Miratorg expands the plowland

The holding can buy more than 30 thousand hectares from the NZK.
Miratorg can purchase about 32 thousand hectares in the Tula and Bryansk regions from the National Land Company Alexander Lebedev, who grows potatoes, cereals and vegetables in the regions. The decision to sell land could arise due to a drop in profitability of the business due to overproduction of potatoes in the last two years.

The fact that Mirachr Agrarian Agribusiness Holding intends to purchase land assets from LLC National Land Company (NZK), Kommersant has two sources in the industry. According to one of them, NZK owns approximately 27 thousand hectares in the Tula region and about 5 thousand hectares near Bryansk. In Miratorg and NZK they declined to comment. The representative of Alexander Lebedev, who is considered the main owner of the NZK, also did not answer the questions of Kommersant, it was not possible to contact the businessman himself.

According to sources from Kommersant, Miratorg is only interested in the land of the NZK. "Sovecon" at the end of 2016 estimated the average cost of agricultural land near Tula at 22 thousand rubles. For 1 hectare. In the Bryansk region there is no established market for agricultural land, so its cost can vary from several thousand to 10-15 thousand rubles. For 1 hectare, says Sovekon director Andrei Sizov. Thus, on the land of NZK "Miratorg" can spend up to 670 million rubles. According to BEFL, at the end of 2016, Miratorg managed 644 thousand hectares, ranking third in the ranking of the largest Russian landowners. The main land assets of the holding are concentrated in the Belgorod, Kursk, Orel and Bryansk regions. In the Chern region of the Tula region, where the lands of the NZK are located, Miratorg is going to build new farms for growing cattle, previously reported in the holding.

NZK was founded in 2006 by Alexander Lebedev and Andrey Samoshin (today heads the potato farm "Maxim Gorky", which is part of the NZK). In addition to potatoes, the company is engaged in growing vegetables and cereals. Also under her management are a plant for washing and packing potatoes and a factory for the production of potato flakes. In 2015, the revenue of NZK increased by 22.2%, to 411.1 million rubles.

Miratorg, owned by Viktor and Alexander Linniki, is one of the largest meat producers in Russia. In 2016, it increased production of chilled poultry by 37%, to 102.2 thousand tons, pork in live weight - by 6.2%, to 409 thousand tons, beef - by 53.4%, to 62.14 Thousand tons. Turnover of the holding last year - 120 billion rubles.

The executive director of the National Fruit and Vegetable Union, Mikhail Glushkov, believes that a possible reason for the sale of NZK land may be the overproduction of potatoes in the last two years, leading to a decrease in wholesale prices and, consequently, profitability of the business. So, according to him, the average wholesale price for potatoes in September 2016 reached 5-6 rubles. For 1 kg at a cost price of 8 rubles. For 1 kg. The potato union estimates the average annual potato consumption in Russia at 80 kg per person (11.5 million tonnes), FAO - at 130 kg per person per year (18.7 million tonnes). In 2016, the export of the product from Russia reached a record 230 thousand tons, was counted at the Institute of Agrarian Market Conditions.

Konstantin Averin, general director of the agroholding Steppe, in an interview with Kommersant in June 2017
The production of potatoes, in our estimation, carries rather high risks

The general director of the agroholding Steppe (part of AFK Sistema Vladimir Yevtushenkov) Konstantin Averin in an interview with Kommersant estimated the average profitability in the production of potatoes at 5-50%, depending on the sale price. In such a situation, it is possible that NZK shareholders, having not received the desired yield, decided to withdraw from the project, believes BEFL managing director Vladislav Novoselov. The Ministry of Agriculture previously estimated potato yield in 2016 at 32 million tons against 34 million tons a year earlier.

If the deal with NZK takes place, Miratorg will most likely purchase grain in the area of ​​its feed production division, said Kommersant sources. In 2016, according to its own data, "Miratorg", grain production grew 1.7 times, to 1.32 million tons, the average yield increased from 44.7 to 54.1 centners per hectare. Now the holding plans to use part of the land for cultivation of crops with high export potential, for example, quality wheat, and for the proceeds from its sale to purchase grain for feed in Russia (see "Kommersant" on June 23).

Rusagro will haul pigs in China


Rusagro Group Vadim Moshkovich is exploring the possibility of creating a pig business in the northeast of China and is now choosing the best region for the implementation of this project. After the region is selected, it is planned to prepare an investment project, sign an agreement with local authorities and submit the project for discussion of the group's board of directors. The general director of "Rusagro" Maxim Basov refused to disclose details of the project. Today, Rusagro is building a large agro-industrial cluster in the Primorye Territory, which includes the production of pork. At the first stage, the company plans to replace the pork market in the Far East market, supplied from other countries and regions of Russia. At the next stage, Rusagro plans to start exporting meat, including to China. The planned capacity of the pigs is 65,000 tons of meat per year. A possible Chinese project does not affect Rusagro's plans in Primorye, Mr. Basov said.