Newsletter October 2014
A great quarter has just ended. This quarter has seen good pork prices, good weather and a successful and
hardworking organization.
At this writing, we see a significant drop in pork prices. Whether it is indicative of future prices or a short-term
vacuum in the market is unknown.
Plant Production
After a long but successful season where the weather has allowed us to get the job done in time, we are now
beginning to close down plant production for this year. The harvest went according to plan with yields above
what we have previously had. 160 hectares of winter barley was harvested on 5 th and 6th July with an average
yield of 5.32 tons per ha. We started harvesting of rape 18 th July and then it went in quick succession with the
other crops until we were finished with the harvest 18 th August.
The results of the harvest were as follows:
-
rye 270 ha, yield 6.03 tons per ha
winter wheat 2954 ha, yield 4.99 tons per ha
winter rape 864 ha yield 2.44 tons per ha
spring barley 331 ha yield 5.28 tons per ha
oats 246 ha, yield 5.08 tons per ha
spring wheat 488 ha, yield 3.86 tons per ha
Harvest 2014
We were helped by three new John Deere S680 combine harvester, which was also becoming a necessity as the
old threshers had driven eight seasons.
Our plan was to sow 5,200 ha in the autumn of 2014, but due to the good weather we have chosen to sow
throughout our area, which means that we have sown a total of 6,823 hectares of winter crops.
-
winter rape 1,143 ha
winter barley 508 ha
winter wheat 4,532 ha
hybrid rye 750 ha
Since we have not received 20 mm rainfall the last 3 months it has been necessary to redo 110 hectares of
rape, as there is no germination. Rapeseed area is therefore on 1,033 ha.
We are currently collecting stones, spraying the wheat against weeds, grass and pests. Rape should be
finalized, and this year we have been forced to make one pass more than usual with growth regulators.
Our hybrid rye was sown under very good conditions in late August, with seed quantities of 40 kg per ha. Yet it
is bushy and some of the plants have more than 28 side shoots. To prevent snow mold, we have set our
Spaerhead mower started. It looks a little odd, but the result is satisfactory.
Pig Production
Sows
Our big challenge here is to raise the productivity significantly, since we cannot import new genetics. At long
last we have managed to get permission to import semen from Denmark and we hope that this can get us back
towards the 35 pigs per year sow. It is not the optimum for us to import semen, but as an alternative to the
import of gilts, it is the only solution we have at present.
We are changing the inventory to house gilts so we can box the gilts until there are scanned. Furthermore, we
will change the feed boxes in farrowing stables, because the old ones are impossible to regulate precisely.
Climate
In climate stable it is quite amazing; the mortality rate is very low and growth has come to 500 grams of daily
gain. The systems are clear and simple, and it gives a good stable production flow.
On November 3rd, we get rubber mats for all paths, and we look forward to going into the winter time with
updated heat source and isolated caves.
We no longer have problems with edema and the pigs look very healthy.
Fatteners
The growth is now back on an even level, approximately 920 grams daily gain, and the pigs look very fine. PCV2
vaccine seems to have good effect, and we can see that the biggest vaccinated pigs of 90 kg are fast.
We are still working with mortality and feed consumption. Together with our recent initiatives and PCV2
vaccine we hope to get sensible food consumption, with a low mortality. The last 3 months we have had a live
weight of about 113 kg at slaughter, which is about 5 kg above normal.
Pigs per year sow
Daily gain 7 - 30 kg
Daily gain 30 - 110 kg
Sows
September
33,3
516
922
6.185
August
28,4
480
733
6.240
July
30,1
510
801
6.282
We have initiated a comprehensive review of all routines in pig production, to get adjusted to our work
schedules and so our managers are consistent and find it easier to guide the employees.
Serviceteam
The farm looks much better than before, as new trenches have been dug around all sites, area have been
leveled out with a bulldozer, and the grass is beginning to come up.
In Kostromino we have installed a new weighbridge, so now we can weigh all the grain that we run on storage
there. Currently, we are building a new washing hall in Kostromino so trucks can be washed and disinfected,
before they enter our sites. They are also washed and disinfected before leaving the slaughterhouse, but with
ASF as one of our worst enemies, belt and braces is shown the best.
We have started our granulator up, and we are now trying to find the best feed mix, so our finishers returns a
lower food consumption.
Sales
For the first time this year we are now seeing a price drop in the market. Why this drastic price drop comes
now is not known. Rumor has it that there is a fear of inflation due to high food prices, China and Brazil and
Ukraine exports more pigs, and yet it can also be a downturn in the market. The strange thing is that everyone
can easily take the volume offered, however, the price they can buy to elsewhere is significantly lower.
At the moment we work with almost all large Kaliningrad meat plants and continue to work with our reliable
customers in Central Russia.
In Central Russia the price changes always. Each week, depending on the market situation and the price, we
decide where to sell more volume - to Central Russia, or to Kaliningrad region.
Until February 2014 PPP worked mostly with customers in Central Russia (90%) and only had a few customers
in Kaliningrad (10%). Now we sell pigs to all major slaughterhouses in Kaliningrad, and the ratio has changed to
40 - 70% in Central Russia and 30-60% for the Kaliningrad region. The most important criterion is still that we
work with the customers who will be loyal to us when the market situation changes.
In September 2014 PPP started to sell half bodies on the open market in Kaliningrad on Sundays to support
consumers with cheaper prices.
The pictures above show the actions we have done to give people the opportunity to buy quality meat at the
market every week. This is a huge success that contributes positively to PPP's reputation in Kaliningrad.
Farm Construction/NNPP
There are activities on all sites and works are performed according to Schedule. The stage of completion can be
listed as follows:






Sow-site, 3 buildings are closed and equipment mounted. All buildings will be closed this year, half are
100% finish and in the rest mounting works will continue during the winter period.
Weaner site, concrete and roads are 75% finished, mounting of steel has started.
Fatteners site, excavation works are completed and 40% of the foundations are placed.
Silo site, works with feed Factory, Storage and Garage/Office Buildings continue. Big Dutchman starts
mounting Feed Mill at the end of November.
Lagoons and Separator, all excavation works are completed. 2 Lagoons are done with plastic, and all
tubes to/from lagoons are in the soil.
Extern- and internal infrastructure will be completed this year.
The winter is coming, but we hope to be able to continue outdoor activity until New Year.
If so, we will be in a fine position to complete the whole Farm by November next year.
There are now five people working in NNPP, and we have hired more people who will start working later. We
are in process of finding candidates for all positions on the farm; in the end of 2015 around 100 people will
work in NNPP.
NNPP is preparing for getting pigs in the beginning of 2015. We are finding locally suppliers for the stuff we
need. Until now we have mainly been focusing on getting contracts on bigger equipment like trucks and feed
transport. We will soon start buying consumables so we are sure that everything is ready for the pigs to arrive.
Friday, October 17th OOO NNPP was approved for Priority Status at a large investment meeting in the Kremlin.
We were the first of many projects to be presented. The governor referred to the project very positive and
pointed out how important this project is for NN. Immediately thereafter he appointed the project as approved
for Priority Status. After the meeting there were interviews by several TV and newspaper journalists, so the
next period there will probably be more publicity around NNPP.
Priority Status means that we do not have to pay taxes for the next five years. Also this status provides the
various benefits of support from the local and federal government.
Finance
The quarterly accounts per 30/9 2014 is just completed.
Operating profit is, as expected, significantly ahead of budget. As I wrote last, this is primarily due to the
market conditions.
HR
We continue recruitment of staff for key positions in NNPP. We hand the Job offer if the employee needs us
now or put off the person to reserve if it is needed later. Lately we have recruited following:
IT, started October 21st
Chief Vet, starts November 5th
Assistant to purchasing, starts November 5th
Legal Expert, started October 20th
Site Manager, starts January 5th 2015
Our main principles for the selection of candidates are their professional skills and adherence to company
values.
All managers and key personnel will attend a CPF strategy session November 11th in Kaliningrad.
To follow up on this and as part of the development of internal communication and the strengthening of the
management team, we have planned a two-day RBPI strategy seminar on 23 and 24 November.
The HR department is still in the process of changing the status of all foreign workers to highly qualified
specialists so that they can obtain three-year work visa. In general, the department is controlling all HR
processes in all Group companies, including recruitment, adaptation, development, etc.
Ending
At October 21st the annual charity was handed to the local institutions in Kaliningrad.
Area
Organization
Needs
Sevskoe
Centre of Culture
Projector, screen
Domnovo
Centre of Culture
For New Year celebration in low-income
families
Lipnyaki
Centre of Culture
New windows
Mozur
School
Children's furniture (beds,bedclothes)
Druzhba
Druzhba
Parents of children from
Kindergarten
Parents of children from
Kindergarten
Children's furniture (beds)
It is very important that we have a
well-functioning community that
can provide skilled and high
qualified workers for our company.
Therefore it is important that we as
a company take responsibility and
contribute to the community.
Sunshades
Zheleznodorjgnyi
The house of children's arts
Laptop, printer, TV
Zheleznodorjgnyi
Library
Books
Sports uniforms
Repair corridor
Zheleznodorjgnyi
School
Pravdinsk
Rosselkhozcentr
Printer
Pravdinsk
Social center
Hangers
Pravdinsk
School
lamps
Pravdinsk
Nurcing home for children
(orphan)
Winter clothe for children
Pravdinsk
Newspaper "Vernyi put"
Sports equipment
This year we donated a total of 1
MRUB in Kaliningrad to different
institutions etc., of which most of
the money is spent locally.
In addition, we donated to various
organizations from NNPP.
Camera
Computer
In the next newsletter we will publish the location of farm no. 3. This will be presented at the next board
meeting in December.
Thomas Nørgaard
Mobil +45 288 777 11 / +79 814 644 364 / thomas.norgaard@rbpi.no