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.
86,896 84,158 79,320 88,423 89,000
32,408 41,805 46,004 43,828 45,375
81,775.70 64,485.98 63,084.11 63,551.40 50,000.00
201,080
190,449 188,408
195,802
184,375
2007. 2008. 2009. 2010. 2011.
Croatian pork meat production Import of pork meat Croatian „backyard” prod. Total consumption
AGROPORC INNOVATIVE AGRICULTURE
MARKET

NUCLEUS
FARM
COMMERCI
AL FARMS
AGROPORC
MANAGEMENT
COMPANY
COMMERCIAL
FARMS
FINISHING
UNITS
FEED
FINISHING
UNITS
VETERINARY
SERVICE
FINISHING
UNITS
Quality , Marketing and Sales
MARKET
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
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Terminal
boar
semen
Nucleus Farm - giltsVeterinary Service
Agroporc-coop
Mutualcompanyofallparticipantsintheproduction
Animal Feed
Finishing Farm
Capacity:
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 1
1A(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
→
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)
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Finishing Farm
Capacity:
2.000 - 6.000
Nucleus Farm
Gilts for the replacement
Production: 400.000 finishers/year
Veterinary Service Animal Feed
Finishing Farm
Capacity:
2.000 - 6.000
PRODUCTION MODEL

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 1
1B – 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
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.
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 Ecology

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

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 sector
Financing Investment-
loans -partnership
Purchace of company
shares or bonds
Suppliers and partners
Genetic
Feed components and
amimal feed
Equipment
Farm supplies
Technological
innovations
Market –partners
meat industry
Farmers
Partially / fully ownership
of farms or total system
Partnership in the
managing farm business

Agroporc-Presentation (Denmark)

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