22 June 2018

KROL i K LLC Rabbit Breeding Farm Has Launched the Fourth Production Line

KROL i K LLC Rabbit Breeding Farm Has Launched the Fourth Production Line

The fourth production line at Krol i K LLC has officially been launched in the Gagarin District, which is one of the fastest developing enterprises in processing sector of the region. Governor Alexey Ostrovsky has participated in the event.

At the moment Krol i K LLC is the largest industrial enterprise in Russia, producing rabbit meat and using the state-of-the-art European technologies. The total livestock currently amounts to more than 18 thousand doe rabbits, reproducing up to 750 thousand rabbits a year. The output totals to 80 tons per month.

At present the fourth production line has been put into operation. Its launch allowed for increasing the total farm population by 3 thousand doe rabbits, as well as creating about 15 new jobs (in total 150 employees currently work for the enterprise).

It is also worth noting that the industrial enterprise was built with regard to the latest development trends in animal keeping and breeding, genetics, selective breeding, slaughtering and waste disposal, which form the basis for bringing the company’s activity into compliance with the international statutory and environmental requirements. A competitive advantage of the farm is a feed-milling plant as part of its production chain, that allows for mitigating veterinary risks. This way of arranging a rabbit breeding farm is unique to Russia.

Krol i K LLC is a regular participant of PRODEXPO International Exhibition for Food, Beverages, and Food Raw Materials, and takes active part in the Golden Autumn Russian Agricultural Exhibition. By the result of 2016 the company products were awarded a gold medal by the Ministry of Agriculture, and received a silver one last year.

Having investigated the third and the fourth production lines of the rabbit-breeding farm, Governor Alexey Ostrovsky discussed the prospects for further development with the company’s top management focusing on measures of additional financial and non-financial support provided by the Regional Administration Office.

Ludmila Uzhegova, Sales Director, thanked the Governor for the rendered assistance and noted: “It is due to your support, that our enterprise is rapidly extending, scaling up the production, increasing the output. Special thanks shall be given for our participation in the regional business mission to the People's Republic of China in May this year. We appreciate this valuable experience. But the growth in production brings the need to increase our market share. We are deeply interested in promoting the products manufactured by our company in large food retail chains at the federal level. For example, in the Pyatyorochka chain of stores. We are looking forward to your assistance in this matter.”

As part of discussion, Vice-Governor Rostislav Rovbel commented on the specific measures taken in this respect: “The price for the rabbit meat is rather high, that is why we are currently working at the so called ‘clusterization’ together with X5 Retail Group – we choose among retailers, offering a specific price range, where the products by Krol i K LLC can fill the market niche. This procedure is to be completed by August 1st, and as soon as the catalogue bearing the single trade mark is agreed, we can go ahead with conclusion of supply agreements for the products made from rabbit meat, with such retailers as Pyatyorochka.”

Ludmila Uzhegova also gave feedback on the product range and plans for marketing development and added that the range comprises 33 items at the moment, including not only dead rabbits but also ready-to-cook products, such as meatballs, pickles, etc. – which make up 10% of the total output. Besides, taking into account the growing demand for dietic meet, Krol i K LLC is going to produce cevapcici, potstickers and burgers in the long run. The enterprise also works in close cooperation with the companies, producing baby food (under the brands of Frutonyanya, Babushkino Lukoshko), supplying them with the rabbit fillet. Besides, according to Ludmila Uzhegova, management of Krol i K LLC are interested in collaboration with countries of the near abroad, including, the Republic of Belarus and Kazakhstan.

While discussing the enterprise plans for further development, investors shared their vision for the output expansion, having informed the Governor of the project related to construction of a breeding and genetic centre to be implemented this year together with HYPHARM company from France (which specializes in genetic breeding and deliveries of the parent and grand-parent herd of rabbits). This project will allow to continue import substitution program, increase the breeding stock of rabbits and produce more slaughter rabbits, as well as create about 30 more jobs.

Summing up the visit, Alexey Ostrovsky underscored: “I am heartily glad that such a company as Krol i K LLC is located in our region. For its part, the Regional Administration Office will continue rendering its extensive support aimed to facilitate the company’s progressive development. As far as I can see, everything necessary is provided for that. There are worthy ambitions, available financing, and above all, the company’s wish to continue further development and move on.