MILK PRODUCTION

We are one of the top farms in terms of milk production in the Rostov region, and as at the Latest Practicable Date, we own approximately 4,099 heads of cattle which includes approximately 2,109 milking cows. We produce and sell raw milk to dairy processing companies for the production of fresh milk and other high-end processed dairy products. Our customers compete for our raw milk and we generally sell to a single large dairy processing company in any given year. While we typically enter into a general supply agreement with such customer, such supply agreement will allow for price negotiations on a regular basis based on market conditions.

 

We operate five dairy farms and have facilities to house our dairy herd, our calves and heifers as well as for fodder storage on each of our farms. In general, our milk is sold on our dairy farms and transportation of the raw milk is undertaken by our customers.

 

OUR DAIRY FARMS

We operate five (5) dairy farms and the number of milking cows and the total number of cattle of each farm as at the Latest Practicable Date are set out below:

 

Dairy FarmNo. of milking cowsTotal no. of cattle
Northern production division
Degtevo5801,092
Kudinovka356746
Novoselovka5561,153
Western production division
Grekovo377695
Eastern production division
Kamenka240413
Total2,1094,099

We have facilities to house our dairy herd, our calves and heifers as well as for fodder storage on each of our farms. Each farm is overseen by a general manager who will report to our Chief Zootechnician in relation to the milk production.

Russia HQ – 12 Sedova St., City of Millerovo, Millerovskiy District, Rostov Region, 346130, Russia
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© Don Agro 2019