Rusagro’s Meat Business purchased 660 ths tonnes of grain for feeding pigs in 2021, including 190 ths tonnes from the Company’s Agriculture Business.

Overviewof the Russian pork market in 2021

The unfavourable epizootic situation in 2021 dampened the growth of pork production in Russia – it remained almost level with the previous year. Average market prices for livestock went up by 26% year-on-year, spurred by rising poultry prices and higher pig growing costs. Meanwhile, Russian producers achieved a 34% increase in exports to Vietnam, partially offsetting lower demand from Hong Kong.

4.3  mn tonnes
pork production in Russia in 2021
0 p.p.
  Rusagro's share in pork production in Russia in 2021
203 ths tonnes
pork exports from Russia in 2021
15 ths tonnes
imports of pork products into Russia in 2021

Key players

In 2021, six largest pork producers accounted for 41% of total production in Russia. The market leader is Miratorg Agribusiness Holding with a share of 10.1% (+0.6 p.p.). As a result of mergers and acquisitions, JCS Sibagro took second place — its share rose from 4.3% to 6.7%, relegating LLC Velikoluksky Pig-Breeding Complex to third place with a share of 5.6% (0 p.p.). Rusagro came in fourth with a share of 5.6% and a difference of 0.6 ths tonnes.

 0 p. p.
Rusagro’s share in pork production in Russia in 2021

Source: Rusagro's calculations based on data from the National Union of Swine Breeders and Cherkizovo


In 2021, pork production stayed at more or less the same level, amounting to 4.3 mn tonnes of pork in slaughter weight (−21 ths tonnes)Equivalent to about 5.5 mn tonnes of pork in live weight.. Agricultural organisations recorded a slight increase in their production volumes (up 10 ths tonnes), while production of farm enterprises and private farm households sank by 6% down 30 ths tonnes). The key drivers of this situation were outbreaks of African swine fever (ASF), which also affected large enterprises, such as Miratorg Agribusiness Holding, LLC Korall, LLC Agropromkomplektatsiya and GC Cherkizovo. The year-end results showed that the volume of output was sufficient to cover the domestic demand for pork.

PORK PRODUCTION IN RUSSIA IN SLAUGHTER WEIGHTExcluding the pork produced in the Republic of Crimea. mn tonnes

Source: Federal State Statistics Service

Exports and imports

In 2021, exports of pork (half-carcasses, large cuts, industrial cuts and semi-finished products) and pork offal from Russia showed a 7% year-on-year decrease and amounted to 203 ths tonnes (down 14 ths tonnes). This mainly covered the reduced offal deliveries (–24%, or –20 ths tonnes), which was partially compensated for by a 4% increase in pork exports (up 5 ths tonnes). The negative growth in pork offal deliveries was mainly caused by lower deliveries to Hong Kong (–59%, or –23 ths tonnes). Due to high demand on the domestic market, the pork exports experienced just a light decline.

The main export destinations for Russian pork products are Vietnam, Ukraine, Belarus, and Hong Kong, accounting for 90% of the 2021 total. Vietnam was the biggest buyer of Russian pork and pork offal, accounting for 44% of Russian exports (+1 p.p.). In 2021, Russia supplied 89 ths tonnes of pork products thereto, down 5% (down 5 ths tonnes) below the previous year level. Vietnam remains a key export destination for fat cuts from Russia, and Russia is still Vietnam's largest supplier of pork and second largest supplier of pork offal. In contrast, the share of products sold to Hong Kong fell from 18% to 8%, resulting from the lower buying interest in China on the back of a gradual recovery of domestic production and tighter controls on imports from Hong Kong.

EXPORTS OF POR AND PIG OFFALComment: Pork includes carcass, large cut, bulk products and ready-to-cook foods. ths tonnes

Sources: Federal Customs Service of Russia, Customs Union data

Pattern of pork and pork offal exports in 2021 by destinationsPATTERN OF PORK AND PORK OFFAL EXPORTS IN 2021 BY DESTINATIONSComment: Pork includes carcass, large cut, bulk products and ready-to-cook foods. %

Source: Federal State Statistics Service

Pork imports to Russia in 2021 increased by 7% year-on-year and reached 15 ths tonnes (+7%, or up 1 ths tonnes). This situation was attributable to the replacement of the pork tariff quota with a flat scale of 25% in 2020. The main suppliers of pork to Russia are Chile, Brazil, Belarus, and Argentina.

imports of pork and pig offal, ths tonnesComment: Pork includes carcass, large cut, bulk products and ready-to-cook foods. ths tonnes

Source: Federal Customs Service of Russia

15 ths tonnes
imports of pork and pork offal to Russia in 2021


In 2021, the average market price for live pigs went up by 26% and reached 110.8 RUB/kg, excl. VAT. The year-on-year increase was due to the epizootic situation in the pork market and a rise in poultry prices on the back of avian influenza, a shortage of hatchery eggs resulting from the reduced supplies from Europe and growth in exports (+11% year-on-year). The price escalation was also influenced by the appreciation of production facilities and fodder resources as a result of the rising cost of cereals and meal. In addition to the above, traditional seasonal factors had a bearing on prices during the year.

Average market prices for pork in live weight in Russia in the Central Federal District RUB/kg, excl. VAT

Source: Globa lMonitoring

Results of Rusagro’s Meat Business in 2021


In 2021, the Meat Business reported a 22% (up RUB 7.2 bn) increase in revenues as a result of higher market prices for meat products and increased sales volumes (+2%) – despite the difficult epizootic situation in the country, the Company managed to avoid a decline in livestock output. Forced down by higher production costs and expenses for the new pork cluster in the Primorye Territory, the Business profit margin decreased by 5 p.p., leading to smaller EBITDA of RUB 5.9 bn (–9%).

Operating results


live pig production in Russia
309 ths tonnes
pork production in live weight
260 ths tonnes
sales of pig products

Financial results

39.6 RUB bn
5.9 RUB bn
adjusted EBITDA
 5 p. p.
adjusted EBITDA margin

Business overview

Rusagro's Meat Business is represented by three vertically integrated clusters: two clusters in Central Russia – in the Tambov and Belgorod Regions, and one in the Russian Far East – in the Primorye Territory. The cluster in the Primorye Territory was launched in 2021. Each cluster comprises in-house breeding farms, livestock breeding sites, a feed mill, a slaughterhouse and meat processing plant, and a slaughterhouse refuse recycling plant.

Compound feedproduction
Slaughteringand deboning
Productionof chilled semi-finished products
Slaughterhouserefuse recycling
Marketingand sales

Livestock breeding

Rusagro operates 23 commercial pig farms and five herd breeding farms (the launch of two more sites in Primorye Territory is scheduled for 2022). In 2023, following completion of the remaining two pig farms and full occupancy of all pig farms in Primorye Territory, the Company’s maximum breeding sow herd size will be approximately 120 ths sows. Depending on production figures, this size of pig stock could produce around 390 ths tonnes of live-weight pork for slaughter each year.

The Company's pig farms operate to international standards and use the latest science and technology in pig breeding and feeding. These pig farms are modern highly-automated environmentally safe production facilities, giving close attention to the observance of biosecurity requirements and having a manure removal and waste handling system in place.

Breakdown of Rusagro's herd of breedable sows by region in 2021, %

Compound feed production

The livestock’s feed requirements are fully covered by the Company’s three feed mills with an annual production capacity of approximately 1.4 mn tonnes (+47% year-on-year), including about 1 mn tonnes in Central Russia and 0.4 mn tonnes in the Primorye Territory. The mills have granulated animal feed production lines in place for all processing cycles. The production technology laboratories offer chemical, technical and bacteriological analyses with a high degree of accuracy.

The storage capacity of the elevator in 2021 totalled 280 ths tonnes, including 120 ths tonnes in the Primorye Territory. Moreover, the Meat Business has grain crops storing sleeves with a simultaneous storage capacity of 410 ths tonnes. With in-house storage facilities, the Company can purchase ingredients at the most optimal time during periods of low prices.

Breakdown of Rusagro’s compound feed production capacities by region in 2021 %

Slaughterhouse and meat processing plant

Slaughtering and meat processing plants of the Company cover all stages of processing and production of finished goods: slaughter line, deboning shop, chilled small and large cuts shop, offal production shop, and slaughterhouse refuse recycling shop. In 2021, the slaughtering capacity was 680 heads per hour, including 130 heads per hour at the slaughterhouse in the Primorye Territory, and 440 heads per hour at the deboning shop (the launch of the deboning shop in the Primorye Territory is scheduled for 2022)The maximum annual slaughter and deboning capacity depends on the labour efficiency and the number of shifts, which may vary with the in-house and market supply of live pork and the demand for finished products.. The main categories of products include half-carcasses, large and small cuts, chilled semi-finished products and offal. The Meat Business has the Food Safety Management System in place to drive out risks at all production stages and adheres to the principle of compliance with the Technical Regulation on Meat Safety. All animals for slaughter come from the Company's own pig farms.

The slaughterhouse refuse recycling shop ensures deep processing of slaughter and deboning waste. Blood is used to produce blood meal; dead animal carcasses, scraps, bones and rejected products are used to produce meat and bone meal and fodder or technical fat. Some of the products are formulated into feed, and some are sold to other companies.

Breakdown of Rusagro’s slaughtering capacities by region in 2021 %
Breakdown of Rusagro’s deboning capacities by region in 2021 %
75 ths tonnes
Capacity of pork production in live weight in the Primorye Cluster


In 2021, Rusagro's investments in the Meat Business totalled RUB 8.1 bn, down 8% against the previous year. The bulk of the funds (88%) were allocated to business development, mostly related to the launch of the vertically integrated cluster project in the Primorye Territory. Rescheduling this project was the main contributor to the Company's year-on-year increase in capital expenditure in the Meat Business.

The Company spent 12% of its budget to support the current capacities of the Meat Business. Funds were used to overhaul a number of the sites, to restore the integrity of the buildings and improve the safety of the livestock against the outside environment at production sites, as well as to replace the tractor fleet to ensure timely and quality application of the liquid fraction of manure and removal of fallen animals.

Rusagro's investments in the Meat Business RUB bn
Project of construction of new pig farms in the Primorye Territory

Status as of 2021: four pig farms and one breeding farm, elevator complex and feed mill, slaughter and deboning plant, and slaughterhouse refuse recycling plant were launched

Plan for 2022: launch of two pig farms, one deboning line

Where: Primorye Territory, Mikhailovsky territory of priority development


6 pig farms for 18 ths sows

1 breeding farm for three ths purebred sow

1 seed production workshop

1 compound feed mill with an annual capacity of 300 ths tonnes, one elevator with a storage capacity of 120 ths tonne, as well as a capacity to store 200 ths tonnes in "sleeves"

1 slaughterhouse and deboning shop with a capacity of 680 ths heads per year

1 slaughterhouse refuse recycling plant

Production capacity: 75 ths tonnes of pork in live weight

Cost: 37.5 RUB bn, excl. VAT

Construction time: 2016–2022

First production: mid-2021

Time to full production: mid-2023


The Company has been selling the meat products under own trademark – Slovo Myasnika (Butcher's Word) since 2016. Over the past five years, the Company has achieved high levels of brand recognition and ensured steady growth in market share in its category and consumer loyalty. The brand's extensive product range is regularly reviewed to meet changing market needs. For example, a range of meat products with a high vegetable content and alternative meat without animal ingredients is going to be launched in 2022. The products are sold in major federal retail chains and to non-network retailers.


In 2019, the Meat Business approved a strategy to upgrade the digital maturity of the business until 2025, which consists of three waves: "Certainty" (2019–2021), "Digital Transformation in Action" (2021–2024), and "Digital Company" (2024–2025). In 2021, we mainly focused on five groups of projects aimed at automation of key stages of the business chain.
Automation of procurement processes

Streamlining and ensuring an end-to-end procurement process to improve efficiency

Livestock breeding
Automation of livestock breeding planning processes using video analytics and machine learning tools

Enhanced planning accuracy and improved production performance

Meat processing and slaughterhouse waste utilization
Robotisation of packaging processes

Reduced staff costs

Compound feed production
Automated process control system

Reduced downtime and improved equipment efficiency

Storage and logistics
Multi-agent planning, traffic monitoring and warehouse management systems (WMS)

Reduced logistics costs and upgraded performance of finished goods warehouses

Product innovations

Apart from technology-related projects, Rusagro's Meat Business is also weighing options to generate additional profit from processing by-products generated at different stages of the production chain. Thus, in 2021 the Segment decided to explore the potential of insects and algae in advanced processing of manure and in additional production, for instance, fodder protein, organic fertiliser and chitin. This opportunities may have the additional benefit of reducing methane emissions from lagoon slurry sedimentation.

Operating results


In 2021, Rusagro’s commercial herds grew by 2% and totalled 2.6 mn heads. Commercial pork production was 309 ths tonnes, 0.9 ths tonnes (+0.3%) higher than in the previous year. Despite the high number of African swine fever (ASF) outbreaks, the abnormal summer heat and issues with the quality of feed ingredients, the Company managed to achieve positive results. That was made possible by prompt measures to prevent the introduction of the virus to the sites, increased livestock security and the establishment of a fodder quality control department with the help of international experts. Moreover, the reporting period saw the launch of a project in the Primorye Territory, where the first 5 ths tonnes of livestock were produced, as well as the increased productivity of the main herd at Central Russia’s sites.

In the reporting period, the size of the commercial slaughter livestock rose by 2% (up 51 ths head) due to increased capacity and improved productivity of the slaughterhouse by upgrading the butchers' skills and reducing the downtime. However, new outbreaks of COVID-19, delays in equipment deliveries and a rescheduled launch of the deboning line in the Primorye Territory resulted in a 3% reduction in the size of the deboned livestock (down 50 ths heads).

Compound feed production in 2021 increased by 1% (up 9 ths tonnes) to 895 ths tonnes through the improved labour productivity. In order to enhance the quality of its products, the Company re-equipped its production laboratories and upgraded its equipment.

Rusagro's actual commercial pig stock ths heads
Rusagro’s pork production in live weight for slaughter ths tonnes
Rusagro’s compound feed production volume ths tonnes
309 ths tonnes
Rusagro’s pork production in live weight in 2021
 1 p.p.
89% ths tonnes


Following the slight expansion of production, Rusagro has been racking up the sales of meat products. In 2021, the Meat Business sold 260 ths tonnes of pork products (+2%), including 230 ths tonnes of meat processing products (+4%) and 31 ths tonnes of livestock (—9%). Sales of half-carcasses (+18%, or 9 ths tonnes) and half-finished products (+24%, or 6 ths tonnes) soared due to the rise in prices of half-carcasses and the accomplishment of targets for the development of the half-finished products category. Sales to the refuse recycling shop almost doubled (+91%, or 5 ths tonnes) as a result of reduced shipments of non-commercial livestock to mitigate epizootic risks.

Rusagro’s sales volumes of pork products in Russia ths tonnes
260 ths tonnes
Rusagro’s pork products sales in 2021

Consumer products

In 2021, 22% of Rusagro’s Meat Business sales and 30% of its revenues came from the consumer segment (excluding export sales). The year-on-year decrease of 3 and 6 p.p., respectively, is attributable to a more favourable pricing environment in the industrial customer channel.

As part of its retail market penetration strategy, Rusagro continued to refine the position of its own brand of meat products, Slovo Myasnika (Butcher’s Word), in the Russian market despite rising market prices. Sales of own-brand products went up by 16% and stood at 23 ths tonnes. According to the retail audit, in the Modern Retail channel conducted by international agency — AC Nielsen, the market share of the Slovo Myasnika (Butcher’s Word) brand grew by 0.5 p.p and stood at 8.6% Including the sales under the Myasnaya Liga (Meat League) brand. in 2021. Brand awareness (prompted) in the Central Federal District, according to Millward Brown, upgraded to 85% (+11 p.p.), and across Russia — to 73% (+15 p.p.).

Sales volume of meat branded products ths tonnes


In 2021, Rusagro increased its exports of meat products by 19% to 37 ths tonnes (up 6 ths tonnes), representing 16% (+2 p.p.) of the Company's meat products sales. The key driver of this growth was a vastly improved customer base in 2020, a rapid review of output products and a reorientation of supplies between open markets. Almost half of the exported volume (46%) fell within the "large cuts and industrial cuts" category, which experienced the largest growth (46% (+5 ths tonnes) during the reporting period. The remaining 38% and 16% were exports of half-carcasses and by-products, respectively.

Rusagro accounts for 36% of deliveries to near-abroad countries and 6% of deliveries to far-abroad countries. The main export destinations for Rusagro's meat products are Ukraine and Belarus – 47% and 32% of all exports, respectively. Opening a representative office in Vietnam helped to double its share over the past year, from 8% to 16%. All three destinations showed an increase in supplies, partly due to lower exports to Hong Kong as a result of the port closure.

Exports of Rusagro’s Meat Business products ths tonnes
Export destinations of Rusagro’s meat products in 2021 %

Financial results

The higher market prices for pork products in 2021 increased Rusagro's meat segment revenues by 22% and reached RUB 39.6 bn (up RUB 7.2 bn). However, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin still dropped from 20% to 15% due to increased costs. Thus, expenditure on feed ingredients, such as cereals and meal, amino acids, vitamin and mineral supplements, grew. The costs of the sites launched in 2021 in the Primorye Territory also had a large bearing as the stage of their production cycle had not yet allowed compensating for the costs of raising livestock. As a result, adjusted EBITDA showed a year-on-year decrease of 9%, amounting to RUB 5.9 bn.

Revenues of Rusagro’s Meat Business RUB bn
Adjusted EBITDA of Rusagro’s Meat Business RUB bn
39.6 RUB bn
revenues of Rusagro’s Meat Business in 2021