OLAM RUSSIA

19 Июня 2018

   Welcome to Olam Russia – a company that has transcended boundaries in Russian agriculture, with extensive operations scanning the Penza, Rostov and Moscow regions

Dairy and agriculture

   We start with the Russian Dairy Company, or RUSMOLCO: this is Olam’s largest investment in an integrated agriculture business in Central Russia in the Penza region where today we are the largest milk producer in the region and amongst the top three milk producers in the Russian Federation. With a land bank of 133,000 hectares (which is about 2 times the size of the country of Singapore!) in the central black earth region with highly fertile soils, RUSMOLCO is also one the leading agricultural crop producers in the region.

Rusmolco has a total herd of over 15,000 cows, whose total daily milk production is enough to provide each of the 600,000 citizens of Penza with a glass of premium quality milk every day and still have some left for Moscow!

   Our purebred Holstien cows today achieve an average milk production of over 9,000 kg per cow per year which is more than two times the national average. Rusmolco’s dairy farms are the largest and most technologically advanced in Russia and, as one would say, even on the whole European continent.

   Rusmolco is unique in the sense that in 2014 it invested in its own specialized herd reproduction center, the first of its kind in the country. By completing the technological chain of a cow’s life cycle, it is able to consistently replace its own herd without having to rely on Imports. At a 5,200 head capacity, this is Europe’s largest and most modern heifer reproduction facility which in future will also be capable of providing pedigree heifers to other dairy farms in Russia.

   Rusmolco’s Agricultural division is one of the largest and most efficient crop producers in the region with over 200,000 tonnes of feed crops and 250,000 tonnes of commercial crops. Our inhouse feed production ability gives us full control over the quality and quantity of feed for our total herd, which is a source of competitive advantage for our dairy business. Significant investments in more than 300 units of world class agricultural machinery and infrastructure have enabled us to achieve productivity levels that are far higher than the standards in the region:

   Our most recent investment has been in a modern elevator with a storage capacity of 100,000 tonnes and a drying capacity of over 5,000 tonnes per day. This elevator linked with the railroad is strategically located at the centre of our Agricultural farms, thus improving logistics and efficiencies. In 2016 we have also completed a multi crop seed production plant with a capacity of 10 tonnes p/hour which gives us full control on the quality and cost of seeds that will go into production.

   It’s true that Rusmolco has excellent land assets, dairy cows and agricultural infrastructure but the real cornerstone of our success is our team of 1,200 PEOPLE - one of the best teams in terms of knowledge, experience and execution skills.

   Rusmolco’s competitive advantage comes from the fact that its businesses are well integrated.

   We have a full cycle from milk production to self-sustaining heifer production.

   From feed production to waste recycled as fertiliser in our feed program

   From crop production to seed factory, elevators and trading.

   Rusmolco is well on the way to realizing its vision of Transcending boundaries in its business – by creating Russia’s most valuable large scale & integrated Dairy and Agriculture operations.


Grain Trading

   We’re going to move our story on now to one of the biggest Olam businesses in Russia - our grain trading operation. At the heart of this business is our Azov grain terminal located in the Rostov region in the very south of Russia with its mild climate, allowing for almost year-round navigation to the port. Put into operation in 2003, Olam International acquired it in 2012.

   The core business of this operational unit is grain and oilseeds crop handling. The terminal provides services for grain intake, proper storage and loading to sea-coasters.

   If we look at this terminal in numbers, then it has a 145 metre long berth, and an annual grain turnover of over 790,000 tonnes. This is equivalent to 260 fully loaded railroad trains covering about 185 kilometres of track. The grain silo has a capacity of 48,000 tons.

   We focus on efficiency and quality. This starts right from the beginning of the process, when grain quality is controlled from the intake point right through storage and loading. For this purpose the terminal has its own professional laboratory with high precision instruments that can analyse the vital parameters of every product, and determine each quality and grade.

   With the customs control point available in the terminal itself, efficient clearing of foreign-owned vessels is possible.

   We are looking forward to imminent further investment at the site, including an additional truck intake point, an upgraded loading process using telescopic pipes and enlarged storage capacity.

   The members of the grains team at Olam Russia are proud to manage one of the best grain terminals in the country.


Dairy Trading

   Besides grain, we run dairy commodities trading, including milk powders, butter, whey powders and anhydrous milk fat, being among top-3 biggest importers and distributors. We regularly supply high quality dairy products from Belarus, Argentina, Uruguay and New Zealand to Russian end-users, both largest multinationals and national leaders, which choose Olam due to confidence, reliability and high performance.


Coffee

   Now we turn to a much-loved Russian beverage - instant coffee. Every year the Russian people consume around 86,000 tonnes of coffee. We are fortunate to capitalise on this trend by being one of the Top 5 coffee packaging companies in the country. In fact the coffee we pack each year would make 21 cups of coffee for every adult in Russia.

   Our coffee plant can be found in the Moscow Region in Yakhroma Town. It was originally commissioned in 2003 and was acquired by Olam International in 2014. Today we produce over 250,000 packs of instant coffee and coffee drinks per day.

   The plant produces instant coffee in powder and granulated form for the well-known brands, as well as products under clients’ own brand names.

   As with our dairy, grain and cocoa operations, we take quality seriously at the coffee facility. We make careful checks of raw materials and packaging at intake stage. We have constructed the plant to use closed belt conveyors. The jars are supplied to the plant in tightly sealed packaging on pallets. And even then they are inspected, and pass through an air cleaning machine.

   Once the containers are filled to the specification of each customer, metal detectors are set to work before the glass containers or pouches are sealed, labelled, marked and film-wrapped.


Cocoa

   Finally let us not forget that the Russians are no exception, having a sweet tooth like the rest of the world. Olam holds a market-leading position in Russia’s cocoa sector, thanks to our well-known global cocoa brands, such as deZaan, Unicao, Macao, and Britannia

   We are a preferred supplier of cocoa liquor, butter, and powder in Russia to the largest confectionery producers, both multinational and domestic.

   We’ve transcended many boundaries: growing from a relatively young company in Russian agriculture to the portfolio of businesses impacting the way Russian people eat and drink and developing positive long-term partnerships in the region.