Investment case
Why invest in Rusagro Group
Vertically integrated business Ingredient № 1
Vertical integration lies at the heart of the Rusagro Group business model. The Sugar, Meat, and Oil and Fats Businesses run fully integrated production, while the Agriculture Business provides them with the necessary raw materials.
By streamlining the raw material supply chain and improving quality control throughout the production process, as well as by integrating production, marketing, and logistics expenses, this business structure lowers production costs and increases Rusagro Group’s competitiveness. Among other things, the vertically integrated model allows us to accumulate margins within Group Rusagro during the periods of fluctuation in prices for raw materials and finished products.
Production chain
The entire beet crop grown is sent to the Company’s Sugar Business. The fields’ proximity to the production facilities reduces the cost of transportation and logistics. Beet processing produces by‑products such as pulp, molasses, raffinate, betaine and filter cake. The pulp and betaine are exported, filter cake is used as fertiliser, and molasses is subject to the desugarisation process to extract additional sugar. Sugar and cereals are marketed under in‑house brands. Furthermore, sugar is used by the combined Oil and Fats segment in some sauce recipes.
Some of the grain grown by the Company is sent to feed mills of the Meat Business. The breeding facility rears young animals and improves pig breeds, while the reproduction facility produces fattening pigs and replacement pigs for herd renewal. The meat processing plant produces finished products which are sold under in‑house brand. Waste products are processed further into feed, thus closing the production cycle.
The Oil and Fats Business uses soya and sunflower seeds supplied by the Agriculture Business to make oil. The oil is then sold in bulk to third‑party companies and is used at Rusagro Group’s oil and fats plants to produce own branded products. Part of the meal, which is a by‑product of the oil extraction process, is used as pig feed in the Meat Business. Industrial fats are used to produce spreads, sauces, cheese products, and soaps.
Other Rusagro Group facilities also produce pasta products. Dairy plants produce dairy products such as whey powder, cheese, butter and cream.
Business model
AGRICULTURE BUSINESS
- Cultivation and sowing
- Dressing and fertilising
- Harvesting and storage
- Product sales
Sustained growth in financial performance Ingredient № 2
The achievement of the Development Strategy’s top targets has allowed Rusagro Group to grow steadily.
We are actively expanding our production capacity through mergers and acquisitions, modernisation, and new construction projects. Together with innovation, staff development, and balanced financial management, Rusagro Group’s efforts to boost operational effectiveness and enhance its sales portfolio are yielding positive results.
Product and geographic diversification Ingredient № 3
In addition to providing prospects for business expansion, broad geographic and product diversification enables the Company to optimise sales and logistics while accounting for regional demand for specific product categories. Though Rusagro Group is primarily a raw materials company, with about 75% of its sales coming from the B2B segment, it implements projects to grow the B2C segment and expands the range of products, thus allowing for the addition of more marginal goods to the sales portfolio.
Rusagro Group’s assets are located in 15 regions of the Russian Federation, namely, the Belgorod, Tambov, Voronezh, Kursk, Orel, Sverdlovsk, Samara, Ulyanovsk, Saratov, Orenburg, Nizhny Novgorod, Volgograd, Tula Regions, the Republic of Bashkortostan, and Primorsky Territory. The Company is headquartered in the Tambov Region, with a separate division in Moscow.
Business review – key figures
Structure of production capacities
Geography of assets by segment and region
Rusagro Group products
Sales mix
Sugar
- Sugar
- Betaine
- Molasses
- Pulp
Agriculture
- Sugar beet
- Grains
- Soybeans
- Sunflower seeds
Oil and Fats
- Vegetable oil
- Meal
- Dry industrial whey‑based mixes
- Industrial margarines and fats
- Food‑grade surfactants
- Fat products for HoReCa
Meat
- Pork in live weight
- Half‑carcasses
- Offcuts
- Industrial cuts
- Offal
- Meat & bone meal and blood meal
- Inedible fat
Sugar
- White sugar
- Brown sugar
- Coconut sugar
- Muscovado sugar
- Cereals
Oil and Fats
- Bottled vegetable oil
- Coconut oil
- Margarine and spreads
- Mayonnaise and sauces, including ketchups
- Cheeses
- Butter and spreads
- Clarified butters
- Cream
- Pasta products
- Soap and oleochemical products
Meat
- Large, portioned, small cuts
- Minced meat
- Sausages
- Skewered meat
- Marinated meat
- Chopped meat
- Ready‑to‑cook meet products
Rusagro Group brands
Oil and Fats BUSINESS
Sugar BUSINESS
Meat BUSINESS
Domestic market leadership and broad export potential Ingredient № 4
Along with enhancing product quality and customer experience throughout all interactions, Rusagro Group continuously pursues a strategy to boost production capacity, which produces positive outcomes in all pivotal markets.
Sales mix by market in 2024
Russian market share of Rusagro Group by segment
Export footprint
Rusagro Group exports products to 36 countries and territories around the world.
South‑West Asia and CIS countries are the Company’s main trading partners.