In the first half of 2024, Ekosem-Agrar AG, the German holding company of Russia’s largest milk producer, EkoNiva Group, reported a 7% increase in raw milk production, totaling 665,500 tonnes. The company also saw significant growth in dairy processing, with a 27% rise in finished dairy products and a doubling of cheese production. Retail expansion and agricultural advancements contributed to its continued success in the dairy sector.
Ekosem-Agrar AG, based in Walldorf, Germany, and the holding company for EkoNiva Group—Russia’s largest milk producer—has announced its operational results for the first half of 2024. EkoNiva operates a herd of over 245,000 cattle, including 115,000 dairy cows, and manages approximately 630,000 hectares of agricultural land. Under the leadership of Stefan Dürr, Ekosem-Agrar has become a significant player in the industry, employing around 14,500 people across nine regions in Russia. In 2022, the Group reported a total output of EUR 1,152.0 million ($1,233.9 million) and an EBITDA of EUR 396 million ($396 million). The company has achieved notable growth in both milk production and dairy processing, continuing its expansion and operational advancements.
Substantial Growth in Milk Production
In the first six months of 2024, Ekosem-Agrar AG produced 665,500 tonnes of raw milk, marking a 7% increase from the 619,400 tonnes produced during the same period in 2023. The company’s average daily milk output also rose by 7%, reaching 3,656 tonnes, up from 3,422 tonnes in the previous year. This growth is attributed to the enhancement of operational processes and the implementation of advanced information systems, such as the in-house developed EkoFeed and EkoCrop software, which optimize feeding and feed production efficiency.
Despite stable pricing for raw milk, the costs associated with production increased in alignment with pricing trends.
Expansion in Dairy Processing and New Product Introductions
Ekosem-Agrar’s dairy processing segment saw a significant 27% increase in the volume of finished dairy products, rising to 162,100 tonnes compared to 127,900 tonnes in the first half of 2023. The production of fresh milk and traditional dairy products, including cream, kefir, sour cream, cottage cheese, and butter, increased by 25%, reaching 153,000 tonnes. Additionally, production of yogurt and dessert products surged by 40%, totaling 4,200 tonnes. Notably, cheese production doubled to 4,900 tonnes, with new varieties, including mozzarella, introduced to meet growing consumer demand.
Retail Network and Agricultural Expansion
EkoNiva’s retail presence has expanded significantly, with dairy products now available in 70 regions across Russia. The number of points of sale increased to 65,900 by the end of June 2024, up from 56,400 in the previous year. The company also opened twelve new brand shops as part of its retail network expansion.
In its agricultural operations, Ekosem-Agrar commenced fodder harvesting in May 2024, harvesting 163,600 tonnes of dry fodder by the end of June, reflecting a 17% increase from the previous year’s 140,200 tonnes.
