Ekosem-Agrar GmbH, the German holding company of Russian milk producer Ekoniva Group, continued to expand its position as Russia’s leading raw milk producer in 2014 with dairy cow numbers rising from 19,300 to 22,000 animals, and milk output up by over 28% to around 153,700 tonnes. Average milk production per cow rose by 5.4% from 22.68 litres in 2013 to 23.90 litres last year (17.8 litres in 2010), and average daily milk output increased 16.2% to 430 tonnes. When the dairy herd is lumped to beef cattle and followers the massive operation increased total cattle numbers to 52,700 last year. Ekosem-Agrar’s business model is focused on the underdeveloped Russian milk market, where the company was able to realise higher milk and grain prices (pegged to world market prices in USD and EUR). Milk prices remained stable at a high level of around 27p/lit, and management is satisfied last year’s harvest will cover the fodder requirements until 2016. Despite the weak rouble, the company continued its profitable growth in 2014 with preliminary figures pointing to a significant rise in net income from 2013’s €2.1 million to in excess of €10 million. The exchange rate effects resulting from the massive depreciation of the rouble and the increase in financing costs are also felt by Ekosem-Agrar but managing director and main shareholder Stefan Dürr is satisfied with last year’s performance. “We were able to prove the sustainability of our business model in what was a politically and economically very difficult environment,” he says.