№6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies

No.6 10 Oсtober 2007

Anouncements The National Project Works! 1619 October 2007: AGRO SIBIR. SELMASHEXPO Exhibition Location: Kemerovo It took EkoNiva about 23-26 October 2007: Altaiskaya a year to complete Niva Exhibition the construction of a Location: Barnaul new livestock breeding facility for 16-19 October 2007: AGROSIB. 1,200 head of cattle SIBERIAN FARMER 2007 Exhibition in the Liskinsky Location: Novosibirsk District of Voronezh 31 October - 2 November 2007: Region. On 1 Harvest 2007 Exhibition September, the LocationLocation: BETA Exhibition Centre, complex was Voronezh commissioned in the presence of the RF 2 November 2007: Opening of the State Duma deputies, repairing and exhibition complex of regional and district EkoNivaChernozemye Service Centre authorities, visitors 10-17 November 2007: from Germany, EKONIVA OPENS A NEW LIVESTOCK Agritechnika Exhibition EkoNiva partners and BREEDING COMPLEX Location: Hannover, Germany friends. Besides, the development of this By Svetlana WEBER 20 November 2007: Regional sphere has a significant social Conference on the Results of the impact: the growing agricultural At the opening Official Variety Test industry provides new jobs; Location: Kursk ceremony, Voronezh people are beginning to earn fair Region Governor wages; the formerly depopulated Vladimir Kulakov 29-30 November 2007: villages come back to life.’ International Conference on the pointed out that His opinion was shared by such facilities came Protection of Selection Achievements the State Duma deputy Location: Galitsino Training and about as a result of Alexander Sysoyev. Says Resource Centre, Moscow Region the consistent Alexander Sysoyev: ‘The government policy National Project does not come 8-9 December 2007: Annual aimed at the support down to the construction of Meeting of EkoNiva Agricultural and development of livestock facilities. It is a serious Enterprises on the Results for 2007 the agricultural programme, which stipulates Location: Galitsino Training and industry in . for the development of the Resource Centre, Moscow Region ‘It is really a good village at large, including the development of the sign that our foreign partner works side by side village infrastructure, the December 2007: Interregional with Russian agricultural producers and achieves development of sports and Training Seminar on the Sale of 2007 high results,’ remarked Vladimir Kulakov. culture and also for the Harvest Seeds The Governor awarded President of the increase in salaries and Location: Village of Zakharovo, EkoNiva Group Stefan Duerr and EkoNivaAgro wages of the rural Moscow Region Regional Director Alexander Rybenko with population. EkoNiva certificates of merit for their personal contribution employees January 2008: Seminar for in the development of the regional agroindustrial enjoy all EkoNiva Agronomists on complex and implementation of advanced these Certification and Dispatch of Seeds methods of labour management. improvements Location: EkoNivaAgro, Voronezh In his return speech, Stefan Duerr in full Region remembered how he started to work in the newly measure. born Russian agricultural business. The They feel January 2007 Seminar for EkoNiva heartrending sights of neglected farms and socially Customers on Preparation for the abandoned villages inspired him with a desire to protected.’ Spring Sowing help. Today the situation has changed Location: Zashchitnoye, Kursk dramatically. Says Stefan Duerr: ‘The Russian To be continued Region agricultural sector is beginning to yield a return. on page 2 №6 10 Oсtober 2007 2 Periodical of the EkoNiva Group of Companies

Agricultural production

Currently, the livestock complex includes two cowbarns for 454 cows each, a milking parlour with the Westfalia Surge milking equipment, a maternity pen, individual calf pens and a silage storage facility for 25 thousand tons of fodder. Another cowbarn for 300 cows with an observation pen for problem animals, a mixedfeed storage facility, a slaughterhouse and a milkfeeding facility for the calves is still under construction. In future, the complex will include a training facility with a conference hall for workshops and training sessions. The total cost of the project amounts to 374.4 million roubles. The construction is financed using the company’s own funds and the funds borrowed from the local branch office of the RF Savings Bank. The National Project Works! EKONIVA OPENS A NEW LIVESTOCK BREEDING COMPLEX

From p.1 Gunter Beger, Head However, the EkoNiva of Department at the Management is not going to rest Federal Ministry of Food on its laurels. The company has Supply, Agriculture and vast schemes for further Consumer Protection development. Among other most powerful the combine operator, as the (Germany): 9 Series local specialists put it, ‘can things is the reconstruction of We are proud that livestock facilities for 1,400 tractors, a JD relax and read a paper’. The Stefan contributes to the 7300 chopper, speed of operations has head of cattle. development of the Russian ‘This year, we expect a JD 740 increased manifold. agroindustrial sector and in this way promotes sprinkler and a The Head of Voronezh Stefan to commission a dairy cooperation between our two countries. The facility in Dobrino, and in 2008, JD 3415 loader. Region Chief Administration Simmental cows from Bavaria, which have The farm for Agricultural Policy Nikolay two more special facilities in become residents at the new livestockbreeding Pochepskoye and Vysokoye,’ managers had Kotolevsky appreciated the complex, must rise to the occasion and maintain a chance to see scale of the demonstration said the Head of Liskinsky their reputation – the two countries lay high hopes District Administration Victor on them. Shevtsov. EkoNiva agricultural units in Kursk Region (Zashchitnoye) machines engaged in winter and Novosibirsk Region crops seeding, seedbed (Sibirskaya Niva) have also preparation, fodder become National Project conservation and livestock participants. Kaluzhskaya Niva farm maintenance. The guests in Kaluga Region has took genuine interest in JCB completed reconstruction of a handlers. These livestock facility for 400 head multifunctional English of cattle. As a result, its milk machines are currently used herd has increased to 800 cows. for fodder dispensing, but they EkoNivaChernozemye were successfully used in the used the occasion for a field construction works on the new demonstration of agricultural complex. Needless to say, machinery. The event was everybody admired the John attended by over 200 guests. Deere machinery, which was the full cycle of field works. One and the high technical level They were shown 25 agricultural represented by the 6, 8 and the of the fields was tilled, seeded of the presented machinery. and fertilized. On the other they Says Nikolay Kotolevsky: could see corn harvesting. The ‘Today, EkoNivaChernozemye Statistics John Deere machinery used by showed us a wide range of this farmholding ensures the agricultural machinery. It is This season the greatest precision of all very important that the operations, without exception. company has been overall grain Tractors and combines are continuously using all these yield in EkoNiva equipped with global (satellite) machines in the fields. farm holdings positioning systems, which Consequently, they have been amounted to 50 ensure the performance of high thoroughly tested in operation thousand tons precision operations, including and the specialists can give interrow cultivation of plantings, us sound advice on how to even at night time. In the day time, handle them’. №6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies 3 Visit Overseas Experience Shared In the middle of August a second group of EkoNiva customers and partners visited the USA at the invitation of the John Deere Corporation. The itinerary of the visit had been drawn up in such a way as to give the visitors a chance to get acquainted with different directions of the agroindustrial production sphere and form a clear view of American agricultural industry. with Russian Agricultural

By Svetlana WEBER Producers Natalia Ershova, On the very first day, the with the stateoftheart machinery. The RDO Company, John Chairman of Lenin visitors were taken to the JD The visitors had a chance to see Deere’s largest American dealer, Agricultural manufacturing facilities in the the latest developments that are had also prepared a largescale town of Waterloo, which produce just making their first steps on the visit program. Apart from the visit Production the 7, 8, and 9 Series tractors. Russian market of agricultural to the dealer centre, where the Cooperative: Every 8.5 minutes a new JD tractor machinery and technologies. guests showed great interest in light “It was very leaves its automated assembly Mitchell Farms employs precision 5Series tractors, yardcare holders, interesting to conveyor, where only 10% of all cultivation systems (autotrack, and disktype 1895 JD seeders, see the routine operations are performed by hand. GPS), which are incorporated into they were showed around dairy work of Wheel mounting is completed the farm computer system farms and plantgrowing holdings. American in 12 seconds (against a full hour developed by Clay Mitchell. This After walking around corn, beetroot, cattle required for this operation earlier). approach permits supervising field and potato plantations, the visitors breeders on The multistage system of quality work without leaving the office. examined the storecellars and dairy farms. control has done away with Says Clay: ‘The computer granaries. They were interested in Although our manufacturing defects. The assisted monitoring of sprayers storage equipment and annual milk yield is “Golden Key” program enables and seeders helps us to save up to organization of logistics. It is true higher (8,200 kg per cow) than the customer to watch the whole 20% of the seeds and chemical that many of the things they saw on the dairy farms we have process of tractor assembly ‘from agents.’ during their visit are successfully visited, I must admit that they scratch’. Once the tractor is ready, are better organized. They need the customer will be the first to Alexander Ovcharov, Director of few caretakers and milkers start it and drive it off the Yaroslavl Regional Department of because all work is mechanized. assembly conveyor. I wish we had it this way.” The Russian agriculturalists Agriculture: enjoyed a visit to the Mitchell “I have long been dreaming of seeing how implemented in Russia. However, Farms in Iowa, which specializes energy and soil saving technologies are all the visitors agreed that in the production of corn and implemented in America. Here I have seen a range America has by far outstripped soybeans. One of its owners, Clay of advanced machines for the performance of the Russia in the supervision of the Mitchell has a university degree minimum soil tillage and nobody uses ploughs agricultural production processes in Biomedical Engineering from anymore. Zero tillage has become a norm. We will and the organization of Harvard University. Not have to persuade our farm managers to switch over to interaction between the farmers surprisingly, his farm is equipped new modern technologies and advanced machinery.” and the state. Agricultural Forum Secret of Effective Crop Farming Over 600 companies presented their all stubble tillage. expositions to the attention of the At the Russian Field Day, EkoNiva participants and the guests of this presented an updated range of crops and outstanding event. EkoNiva’s exposition crop varieties. Thus, the company has offered solutions, which can increase the considerably expanded the range of fodder efficiency of crop farming. The emphasis was crops, which now includes highprotein placed on resource and energy saving barley varieties, annual and permanent technologies. grasses, legume grasses and herbage A unique Rapid (Vaederstad) direct seed mixtures. This tendency reflects the drill remains the unrivalled market leader. development of livestock breeding within the framework of the National Project. ‘Nobody doubts Vaederstad’s general Another tendency, which became concept or knowhow,’ – says EkoNiva especially apparent this year, was an active Deputy Director Gennady Nepomnyashchy. introduction of rapeseed, especially of its ‘Their direct seed drill ensures the winter varieties, into the crop rotation. Mass performance of several operations at one production of this crop became possible due The Russian Field Day was held in the go. It proved to be highly efficient in different to the appearance of new winterresistant Rostov Region at the beginning of July. soil and climatic conditions. It is reliable, Lirajet, Libea and Livius rapeseed varieties The exhibition received support on the economical and multifunctional’. and hybrids on the Russian seed market. part of Russian President Vladimir The Schulte mulcher presented by this Says EkoNivaAgro Director General Yuri Putin, the Federal Government and Canadian company allows quick and cost Vasyukov: ‘This year, for the first time in its effective cultivation of fallow lands as it can history, EkoNiva offers seeds grown in regional governors. This fact underlines easily cope even with birch growth and Zashchitnoye, Kursk Region, as an the strategic importance of the shrubs. alternative to foreign rapeseed and forage agricultural industry. The range of new machines included a seeding material. For this purpose, John Deere selfpropelled 4895 windrower, EkoNivaAgro provided its farming unit with a By Svetlana WEBER a JCB telescopic handler, a John Deere 9660 special line for the underworking of small STS combine and a TopDown machine for seed crops. №6 10 Oсtober 2007 4 Periodical of the EkoNiva Group of Companies

“New Kid on the Block” After a long summer From Personal Experience drought, which had affected crops, the lack In autumn, mouse Winter barley took of moisture could still be colonies do much harm to up residence in felt in autumn during the winter wheat plantings. winter crop sowing. In Chernozemye. some regions of Chernozemye, winter And not only there rapeseed was planted into the practically dry soil. Consequently, the seedlings appeared with a considerable delay and Farmer’s the plants, that have to weather a severe winter, may be weakened. Autumn By Willie DREVS, Winter barley has gained a Ph.D. in Agronomy footing in Chernozemye (the Concerns Russian Black Earth Belt), and Timely autumn dressing of plants with and speed up decomposition of the straw. This other Russian regions. Under nitrogenous fertilizers carried out in the type of tillage is costeffective, and the tools normal vegetation conditions it is proportion of 40 kg a.m. per hectare can improve used for surface tillage ensure a high the most productive of all grain the situation. Autumn dressing becomes a must performance. Thus, in EkoNivaAgro farm crops, including winter wheat. if winter rapeseed was preceded by grain crops holdings the Carrier disk harrow units with the and the field is covered with trash. coverage of 8.2 m and 12 m drawn by John By Svetlana WEBER One should not forget to take another Deere tractors till up to 150 and 200 hectares necessary measure applicable to winter per day respectively. This was exactly why numerous rapeseed, namely to apply folicur or a similar If the soil structure is damaged, it is attempts were made to expand the agent in the phase of 45 leaves. Being a necessary to perform deep cultivation. The boundaries of winter barley growing further fungicide, folicur helps to protect young plants tillage depth depends on the depth of the to the north, namely to Rostov, Voronezh, from mycosis. Besides this it acts as a growth structural damage. Kursk, and Belgorod regions. However, all the regulator and contributes to the development Boardless tillage has numerous attempts failed. This negative experience has of the root system and reduces concentration advantages. However, its introduction is lead to a widely spread opinion that winter of water in the connected with a barley does not grow to the north of the North leaves. In this way, it number of Caucasus or, to be more precise, cannot enhances the winter peculiarities. First of survive the cold winter. hardiness of the all, ploughless It was absolutely true. However, the plants. tillage increases the situation has changed with the appearance Now, I would concentration of of a new generation of winter barley varieties, like to say a few problem weeds in which by far exceed their predecessors as to words about the surface soil winter resistance properties. autumn tillage. layer. Consequently, The most promising winter barley variety Autumn tillage it is necessary to is the Germanbred Cinderella. It is as hardy is carried out for the use more as winter wheat and withstands frosts not following three key herbicides per one only in the Central Chernozem Zone but also purposes: hectare of tilled soil. further to the north, for instance in Tula and 1. to provoke In this connection, Moscow regions. weed sprouting the role of The highest crops were harvested in – for further glyphosatebased 2007, when in different regions the yields destruction of weeds total herbicides varied from 6 (in the Kursk Region) to 9 (in (carried out with the increases, and the Tula Region) tons per hectare, even in Such late rapeseed sprouts help of additional and the shortage of nitrogen their use in the usual production environments without tillage or by the application of total require obligatory dressing autumn period intensive soil preparation. herbicides); with ammonium nitrate. becomes a must. Cinderella seeds are grown by EkoNiva 2. to mix trash with soil Secondly, farming units. The requirement for seeds for – in order to provide its better contact with surface tillage performed for several the forthcoming sowing season was so high soil so that soil bacteria speed up its subsequent years increases the mouselike that the seed farms could meet only about decomposition; rodent population. Ploughless tillage 10% of the demand. In this connection, the 3. to restore the soil structure performed with the TopDown to the depth of areas under seed crops in Voronezh and – in order to prevent disturbance of root 2325 cm destroys mouseholes and reduces Kursk regions were considerably expanded. development and the destruction of the soil the mouse population. Special attention Compliance with cultivation technology, drainage properties. should be paid to deratization of those fields and, more specifically, with the sowing time Many Russian farmholdings have planted with winter rapeseed because mice and seeding rate, is no less important for the switched over to boardless ploughing, which is inflict more harm there than on the winter achievement of good results than the genetic time, fuel and money saving as compared to wheat fields. advantages of the latest varieties. All the traditional techniques. The important thing is Only a differentiated approach to farming units which received Cinderella to select the appropriate tillage depth. autumn tillage, based on the degree and seeds, were supplied with detailed guidelines In the first place, tillage depth depends on depth of the structural soil damage, its on its cultivation. In this way, EkoNiva is the degree of the structural soil damage. If the moisture content, mechanical makeup and resuming barley production in Central Russia soil structure is undamaged, surface tillage the level of weed contamination, ensure at a new level, with new barley varieties and performed with disk or cultivator type tools will cost reduction and a noticeable increase stateoftheart technology. be quite sufficient. It will provoke weed sprouting in the yield of the cultivated crops. №6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies 5 Technical Since 1977 JCB Company (UK) inspection has been dictating standards to other agricultural selection between allwheel telescopic handler steer, frontwheel steer and manufacturers. The machines crabsteer modes by pressing from the latest range of the a switch. As a result, there is Loadall handlers, with side no need to reset the wheels by mounted engine, also meet hand. To achieve optimum the highest quality performance in severe requirements. operating conditions all JCB Agri Loadall handlers are fitted out with aircooled radiators ensuring 24hour nonstop operation. The reversible fan controlled from the operator cabin serves to provide operation in increased dust conditions. The drive train design ensures easy regular cleaning and JCB Agri Loadall maintenance.

Nikolay Buravlev, Telescopic Handlers EkoNivaChernozemye They have a simple and Director General: reliable design, wonderful JCB performance capabilities and FEATURES AND ADVANTAGES telescopic provide the highest degree of · The 100 hp and 125 hp JCB444 engines create high handlers operator comfort attainable by torque in the creeper gear, thus providing high appeared in machines of this type. Their performance. EkoNivaAgro engines, transmissions, axles, · Low fuel consumption reduces operating costs. farming operator cabins, chassis, · New JCB 4gear and 6gear transmissions provide units this booms, and hydraulic optimum performance both on and off road. summer. cylinders were developed and · The new 6gear transmission (Agri Super) is fitted They are manufactured by JCB. All out with a torque lockout mechanism, which provides successfully these units have undergone optimum movement. used to rigorous testing and provide · The gear switch permits gear reduction by simply perform construction works at maximum output and service pressing a button, thus providing maximum performance the new livestock complex and life. of the loadingunloading cycle. carry out routine tasks on a The JCB Agri Loadall · A comfortable seat further increases the degree of dairy farm. design ensures ease of operator comfort. Some time ago, a group of operation and maximum · The new LSP hydraulic system (load sensitive EkoNiva specialists visited the payback. These machines pressure) increases accuracy of operation. The JCB plant in England. They have a spacious cabin with a performance is maximized due to a new additional function were impressed by the state low noise level, sufficient leg of power fluid regulation. oftheart assembly shops space and a comfortable seat · The new 148litre fuel tank increases output due to equipped with most advanced with a headrest and armrests. less frequent refuelling. equipment, including heavy The key factor, which presses and lasercutting tools provides the high operating uninterrupted fluid supply to constant fluid supply option and computerized quality capacity of the telescopic the loops controlling the boom available for the optional control. JCB is a top brand. handler, is a highcapacity swinging and other boom implements enables the Naturally, JCB handlers are hydraulic system. JCB Agri control functions, as well as to operator to concentrate on more expensive than similar handlers have either a multi the cooling system. A push driving. The range of Loadall machines produced by other lever handling system allowing button controls boom extension telescopic handlers is equipped manufacturers. However, the operation with one lever, or an and retraction, and provides with a unique automatic unrivalled quality and LSP hydraulic system, whose precise control of optional Autoselect steering control reliability make them worth the three pumps provide implements. In addition, a system, which permits instant money. A recent offer from John Deere! New electrohydraulic power takeoff 9030 Series Tractor New Category 5 drawbar Improved control system similar to New PowerTech Plus engines (Tier III that of the 8030 Series environmental standard) with engine Increased airtightness of the cabin power ranging from 325 hp in the 9230(9 Improved braking performance litre)model, to 530 hp in the 9630 (13.5 litre)model Presentation of 2035% increase in torque reserve the new tractor 30% increase in fueltank capacity series will take 5 pairs of independent hydraulic place at Golden ports Autumn 2007 №6 10 Oсtober 2007 6 Periodical of the EkoNiva Group of Companies

RussianGerman Cooperation

This year the APOLLO Association, which promotes cooperation between Eastern European countries in the sphere of agriculture, environment protection, and development of rural communities, celebrated its 15th anniversary. The Association was formed on the initiative of several German students, who had Apollo Participants – previously carried their work practice in the Soviet Union. Among them was Stefan Duerr, who became the programme organizer. The idea was supported by Looking Beyond the German Federal Ministry of Food Supply, Agriculture and Consumer Protection. As of today, over 1,500 Russian students and young agricultural specialists the Horizon have done practical training on German farms and enterprises under the exchange programme. in Volgograd Region. Vladimir was ‘There are 15 former Apollo a trainee on the Brunemann Farm programme participants in our in Northern RheineWestphalia. company. They all share a number By Svetlana WEBER He says: ‘During my training of common features, such as a in Germany I gained priceless serious approach to everything 12 Russian universities (in in EkoNiva, John Deere’s dealer in experience. It is of great help to me they do, responsibility and a keen Stavropol, Belgorod, Kazan, Russia. both as an agricultural specialist desire to get to the bottom of Penza, Saratov, Saransk, Kursk, In addition to working at one and a State Duma deputy, because things. I know from my own Bryansk, Smolensk, Velikiye Luki, particular location, the trainees visit I can use it when working on new experience that when you come Kaluga and Ufa) take part in the other farms and enterprises and laws. We make good use of the home from Germany you feel you exchange programme. The have workshops where they can German experience and are could “move mountains” and students undergo a twostage exchange their experiences and grateful to our German friends for stand up to any challenge.’ selection procedure. newly acquired knowledge. At the their willingness to share it with us. Says the APOLLO exchange end of the training period they write ‘A training visit to Germany programme Director Judith a research paper in German and implied more than a mere exchange Mering: ‘The programme is open take an exam. of knowledge and practical to anyone who would like to stand ‘The examiners can’t help experience. Getting to know our up to the challenge. The key marvelling at the volume of German colleagues was even more criteria for the selection of the knowledge about the most important. We became friends and candidates are profound advanced technologies and at our personal level contribute to professional knowledge and German agriculture at large that the development of cooperation personal motivation.’ the students manage to acquire between our countries.’ Within the framework of this within this short period’, says Judit programme, students attend a Mering language course, which gives The best trainees are awarded them a great opportunity to a grant, which enables them to improve their German language study at a School of Agriculture and skills under the supervision of have further practical training in qualified native German Germany. But the most precious speakers. The 60 best students things that the trainees take back go to Germany for a 4month to Russia are experience, Aleksey Bibikov, Director training course. knowledge, selfconfidence and a of Zashchitnoye (Kursk Training is provided at model great desire to raise the efficiency Region). In 1999 he was a German farms and enterprises, postgraduate at Belgorod State many of which have been Agricultural Academy. Aleksey participating in the programme for worked as a trainee on a several years. The organizers try diversified farm in Meklenburg to cater to the trainees’ interests: Vorpommern. some students are more interested Says Aleksey Bibikov: ‘I have in plant growing; others want to Yelena Levina, EkoNiva- acquired practical skills in a wide try their hand at animal breeding Tekhnika Director. In 1996 she range of agricultural works: or master advanced agricultural was a student of Penza State seeding, foraging, and harvesting. machinery. However, students Agricultural Academy. Yelena I also fed and milked cows and have to acquire basic skills in all worked as a trainee on an ecofarm even worked as a gardener. The processes related to the in RheinlandPfalz. most remarkable experience I got production specific of their Says Yelena Levina: ‘It was very was tending to animals under the particular enterprise. Says Olga interesting to get acquainted with supervision of the local veterinary Oli, EkoNivaTekhnika Commercial environmentally friendly doctor. He proved to be a skilful Director, who was a trainee at the agricultural practices. We raised teacher. A week spent at his John Deere Plant in Manheim in vegetables, did the weeding, picked surgery was worth a year spent at 1993: ‘It helps a lot in your future potato bugs, herded cows, baked a university. At the end of the work. At the plant, I worked in the bread and sold farmproduce in a training period I was awarded a Exports Department, in the of Russian agricultural industry. store. I passed the exams with grant for a 10week course of Accounting Department, in the Vladimir Plotnikov is distinction and was awarded a tour studies at the young farmers’ Marketing, Logistics and Spare Deputy Head of the RF State of Europe. When my visit drew to school in Grainau. Parts services. This experience Duma Committee on an end I was invited to work at ‘At that time, agriculture in gave me a clear picture of the Agriculture, Chairman of the APOLLO as a programme adviser. Russia was not a priority. When production process at large and Association of Russian Farmers We worked on a German textbook doing training in Germany I proved to come in very handy and Agricultural Cooperatives, and for Russian trainees, interpreted realized that it is a highly later’. When Olga was a trainee in Chairman of the Agrarian Party of during workshops and helped the promising and economically Germany, she could not even Russia. In 1990, he was Chief trainees to solve their everyday profitable sector, which needs imagine that she would later work Agronomist of Gusevsky State Farm problems. close attention №6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies 7

Regional Agro We are opening a new column ‘Regional AgroIndustrial Complex’, where we are going to tell you about agricultural policy carried out by different constituent Industrial Complex entities of the Russian Federation, describe positive experiences, discuss problems faced by the local farmers and suggest solution options. Today, EkoNivaNews tilling and seeding equipment. presents two regions of Central Russia – Ryazan Region and Kaluga Region. The farms receive new beet cultivation machinery, including precision seeders, lowvolume sprinklers, and advanced European harvesting units. We New Technologies use highquality foreign seeds. All these measures enable our farmers to gather good crops irrespective of the weather and Ryazan Milk conditions. - Do businesses make Ryazan Region ranks among the most investments in the development of the regional agro-industrial stable and dynamically developing sector? Russian territories. There has been This year the largest visible improvement in all spheres. We Russian dairy company YuniMilk have asked the regional Vice OJSC has made some steps Governor and the ViceChairman of aimed at the revival of Izhevsk How would you describe the Regional Government, Yegor Dairy Plant. the current situation in the Mitin, about the situation in the - What are the results of the regional agroindustrial regional agroindustrial complex. Accelerated Livestock Farming complex? Development Programme? Our agricultural sector We have already specializes mostly in meat and done in your region in this carried out a great amount milk farming. In 2006, milk sphere? of work under this production reached 386.4 We are implementing new programme and signed thousand tons. The average milk potato cultivation techniques investment loan contracts yield per cow amounted to 3,123 based on the European method. with the banks for the kg. Crop production is organized We also attach great importance construction and in such a way as to supply fodder to the introduction of new energy reconstruction of livestock and produce grain. This year we saving grain production production units. The total have gathered quite a good grain technologies, which imply the use volume of the attracted crop of 1,007,300 tons with an of combined tilling units and funds invested in the 20 average yield of 2.76 t per hectare. direct seed drills. Besides, we facilities amounts to 5 - Today, new agricultural extensively use new forage billion roubles. As of today, technologies and innovations conservation techniques, which introducing new agricultural the outstanding disbursements are all the talk. What is being involve hay packaging. We are machinery with widecoverage amount to 1.5 billion roubles. German Investors are to Build Agrotechnological Centre in Kaluga completed by next summer. A unique project, which has no analogues in Russia, When signing the agreement, has been launched in Kaluga Region. At the end of Anatoly Artamonov, Kaluga Region September, the Regional Administration, the Governor, emphasized the German companies Grimme, Lemken, and Wolf importance of the event. He said: ‘The significance of the project System and the RussianGerman company EkoNiva consists in the fact that it is a signed an investment agreement on the construction venture carried out by several of the Regional Agrotechnological Centre businesses, which make joint efforts for mutually beneficial By Svetlana WEBER cooperation. By this action they have set a good example for other As a matter of fact, EkoNiva Grimme and Lemken companies companies, showing how has been working in Kaluga are planning to construct facilities cooperation can help achieve Region since 2006. It owns for the production of agricultural better results than rivalry’. Kaluzhskaya Niva farmholding, machinery and equipment; the The investors share his which specializes in the seed Wolf System will launch the opinion. EkoNivaTekhnika breeding of European cultivated production of livestock housing Says FranzGeorg von Busse, Director Yelena Levina potato varieties. facilities and panel structures for the authorized representative of digs in the first peg on The idea of the Agrotechnical the construction of apartment LemkenKaluga: ‘I assure you that the EkoNiva allotment. Centre belongs to the EkoNiva blocks; EkoNiva will open an this centre will become an ideal President Stefan Duerr, who agricultural machinery service base for the development of working practice, and improve the invited his partners to invest in centre. agriculture not only in the region quality of training, bringing it in the new largescale project. The investors have already but in Russia at large’. line with modern requirements. Under this project, 45 been granted allotment certificates Implementation of this project In addition, the first construction thousand hectares of land in and in the middle of October will will be most beneficial for the local stage makes provisions for the Detchino, Maloyaroslavetsky start work on the construction of agricultural college. The Centre will creation of 100 jobs for college District, will be converted into a the future facilities. The first provide perfect opportunities for graduates on the Centre huge technological park. The construction stage is to be the organization of the students’ premises. №6 10 Oсtober 2007 8 Periodical of the EkoNiva Group of Companies

State Crop Strategy Testing: New Approaches and Development Prospects At the end of July Moscow State Crop Testing Station hosted a Field Day organized with the participation of EkoNiva. The participants discussed new approaches to state crop testing and the prospects of its development.

By Roman RATNIKOV Opinion Yuri Vasyukov, Director The Field Day had gathered representatives of the Gossortkomissia General of EkoNivaAgro: (State Variety Commission) Federal ‘EkoNiva Government Facility (FGF), the RF Ministry of was one of the Agriculture, the Moscow Region Department first companies of Agriculture, the Russian Academy of to suggest joining Agricultural Sciences, farm executives, and the efforts of the plant selection breeders. state, The reports presented by V.V. Shmal, represented by Gossortkomissia FGF Chairman, B.I. Gossortkomissia Sandukhadze, Academician of the Russian FGF, and private Academy of Agricultural Sciences, A.M. agricultural Medvedev, Corresponding Member of the producers in Russian Academy of Agricultural Sciences, crop testing station fields, to see the sites used testing new crop and other participants, emphasized the great for field and industrial experiments on the varieties on the basis of the following importance of state crop testing, which has study of the farming techniques and principles: the state was to provide been carried out in Russia for 70 years. At the competitive variety trials of basic crops. Winter methodological supervision and control of the same time, the speakers touched on the barley plantings received the most interest as tests, while private agricultural producers problem issues of crop testing and stressed it is the least studied crop in the Central were to ensure their high agrotechnical level. the need for pursuing its reform. Nechernozemye (NonBlack Earth Zone). The participants were shown advanced Summing up the results of the Field Day, This collaboration carried out at the Moscow agricultural machinery and equipment used the participants mentioned a high State Crop Testing Station and Shchigrovsky at the crop testing station: several classes of methodological and agrotechnical level of crop State Crop Testing Site (Kursk Region) enabled John Deere tractors, reversible Kverneland testing at the Moscow State Crop Testing the plant breeders to achieve a considerable ploughs, Carrier650 cultivators, a Vaderstad Station. They pointed out that those increase in the crop capacity of all tested crop Rapid300C seeder and small plot Zuern achievements would be far less outstanding if varieties. Consequently, they increased the (Germany) machinery. not for the mutually beneficial cooperation with efficiency of estimates carried out with regard Following this the participants went to the the EkoNiva Company. to new crop varieties suggested for production.

The introduction of Part IV into received on a seedfarm for private the Civil Code will mean a considerable purposes for a twoyear period. Selection Achievements updating of the seedbreeding legal On the whole, the amended Civil framework. Many concepts will be Code introduces order into the legal Under Protection revised. Thus, according to Clause 3, framework of seedbreeding Article 1421, the use of a selection protection. However it needs further Part IV of the RF Civil achievement covers its production improvement. It is especially true with Code comes into and reproduction, bringing it to the regard to the Law on SeedBreeding. effect on 1 January sowing conditions appropriate for 2008. The propagation, offering it for sale, selling Opinion it or otherwise introducing it into civil amendments Bagrat Sandukhadze, a plant- Legal Department circulation, importing it into the concern experts in Russian Federation, exporting it from breeder from the Agricultural intellectual property the country and storing it for the above Research Institute of Central protection in general purposes. Nechernozem Regions, and those of them Article 1446 defines the Academician of the Russian ‘infringement of the rights of the author Academy of Agricultural who specialize in the or another patent owner in respect of Sciences: legal protection of the selection achievement’ as a ‘Once we selection violation of the requirements specified improve the achievements in in Clause 3 Article 1421; giving the system of seeds a name different from the intellectual particular. However, property rights this measure will not registered one; or giving them a name identical or similar to the name of an protection in solve all the existing existing variety. the sphere of problems. Some new provisions introduced selection and into the Civil Code have already raised seed By Yevgeny KOLPINSKY criticism, particularly the granting of breeding, plantbreeders will no permission to use seed material longer be compelled to beg. №6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies 9 Focus Photo exhibition Please, send your pictures marked with “For the Focus on John Deere Photo on John Deere Contest” to the following address: EkoNiva and John Deere companies OOO EkoNiva-Tekhnika, continue the Focus on John Deere d. Zakharovo, Odintsovsky Rayon, Moscow R egion Photo Contest. 143022, Russia, or via e- The contest finishes in December 2007 and mail to: [email protected]. has the following nominations: Sowing with John Deere Best photos will be Harvesting with John Deere published in EkoNivaNews I work for John Deere journal and rewarded with John Deere: unusual angle cash bonuses and valuable prizes. John Deere: unusual angle I work for John Deere

Super-cab for super calves. The “Great Ready to work in the EkoNiva fields during the Migration” of calves to EkoNivaAgro seeding campaign! Guenter Beger, from the Federal Ministry of Food Supply, Agriculture and Consumer Protection (Germany)

“The armour is strong and our tanks are fast!” Harvesting with John Deere

Enjoying summer in Siberia. President of EkoNiva, Stefan Duerr, and Head of John Deere’s Russia Branch, Sid Bardwell, are Barley harvest in Zashchitnoye paying a visit to Sibirskaya Niva. №6 10 Oсtober 2007 10 Periodical of the EkoNiva Group of Companies

Regional news

The John Deere track tractor was the obvious favourite at the Field Day held by EkoNivaSibir at its Sibirskaya Niva experimental farm in Maslyaninsky District of Novosibirsk Region. Tracked tractors are particularly in short supply on the Russian market and the tractor presented by the John Deere Company is so far the only one in Russia. Powerful machinery On the first day, the event attracted over a hundred agricultural specialists and farm managers from different Siberian regions, and for challenging conditions the total number of participants amounted to the participants were given a chance to meet about five hundred. Rubin and Carrier cultivators attracted the a representative of the Riela Company, a major “Our aim is to get Siberian grain farmers most attention. The participants were also manufacturer of grain drying and storage acquainted with a variety of new agricultural impressed with the performance of the wide installations and equipment . machines, which are quite rare in our region coverage Schulte FX5026 mulch tiller, which The proficiency and dependability of the but have gained an excellent international can easily cope with corn stubble and young EkoNivaSibir specialists were also highly reputation for being reliable and economical,” treegrowth. The fascinated spectators watched praised by the representatives of Lemken and said EkoNivaSibir Director General Yevgeny it weed a field that had remained uncultivated Vaderstad plants, who had come specifically Gorbunov. for two years. to take part in the Field Day. Agricultural machinery was exhibited on The innovative hay and forage equipment Says Mr. Funker, Head of Funker Collective two sites. On the first site, the participants presented at the exposition will raise cattle Farming Enterprise from Altay Territory: could see the line of tilling machines, planters breeding to new levels of productivity and “The yield of one John Deere combine and seeders and combine harvesters. The efficiency through the provision of quality fodder chopper per season amounted to 3,600 tons other site housed a wide range of hay and and cost reduction. Thus, the use of the of herbage against 1,115 tons produced by forage equipment, including balers, a chopper, Fandekx tedder considerably reduces the each of our own three choppers. JD cuts the multipurpose crop trailers, mowers, rakes, haymaking period and improves the quality of stems practically to millimetresize shreds tedders and mixerfeeders. hay. leaving no waste. Moreover, the machine Rapid and Seed Hawk seeders, the This year, special priority will be given to proved to be very reliable and did not break Optima precision seeder, TopDown, Smaragd, grain cleaning, drying, and storage. That is why down throughout the harvest!”

and milk are growing and this fact serves as an additional incentive for the farmers.’ In the fields of Agrofirma Sredneivkino, Agroresource  2007: the participants and the guests of Agroresource2007 were shown the most advanced agricultural machinery in People, Machines, Technologies operation. Although the majority of the participants had already seen some of the The participants of the presented machines before, they couldn’t help admiring their power and beauty. Agroresource2007 The Chief Agronomist of Kirov Swamp workshop, which was held and Meadow Experimental Station, Svetlana on 8 September at Oparina, presented a report on the results of Agrofirma Sredneivkino the implementation of new technologies for facilities in Kirov Region, plant growing: ‘Vaderstad machinery showed very good results on cutover bogs and mineral were greeted with the soils. In fact, due to this machinery we vigorous sounds of a brass achieved an increase in grain yield.’ She was band. The organizers – supported by Irina Cheremiskina, Chief EkoNivaVyatka, Agronomist of ABSOLUTEAGRO Karinka Agrofirma Sredneivkino Farming Unit from KirovoChepetsky District: ‘As compared to the yield received with the and Nolinsk Agricultural old techniques, the increase amounted to and Mechanical College – had Sergey Zykov, EkoNiva-Vyatka Director 900 kg per hectare’. sent out invitations to the General, has formulated the principal goal As a part of the workshop an innovative of the workshop as follows: centre was presented. At the opening representatives of the Kirov ‘We want to show that in agriculture, apart Regional Department of ceremony, Nolinsk Agricultural and from advanced machinery, the development Mechanical College Director V. Vakhrushev Agriculture and Food Supply, resource includes advanced technologies and, defined its tasks: farm managers, agricultural of course, people.’ “The Innovative centre is a kind of a ‘triple specialists and scientists. The Stefan Duerr, President of the EkoNiva alliance’ formed by our college, Agrofirma guests arrived not only from Group, spoke about changing attitudes to Sredneivkino, and EkoNivaVyatka. The agriculture. Says Stefan Duerr: ‘In the last 5 Centre will be based in Sredneivkino since it Kirov Region but also from Perm years agriculture has changed dramatically all has a full range of advanced machinery. We Krai, , Chuvashia, and over the globe and the more so in Russia. are planning to open a training facility fitted . Agricultural industry is no longer looked upon out with the stateoftheart electronic as a ‘black hole’. Investors regard it as a training equipment. EkoNivaVyatka will use By Mikhail KOPTEV profitable business. Purchase prices for grain it to hold classes in new technologies.” №6 10 Oсtober 2007

Periodical of the EkoNiva Group of Companies 11

Our people Tatiana Burkhovetskaya: ‘We are a team’ EN-News Dossier It’s impossible to talk to Tatiana for more than three minutes without Tatiana Burkhovetskaya is being cut short either by her mobile EkoNivaAgro F inancial Dir ector. She successfully defended a candidate’s or her office phone and there is dissertation on the subject: ‘Formation of nothing you can do about it – it’s the an Efficient Owner in Production usual day of a business woman… Agricultural Cooperatives’. She has been employed by EkoNiva By Yulia SALKOVA since 2002 what you want. Before he was born I turned on my computer as soon as I came home. Now, if I am at work I mean to work, and my family try In 2002, at least a month. not to distract me with their calls, knowing Tatiana As for Tatiana, here’s what she only too well that being impulsive I can Burkhovetskaya, a thinks about her work: sometimes lose my temper. But when I go home young Candidate of ‘My work is all about achieving I leave all my workrelated problems at work. I Science*, began to high results. But it is also essential have very little free time and I spend it work as an to preserve your essential self, not exclusively with my family’. accountant at a to become selfimportant and not In EkoNiva people are judged by their newlyformed to loose touch with reality. We are a attitude to work. If you work late hours not EkoNiva team and because you are told to but because you feel Chernozemye everyone you must, if you fully Company. The does their give yourself to work company was just bit. Making ’10 days a week’, if you taking its first steps important are ready to go on a and could scarcely strategic decisions long business trip on find money for office paper to say nothing of a when the situation is far short notice, then you Consultant Plus System or an annual from clear always are the right person for subscription to the Chief Accountant Journal. involves great EkoNiva! Tatiana It was a challenging start to a career but responsibility. On the perfectly fits into this Tatiana was young, ambitious, persevering, other hand, when the tough schedule, which and practicalminded and she stood up to the decision you have taken even some men would challenge. So when EkoNivaAgro started to look proves to be correct you find very demanding for a financial director, Tatiana was the only feel elated.’ and it is not surprising candidate. When you watch that she uses the same This year EkoNivaAgro celebrated its fifth Tatiana tending her criterion when looking anniversary. At the corporate function Tatiana 17month old baby son, for her staff. Working in was declared winner in the “Nothing is Ilyushka, you immediately understand that she EkoNiva, a committed and determined person Impossible” nominated for her brilliant skill of is a wonderful mother. I asked her how she like Tatiana, who always accomplishes her talking bankers into giving her loans. And managed to combine work and family. Says tasks, is undoubtedly in her natural element. indeed, she is an unrivalled negotiator. Her Tatiana: ‘I can’t boast that I always cope or that colleagues say that it will take her three days my son never gives me trouble. Ilyushka is quite *Candidate of Science roughly to accomplish tasks, which will normally need mischievous and it isn’t easy to make him do corresponds to Ph. D

Young but not necessarily incompetent The Secret of EkoNiva Group Success the company’s Unlike many companies, in EkoNiva farming units. Roman Litvinov the hiring procedure does not EkoNivaAgro depend on the applicants’ age or livestock complex is experience. The key factor is their Yuri Korochenkov commitment to the job. successfully run by By Yulia SALKOVA Yekaterina Karpova, who is Group Currently, EkoNiva employs 2,000 only 23! Roman disproves this specialists. 70% of them are young people Litvinov, common under 35 and many of them hold managerial EkoNivaAgro Chief Denis Kondratiev opinion. Youth positions. Thus, Denis Kondratiev, Agronomist, is 27. and experience EkoNivaSibir Technical Director is Zashchitnoye (Kursk Region) Director Aleksey Yekaterina Karpova are equally approaching 27; Mikhail Molchanov, Head Bibikov is 33 and its Chief Agronomist Yuri appreciated. High of the AgroTsentrKursk Maintenance Service Korochenkov is 28. Severnaya Niva (Orenburg aspirations and is 29 and Gennady Nepomnyashchy, Region) is run by Sergey Ovcharenko, 29. ideas, so typical of young people, are not EkoNivaTekhnika Deputy Director is 30. They say that young people in Russia ‘nipped in the bud’ as is so often the case The situation is very much the same in have poor job prospects. However, EkoNiva elsewhere. №6 10 Oсtober 2007 12 Periodical of the EkoNiva Group of Companies Extracts from an interview with EkoNiva Group President Stefan Duerr for the periodical Nachrichten des Verbandes der deutschen Wirtschaft in der Russischen Foderation you 7 or 10% of the interest, depending on the circumstances. This leaves only 2 or 5% interest that has to be paid in real terms, which is pretty decent. I consider this to be a very good programme. - Are there particularly promising branches of agriculture at present in which one ought to invest? Both in agriculture and in the processing business the opportunities are enormous. But whatever is particularly profitable is also subject to uncertainty. At present milk is worth its weight in gold. But that can change overnight. Agriculture must always stand on many different pillars. It is either too wet or too dry, too hot or too cold. For one crop the rain - What does Ekoniva actually do? someone wanting to start a farm in Russia comes too late, for another just at the right We have three main lines of business: today? time. So you can’t put all your money on one the biggest is dealing in farm machinery. This He would need to bring a lot of warm thing. year we expect sales revenues of 120 million clothes and plenty of patience. But the - How do you rate the results of the euro. The second is our own agriculture. We opportunities are enormous. I can only urge National Agriculture Project? farm about 65,000 hectares of land. The third anyone who has the patience and is not The results are very good in my opinion. is the seed trade. discouraged by setbacks to come here. But you The National Project has liberated agriculture - Which line is doing best? have to start on a large scale straight away. A from its image as a black hole for cash, giving At present the trade in farm machinery farm of 200 hectares won’t work here. In it a new status and making it into a is doing best. Money can be earned faster in Germany a farmer can concentrate on his farm, respectable sector of the economy. The trade. But in the long term farming is more leaving all the organizational work, such as standard has risen, and many new lucrative – you just have to invest much more bookkeeping, banking, marketing, and technologies have found their way to time and work in it than in trade. purchasing to others. In the morning, for example, agriculture. - What forms does agriculture take the dairy truck stops by and collects the milk, Without the National Project in today’s Russia? and the dairy to which the farmer sells it is stockbreeding would undoubtedly have gone Five to ten percent of the former collective known in advance. Everything runs of its own down the drain. Stockbreeding is the slowest and state farms managed to survive the accord, without the farmer having to see to it branch of farming to yield a dividend – rigours of the 1990s. That was an extremely specially. Here in Russia there is much more because of the high initial investments, the difficult period for agriculture. Only the most organizational work to be done: what you long lead time, and the slow turnaround time. resilient enterprises managed to survive, and purchase and where, what you sell and to whom, If you set up a stock farm it will be eight years these are now the really good ones. Quite a and the whole carryon this entails – book– before it pays off. If you have to pay interest of few of them have in the meantime taken over keeping, finance, taxes. This is too much for 12 or 14% for that length of time, you might as two or three of their neighbours and now farm one person to cope with, even for a smaller farm well close up shop. areas of about 20,000 hectares. of 200 hectares. The result is you need staff. - What is the most difficult thing in Then there are investors who combine But when you employ people here, that’s when agriculture as far as you are concerned? several enterprises into big agroholdings. the problems really start. So if you want to start It is extremely hard to find good, These agroholdings cover huge areas of up to a farm you should do it on a large enough scale motivated workers who are prepared to accept 500,000 hectares. There are purely financial to be worth your while. In my opinion farming in new technologies and processes. Good young investors, but also investors from the Russia with less than 5,000 hectares makes people who have studied agriculture generally processing industry, such as sugar producers, no sense. do not go back to the farm. Usually they go oil mills, flour mills, and dairies. There are - What are the possibilities of and work in a quite different sector or, if they investors at regional level, such as financing? stay in agriculture, they go to farm machinery construction companies that also want to You must have a certain amount of equity. dealers, pesticide manufacturers, or seed engage in agriculture. This large group of But in general the banks here are more willing merchants. It is very difficult to attract them investors accounts for about 50 percent. The to finance agriculture than in Germany. The back to the land. We have four Germans in rest are farms that muddle along somehow interest rates are about 12 or 14%. The various enterprises and I would take on five in the same old way, but will soon be snapped government has launched a National more like a shot. Meantime we have got a up by one of the holdings. Agriculture Project with an interestsubsidizing good, young Russian team together. But they - What advice would you give to programme, under which the state returns to really are handpicked people.

EditorinChief: Ms. Svetlana Weber Translated by the Kursk Translation Bureau Makeup Editor: Ms. Natalia Delitsina www.perevod.kursk.ru, email: [email protected] The journal was printed in OOO Polstar, Address of the editorial office: Zakharovo village, , 8 Elevatorny per., Kursk, Russia Moscow Region 143022, Russia. Tel. 007 (495) 933 00 31/32 tel. 007 (4712) 38 35 01 www.ekoniva.com, email: [email protected] Publisher: OOO EkoNivaTekhnika Circulation: 500 copies Order No.______