For broilers found a CEO

"Trust" took a top manager from a competitor.

"Trust" before the sale of poultry assets, inherited from the ex-owner of Binbank Mikail Shishkhanov, is trying to increase their investment attractiveness. To do this, the bank of non-core assets intends to launch the production of semi-finished and finished products on the basis of its two holdings - Healthy Farm and Russian Grain. To do this, the company hired Genrikh Arutyunov, a former top manager from the rival Prodo group.

Genrikh Arutyunov has been appointed as the new CEO of Trust-Poultry Assets Management Company. This was told in the bank of non-core assets "Trust". Previously, Mr. Arutyunov served as COO of Prodo Management LLC, which is part of the Prodo Group of Companies (a major producer of poultry and MEAT products under the Klinsky and Troyekurovo brands). There he was responsible for the development and implementation of business processes in poultry, pig, meat processing, and crop production. Prodo declined to comment on the appointment. Genrikh Arutyunov took over the post of Alexander Pak, who could not be contacted. Trust did not comment on the reasons for the change of the CEO.

Trust-Poultry Assets unites the enterprises of the Healthy Farm Group of Companies and the Russian Grain holding, previously owned by the ex-owner of Binbank, Mikail Shishkhanov. According to Trust, in the first six months of 2021, the total revenue of companies increased by 1.3 times, to 14.1 billion rubles. According to the estimates of the National Union of Poultry Breeders, the volume of production of companies included in the Management Company "Trust-Poultry Assets" amounted to 169 thousand tons of broiler meat in live weight, GC "Prodo" - 192 thousand tons.

Genrikh Arutyunov is faced with the task of increasing the financial performance of companies and increasing the investment attractiveness of assets, the Trust explained. According to Mr. Arutyunov himself, it is possible to increase sales by entering new regions, as well as the market for semi-finished products of a high degree of readiness and ready meals. All this should affect the real value of assets, says Anton Ulanov, Chairman of the Board of Directors of Trust-Poultry Assets Management Company. Trust is trying to increase the value of the poultry assets it inherited in order to sell them more profitably in 2023, as previously planned, the bank acknowledges.

Agrifood Strategies President Albert Davleev points out that deep processing plans are a logical step for large vertically integrated poultry companies. According to him, deep processing, including the creation of semi-finished products and finished products, takes from 30% to 50% of the total production in such companies. This allows you to simultaneously increase the added value and expand the range of offers, which is important for working with federal retail chains, the expert explains. In the future, up to 70-80% of the products of poultry farms will go into deep processing, and not be sold in the form of chilled meat, Mr. Davleev adds.

“A lot of pig-breeding complexes are being built now, which is already putting significant pressure on the meat market as a whole,” says Sergey Lakhtyukhov, president of the National Union of Poultry Breeders. According to Rosstat, as of August 1 this year, poultry production decreased by 1.9% year-on-year, to 3.53 million tons. In such a situation, he continues, today it is more profitable for profile market players to buy already operating poultry complexes than to build them from scratch.

Aleksey Matyukhov, managing partner of BMS Group, calls the poultry meat market attractive in terms of both domestic consumption and EXPORT opportunities. Additional incentives, according to the expert, is also the support of poultry farming by the state, which has launched a program of concessional lending to the industry.