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Livestock

The Groupís livestock holdings comprise poultry, pork, beef and milk production. The Group currently has two chicken farms, one cattle ranch with a milking facility and six pig farms.


Poultry production

In 2006, the Group completed the acquisition and modernization of the Chernuhiska Poultry Farm. In 2007, the Group began production of poultry. At present, the Groupís poultry production facilities include two principal chicken farms, one breeder farm and one fodder mill.

In 2009, 2008 and 2007, the Groupís chicken farms included 3,758,507 hens, 3,739,306 hens and 1,569,746 hens, respectively, and produced approximately 6,671 tonnes, 6,897 tonnes and 2,628 tonnes of poultry by processed weight, respectively. In line with its strategy of vertical integration, the Group intends to put into operation a breeder farm with indicative production capacity of 14.8 million hatching eggs and increase its fodder production capacity to cover the needs of its poultry production in 2010.

The Group distributes its poultry products in Luhansk, Donetsk and Kharkiv regions, which are closely located to the Groupís production facilities, thus enabling the Group to deliver fresh poultry products to its customers efficiently.


Cattle and milk production

Agroton is the leader in Luhansk region and ranks fourth in Ukraine by head of cattle, first in Luhansk region and seventh in Ukraine by beef production and first in Luhansk region and sixth in Ukraine in milk production.

The Group produces beef at its 20 cattle facilities, all of which are located in Luhansk region. The Group operates an integrated production facility for meat products and dairy, rearing approximately 4,500 head of dairy cattle. In 2009, 2008 and 2007, the Group produced 13.6 million, 12.1 million and 11.1 million liters of milk, respectively, and produced approximately 937 tonnes, 993 tonnes and 1,185 tonnes of beef (live weight), respectively.

95% of the milk produced by the Group is used in cheese production at the Groupís two cheese plants.

The Groupís external customers purchase and transport the Groupís cattle and milk directly from the Groupís facilities.


Pork production

The Group produces pork at its six pig farms in Luhansk region. In 2009, 2008 and 2007, the Group produced approximately 2,058 tonnes, 1,528 tonnes and 840 tonnes of pork (live weight), respectively.

Pork is sold to third-party meat producers in Luhansk region. The Groupís external customers purchase and transport the Groupís pork directly from the Groupís facilities.