In the First Six Months of 2024, Ekosem-Agrar AG Produced a Total of 665,500 Tonnes of Raw Milk
Source: DairyNews.today
Ekosem-Agrar AG Reports Continued Growth in Milk Production and Dairy Processing in H1 2024
Ekosem-Agrar AG, the German holding company of Russia's largest milk producer, EkoNiva Group, has released its operational results for the first half of 2024, highlighting substantial growth in both milk production and the processing of dairy products.
Increase in Milk Production and Daily Output
In the first six months of 2024, Ekosem-Agrar AG produced a total of 665,500 tonnes of raw milk, marking a 7% increase compared to the same period in 2023, when the company produced 619,400 tonnes. The average daily milk output also saw a 7% rise, reaching 3,656 tonnes, up from 3,422 tonnes in the previous year. This consistent growth is attributed to the enhancement of operational processes and the implementation of advanced information systems, such as the in-house developed EkoFeed and EkoCrop software, which optimize feeding and feed production efficiency.
The company reported a stable pricing environment for raw milk in the first half of the year, with price increases in the single-digit percentage range. However, the costs associated with raw milk production rose in parallel, maintaining alignment with the pricing trends.
Expansion in Dairy Processing and New Product Introductions
Ekosem-Agrar's milk processing segment experienced significant growth, with the volume of finished dairy products increasing by 27% to 162,100 tonnes, compared to 127,900 tonnes in the first half of 2023. The production of fresh milk and traditional dairy products, including cream, kefir, sour cream, cottage cheese, and butter, increased by 25% to 153,000 tonnes. Additionally, the production of yoghurt and dessert products surged by 40%, totaling 4,200 tonnes.
One of the most notable achievements in the reporting period was the doubling of cheese production, which reached 4,900 tonnes. Ekosem-Agrar expanded its cheese portfolio by introducing two new varieties, including mozzarella, catering to growing consumer demand.
Retail Network Expansion
EkoNiva’s dairy products are now available in 70 regions across Russia, with a significant increase in the number of points of sale, reaching 65,900 by the end of June 2024, compared to 56,400 in the previous year. The company also expanded its proprietary retail network, opening twelve new brand shops in the first half of the year.
The Group's agricultural activities commenced the harvesting of fodder in May 2024. By the end of June, Ekosem-Agrar had harvested 163,600 tonnes of dry fodder, reflecting a 17% increase from the previous year's 140,200 tonnes.
About Ekosem-Agrar
Ekosem-Agrar AG, based in Walldorf, Germany, is the holding company of EkoNiva Group, a leading agricultural enterprise in Russia. With a herd of over 245,000 cattle, including 115,000 dairy cows, and daily milk production of 3,700 tonnes, EkoNiva is the largest milk producer in the country. The company manages approximately 630,000 hectares of agricultural land and is a prominent seed producer in Russia. Stefan Dürr, the founder and CEO, has been a key figure in the modernization of Russian agriculture since the late 1980s. Under his leadership, Ekosem-Agrar has grown into a major player in the industry, employing around 14,500 people across nine regions in Russia. In 2022, the Group reported total output of EUR 1,152.0 million and an EBITDA of EUR 396 million.
Increase in Milk Production and Daily Output
In the first six months of 2024, Ekosem-Agrar AG produced a total of 665,500 tonnes of raw milk, marking a 7% increase compared to the same period in 2023, when the company produced 619,400 tonnes. The average daily milk output also saw a 7% rise, reaching 3,656 tonnes, up from 3,422 tonnes in the previous year. This consistent growth is attributed to the enhancement of operational processes and the implementation of advanced information systems, such as the in-house developed EkoFeed and EkoCrop software, which optimize feeding and feed production efficiency.
The company reported a stable pricing environment for raw milk in the first half of the year, with price increases in the single-digit percentage range. However, the costs associated with raw milk production rose in parallel, maintaining alignment with the pricing trends.
Expansion in Dairy Processing and New Product Introductions
Ekosem-Agrar's milk processing segment experienced significant growth, with the volume of finished dairy products increasing by 27% to 162,100 tonnes, compared to 127,900 tonnes in the first half of 2023. The production of fresh milk and traditional dairy products, including cream, kefir, sour cream, cottage cheese, and butter, increased by 25% to 153,000 tonnes. Additionally, the production of yoghurt and dessert products surged by 40%, totaling 4,200 tonnes.
One of the most notable achievements in the reporting period was the doubling of cheese production, which reached 4,900 tonnes. Ekosem-Agrar expanded its cheese portfolio by introducing two new varieties, including mozzarella, catering to growing consumer demand.
Retail Network Expansion
EkoNiva’s dairy products are now available in 70 regions across Russia, with a significant increase in the number of points of sale, reaching 65,900 by the end of June 2024, compared to 56,400 in the previous year. The company also expanded its proprietary retail network, opening twelve new brand shops in the first half of the year.
The Group's agricultural activities commenced the harvesting of fodder in May 2024. By the end of June, Ekosem-Agrar had harvested 163,600 tonnes of dry fodder, reflecting a 17% increase from the previous year's 140,200 tonnes.
About Ekosem-Agrar
Ekosem-Agrar AG, based in Walldorf, Germany, is the holding company of EkoNiva Group, a leading agricultural enterprise in Russia. With a herd of over 245,000 cattle, including 115,000 dairy cows, and daily milk production of 3,700 tonnes, EkoNiva is the largest milk producer in the country. The company manages approximately 630,000 hectares of agricultural land and is a prominent seed producer in Russia. Stefan Dürr, the founder and CEO, has been a key figure in the modernization of Russian agriculture since the late 1980s. Under his leadership, Ekosem-Agrar has grown into a major player in the industry, employing around 14,500 people across nine regions in Russia. In 2022, the Group reported total output of EUR 1,152.0 million and an EBITDA of EUR 396 million.
