Bryansk region with the capacity of 100 thousand tons of products per year within the framework of the business diversification strategy.

In the first quarter of 2014 project operator “Bryansk Broiler” put into operation hatchery for 75 million eggs, high-tech slaughterhouse and meat processing plant with the capacity of 12 thousand animals per hour.

The Company launched two broiler farms out of seven foreseen by the project arranged the full poultry production cycle - from poultry units for parent stock and rearing stock to growing trade chicks.

Total poultry population at company's farms exceeds 1,357 million birds and will continue growing with startup of 4 new poultry farms and 5 broiler farms, planned under the project.

Feedstuff production

The total volume of feedstuff produced by Holding's plants in the first quarter of 2014 increased up to 288 thousand tons which is exceeds by 13% the indicator for the same period in 2013. Indicator increase is caused by production increase at high tech Feed mill plant located in Bryansk region and aimed to supply feedstuff for Miratorg's poultry project. After the start-up of high-tech Feed mill plant in Bryansk region in May 2013 design capacity of the Company grew up to 1,46 million tons of products per year.