EkoNiva Group, the largest dairy holding in Russia, has published its operating results for the first six months of 2021 relating to its core business segments: dairy farming, milk processing and plant growing.

Dairy farming

From January till June 2022, EkoNiva produced over 582,140 tonnes of raw milk. In comparison to the same period in the previous year, this growth corresponds to almost 24,000 tonnes. In May, the company passed the 100,000 milestone in raw milk production, according to the results of the calendar month.

The average daily milk yield for the reporting period amounted to more than 3,216 tonnes compared to 3,084 tonnes last year. Notably, in June, daily yields across the group well exceeded 3,300 tonnes. One dairy cow produced 29.02 kg a day versus 28.31 kg for the same period in 2021. In June, the mean yield per one dairy cow surpassed 30 kg per day.

The growth in general performance is mostly associated with the herd expansion and overall animal productivity. In the first six months of 2022, the mean total livestock population within the Group amounted to 200,000 head of cattle, thereof over a half are the dairy cows (1st reporting period of 2022: 208,400 and 108,600 respectively).

Milk processing

Over the first six months of 2022, EkoNiva’s processing facilities produced more than 72,000 tonnes of finished dairy products, up 40% from the same period of the previous year.

Production of drinking milk and conventional dairy products in particular (cream, kefir, sour cream, curds, butter etc.) has risen by 40% exceeding 69,600 tonnes, the category of yoghurts and desserts (incl. ice cream) – by 22% up to 1,841 tonnes, and finally, the cheese volume saw an elevenfold increase approaching 600 tonnes.

Positive results were ensured due to the expansion of the number of branded outlets in the largest federal chains and expansion of presence in various regions as well. Throughout January-June, EkoNiva’s products were made available to residents of Belgorod, Volgograd, Rostov, Samara oblasts, Krasnodar area, the Republic of Adygea and to the citizens of Kazakhstan. Besides, the company continues its cooperation with enterprises engaged in the hotel and catering business.

By late June, the Group processed up to 600 tonnes of raw milk in comparison to last year’s volume which equaled only 400 tonnes. Based on the preliminary data from the management reports, in May and June, the processing subdivision started generating operational income for the first time notwithstanding the high expenses associated with the launch of EkoNiva in 2018, the main brand, its Dürr sub-brand in 2021 and utilising its production capacities to the full.

Crop growing

In the first quarter of June, EkoNiva’s enterprises successfully completed the spring sowing campaign. Over 290,000 hectares were planted in all 13 areas of presence, as it was planned. More than 71,000 ha were under winter crops, 57,000 ha of which were under winter wheat.

The spring field works resulted in seeding 93,000 hectares with cereals, over 57,000 ha – with oilseeds, 6000 ha – with sugar beets, 68,000 ha – with maize for silage and snaplage, 24,000 ha – with annual and perennial grasses. In total, EkoNiva allocated approximately 455,000 ha of farmland, including more than 176,000 ha under the fodder crops.

In early May, EkoNiva’s enterprises got down to preparing forages and by now they have completed the first and second cuts. As per July 25, 2022, they have ensilaged 291,000 tonnes in dry matter, which is significantly higher than they originally planned. By the end of August, the Group is going to start the third cutting. In total, the company intends to prepare not less than 931,000 tonnes in dry matter (2021: 800,000 tonnes of DM), which will enable EkoNiva to meet the requirements of the increasing herd in roughages and succulent fodders.

On July 12, EkoNiva began harvesting cereals, pulses and oilseed crops in Voronezh oblast. At the moment, the harvesting campaign is in full gear in the Republic of Tatarstan, Kursk and Ryazan oblasts. As of July 25, 2022, they harvested 28,861 tonnes of wheat from 4,111 ha, 633 tonnes of peas from 157 ha and 103 tonnes of camelina from 54 ha. Till the end of July, other enterprises from the Volga region relating to the Group will begin fieldworks. On the whole, the prospects for harvest are bright in all regions where EkoNiva operates.

Thanks to the long-term contracts with the end consumers of cereals and pulses, the Group insured itself against volatility in agricultural commodity markets.