MARTINICO BEHEER I B.V.
DUTCH FINANCIAL HOLDING COMPANY

Asset and Investment Management of the AGRICO GROUP. The core activities of the group are production and sale of agricultural goods.

CORE ACTIVITIES OF THE GROUP

AGRICO Group is one of the largest agro-industrial holdings in Russia. Founded in 1999, the GROUP is vertically integrated with a full range of operations including growing, processing, storage, and sales of agricultural products. Such a structure minimizes risks and maintains product quality along the entire production chain – from plough to plate. The Group today, is focused on crop and vegetable production,pig production, and meat processing. The Group employs 2,200 people in its activities. The Group demonstrates strong financial and production performance and has attained a leading position in the sector due to adopting best practice,innovative technologies, usе of high-quality raw materials, and involving the best people including a balanced mix of international and local experts: Agronomists, Engineers and Technicians.

LIVESTOCK

FARMS: 4 breeding, 3 finishing. CAPACITY: 17,000 sows producing around 430,000 finished pigs averaging 117kg live weight per year. BIOSECURITY: Farms are located 60km north of our main base in a remote area ensuring high biosecurity for healthy production.The farms have been ranked within level 4 ,the highest biosecurity rank of russian standards.

CROPS PRODUCTION

The Group produces crops to sell to both local and export markets as well as raw materials for its own pig production. The key products are: Milling Wheat, Feed Wheat, Maize, Peas, Barley, Rape, Sunflower and Sugar Beet.

VEGETABLE GROWING

The Group has constructed 2100 ha of Irrigation of which annually 764ha is used for vegetable production, growing 529 Ha of potatoes, 145 Ha of onions, 90 Ha of carrots.

GROUP’S LANDS

The Group farms close to 100,000 Ha of the highest quality land at the centre of Stavropol Krai and will acquire additional land in accordance with its strategy.

MAIN BUSINESSES OF THE GROUP

MEAT PRODUCTION

Location area: Shturm settlement of Krasnogvardeysky District, Stavropol Krai;

Current production is 430,000 finished pigs per year at 117kg/pig liveweigh;

Stage 1 of the project started in 2006, producing 80,000 fattening pigs from 4,000 sows. Stage 2 added in 2012, 270,000 fattening pigs and 13,500 sows per year;

Genetics for the group are supplied by PIC, the world’s leading producer of swine genetics;

All the facilities are purpose built and use equipment by GSI/AP (USA), Big Dutchman (Germany).

MEAT-SLAUGHTER AND PROCESSING

The plant is in Shturm village, Stavropol Krai and has a base design slaughter capacity of 180 pigs per hour. The plant uses the latest equipment from companies such as MPZ, Zanotti and Harslev to produce currently up to 45,000 MT of meat products per year. The design gives us the possibility to double the production output for relatively low cost;

Currently the meat plant produces the following products: half- Carcasses, vacuum packed industrial (large and small) pieces and by-products;

In the future: the production of deep-processed meat products with higher added value including ready-to-eat food under the company’s trademark.

MIXED FEED PRODUCTION

The Group produces all its own feed from a feed mill built in 2006, located at one of the groups elevators in Krasnogvardeysky District Stavropol Krai;

Output: 25 MT per hour;

Modern equipment: Bühler AG (Switzerland), Yahav Hamias Technology Ltd. (Israel).

LOGISTICS

The Group owns and operates warehouse complexes in the Moscow Region, Stavropol Krai and the city of Surgut.

Moscow Region (Reutov town): Dry and temperature controlled warehouses. Total area: 15,000 sq.m.

Moscow Region (Lukhovitsy area):

Temperature controlled warehouses with a total capacity of 1,500 MT of vegetables;

Seed storage warehouse with capacity of 1,500 MT;

Warehouses for long-term potato storage with total capacity of up to 9,000 MT;

Sorting, grading and packaging lines for potatoes, onions and beets with capacity of up to 6 MT per hour are available;

Total area: 11,000 sq.m.

Stavropol Krai (Pregradnoye village):

Fully automated temperature controlled vegetable storage with a capacity of 20,000 MT now and up to 56,000 MT in the future;

Packing lines for vegetables with capacity of 20 MT per hour, as well as washing, polishing and sorting facilities, capable of using multiple packaging types and sizes.

City of Surgut (Khanty-Mansi Autonomous Area):

B category versatile warehouse, warm storage warehouses, low temperature cold storage chambers;

Total area: 23,000 sq.m.

 

CROPS

Total area of cultivated lands in Krasnodar and Stavropol areas is 100,000 ha;

The main cultivated crops are wheat, barley, sunflower, rape, corn, pea and sugar beet producing an annual volume of more than 400,000 MT. The group consistently delivers to the highest standards of crop performance in all of its production areas, and retains highly qualified agronomists of international standard using the latest technologies.The group uses more than 700 units of machinery and equipment from the world’s leading manufacturers such as John Deere.The group has large storage capacity grain elevators of 400,000 MT. The elevators provide services including acceptance, cleaning, drying, shipment of grain crops and oilseeds by railway and truck.

CROP STORAGE & HANDLING

OJSC Novoalexandrovsky elevator is located close to the Groups lands in Stavropol Krai and has storage capacity of up to 146,000 MT of grains & oilseeds. The elevator can accept and ship up to 6,000 MT of agricultural products per day. Since 2005, Novoalexandrovsky elevator has been storing grain for the Federal Intervention Fund.

OJSC Elevator s. Krasnogvardeyskoye is located in further north in Stavropol Krai and has storage capacity of up to 65,000 MT of grains & oilseeds. The elevator can accept and ship up to 6,000 MT of agricultural products per day. Since 2010, Krasnogvardeysky elevator has been storing grain for the Federal Intervention Fund.

Both elevators provide services to the Groups farms and external customers including acceptance, сleaning, drying, shipment of grain crops and oilseeds by railway and truck.

VEGETABLES

The farm is located in Pregradnoye village, Krasnogvardeysky District of Stavropol Krai with an irrigated land area is 2,100 ha now and 3,000 in the future.The farm uses a TL automated irrigation system with centre pivot irrigators with a radius of 474 m, irrigating 70.1 ha per pivot.Water is pumped from the local canal using centralised pump stations;

The vegetable crops are potatoes, onions, carrots and corn and sugar beet as rotational crops;

Harvesters: Grimme, Samon;

The vegetables are kept at our own vegetable storage facility having automatic temperature control system and capacity of 24,000 MT now and up to 56,000 MT in the future. The vegetable storage facility provides sorting, washing and packaging facilities, as well as seed storage.

DISTRIBUTION

Distribution channels: The Group supplies various retail chains (Auchan, Lenta, Magnit, O’KEY, X5-Retail Group), wholesale companies, meat processing plants and HORECA.

Retail trade:The Group sells vegetables and meat under its own registered trademark SEMIDAL.

Sales geography of branded products: The company supplies into the Central Federal District, the Southern Federal District, and the North Caucasian Federal District.

Our Mission

Through applying the world’s leading technologies to domestic agriculture, we are developing the production of Russia’s high-quality branded food products for end consumers.

KEY INVESTMENT HIGHLIGHTS

Fully vertically integrated agribusiness.

Has a strong production presence in the South of Russia with diversified distribution channels.

A well established and demonstrated business model for continuous development and strong growth.

New business projects expected to yield higher revenues, stronger presence on the market and more differentiated product line.

Experienced management team with proven expertise and international knowledge.

Stable and attractive profitability.

NEW PROJECTS

Development of the Regional Industrial Park AIP Stavropolye in the territory of Mineralovodsky city district of Stavropol Krai.

AIP Stavropolye Park will set up the closed-loop production and sales infrastructure, which will cover all possible areas of agroindustry. The Park will specialize in a variety of business lines: fruit and vegetable processing, storage and stocking as well as processing and packing of meat and meat products, maize advanced processing, sport nutrition and sauce production, car services.

Stavropolye is expected to be equipped with the following facilities:

Meat Processing Plant-under construction;

Car Service;

Maize Advanced Processing Complex;

Fruit and Vegetable Complex with maximum usage of existing infrastructure, with integrated Frozen Fruit/Vegetable and Freeze Dried Product Production Plant.

Construction of the Meat Processing Plant under the Agreement on Pursuit of Activities in the Capacity of the Tenant of the Regional Industrial Park AIP Stavropolye.

The engineering part of the project was completed in fall 2017, the Company has obtained all the permits required for the construction of the Meat Processing Plant packed with top quality equipment from MPS Meat Processing Systems. The process lines will include slaughter, boning and manufacture of retail produce. The future Plant has the capacity of up to 60 MT of finished products per day. The products will include:

retail (grind/hamburgers, cubed beef, steaks/pork chops, roasts);

sausages (frankfurters, wieners, cooked smoked and semi-smoked sausages, smoked boneless pork loin chops);

deli meat (smoked neck bones, cured ham and bacon, dry sausages);

canned meats.

The Plant is scheduled to be put into operation in Q4 2019.

Construction of Farms for Production of Turkey Hatching Eggs in Krasnogvardeisky District of Stavropol Krai.

AGRICO GC, jointly with Hendrix Genetics, the leading global turkey genetics producer, plans to build a breeding unit for production of Hybrid Converter turkey hatching eggs.

The Project will help mitigate all possible risks for future sold and to-be-sold turkey breeding products within the Russian Federation as part of the Import Substitution Program in 2017-2020.

The unit is planned to produce an annual output of 6.5 million turkey eggs at the Stage 1 of the Project up to 12 million eggs after the Stage 2.

The project will evolve into the establishment of a Turkey Breeding Center, which will render a whole range of services pertaining to the development of the turkey breeding in Russia.

AML/ABC GROUP POLICIES

MARTINICO is developing AML & ABC policies in accordance with the legislation. Policies are representing a set of interrelated principles, procedures and specific measures aimed at preventing and combating money laundering, terrorist financing, bribery and corruption offences in the activities of Martinico and its subsidiaries, as well as compliance of anti-corruption legislation of the employees of the companies.

CONTACTS

Member of the Board of Directors: Irina Bogomolova

Member of the Board of Directors: Andrey Shelkovnikov

 

Rivium Boulevard 303,
2909 LK, Capelle aan den Ijssel, the Netherlands.

 

Eusebiusbuitensingel 7,
6828 HT, Arnhem, the Netherlands.

2020 Martinico Group