www.ekosem-agrar.de www.ekoniva.com Ekoniva Corporate Social Responsibility of a Russian Agro-Holding Washington, D.C. April 26 th 2012 Dr. Christian Ebmeyer
Ag Investments Do Benefit Local Communities!! Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 2
EkoNiva Agriculture Overview Total agricultural land in 6 regions - ca. 160,000 ha, incl. arable land - ca. 125,000 ha Total head of cattle - over 30,000, incl. dairy cows - over 12,500 Over 230 mt milk per day Over 3,000 employees and Owner-operated!! Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 3
Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 4
Milk Production Among Top 3 milk producers in Russia Breeds: Holstein Frisian, Simmental and local breeds Productivity: 4,500 10,000 kg milk per cow and year Produced milk volume: > 230 mt/day, incl. >150 mt/day in Voronezh Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 5
Beef Production Breeds: Simmentals Angus Herefords Different cattle housing methods: Confined, feedlots Cow-calf, pasture Beef production volume: approx. 1,000 t live weight/year (under development) Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 6
Ekoniva Semena (Seeds) Cash Crops - Cereals: Wheat, Barley, Rye, Oats, Triticale - Peas - Potatoes - Grasses, alfalfa - Cereals: Wheat, Barley, Oats, Rye, Corn - Soybeans, Peas - Sunflower, Rapeseed - Sugar beet - Potatoes Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 7
Political And Market Framework Strong government support for agriculture (investment subsidies, tax exemptions, import tariffs) Government support focused on modernization of agriculture No restrictions in production High market prices for animal products (esp. milk) Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 8
Examples for large farms Agro-Holdings About 460 thsd. ha ag land Specialization: sugar, grain, milk About 415 thsd. ha ag land Specialization: sugar, grain, meat, milk About 320 thsd. ha ag land Specialization: grain, sugar ДОМИНАНТ About 300 thsd. ha ag land Specialization: sugar, milk, meat About 260 thsd. ha ag land Specialization: meat About 215 thsd. ha ag land Specialization: grain, sugar About 200 thsd. ha ag land Specialization: meat, milk АНГУС About 60 thsd. ha ag land Specialization: meat, milk, grain Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 9
EkoNiva Key to Success Diversification regarding production and geography Introduction of modern farming technology Precision Farming and Precision Dairy Efficient process management, specialization, block farming Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 10
EkoNiva Key to Success And. people, people, people Mixture of young and experienced, local and non-local Improving of living conditions (building of houses etc.) Cooperation with universities, scholarships EkoNiva Academy Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 11
EkoNivaAgro, Voronezh Agricultural land over 80,000 ha, thereof arable land over 55,000 ha over 19,000 cattle, incl. ca. 8,000 dairy cows over 1,200 employees Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 12
EkoNiva-Agro, Voronezh 65 km Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 13
Employees In Agricultural Sector Liski And Kamenka Districts, Voronezh Region LISKI District KAMENKA District 2008 2009 2010 2011 2008 2009 2010 2011 Total workforce in Liski Region Workforce in the agricultural sector thereof 28.448 27.552 27.007 25.983 6.043 5.713 5.625 5.583 4.267 5.050 5.805 5.755 710 735 646 518 Liski Broiler 502 1.342 2.185 2.186 0 0 0 0 EkoNiva 763 813 1.063 1.353 0 0 0 64 Agroinvest, Agrokultura, Mayak, Prodimex 940 923 883 854 200 180 180 140 Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 14
Liski District Kamenka District Elevator Kindergarten Church Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 15
EkoNiva Social Activities Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 16
Can large agricultural investment benefit local communities? Large farm operators have a strong impact on the rural development (both positive and negative) Approaches of different farm operators for social responsibility differ very much from investor to investor Regional and local administration have the possibility and responsibility to remind the investors about their responsibility for rural development Approaches of regional and local administrations to rural development differ very much from region to region Large farm operators can have significant benefits from acting with social responsibility Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 17
www.ekosem-agrar.de www.ekoniva.com Thank you for your attention! Contact: Dr. Christian Ebmeyer christian.ebmeyer@ekoniva.com Dr. Christian Ebmeyer Ekoniva APK-Holding Russia 18