Other agricultural operations segment produces and sells sausages and cooked meat, produced by Druzhba and Ukrainian Bacon, as well as goose, foie gras, fruit and other agricultural products.

Sausages and cooked meat

We produce and sell various types of pork and beef sausages, smoked and semi-smoked sausages, and ham at our Druzhba Nova complex in the Crimea, and at Ukrainian Bacon in the Donetsk region.

Druzhba, an integrated facility for meat production has been fully operational since 2007. It rearscattle and pigs, and grows corn, wheat and barley on 15,000 hectares of irrigated land for its own feed needs. It processes the meat at its fully-automated, modern factory, which produces approximately 40 tonnes of sausages and cooked meat a day. In general, Druzba produces more than 90 types of beef and pork sausages, smoked and semi-smoked sausages and ham.

Ukrainian Bacon currently produces around 50 tonnes of sausages and cooked-meat products a day under the “Europroduct” and “Baschinsky” brands. We expect to be able to increase output to 200-250 tonnes a day. In 2010 as a result of supplementary financing of Ukrainian Bacon, we increased the volume production by 34% to 32,900 tonnes (in 2009 it was 24,600 tonnes).

Beef

We sell beef under our “Certified Angus” brand. Chilled, vacuum packed and matured, it is sold to foodservice customers and supermarkets. MHP’s Druzhba farm, breeds pedigree Aberdeen-Angus cattle which are used for our Certified Angus brand.

Goose and foie gras

MHP is Ukraine’s only commercial producer of goose and foie gras. MHP produces goose and foie gras at its Snyatynska complex. The facility comprises parent stock rearing and growing facilities, a hatchery, 53 geese houses and a processing plant. The parent stock at the farm was initially imported from France and Hungary. The Babolna Grey Landes breed has a high hatching capacity and feeds well, producing high-fat liver. Our goose is sold through supermarkets and food stores, our foie gras is sold, chilled and frozen, under our “Foie Gras” brand. We are looking at the possibility of exporting foie gras to Europe.

Fruit

Approximately 50% of Crimea Fruits’ 2,000 hectares of orchards is devoted to growing apples in a climate that is similar to that of northern Italy. On the remaining land, the farm also produces pears, peaches, grapes, strawberries, plums and cherries. The produce is primarily sold to supermarkets. The majority of the fruit was planted in 2007 and will take between five and seven years to reach maturity and become profitable. We are aware of its importance to the local economy and will continue to support it.