agroporc-presentation (denmark)

AGROPORC

PRODUCTION DEVELOPMENT (400 000 Finishers)

• BUSINESS MODEL = CLUSTER

• Balance sheet – Croatian Pork Production and Consumption

Croatian Pig production currently meets about 40% of market demand for pork meat.

2007. 2008. 2009. 2010. 2011.

86,896 84,158 79,320 88,423 89,00032,408 41,805 46,004 43,828 45,375

81,775.70 64,485.98 63,084.11 63,551.40 50,000.00

201,080190,449 188,408 195,802

184,375

Croatian pork meat production Import of pork meat Croatian „backyard” prod. Total consumption

AGROPORC INNOVATIVE AGRICULTURE

MARKET

NUCLEUS FARM

COMMERCIAL FARMS

AGROPORC MANAGEME

NT COMPANY

COMMERCIAL FARMS

FINISHING UNITS

FEED

FINISHING UNITS

VETERINARY SERVICE

FINISHING UNITS

Quality , Marketing and Sales

MARKET

PURC

HASIN

G OF

REP

RO M

ATER

IAL ORGANIZATION AND FINANCING

Agroporc- cooperation business model – Production Cluster


AGROPORC - COOP

• The business is organized on the principle of clustering (individual or group of owners who work together according to a pre-agreed rules)

• Agro-Coop through the board of Directors manages the entire model in terms of setting up business rules and controling the implementation, all business participants must be members of the Association

Main activity - Purchases and sales - Purchase of farm supplies Sales of products Marketing Financing and organization Quality management


Global G.A.P. Standard

• The internationally acknowledged standard based on the Principles of good agricultural practices

• The Global G.A.P. system was created primarily to build consumer confidence in food safety and product quality

• The goal of Global G.A.P. is to minimize the negative effects of agriculture on the environment, to ensure a responsible relationship towards the inhabitants and people employed in agriculture, as well as to respect the wellbeing of animals

PRODUCTION ACCORDING QUALITY MANAGEMENT

SYSTEM


Center for A.I.

Commercial farms (in the individual or joint ownership of farmers)

Finishing Farm Capacity:

2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000

Terminal boar semen

Nucleus Farm - gilts

Veterinary Service

Agro

porc

-coo

pM

utua

l com

pany

of a

ll pa

rtic

ipan

ts in

the

pro

duct

ion

Animal Feed


2.000 - 6.000

Finishing farms – in the individual or joint ownership of farmers

OWNERSHIP MODEL – Production Cluster


Agroporc d.o.o

Management in production

BREEDING CENTER

Production: 16.000 gilts

Commercial Farm 11A(3.000 sows) +1B(3.000 sows)

Commercial Farm 2,3,4...From 1000 - 3.000 sows

Cooperation Farms(Total capacity in cooperant farms: 152.500 finisher places)

Nucleus farm:2.000 breeding sows

Production: 16.000 gilts

Total sows 15.000

Total finishers 400.000

PRODUCTION PLAN - SWINE PRODUCTION PYRAMIDAL STRUCTURE

→Market

( app. 7.500 gilts)


400 000 finishers ≈ 40 000 t of carcasses/year

Live animals Carcasses

120.000 x 110 kg (13.200 t) ~ 10.500 t 230.000 x 125 kg (28.750 t) ~ 22.500 t 50.000 x 170 kg (8.500 t) ~ 6.800 t

400 000 40.000 t


Center for A.I.

Commercial farms (production of piglets)


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000


2.000 - 6.000

Nucleus FarmGilts for the replacement

Production: 400.000 finishers/year

Veterinary Service

Agroporc d.o.o -managem

ent service , m

anaging of comercial farm

s, daily managem

ent and organization, controling tehnology and education in

prodaction-

Animal Feed


2.000 - 6.000

PRODUCTION MODELAg

ro-C

oop

- p

urch

ases

and

sal

es


PRODUCTION MODEL

Commercial Farm - min. Capacity - 1.000 sows Production of piglets (25 kg) Professional Farm Management from Agroporc Finishing Units-average capacity – 4.000 places( 2.000-6.000) Production of finishers 115-135-170 kg Weekly production - 7.700 finishers, in average 125 kg One way pig flow Veterinary service - Basis for work – high biosecurity standards,

unified written procedures for farm workers, serological and patomorphological disease monitoring, prescribed prophylaxis based on quality diagnostics, controled antibiotics use, control of medicine costs

Unified technologically developed standards in the production Animal feed - High standards and continuous control of quality Continious education and professional development of all business

participants Daily organisation production done by Agroporc Strategic purchasing and sales done by Agroporc coop


GENETIC

HEALTH STATUS

MANAGEMENTFEED

FACILITIES

HIGH BIOSICURITY STANDARDS

Farms in low pig density areas, double fences, shower-to-enter, two nights downtime, own transportation, own desinfection, own feed, own veterinarians, own gilt production, own semen production, gilt quarantine, no-pig contact policy for farm-workers and other farm-conected employees, one way pig flow, carcass collection


• ANIMAL WELFARE – Five freedoms

Freedom from hunger or thirst by ready access to fresh water and a diet to maintain full health and vigour

Freedom from discomfort by providing an appropriate environment including shelter and a comfortable resting area

Freedom from pain, injury or disease by prevention or rapid diagnosis and treatment

Freedom to express (most) normal behaviour by providing sufficient space, proper facilities and company of the animal's own kind

Freedom from fear and distress by ensuring conditions and treatment which avoid mental suffering

(FAWC - Farm Animal Welfare Council, UK)


MANURE QUALITY MANAGEMENT


So far included: Other:

Agroporc d.o.o. C.U.S. d.o.o., Osijek Vetservis d.o.o.,Osijek Feed Factory Association of pig

farmers in Slavonia

All pig farmers – producers in pig production business

1 2 3 4 .....

CLUSTER - MEMBERS


• Agroporc d.o.o.:


Owner of the Farm Brestanovci 1A(3.000 sows) +1B(3.000 sows)

Production Management for cluster members

• Supervision and control of commercial farms

• Daily organization and management• Continious educational support for

producers

• Commercial Farm 1 (production of 192.000 piglets- start production in 12/2015):

1A – 3.000 sows - Farm Breštanovci 11B – 3.000 sows – Farm Breštanovci 2


PRODUCTION GOAL – Farm Brestanovci

Capacity: 6.000 sows

Insemination/week = 310 Farrowing rate: 94 %

Farrowing/week = 292 Liveborn piglets/litter = 14 Pre-weaning Mortality = 8 %

Weaned piglets/sow/year = 32.5 Daily gain - Nursery = 430 gr. Piglets for fattening(25 kg)/sow/year = 32

6.000 sows x 32 = 192.000 piglets for fattening


Work experience Owner Krešimir Kuterovac 1. 1990 -1991. „Klas”, Nova Gradiška, Trainee

Agronomist in the Feed Factory and in the Contact farming

2. 1991-1993. „Klas", Nova Gradiška, Manager of the Contract farming

3. 1993-2000. Dairy plant "Slavija„, Staro Petrovo Selo, Production Manager

4. 2000 -2001. Official Secretary of the Croatian Farmers Association

5. 2001.-2005. Director of the Croatian Livestock Center

6. 2005-2008. Executive Director for the animal production in Agrokor d.d.

7. 2008-2009. Secretary of State in the Ministry of Agriculture

8. 2009-2010. Executive Director for the Animal production in Agrokor d.d., Board Member in Belje d.d.

9. 2010-2012. Chief Director in Vupik dd, Executive Director for the Animal production in Agrokor d.d., Board Member in Belje d.d.

10. 2012-2014. Executive Director for the Agricultural production in Agrokor d.d., Board member in Belje d.d.

Director Ivana Bekić Vidović

1. 2004.-2005. „Dia-Vet”, Zagreb, Veterinary Trainee, Small animal practice

2. 2005.-2008. Agrokor d.d., Zagreb, Assistant in the Strategic business groups

3. 2008--2011. Agrokor d.d., Zagreb, Project Manager

4. 2011.-2014. Belje d.d., Darda, Deputy Manager in Pig production


We have developed the Pig production in Agrokor d.d. – ACHIEVED GOALS -

29 weaned piglets/sow/year 8 % preweaning mortality 1,5 % mortality in the Nursery 1 % mortality in the Finishing Unit 2,7 Feed conversion in the Finishing Unit 1,9 Feed conversion in the Nursery 97 days Finishing period 112-115 kg final weight at slaughter

The project was fully achieved in 5 years.


Major projects in Agriculture

1) Planning and executing projects according to predetermine timelines and budgets, Farm designing, preparing documentation for the Envromental Impact Study and Intergrated pollution and prevention Control, supervision of project development from initiation to closure, track and report on project milestones and providing status reports, collecting and analyzing offers from different suppliers, preparing purchase orders for the equipment by verifying specification and price, cooperation with international consultants and business partners, member of the Team for the implementation of GlobalGap standard in Animal production sector.

Control of operational activities and reporting to supervisors, rensponsibility for operating results, monitoring of production costs, collecting and evaluating data in order to increase productivity, cooperation with suppliers (PIC -genetic material, Nuscience-feed additives, Puck Custom Enterprises-liquid manure application systems…) on the implementation of new solutions for the production development and optimalization, member of the Agrokor Team for the cooperation with the University of Tennessee, cooperation with Danish Consulting Firm LRO, responsibility for SAP implementation in the pig production, controling the implementation of new local and international regulatory requirements for animal production and pollution in the pig production sector.

• Krešimir Kuterovac • Ivana Bekić Vidović

1) In charge of restructuring and development of animal production in the Agrokor Group. Chief Manger in: 1. Development of the Pig production Project (Nucleus-1.200 sows, 15.000 commercial sows and 380.000 finishers/year); 2. Restructuring and development of the Dairy cattle production (5.000 dairy cows); 3. Restructuring and development of beef production (18.000 beef cattle/year); 4. Development of the cow-calf system on the pastures of Belje d.d. (350 cows) and through a Contract farming system; 5. Project for the Feed factory business progress ( 250 000 t); 6. Establishment of the new Veterinary organisation and service supply, 7. Development of the Contract farming system

2) Managing all needed activities regarding the Vupik acquisition process, Chief Manager in Vupik d.d.. Vupik Inc. agricultural production and food processing industry based in Vukovar was outdated company in the technological and organizational sense with unsolved staff issues, big production problem and losses. The most important tasks were: Company restructuring process, business reorganisation, internal organization, Labor management and Investment cycle program of 400 mil. Kn. Today company produce grain, oil crop, vegetables.... on 7.000 ha of arable land; 400 ha – vegetable production with the possibility of irrigation, 160 ha of vineyards. Livestock farming – 2.000 sows, 100.000 finishers/year ; 2.200 dairy cattle, production - 16.mil. L. Of milk and 2.000 beef cattle production, producing and packing 5 l of wine, , grain storage capacity - 70 000 t and modern ship reloading terminal on Danube.

Making strategic development guidelines for sustainable agricultural production for the Agrokor group, market analysis of Croatia and EU countries, development of investment projects with partners in Russia and China. responsible for monitoring and controling agricultural business, participate in the work of expert committees and professional institutions in Croatia and the EU. as well as in international projects. The development of competitive production through investment knowledge, organization and continuous improvement of production is the main task that I performed


• C.U.S.Center for Livestock Improvement

The Breeding Female Line

Purchase and production of gilts for new farms and for a replacement

The Breeding Male Line

Purchase of boars and semen production


C.U.S. - Genetic oriented towards the goal –Standardized product of high qiality!

• The main activity is the production of sperm (bulls and boars) for artificial insemination; transport of frozen semen, biological materials, various equipment and materials for livestock reproduction; breeding and selection of domestic animals; testing breeding value of breeding animals and cooperation with professional and scientific institutions in the country and abroad

• The work of the Centre, quality of genetic material and production is under the direct authority of the Ministry of Agriculture, Forestry and Water Management


QUALITY AND SAFETY OF ANIMAL FEED

Quality Assurance Management

Quality Control Management

Locally available raw materials

Knowledge (team of experts,implementation of nutritional innovations)

Modern production technology

Profitable and sustainable production

Food safety and EcologyAGROPORC INNOVATIVE AGRICULTURE

Specialized Veterinary Service

Prescribed monitoring for relevant pig diseases – diagnostics done in Croatian Veterinary Institute ( 147 acredited methods);Veterinary Faculty Zageb; Checz Veterinary Institute Jichlava; MSD laboratory Boxmeer, the Netherlands; IZSLER Reggio Emilia, Italy;Slovenian Veterinary Institute Ljubljana, Slovenia;


Veterinarians in pig production - Continious education and professional development

Development and project management in agricultural business Project management and activities regarding the application procedures of projects supported by European Agricultural Fund for Rural Development Preparing studies, control review, creating business plans and economic programme Management support and advisory service for agricultural business Market analysis Advisory service regarding the agricultural subsidies

-PUCK- Croatia

TOS Farm Maintenance

CLUSTER - PARTNERS

MANURE QUALITY MANAGEMENT


http://www.puckenterprises.com/pce-catalog-01/

Land

• Provide land for the construction or reconstruction of a Farm

Manure apllication

• Provide land for the application of manure or digestate

Environment

• Environmental Impact study, Environmental permit

Building permit

• Construction design, Construction permit

Investment

• Estimated investment value:• Sow place 3.000 €/Sow place)• Finisher place 400 €/Finisher place)• Total investment 120 M €• 50 % own capital• and financing - 50 % - loans, bonds, shares

INVESTMENT CYCLE


Financial sector

Suppliers and partners

Farmers

Market


INVESTMENT OPPORTUNITIES AND POSSIBILITIES FOR THE COOPERATION ON THE

PROJECT

Financial sectorFinancing Investment-

loans -partnership Purchace of company

shares or bonds

Suppliers and partners

Genetic Feed components and amimal feed

EquipmentFarm suppliesTechnological innovations

Market –partners meat

industry

Farmers

Partially / fully ownership of farms or

total system

Partnership in the managing farm

businessAGROPORC INNOVATIVE AGRICULTURE

THANK YOU FOR YOURATTENTION


agroporc-presentation (denmark)

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