Annual Report

In 2014 the Division “Pig farming and meat processing” proceeded work on priority project of advanced meat processing and started large-scale investment project of meat processing capacity increasing.

In 2014 the state issued challenge for the agriculture of the country. In particular for the pig farming segment, that has significant production growth capacity. The challenge was to reduce import dependence of the Russian food market. We made up policy decision on investment project initiation named “Production volume increasing at “Kigbaevsky bacon” LLC”. We plan to build 4 new boxes floor area 8000 m2. We will be able to house 9 600 animals there. Due to this project production capacity will grow by 30% by the middle of 2016.

In 2014 we also focused on development of advanced meat processing: we carried out specialization profile at manufacturing areas and invested 58 million rubles in its modernization. In Perm region at Krasnokamsky meat processing plant a branch of Vostochny LLC we went through with modernization: we set shed product storage of 20 tons capacity. At Sarapul meat processing plant of “Vostochny” LLC we upgraded and started meat processing of 6 300 tons dissection capacity annually.

We upscale meat delicacies production volume according to plan, we bring to the market new products of modern packing design, which in its turn extends best before date.

In 2014 we brought over 50 novelties on the market. In 2015 we want to bring over 50 new product items, including of promising segment ones – prepared food and meat delicacies in vacuum packing.

In 2014 ”Pig farming and meat processing” Division completed investment project for Krasnokamsky meat processing plant upgrade


At the same time we kept working on cost reduction through feed program modernization and increasing livestock productivity. We reached good results in grain cropping power in bunker weight – 20.9 c/ha. We reached such results due to rise in the efficiency in plant science, investments in seed-production equipment and agricultural machinery. Since 2013 “Kigbaevsky bacon” LLC has changed over to “Cargill” protein vitamin-mineral feed. “Vostochny” improved food supply by means of premixers of “DSM Nutritional Products”. We managed to reduce feed program costs: figures of feed conversion per unit gain at “Vostochny” LLC boosted from 3.34 to 3.20; at “Kigbaevsky bacon” LLC – from 2.97 to 2.92. at the same time we implemented methodical selective-genetic work. As a result reproductive features of breeding pigs improved: pigs reared per sow increased: at “Vostochny” LLC from 29.1 to 29.6, at “Kigbaevsky bacon” LLC from 29.5 to 30.5. The other strong gain was safety index improvement: at “Vostochny” LLC up to 84.4% (+4.7%), at “Kigbaevsky bacon” LLC up to 89.8% (+0.6%). That helped to continue optimizing number of breeding stock increasing and pork sales per 1 breeding pig annually by 7% at “Vostochny” LLC and by 10% at “Kigbaevsky bacon” LLC in comparison with 2013. Due to the status of selective-genetic center “Vostochny” LLC provides not only its own areas with genetic material, it also supplies Russian pig farming enterprises with breeding pigs. In 2014 “Vostochny” LLC sold 3 245 animals, that is 2 times more than in 2013.

In 2015 we will work at livestock productivity extension by means of further feed programs and genetics optimization. That will permit us follow the costs cutting way for the production and pig farming in general.


Indicator 200920102011201220132014
Sales revenue, million rubles 3 4073 2493 8753 9993 6824 931*
Net profit, million rubles 18561163264-362290**
Net assets, million rubles 1 5921 5341 8611 7131 3511 506
EBITDA, million rubles 604503639756150800
EBITDA, % 17,715,516,518,94,116,2
* Index fluctuation is conditioned upon sales price reduction
** Index fluctuation is conditioned upon grain cost increase and sales price reduction


Pork (live weight), tonnes
36 000
36 121
36 766
38 990
39 535
40 341
40 086