Business Model & Strategy
Integrated business model with growing added value
Russia offers excellent conditions for agriculture: very good soil, relatively low labor costs, a good image among politicians and society at large as well as attractive state support.
But Russia’s dairy industry continues to be characterized by a major deficit, as local raw milk producers are unable to satisfy the demand. As the leading producer of raw milk, Ekosem-Agrar thus benefits from excellent prospects for continued growth. Our integrated business model is an important success factor.
We produce a part of the seeds ourselves and cultivate our own fodder for our livestock. A significant part of our young cattle comes from our own breed. By building up processing facilities for our raw milk, we have taken a further step to increase our vertical integration.
Going forward, we intend to expand the milk processing activities significantly. This vertical integration allows us to enlarge the Group’s revenue and earnings base and to reduce our dependence on the raw milk market. We aim to establish Ekosem-Agrar as Russia’s leading producer of dairy products who covers all stages of the value chain from the cultivation of fodder to the production and processing of raw milk.
Ekosem-Agrar relies on state-of-the-art technologies such as precision farming, modern milking systems and IT-assisted herd management all along the value creation process. Besides investments in modern technology and automation, high standards of animal welfare and employee qualification form the basis for the Group’s continuously increasing productivity.