Perm pig farm is in a critical financial situation

The situation of JSC Permsky Pig Farm is deteriorating: employees are delayed in wages, there is not enough money for animal feed, there is a death of pigs, debts for electricity are growing.

The recent commissioning of modular boilers, which had high hopes, did not improve the situation. Experts explained that one should not expect an instant effect from such transformations: the return will follow only when the payback period of the objects ends.

In the last days of March, the public council "Mayskoe sodruzhestvo", created by residents of the workers' settlement Maysky (Krasnokamsky district of the Perm Territory) organized a meeting with the management of the Perm pig farm, the trade union committee of the enterprise and the chairman of the zemstvo assembly of the Krasnokamsky district Grigory Novikov. Public Council representative Pavel Volegov spoke about the deep crisis in production.

Zhanna Perevoiko, First Deputy DIRECTOR of Perm Pig Farm JSC, confirmed that the stock, which is in safekeeping, really does not have enough feed. Legally, the herd is owned by the former tenant of the assets, Permsky Pig Farm LLC. According to Perevoiko, now 600-800 grams of feed is consumed per animal - less than a third of the daily allowance (2.6 kilograms).

High accounts payable and high energy costs entail an increased financial burden. In addition, prices for raw materials for animal feed have recently jumped sharply. The regional subsidy in the amount of 200 million rubles, received last year, was spent on the purchase of feed for three and a half months. The deputy director promised to close the salary debts by the end of the month, but along the way she noticed that everything depends on the proceeds. Now the pig farm is operating in the maximum savings mode, and two running boiler houses save the company about 100 thousand rubles a day.

Initially, it was assumed that the installation of modular boiler houses would improve the financial position of the Perm pig farm. The contract for the modernization of its heat supply system was chosen by one of the enterprises of the Perm Instrument-Making Company - Integrated Systems of Industrial Automation LLC. According to the project, it was planned to install four boiler houses in the industrial zone: thus, it was only 50% implemented.

Despite the launch of two modules out of four, the utility debts of the enterprise continue to grow. According to PJSC Permenergosbyt (PESK), in the first quarter of 2021, the debt for electricity increased from 12.1 to 35.3 million rubles, and no payments were received during all three months. 

The expected increase in production efficiency from the modernization of the heat supply system is not observed. The former HEAD of the Perm pig farm, Vladimir Belozerov, emphasized that the launch of boiler houses could not immediately reduce production costs, like any serious investment. Usually the payback period takes more than one year.

Igor Malykh, a deputy of the regional legislative assembly from the Krasnokamsk district, said that now the only way out for the enterprise could be state support, and some significant internal transformations are required: reconstruction or, possibly, re-profiling of the production complex, which is owned by the region.

The government of the Perm Territory is actively looking for an investor capable of reforming the pig farm. Bashkir MEAT Company LLC (Tavros Group of Companies) and Doronichi agro-industrial holding are considered as possible applicants. As we reported the day before,  Perm Pig Farm JSC revaluated its net assets.