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‘Volovo Broiler’: a high-flyer

The ceremony of putting into operation the first stage of chicken-meat production enterprise ‘Volovo Broiler LLC’ took place on July 22, 2015.

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The Tula region governor, Vladimir Gruzdev, took part at the event. He said that the project would give additional impetus to the development of the economy in Volovo locality, serving as a good example of successful public private partnership, and help satisfy the demand of its population in high-quality, organic and cheap meat products.

Human element

In 2011 Batyr Nurullaev, ‘Volovo Broiler LLC’ CEO, was in the expert group designing the project of a big chicken-meat production in Russia. The choice of the region where it would be situated was on the agenda as well. Given that a great part of the future products was planned to be sold in Moscow and Moscow region, the site was supposed to be one of the regions of the Central Federal District.

The group arrived in one of the regions to examine it closely. Construction and working conditions seemed to be satisfactory. But the experts didn’t manage to negotiate the idea with the region administration. Local officials advised to return there afterwards.

Then the delegation went to the Tula region, which was second on the list of possible sites for construction. They met the then deputy governor in charge of agro-industry, Alexander Tkachenko. It was an interesting, concrete and extremely friendly conversation.

 

At that time we understood the whole importance of the human element in business, says Batyr Batyrovich. Mister Tkachenko has a vast knowledge in poultry operation as he used to work in this field. He told us in detail about the economic situation in the region, including opportunities for agro-industry. When he learnt the minutiae of our project, he suggested we chose the Volovo locality. At that time we knew nothing about it. Today, once the project is being realized, we understand that we made a right choice. The federal road M-4 is nearby, it’s only 265 km far from Moscow. It’s black soil, which brings a good harvest. What’s more, the locals are friendly.

The above-mentioned human element is important for the work of our new company today, too. The then head of Volovo administration, Anton Svirin, supported the enterprise a lot. The current head of the administration, Sergey Pishiy, is efficiently working with the investors. We maintain excellent relations with the Agriculture minister of the region, Dmitry Milyaev.

The above-mentioned human element is important for the work of our new company today, too. The then head of Volovo administration, Anton Svirin, supported the enterprise a lot. The current head of the administration, Sergey Pishiy, is efficiently working with the investors. We maintain excellent relations with the Agriculture minister of the region, Dmitry Milyaev.

We’re happy that the Tula region is governed by Vladimir Sergeevich Gruzdev, - Batyr Nurullaev proceeds. He used to be a businessman, so he knows and understands perfectly all the peculiarities of such work. He provided us with much support in realizing our project.

Commitment

In 2012 the Agreement on cooperation of the Tula region government and ‘Bordeevo Broiler LLC’ was signed. The designed period of bringing the complex to full production is the latter half of 2017.

The scale of the first version of the project was large. In particular, the poultry complex was supposed to produce up to 25 000 or even 30 000 T of meat products per year, considering the fact that the whole Tula region today produces about 60 000 T of chicken and turkey meat.

Batyr Nurullaev says:

-We’ve revisited our estimations, reconsidering our capacities and demand, taking into consideration other factors. And we understood that we can double the production capacity. So, finally it is as follows: in 2016 after meat production is launched, its total quantity will be 24 300 T, while in 2017 after the full production is achieved, it will be 52 000 T.

Naturally, the number of employees will grow, too. About 900 people will work for our complex. And its core must be represented by the locals.

We are happy that the Tula region administration performed its obligations. 54 million roubles are invested, which helped connect the site to the gas pipeline and construct a road. Now it’s our turn to perform our obligations.

Speaking at the ceremony of putting into operation of the first stage of ‘Volovo Broiler LLC’ complex, the Tula region governor Vladimir Gruzdev said:

-Three years ago, while signing the Agreement on cooperation, we said ‘Welcome!’ to the investors who were planning to construct the biggest poultry complex in our region. Today, when it comes to the realization of the project, we say to them: “Good luck!”

About technologies

Chief construction engineer Rais Biktyashev:

– -The complex is divided into several zones, where the following units are either under construction or ready: hatching facility, eggs storage, electrical substation, slaughter floor, deep conversion floor and many other units, there’re more than 80 of them.

There are our own boreholes, water supply systems. We meet all the requirements to the production safety. Thus, the distance between the sites is more than 300 metres. So, even in case of a disease or emergency situation, they can be liquidated locally without affecting other territories.

The construction costs were 1.785 billion roubles. Today 960 million are already processed. The works are conducted by the subcontractor, ‘Neftegazsnab LLC’ (Moscow). It has created its subdivision here, with its staff counting 350 employees and taxes being paid to the local budget.

Modern technologies ensure high speed of construction. The walls of the buildings are made of heat-insulated sandwich panels. 45 million roubles were saved by improving the internal constructions system.

Chef production manager, Sergey Bodnarchuk:

-‘Volovo Broiler’ is a closed poultry farm. Each site has a fence. There is a system of sanitary inspection rooms. All the employees must work in uniform according to the safety requirements. The coops must be squeaky clean. And we ensure it.

Today we have about 40 800 species of the age of 7 days. This is a replacement stock. In total we will get 244 800 species during this year. Eggs are supplied by ‘Aviagen’ company situated in Yasnogorsk locality. It is one of the world’s best breeds. In future we’ll have our own hatchable eggs. Chickens aged from 24 to 62 weeks go through the productive period. In 2016 we plan to produce 26.2 million eggs, and 37.4 million in 2017.

Production processes are as automated and computerized as possible. The average weight of the chicken is 2.2 kg, and the end carcass weighs 1.6 kg. Almost all the products will be chilled, not frozen, which helps preserve all the advantages of the diet meat and is the healthiest for consumption.

About finances, employees, accommodation

The construction of ‘Volovo Broiler LLC’ poultry complex is sponsored by the Tula regional affiliate of OJSC ‘Rosselhozbank’. The enterprise enjoys the credit line of 2.67 bllion roubles, 1 billion of which has already been invested in the construction of the poultry complex.

–Credit provision for agro-industrial investment projects for hi-tech enterprises is one of the most important dimensions for the regional affiliate of Rosselhozbank, highlights Yaroslav Tischenko, head of the Tula affiliate of the bank. Successful implementation of such projects will improve agro-industrial potential of the region and encourage accelerated imports phase-out.

Our partner performs its obligations. We look forward to further mutually beneficial cooperation.

As already mentioned before, the core of the staff must be represented by the local population of the Volovo locality. For these ends the enterprise is already cooperating with the local employment office, and the preselection of future employees is ongoing. Many locals have expressed their desire to work for the enterprise. So, ‘Volovo Broiler’ has become the pivotal company ad employer in the locality.

However, it isn’t possible to hire only Volovo residents. There’s a need for top experienced professionals with high qualifications: veterinarian, engineers, agriculturists, economists, financiers, etc. The enterprise is recruiting not only in the Tula region, but also in other Russian regions. For these ends there is a special plan for transporting the employees from other regions by means of the company.

To date premises in Dmitrievo and Volovo are rented for accommodation. But works on transforming the former care facility situated in Volovo in comfortable flats for small families have already been launched. At the same time the question about the land for future cottage estate for the complex staff is being discussed.

The salary will depend on the results of the work and qualifications. Minimum salary is 15 thousand roubles per month plus bonuses for fruitful work. The average salary is supposed to be 23-25 thousand roubles, which is quite good for agro-industry and Volovo locality. Besides, it will grow with the development of the complex.

About closed cycle

‘Volovo Broiler LLC’ development plans include number of measures to transform the enterprise into a multi-industry technologically closed holding company, capable of satisfying production needs with its own subdivisions.

For example, it is planned to create a subdivision to cultivate crops, which will allow for producing compound feed for its own needs.

-As it was shown by the events of 2011 (very hot summer and crop failure) and 2013 (bad harvest), chicken meat companies become more financially volatile, believes Batyr Nurullaev. The proportion of the feed cost in the end product price exceeds 70%. And sharp rise in price for crops can entail financial troubles or even bankruptcy of a poultry farm, which did happen multiple times. That’s why we want to resolve these problems step by step.

The current goal is to obtain into ownership or rent 20 thousand hectares of cropland, buy the equipment, hire the staff and begin to cultivate crops. It will meet 50% of the company’s demand for the crops. It is possible further expand crop acreage to supply more crops to the company. Moreover, the subdivision ‘Volovo compound feed mill’ is already created. It will buy crops so far, but later on it will use its own crops.

They also intend to construct oil-extracting factory and launch the production of corn and soy oil, buying raw materials. In future soy can be cultivated on the black soil of the Tula region. Oil will be sold, while the wastes – oil meal – will be used for compound feed production. It is a very valuable product which enhances significantly the efficiency of poultry farms.

A wide range of measures is designated to resolve some problems in conversing and selling the products. Poultry deep conversion principle will be used. The work of six lines is as much automated as possible, which results in several types of end meat products at a time: carcass, wings, breast, leg quarter, etc., which is all packed.

A special meat conversion floor is designed, too. Sausages, pastes and other 70 types of various products will enter the retail chains.

A retail chain is created. They will be situated in all the localities and cities of the Tula region, Moscow and Moscow region. The reduction of costs (own feed, short distances for transportation, new technologies for breeding, etc.) will make the price lower than the price of other sellers of chicken products. And, of course, Volovo products are of a very high quality and organic. It is also planned to open a fast-food chain. The first try was made three years ago. The project called ‘Chicks-Gourmet’ has been working in Moscow for three years, and now it exists in Tula, too. It will be installed both in the enterprise’s shops and as small cafes, offering a wide choice of chicken-meat fast-food. The experience and studies have shown that these products are not only tasty, but also healthy!

About the market

In Russia the amount of the produced chicken meat is quite big. However, ‘Volovo Broiler LLC’ CEO, Batyr Salmatov, has his own vision of the situation.

-Nowadays, the assumed amount of chicken meat per citizen produced in our country is 24 kg. Considering farm households, it makes 30 kg per person annually. It is more than 20 or even 10 years ago.

But take a look at the European countries. Their consumption of chicken meat is at least 1.5 times more than ours. And their lifespan exceeds ours by 10-15 years. Because chicken meat products are healthy for all ages. It’s diet food which is often prescribed by doctors as a means of medical treatment. What do patients eat after surgeries or during serious diseases? Chicken soup and breast meat! Such products are easy to digest even for an enfeebled organism and help recuperate.

People tend to avoid eating fats, choosing healthy way of life. Thus, chicken meat and products are popular. So, ‘Volovo Broiler’ staff won’t be in dry dock!

Source: Business Magazine