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Investment projects

Agrocentre Makosh

Omsk region

Construction of an agro-logistics centre for storage, processing, packing of vegetables and fruit.

Construction site area is 14,500 sq.m., including main building: 1500 sq.m; commercial complex:1500 sq.m.; auxilliary facilities. The project is implemented in the Omsk municipal district of the Omsk region.

Project investments: 500,00 m RUB

Project status:

Ongoing.

The Investment agreement is signed with the government of the Omsk region.

The first phase is completed: motorway service facilities are commissioned.

The 2nd phase:

– 4 land plots with the total area of 139.2 ha are acquired.

– Development of construction project of Troitsky agropark; land recultivation project preparation.

– Construction of 10 kVa power lines (1 MW) with 5 substations (transmit power is 90-250 kW).

– Design of 2 110-kVa power lines and a substation (throughput capacity is 30 MW).

– Awaiting technical conditions for connection to water and gas supply networks.

– Negotiations with potential residents (2 residents initiated the design of their projects).

The works on building an access track to motorway service facilities are completed.

RusBioAlliance

Karelia

Construction of a new production complex for processing and storage of fruit and berry products.

The project will enable to:

∙ increase the production capacity of the company;

∙ optimize logistics expences;

∙ enhance the quality of released products;

∙ expand the assortment range.

Project status:

The project  is at the implementation stage. The managing board is selecting suppliers of engineering equipment.

The project is executed in 3 phases.

1st phase – preparing the facility to accept and store primary products (wild berries). Implementation term is July 2018.  2nd phase – commissioning a line for processing of wild berries. Implementation term is November 2018.

3rd phase – commissioning of a line for freeze drying. Implemetation term is March 2019.

Sad-Gigant Ingushetia

Ingushetia

Establishment of an orchard on the area of 1000 ha; construction of a distribution centre for 50,000 tonnes of products; a 23-ha nursery with production volume reaching 800,000 transplants a year.

Project investments: 8bn

Project status:

Construction of the 1st phase is completed.

Magadansky Agroindustrial park

Magadan region

The project is included in the state programme “Social and economic development of the Far East and Baikal region”.

Implementation period – 2025-2030

Investment – 2300m RUB

Project status:

Business plan and project financial model are available. Topography of one of the sites is conducted (construction of greenhouses). 15-ha land plots are available.

Samara Agroprompark

Samara region

The Agroprompark will form a production process from supply of raw materials to pre-packing, packing, and delivery. The residents are farms, including small ones. The project is supported by the government of the Samara region. Fund is provided by private investor. Area: 10.5 ha. The park includes a production and storage complex, retail and small-scale wholesale zone, administrative building, tram station.

Investment – approx. 70bn RUB

Eseninsky Agrocomplex

Ryazan region

Construction of a large cross-regional complex for storage and processing of fish, sea food, vegetables, fruit, dairy and meat products.

Project execution is scheduled for Q4 2017, commissioning is expected in Q4 2019.

Overall investment is estimated at 544.3m RUB.              Preparation stage

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Marat Zolin

Deputy General Director for Development, AGROSILA

“One of the options for the development of the industry could be the establishment of agrondustrial parks”.

The main challenges of food processing and storage industry, as well as the key goals to address them are related mainly to the scarcity of dedicated facilities.

For instance, as for grain storage, there a number of problems exist: shortage of storage facilities across the country, high differentiation of storage facilities by regions and their depreciation as well. The average period under operation is 40-50 years, say the experts. That is why, the investment in silos and other facilites for grain storage and processing is extremely important.

The investments in such assets have long payback period. We cannot wait any positive changes in that field without government support rendered. The construction of logistics centers within the framework of minagri’s support programme won’t change the situation.

One of the development options could be the establishment of agroindustrial parks. However, to date, there are no support granted for their development. Boosting and fostering food processing and storage within such parks could influence positively on production growth and agroindustrial complex viability.

Emilia Zeer

Sales Director, Razdolie

The main objective now waiting to be accomplished in the field of processing and storage of agri-produce is the development of production technologies, because production, storage, and processing is a single technological process. This interaction requires integrated approach and paying attention to the specific features of its every constituent. The development of production technology entails the necessity to address the challenges related to production infrastructure of the entire process. This is achieved through national support programmes on production upgrade and national machine-building development. Addressing these challenges will enable the enhancement of quality and minimisation of losses due to the increased efficiency of storage technologies, which will further lead to business viability.

Eldar Usmanov

Logistics Director, PRODO Management

All producers in Russia encountered the necessity to review the logistics schemes which had been applicable before. That happens because of changing sales structure. The dynamics of “per unit” indicators gives reasons to start seeking new unconventional solutions. The competition on the shelf is growing, attracting client’s attention is becoming costlier. Moreover, you must develop logistics infrastructure at the same time. That is why, the core objectives of the industry are the development of ZPL-providing in “cold chain”, collaboration of producers, and comprehensive integration of FMCG food producers to federal and local retail chains. All these have the potential to become drivers of producers and retailers’ economic efficiency in current economic setting.

Viktor Andreev

General Director, Magistral Logistics Centre

The key objective of processing and storage industry is the establishment and development of a logistics center chain and industrial logistics complex offering a wide range of services (acceptance, treatment, packaging, storage, processing, and sales).

As I have already mentioned in my speeches, each agri-producer should have an opportunity to have his product treated, stored, processed, and sold professionally. That’s where the problem appears: the emerging logistics centers now are literally logistics complexes offering the lease of refrigerators and controlled atmosphere chambers.

Thus, the next problem comes out, which can be also considered as industry objective: close cooperation of local producers and logistics centers’ managers is required – the main growth driver is the producer, and a logistics center must provide the conditions for food treatment, processing, and storage.

And the third objective, which can be considered as future challenge: the unified standard of business-processes. Logistics centers are designed to distribute food produced by local farmers and to satisfy the consumers’ demand. Northern territories of Russia are affected by the scarcity of fruit. That is why, a logistics center in the south is to have the opportunity to supply the product to the logistics center located in the north.

In my opinion, addressing the third problem will lead to the solution of the first one.

We now prioritize the construction of a logistics center in the Magaramkentsky district of the Dagestan republic. The project fits the resources we have: our operating logistics center called Magistral located in the Tosnensky district of the Leningrad region has all the resources needed for storage and

distribution of food. Pre-sale preparation, treatment, and processing will be conducted at YuzhDagMagistral. That is the location in the south of Russia where 60% of products of the Dagestan republic is produced.

Inna Rykova

Director of Sectorial Economics, Financial Research Institute of the Ministry of Finance of the Russian Federation

Among key issues to be addressed in the field of agrologistics:

1. Optimisation of transportation logistics, i.e. the haul distance should not be longer than 400 km by motor roads, thus motorways of high quality are required; processing and storage facilities should be located not far from the main transport network.

2. Availability of regular suppliers/consumers with the share not exceeding 5%;

3. Adoption of advanced systems for treatment, storage, and conditioning, including drying, cleaning, shock freezing, packaging. Availability of managerial staff and digital management.