Analysis of the strategy’s results
Meat Business
Following the launch of its own Slovo Myasnika brand at the end of 2016, Rusagro Group has steadily ramped up the production of consumer pork products under this brand, strengthening its recognition and consumer loyalty. 2024 saw a redesign of the brand.
Position of brands
Sugar Business
Combined Oil and Fats Business
The primary objective of Rusagro Group’s Combined Oil and Fats Business is to maintain the brands’ leading positions in home regions and to roll out products under the former and new brands.
Position of brands
Information technology and innovation
To integrate automation systems and find innovative ways to optimise production processes, a digital transformation strategy has been approved in each business segment of Rusagro Group, forming part of each segment’s overall development strategy. For all Company’s business segments, the aim of the digital transformation strategy is to increase profits by reducing costs, enhancing risk management, and increasing productivity.
To ensure that strategy milestones are successfully met, all digital projects of business segments were centralised within Rusagro Tech established in 2021. At year‑end, Rusagro Tech had 440 employees and was actively developing projects across all business segments of Rusagro Group as well as the Corporate Centre.
A mathematical modelling service was set up in 2023 to support the Company’s objectives with regard to working with artificial intelligence and machine learning technologies.
Rusagro Group’s awards and prizes related to digital innovations
In the Best Digital Solution in Agriculture category, the award was given to the Rusagro Field Planning System project, a system for Rusagro Group’s Agriculture Business devised by Rusagro Tech and its partner. It helps to carry out agricultural operations within a given timeframe and set priorities for most critical work, which can improve crop yields
Rusagro Tech and its partner won in the Business Performance Improvement category for their project to create an intelligent system that provides recommendations to agronomists on planning various field operations. The Data Award 2024 short‑listed 67 companies that presented their innovative projects in different categories
The Strategic Algorithm project of Rusagro Tech won in the Data Fusion section of the Breakthrough of the Year category. The award was given to companies that develop the Data Fusion approach in Russia and optimise their work by processing massive amounts of big data and applying artificial intelligence technologies. The competitive selection was held in four categories
Rusagro Tech won in the category for IT services that have made life easier for agribusinesses by improving production efficiency and contributing to the business results of the agro‑industrial complex. Rusagro Tech’s Strategic Algorithm product became the winner. It helps to determine the optimal crop rotation pattern in the fields in terms of net present value
Rusagro Group’s key technology projects in 2024
Group
- Mitigate the risks and consequences of violating local laws and regulations
- Improve the speed of in‑process management decision‑making
- Reduce costs associated with document management for centralised processes
- Reduce the cost of owning IT solutions for the automation of document management for centralised processes across all business segments
- Consider retiring local business segment EDMS as part of subsequent projects
TESSA solution selected and implemented
2023–2025
- Reduce the risk of stoppage/disruption of HR processes and increase import independence through the use of a Russian platform
- Maintain the existing approach to the unified master system of HR management
- Improve user experience by increasing solution customisation options
Mirapolis solution selected and implemented; hyper‑support period is underway
2023–2025
- Improve manageability and reduce transaction costs by automating a single end‑to‑end seamless procurement process
- Implement automatic consolidation of procurement volumes between business segments
- Implement consolidated reporting for plan‑to‑actual analysis of the tender decisions across all business segments
- Establish a single software platform to run the Common Service Centre (CSC) for supplier management and procedure‑to‑pay (P2) processes
Norbit SRM solution selected and implemented; hyper‑support period is underway
2023–2025
Meat Business
- Develop a video analytics system and test its precision and performance
- Improve live port production
- Animal count (99% accuracy)
- Detection of animal disease and mortality using thermal imaging (99% accuracy)
- Fasting control, detection of availability/unavailability of feed in feeders (99% accuracy)
- Analysis of comfort zones in holder sheds
The project was successfully completed. It was decided to further roll out the system to pig farms
2022–2024
- Automate production accounting processes
- Enable entry of production accounting data using the mobile app
- Enable prompt receipt of historic data and planned events
- Expand the ability of operators to analyse previous livestock operations and assess physiological state of animals and production metrics
- Reduce labour costs
- Improve the speed and accuracy of record keeping
- Improve data analysis capabilities
The project is being finalised and actively implemented
2023–2026
- Ensure the passage and weighing processes of all vehicles with data transfer to the accounting system without human involvement
- Develop and implement of the AIOS at the production site
- Automated passage and weighing of different categories of vehicles (98% of passages)
- Development and successful implementation of the AIOS
The project was successfully completed. It was decided to roll out the system further
2023–2024
Agriculture Business
- Develop and roll out the Field History Cloud Service software into the Agriculture Business IT landscape; integrate internal systems (accounting system, access control and management system, meta algorithm, strat algorithm, lane guidance system) as part of the transition to Russian software and replacement of the foreign Cropwise solution
- Connect 220 users (automated workspaces) to Field History Cloud Service software by 2026
1st and 2nd stages of the project completed. Implementation done
2023–2025
- Expand the existing mineral fertiliser (MF) stock flow process by obtaining information on the weight of MF, identifying MF containers, automating the process of transferring MF to production facilities, and identifying recipients through the neural networks
The project successfully completed
2022–2024
- Automate agricultural machinery operations in the field
- Increase machinery productivity and reduce fuel and lubricant costs through the use of navigation equipment, RTK‑gsm correction, and adoption of the lane guidance parallel driving system
The project is in its final stage of completion
2023–2025
- Automate generation of optimal crop rotations combined with a production programme for each field designed to maximise cash flow within a strategic planning horizon, using modelling and optimisation tools
The project successfully completed
2021–2024
- Maximise profit by minimising the possibility of lower yields and properly allocating/using resources for technological operations
- Reduce yield losses in the fields during the harvesting period
The project successfully completed
2021–2024
- Ensure capacity utilisation
- Develop a programme to increase sunflower production and yield to 17.3 dt/ha and increase the revenue of growers
- Provide agricultural producers with recommended production technologies and access to various financing options
- Generate additional revenue for Rusagro Group by creating new processes and services for other companies
- Generate savings by optimising and automating existing processes
The project successfully completed
2023–2024
Combined Oil and Fats Business
- Increase revenue
- Improve product margins
The project successfully completed
2022–2024
- Create a unified digital environment for end‑to‑end automated management accounting
- Improve production efficiency by reducing the likelihood of downtime, stoppages, and reduced productivity due to a shortage or absence of raw materials
The project in progress
2023–2026
- Develop a digital model for the following focus areas:
- Forecasting demand and formulate an optimal sales and inventory plan for finished products
- Planning finished production
- Planning marketing and distribution
- Planning the need for raw materials and supplies and packaging materials at horizons ranging from four weeks to 18 months
- Schedule production
The project in progress
2024–2027
Sugar Business
- Minimise the impact of the human factor on the vehicle weighing process
- Digitise weighing data
- Automate the detection of weight deviations from delivery document specifications. Prevent incidents of theft by monitoring the weight of the vehicle and comparing it with the weight of the shipment
- Automatically record the time of key technological operations at the facility
The project in progress
2022–2025
- Improve the accuracy of information in terms of actual labour intensity and the scope of maintenance and repair work
- Expedite equipment defect reporting
- Reduce repair costs and increase the quality repair work
- Increase labour productivity
The project successfully completed
2021–2024
Cybersecurity
Being aware of the risks associated with cybersecurity and the repercussions of their potential realisation therefore, Rusagro Group takes advancements in this area seriously. Over the past few years, Rusagro Group has been working with Rusagro Tech to develop and put in place a business‑oriented information security system, which was successfully completed in 2024.
Developments and research in 2024
Meat Business
Rusagro Group’s Meat Business continuously implements projects to ramp up production capacity and expand the product range, develop ‘champion’ products and increase market share and exposure of the Slovo Myasnika brand. Efforts are made to review and explore opportunities for generation of additional profits from processing the livestock by‑products.
In 2023–2024, our R&D team homed in on the processing of generated waste in a biogas plant to produce electricity and organic fertiliser, representing a synergistic action of three business segments: Meat, Sugar and Agriculture. Using bacteriophages in the treatment plan and feeding Chlorella suspension were two novel ways to increase the safety and immunity of piglets.
Oil and Fats Business
In the Oil and Fats segment, Rusagro Group rolls out projects to improve product quality and product development in three areas. Tasked with integrating NMGK into the Rusagro Group system in 2024, the Company’s Combined Oil and Fats Business established a R&D function with a single structure and streamlined operating processes. Furthermore, the key existing range of oil and fats products was transferred between the sites of the combined holding company in order to minimise logistics costs for raw material supply and finished product delivery.
Due to the introduction of regulations on the content of glycidyl ethers in the production of edible fats and oils from 2025, Rusagro Group has successfully prepared and implemented effective operating principles for all refining sites of Combined Oil and Fats Business.
Food Service segment
The range includes tomato ketchup, cheese sauce, mustard sauce, barbecue sauce and original mustard sauce. They have a rich flavour and are suitable for a wide range of culinary applications
The range includes Four Cheese, Sour Cream & Onion, Cheese (cheddar‑chorizo), Cheese and BBQ sauces in different forms. The products are gastronomically tailored and designed to guarantee guest satisfaction
FMCG products segment
The sauce was exclusively crafted for the X5 chain in cooperation with Kote Oganezov, a culinary expert. The unique recipe blends elements of traditional gastronomy and modern culinary trends, making the product an optimal choice for serving with meat dishes and snacks
With reduced fat content (15%) and a natural ingredient‑based composition, these sauces are the best choice for salad dressings. They give a balanced flavour without sacrificing the essentials of healthy eating
Natural sauces with a high content of diced vegetables and spices, with a rich flavour and aroma. Ideal for stewing, roasting and baking of meat and vegetable dishes
Natural cream is ideal for both home and professional cooking in HoReCa. They give sauces, desserts and other dishes a rich, creamy texture and deep flavour, ensuring high quality culinary products
Premium skincare product. Natural oils and carefully selected ingredients help to cleanse and moisturise the skin, leaving it feeling smooth and soft
Industrial fats segment
The products deliver stable texture, optimum processing properties and high quality finished products
The products have a balanced composition, contribute to the nutritional performance of feed and meet industry requirements for quality and safety
The steady expansion of every business segment within Rusagro Group is largely dependent on the development of human capital.
In 2024, Rusagro Group continued its efforts in human capital development in several key areas:
Internal training systems
In 2023–2024, following the transition from SAP SuccessFactors platform to the home‑made Mirapolis solution, employees continued fully‑fledged training through the Distance Learning System (DLS).
For more details on Rusagro’s human capital development results, see the section.
