Domestic producers’ provided Carlsberg Group in Russia with 100% brewing barley needed

september 28, 2017

Photo1 Results of the agricultural season 2017: Carlsberg Group in Russia satisfied 100% of its demand for brewing barley with the harvest of 92 domestic producers from 14 country’s regions.

These are 92 agricultural enterprises, which the company cooperates with through agro project. They are located in the European part of the country (Tula, Ryazan Lipetsk, Orel, Kursk, Voronezh, Tambov, Penza, Ivanovo, Nizhny Novgorod, Bryansk, Moscow regions) and in the Siberian Federal District (Omsk Region and Altai Territory). Many agricultural enterprises work together with the Carlsberg Group for more than 10 years.

All agricultural enterprises strictly adhere agro technology and use only seeds of high quality to get high quality harvest. It became possible due to developing agro project of Carlsberg Group in Russia. The company is interested in minimizing its dependence on imported raw materials and takes efforts to improve quality of Russian raw materials. Company experts help to develop agriculture and produce high quality brewing barley.  Together with farm agronomists they control barley quality on different levels – from creating a seed fund to transportation to malt houses and breweries.

Photo2The brewing barley for the agricultural project is grown on more than 80 thousand hectares. The farm’s brewing barley yield is constantly multiplying due to the innovative technologies implementation.

For example, the average barley yield in farms of the Tula region in 2017 was 50 c/ha (+ 31% compared to 2016), of the Ryazan region - 46 c/ha (+ 35%), of the Voronezh region – 38 c/ha (+ 58%), of the Penza region – 48 c/ha (+ 65%). The average yield for all Russian agricultural enterprises which the Carlsberg Group cooperates with was 47 c/ha in 2017 (+ 42% compared to the previous year).

In October 2017, experts of the soil laboratory of Carlsberg Eastern Europe will prepare for the next barley’s yield cultivation. In order to do this, they will visit agricultural enterprises, which work with the company, and take the soil’s samples from the fields. Then laboratory specialists will give agricultural enterprises recommendations on application fertilizers for brewing barley. All this would allow the company's partners to provide high yield and quality in September 2018.

Igor Matveev, the Head of Production and Quality, Carlsberg Eastern Europe: To brew good beer you need certain quality malt. It becomes possible to provide raw materials produced in Russia, which answer European quality standards only by controlling the entire chain: from field to malt. There are few success components. The first one is choosing of sort. 5 years ago the sort tasting station built in Tula region. Some of the brewing barley sorts have been recently included in the register of selection achievements of the Russian Federation. The company has very strict selection criteria and only 10 of 200 sorts, which were restarted in Russia, got an approval of Carlsberg Group’ specialists. Carlsberg Group Research Center, which creates innovative varieties of brewing barley, actively assists with Russian experts of the company during their work. There are three Danish varieties of barley - Chill, Cherio and Charles – registered and successfully grown in Russia. The second one is a correct agro technology. We choose agricultural enterprises who have an ability to grow from our seeds qualitative brewing barley, we also hold regular seminars - the so-called "Days of the Field" - with the involvement of Russian and foreign experts. The third one is proper storage. We store barley only in well-ventilated silos with strict control over storage temperature. The sorting complexes, which are installed at each elevator, allow to separate small grains and weeds in accordance with the company's specification. The fourth key to success is strict control of the technological process at all stages of malt production and analysis of each batch by using EBC (European Brewery Convention) methods."

Carlsberg Eastern Europe produces malt on its malt houses in Tula and Yaroslavl. The barley of high quality cultivated for Carlsberg Group by domestic producers, and the high qualification of the malt's specialists, allow the company to produce malt in a quality equal to the malt produced in Germany and Czech Republic. The malt, which is produced from domestic barley, 100% meets the needs of Baltika Breweries, which purchases it from Carlsberg Eastern Europe.

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Baltika Breweries, part of the Carlsberg Group, is one of the largest manufacturers of FMCGs in Russia and No. 1 in the Russian beer market since 1996. Baltika owns 8 breweries in Russia and a wide portfolio of brands. The company is a significant part of the Carlsberg Group and its region of Eastern Europe, which also includes Azerbaijan, Belarus, Kazakhstan and Ukraine. Baltika Breweries is the leading exporter of Russian beer with its reach in over 75 countries, in 43 of which the company is the only Russian supplier in the category.

Carlsberg Eastern Europe is part of the Carlsberg Group, which exists on the Russian market since 2015. One of the business areas is the development of an agroproject with the aim of obtaining brewing barley, corresponding to European and Russian brewing standards.

Carlsberg Group started implementation of the agricultural project in Russia in 2005. The company's own agroproject allows to ensure guaranteed volumes of brewing barley and reduce costs on raw material due to optimization of the procurement system and increasing the project partners’ interest thanks to stable orders. The Agroproject promotes the development of agriculture and provides jobs for about 15,000 people throughout Russia. Within the framework of the agro-project, the company provides agro-economy with high-quality technologies and seeds, and also guarantees fixed volumes of purchases to agricultural producers. At the same time, Carlsberg receives from the farms the necessary volumes of barley at fixed prices. The company’s experts control the agro technology and quality of barley at all stages of its cultivation - from the creation of the seed fund to the storage of barley. As a result, Carlsberg Group provides the high quality of the raw materials and products used by the company. The geography of the sown areas of the agroproject covers the Central, Central Black Earth and Siberian regions.

On Sepember 29, 2015 in the village Tovarkovo, Tula region, a new elevator for brewing barley was opened as part of the implementation of Carlsberg Group’ agricultural project. The capacity of the facility was 41,000 tons, and the project itself was included in the twenty largest investment projects in the Tula region. The infrastructure of the elevator, located on an area of 2.02 hectares, includes two granaries - 24 000 and 17 000 tons, a working elevator building, a device for rail and road transport, capable of receiving and loading grain to 100 tons per hour, grain drying unit with two silos for 520 tons, which are manufactured by the world leader of the segment - the Spanish company Symaga, and an administrative building with a production laboratory, autoweight. The total annual turnover of the object is 232,000 tons of barley per year.

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