News European Milk Production
Strong turnover growth for the largest dairy farm in the EU
Ekosem-Agrar AG, the German subsidiary of the Russian dairy giant EkoNiva Group, has increased its turnover for the first half of 2020 by 33% compared to the same period last year. Milk production was also 30% higher than in the first half of 2019.
The dairy producer has managed to realize a total turnover of €209 million, more than a third more than in the first half of last year. The sale of raw milk is the most important link in this with a share of 73,5% and a value of €153,6 million. The company also earned €20,1 million from the processing of milk, €17,9 million from the sale of agricultural products and €13,1 million from livestock and animal products.
Significant increases
In addition to an increase in turnover, there is also an enormous profit growth. Net profit increased by no less than 65% to €38,3 million in the relevant period. EBIT (operating profit before interest and tax) also improved significantly by 57% to €89,2 million. The figures are partly admirable, given the corona crisis that has the world in its grip. The dairy sector has proven itself worldwide in terms of continuing to function in a normal way, this company is a fitting example of that.
Not only the financial figures received a big boost, the daily milk production has also been increased. In the first six months, an average of 2,567 tons of milk per day was produced, an increase of 7% compared to last year. The company estimates total milk production between 900.000 and 940.000 tons, almost 150.000 to 200.000 tons of milk more than in 2019. The processing of milk into its own dairy products is also likely to increase to somewhere between 85.000 and 90.000 tons.
In addition to the improved result and the increased milk production, the company has also expanded considerably at an operational level: more land has been purchased, so that the company now covers 631.000 hectares instead of the 599.000 in 2019. Furthermore, Ekosem-Agrar wants to increase the dairy herd by the end of 2020. have expanded to approximately 105.000 dairy cows, almost 7500 more than are currently being milked.
Second half 2020
By the end of 2020, Ekosem-Agrar expects to have realized a turnover of €500 million, with an EBIT of €105 million. The first major milestone of the second half of this year has already been achieved. The company has started the export of EkoNiva UHT milk products to China. This concerns 22,5 tons of ultra-pasteurized milk that has been sold to 3 cities in the Chinese province of Heilongjiang, which borders on Russia.
Jorine Cosse
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