The Top 20 companies produced almost 2.4 mln tonnes of pork. “Miratorg” strengthened its leading position among the top pork producers
The National Union of Pork Producers (NUPP) presented the list of top pork producers as of year-end 2017. The total volume of the top 20 companies was 2.36 mln t (hereinafter, on live weight basis), which is by almost 220 ths. t more than in 2016. The market share of the top producers increased by 2% reaching 61.8% of the total volume of industrial pork output in Russia. According to “Agroinvestor”, the top 3 companies produced 834.3 ths. t, which is about 22%. In 2016, their share was also 22% of the total industrial output. The cumulative output of the leaders was 783.8 ths. t in 2016.
“Although the market share of the top 20 companies has increased by approximately 2% over a year, it is not fair to say that the sector is consolidated”, Yuriy Kovalev, CEO of the National Union of Pork Producers said on the IX International Conference “Where is the Margin?” organized by the Institute for Agricultural Market Studies. The top 3 companies account for less than 25% of the production, while in the developed meat markets they control up to 50%. This suggests that the consolidation process in pork production will continue, and this year can be game changing.”
The top 3 companies remained unchanged not for the first time, although compared to the list created by NUPP as of year-end 2016, the se-cond and the third companies switched places. However, they are far behind the leading company “Miratorg”. Last year, this company produced nearly 415.2 ths. t of pork improving the 2016 results by 6 ths. t. The company’s pig breeding division includes 28 complexes in Belgorod and Kursk Oblast. According to the company’s data, the pig stock was 2.14 mln pigs at the end of the last year. “Miratorg” plans to increase its production significantly. The company is currently expanding the project in Kursk Oblast, and examines the possibility of building complexes with the capacity of 203 ths. t of commercial pork per year in Orlovsk Oblast.
“Cherkizovo” Group moved from third to second place. Last year, this company produced 211.7 ths. t of pork, which is by 27 ths. t or 15% more than in 2016. The positive momentum was reached mostly due to the launch of new “weaning-fattening” platforms built and commissioned during the last two years. “The programs for improving the genetics and health status of the animals launched in previous years were also successful”, the company stated previously.
Despite the production growth, “Rusagro” moved from second to third place with the production volume of 207.4 ths. t. Last year, this company produced 190 ths. t of pork. The company continues building a complex in Primorsky Krai – seven platforms, for 3 ths. sows each, an elevator, a feed-processing plant and a slaughterhouse will be built. “In May this year, the company will receive breeding pigs, and it will reach its full capacity in early 2020”, Maxim Basov, CEO of “Rusagro” said. The project investments are estimated at 29 mln rubles.
“Agro-Belogorie” Holding company remained at the fourth place. Last year they produced 178.9 ths. t of pork versus 164.6 ths. t in 2016. However, the company admits that not all key production figures remain at the level of the peak values of 2016. Specifically, the average daily gains decreased by 1.4% to 577 g. The feed conversion rate increased by 3.7% to 2,81 kg per 1 kg of weight gain. The mortality rate was 1.8%, just like in 2016.
“Velikolukskiy Pig-Breeding Complex“ also kept its position in the list remaining at the fifth place despite its significant production growth – from 131 ths. t to 175 ths. t. “AgroPromkomplektacia”, “Sibirskaya Agricultural Group” and “KoPitaniya” also remained at their positions in the list despite the increased production volume. “AgroPromkomplektacia” showed the highest growth — by 47.5 ths. t to 163.2 ths. t. This is related to the fact that the new complexes commissioned a year earlier now reached their project capacity. “Sibirskaya Agricultural Group” increased the pork production from 111.4 ths. t to 129.8 ths. t, while “KoPitania” — from 98.5 ths. t to 106.5 ths. t. In NU PP’s rating for 2016 the agricultural company “Ariant” was at the ninth place (89.1 ths. t) while “Agroeco” was at the tenth place (82 ths. t). In 2017, they switched places. The ninth company “Agroeco” produced 90 ths. t of pork while the tenth “Ariant” produced 87 ths. t. This company became one of the four companies in the list which showed lower results compared to 2016.
More changes in the list from 11th to 20th place
The Agro-Industrial Complex “Don” remained at the 11th place in the list, just like a year earlier. The company increased its production from 75.5 ths. t to 86.3 ths. t. In late 2017, they launched two new complexes in Voronezh Oblast with the capacity of 2.5 ths. sows each. The companies ranked from 12th to 14th places also remained at their previous positions in the new list: “Ostankino” which increased its production volume by 9 ths. t to 80 ths. t, “Belgrankorm” which decreased its pork production from 65.8 ths. t to 65.5 ths. t, and “Exima”. The production volume of the latter decreased by 2.5 ths. t to 61.5 ths. t.
“Talina” Agroholding which was at the 17th place in 2016 reached the 15th position due to the production growth by 10.9 ths. t to 57.7 ths. t. “Korall” also showed better results climbing from 20th to 16th place. The company produced 43.8 ths. t of pork in 2016 versus more than 52.1 ths. t in 2017. According to the company’s website, by the end of this year, the complex’s capacity should reach 1 mln slaughter pigs per year or 100 ths. t of pork.
The production volume of “Kamskiy Bacon” remained at the level of 2016 – 48.5 ths. t, however, this company fell from 16th to 17th place. “Bashkirskaya Meat Company” remained at 18th place despite its pork production volume which increased from 46.7 ths. t to 48 ths. t. “Komos Group” showed worst results among the other companies in the list decreasing its production from 52.6 ths. t to 46.7 ths. t. As a result, the company fell from 15th to 19th place. The last 20th place was taken by a new participant – “RBPI Group” which produced more than 46.4 ths. t of pork. “Prodo” Group which was at the 19th place in the previous ranking, slipped out of top 20 with the production volume of 44.6 ths. t.
According to the National Union of Pork Producers, in 2017, the total pork production in Russia exceeded 3.5 mln t on a carcass weight basis growing by 169.4 ths. t or 5%. The production volumes of agricultural companies increased by more than 200 ths. t (7.4%), the production of farm enterprises decreased by 2.2 ths. t (4.8%) to 44 ths. t, while the production of household farms decreased by 28.8 ths. t (4.8%) to 576.3 ths. t. “Due to the fact that previously launched complexes reached their project capacities in the fourth quarter of 2017, in 2018 we can expect a minimum growth by 5% in the sector, maybe even by 7−8%”, Yuriy Kovalev said.