In 2012, we made a decision to reorganize our milk processing enterprises and join them to “MILKOM” JSC (former “Izhmoloko” JSC); this will result in creating a competitive company which is more attractive for prospective investors. We launched implementation of a unified management accounting system, which will allow us to improve efficiency of raw material and end product flow and acquire extra profit from sales of high margin products. We centralized sales within “Milk trading company “Milkom” LLC and improved logistics efficiency that became key factors for our sales margin increase by 44% in 2012. We have approved the strategy for the division’s development, which is based on specialization of member companies. According to this strategy we launched a number of investment projects; their completion will lead to finalizing technical re-equipment of all our milk processing enterprises.
In 2012, “Sarapul-moloko” JSC strengthened its position as the leading UHT-milk manufacturer and ranked fifth in production volume in Russia. To ensure further growth of production volume we put an additional production line into operation and installed Tetra Pak A3/Flex Base iLine with 130 tonnes per day capacity. In 2012, we launched creation of an automated logistics center with storage capacity of 2 thousand tonnes. The enterprise implemented the project involving rapid reconstruction of the laboratory. Currently, the enterprise is one of the most up-to-date food manufacturers in Russia.
In 2012, “Kezsky cheese factory”, specializing in cheese production, started to implement the project on construction of a soft cheese manufacturing shop. Project investments will total over 75 million rubles. The shop will be equipped with modern Italian and French production lines that will allow us to produce about 1 thousand tonnes of soft cheese annually. In 2013, we intend to start packaging Kezsky cheese factory’s dairy products into “Ecolean” bags, produced in Sweden, thus increasing the product’s shelf life to 10-14 days.
“Glazov-moloko” JSC has a 4,3%* share of the Russian milk powder product market and continues to strengthen its positions. In 2012, we proceeded to restore the milk powder product manufacturing facilities and started to implement ultrafiltration technology. In 2013, we intend to start manufacturing of whey protein concentrate and demineralized permeate, and launch their deliveries to “Nestle”. In 2012, “Glazov-moloko” JSC launched another investment project involving manufacturing of curd with preserved grain structure. An automated line will enable manufacturing of curd in special packaging that extends its shelf life to 30 days, and a four-fold increase in curd production. This line is one of the most up-to-date in Russia and it costs over 80 million rubles.
To meet the requirements of national retail chains we actively promote new packaging solutions that extend dairy products’ shelf life. In 2012, “MILKOM” JSC started to implement the project related to packaging dairy products into PET-bottle on an automated line with 6 thousand bottles per hour capacity. PET-bottle ensures product’s shelf life within 14 days. In 2013, we plan to concentrate manufacturing at “MILKOM” JSC and open an experimental laboratory in order to improve efficiency of new product release.
We cooperate with leading manufacturers of equipment for food product processing and packaging, such as “Tetra Pak”, “GEA Filtration”, “Index6”, “DIMA s.r.l.”, which allows us to produce dairy products in handy ergonomic packaging suitable for major retail chains, namely Tander, X5, Essen etc.
* According to the report of the Ministry of agriculture of the Russian Federation “Milk and dairy product market overview”, December 5, 2012.