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Technical launch of the slaughtering line on the AGROECO Group`s meat processing plant took place

16 September 2021

On Tuesday, September 7, Dmitry Patrushev, Minister of Agriculture of the Russian Federation, Alexey Gordeev, Vice Speaker of the State Duma of the Russian Federation, Alexander Gusev, Governor of the Voronezh Oblast, Boris Listov, Chairman of the Board of the Rosselkhoznadzor Bank and Irina Makieva, VEB.RF's Chief Managing Partner for urban development, general director of the Fund for Development of Single-Industry Towns visited technical launch of the slaughtering line of the AGROECO meat processing plant. This is the first stage of works that will allow the plant to start producing half-carcasses and by-products. Production will begin in December 2021, full load will be reached in 2024.

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Photo: Dmitry Patrushev, Minister of Agriculture of the Russian Federation, Alexey Gordeev, Vice Speaker of the State Duma of the Russian Federation, Alexander Gusev, Governor of the Voronezh Oblast, Boris Listov, Chairman of the Board of the Rosselkhoznadzor Bank, Vladimir Maslov, Chairman of the Board of Directors of AGROECO Group, Evgeny Kiyatkin, Director of the AGROECO Group meat processing plant

Full launch of the enterprise will complete vertical integration of the agricultural holding, will allow it to enter retail with deep processed products, and provide an opportunity for export. This plant will become the second slaughterhouse in Russia in terms of processing volume, its maximum capacity will be 3.8 million animals per year. Capacity of the slaughtering line is 600 animals per hour. Investments in the project amounted to more than 13 billion rubles.

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Photo: AGROECO Group meat processing plant

Dmitry Patrushev, Minister of Agriculture of the Russian Federation noted that the Voronezh Oblast is famous for its developed agro-industrial complex.

“Our region actively participates in the new governmental program for integrated development of rural areas. In 2020 we implemented several projects. This year, our region received 1.2 billion from the federal budget under state program. Social and economic conditions are improving, citizens receive infrastructure facilities: recreation centers, sports grounds – everything that makes life in rural areas better. In current and next year, our region takes part in this program. Now not 1.2 billion rubles, but as much as 1.6 billion rubles have been allocated for the implementation of this governmental program,” noted Dmitry Patrushev.

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Photo: Dmitry Patrushev, Minister of Agriculture of the Russian Federation, Alexey Gordeev, Vice Speaker of the State Duma of the Russian Federation, Alexander Gusev, Governor of the Voronezh Oblast

As early as 2022, with the launch of the deboning and consumer packaging sites, the plant will produce 146 thousand tons of finished products. Its product range will include 297 items. 200 products will be produced on deboning site, in the form of pork in industrial packaging – tenderloin, ham, shoulder, etc., and products for industrial processing – by-products, lard, trimmings, etc. Consumer packaging site will produce 97 products in four retail packaging formats – minced meat, sausages, kebabs, meatballs, patties, steaks, etc. According to Company`s forecasts, by 2024 the production volume will amount to 278 thousand tons, and will include production of offal and deboning products for export.

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Photo: slaughtering line of the AGROECO Group meat processing plant

Alexey Gordeev, Vice Speaker of the State Duma of the Russian Federation, noted that the state actively develops rural areas, creating decent level of living.

“This, naturally, completely changes appearance of agriculture and settlements. This is the essence of the complex support program. It should be noted, that today we no longer face an issue of understanding how world markets are built, and the ability of our entrepreneurs, commercial agribusiness enterprises, to produce and trade – everyone already knows how to do this. The question is how to reach people, so that young specialists go to the village to work, and make their life decent, and give them opportunity to develop further. In our region, we will implement this program together with the national Ministry of Agriculture. And state support is growing every year,” said Alexey Gordeev.

At the AGROECO meat processing plant, most of the processes of slaughter, deboning, and packaging are automated. A unique IT infrastructure has been introduced – all primary information about production volumes, movement of raw materials around the plant is recorded in a continuous mode. Directly at the conveyor, quality parameters required for product classification are automatically measured – up to the reference weight of premium cuts and quality of lard. Additionally, our accounting system is integrated with FGIS Mercury – the state veterinary service evaluates and registers products online. State-of-the-art technologies of physical security control work of personnel, production processes, and compliance with sanitary standards.

Alexander Gusev noted that construction of new facilities indicates current favorable investment climate in the region.

“We utilize support provided by the Ministry of Agriculture, and we receive quite a lot of money through the Single-Industry Towns Fund. Intraregional support in terms of tax preferences allows colleagues who look here with investments to calculate all risks and achieve good payback period. Apparently, investments always mean new, high-performance jobs with a good salary. Of course, all this affects the mood of people who live in rural areas. We are investing a lot of money in the development of the agro-industrial complex. This year, budget investment part alone amounted to more than 12 billion rubles. All this allows people to think of the village as a place of permanent residence,” noted Alexander Gusev.

AGROECO Group`s meat processing plant is completely waste-free. Thermal processing shop at the plant produces meat and bone meal, blood meal and technical fat from death loss raw materials and bio-waste. Workshop is equipped with wastewater and air treatment systems, which allows to completely eliminate adverse impact on the environment.

“Rosselkhoznadzor actively invests in the Voronezh agro-industry: in 21 years of work, we have invested more than 350 billion rubles in the agro-industrial complex, financed 100 investment projects, creating more than 10 thousand jobs. Sown fields, advanced greenhouse complexes, meat processing plants are result of our investments. And most importantly – a new image of agriculture as a modern, efficient and high-tech industry,” said Boris Listov, Chairman of the Rosselkhoznadzor Board.

Fund for the Development of Single-industry Towns (VEB.RF Group) together with the regional government helped to build infrastructure for the plant. The Fund has granted about 1 billion rubles for these purposes. Water supply, sanitation, electricity and gas supply networks have already been put into operation, the road has been repaired.

“AGROECO plant is an important object for the development of the city's economy. Two years ago, we laid the first stone in the foundation of the future complex, and today we are commissioning main line of the plant! Launching of the plant will create over a thousand jobs, attract new investments to the city, and, most importantly, reduce the outflow of population,” commented Irina Makieva, Chief Managing Partner for urban development of VEB.RF, General Director of A SINGLE-INDUSTRY TOWN.RF.

Launch of the meat processing plant completes implementation of the ARGOECO Group`s vertical integration strategy. Today, this company is engaged in crop production and production of mixed feeds, breeding and commercial animal husbandry. Its own meat processing will strengthen the company's position in the domestic market, and will allow it to enter foreign markets – with exportation of products under AGROECO brand. As early as in 2022, the plant will produce 146 thousand tons of finished products. Forecasted export volumes will be more than 30 thousand tons of products per year, worth more than $ 70 million. Today AGROECO is one of the largest employers in the region, and launch of the plant will provide an additional 2,200 high-performance jobs. I would like to express my great gratitude to our key partners – Ministry of Agriculture of the Russian Federation, Rosselkhoznadzor, Government of the Voronezh Oblast, Fund for Development of Single-Industry Towns – for their participation and support in the implementation of this high value project,” said Vladimir Maslov, Chairman of the AGROECO Group Board of Directors.

Total investment volume in the economy of the Voronezh Oblast by 2022 will be 56.9 billion rubles.

About the Company
AGROECO Group presents in Voronezh Oblast and Tula Oblast. Group's assets include more than 40 industrial pig breeding facilities, three feed mills, breeding and genetic center, three MTCs, brand retail chain, and 60 thousand hectares for crop production. According to the National Union of Pig Breeders data for 2020, AGROECO Group is among the top ten industry leaders in Russia. Last year, due to launch of new facilities, the Company increased volume of pork production to 226.7 thousand tons. Volume of mixed feed production has also grown – to 685 thousand tons according to the last year results. Social responsibility is one of the main principles of the Company business. Over its entire history, more than 300 million rubles were allocated for charity.
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