EkoNiva-APK Holding

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Scaling up production

Press-centre / News,

EkoNiva Group's operating results for the first half of the year show a strong growth in all of its areas of activity.

Dairy farming

In the first six months of 2023, EkoNiva produced 619,400 tonnes of raw milk. Compared to the same period last year, the increase was about 37,000 tonnes, or 6% (H1 2022: over 582,000 tonnes). The average milk yield per day was 3,422 tonnes against 3,216 tonnes a year earlier (+6%). In June, the daily milk output across the Group exceeded 3,500 tonnes, the figure per dairy cow reaching 30.4 kg per day against 29 kg for the corresponding period in 2022. The mean milk yield per dairy cow amounted to 31.2 kg per day in June. The increase in productivity is due to improved rations and effective animal management.

The total herd size averaged 233,700 head of cattle, of which 112,600 were dairy cows (H1 2022: 219,400 and 110,800 respectively).

Milk processing

In January-June 2023, EkoNiva's processing plants manufactured about 127,900 tonnes of finished dairy products, exceeding the last year’s figure for the same period by 77% (72,100 tonnes). The production of drinking milk and traditional dairy was boosted by 76% to 122,500 tonnes, that of yoghurts and desserts, including ice cream, rose by 63% to 3,000 tonnes, and cheese making quadrupled to 2,400 tonnes.

The significant growth is primarily due to the ongoing asset modernisation programme and improved operational efficiency of the Group's enterprises, which allows them to make the most of their capacities. In addition, during the reporting period, EkoNiva launched the production of semi-hard cheeses at partner plants, following the increased demand from both federal chains and retail consumers. The Group maintains full control of this process, adhering to the ‘from field to shop shelf’ principle: the cheeses are made exclusively from A grade cheese milk produced on EkoNiva's own farms according to recipes devised by its specialists. The final packaging of the branded cheeses is carried out at the company's cheese plant in Shchuchye village.

In the first half of 2023, the product portfolio was expanded with Momente aus Schollbrunn semi-hard cheese, Dürr Zeller hard cheese, EkoNiva Professional Line 84% butter and traditional curds in 4 kg packaging. Currently, the full product range under the EKONIVA brand includes 87 SKUs. The company is also ramping up its production by increasing the output of its partners’ own-brand dairy products, including those of federal retailers.

The Group further enhanced its cooperation with retail chains and online platforms and developed its own network of outlets. The total number of shops selling EkoNiva’s products rose by 44% in the first half of the year, exceeding 56,400 (31.12.2022: 39,300). Besides, 17 new brand shops were opened during the reporting period.

Crop farming

In crop farming, the work is focused on fodder preparation. At the end of the reporting period, over 140,200 tonnes of feed in dry matter (DM) was harvested. Overall, EkoNiva Group intends to make a stock of more than 1 million tonnes of succulent and rough fodder in DM in 2023.