Agrofeed cegismerteto eng

feeding through knowledge

Agrofeed Ltd.

premixes, concentrates, feed additives

The Company Agrofeed Ltd. is one of the most significant European producer of high quality premix, concentrate and feed additive for a large spectrum of animal species, with an expanding market that includes over 15 countries in Europe, Middle East, and Northern Africa. For more than a decade, our company has been a reliable partner and internationally recognized supplier of top quality premix, concentrate and feed additives for mid to large size poultry, pig and cattle operations both integrated and stand alone, along with private brand companies.

We offer more than 1000 standard and individual products to our customers worldwide, made with the most recent technology, highest quality ingredients and components, custom made to their specific needs for maximum return on investment. Our partners can choose the most proper feed premix, concentrate or pre-starter tailored to their own specific production targets, livestock, farm facilities and production technology.

Our company’s innovative improvements in feeding production are based on the most recent field and controlled research programs, scientific literature and recommendations as well as results from targeted research at our own test farm, large scale experiments conducted in conjunction with our partners’, and field observations and results achieved by our customers in various regions.

Agrofeed Ltd’s up-to-date feed optimization service assures outstanding performance in meat, egg and milk production and results in low feed conversion ratio and cost effective husbandry. Agrofeed Ltd. with its modern business organization has dynamically improved since 2001 and has reached the capacity to provide high quality premixes and additives exceeding 4 million tonnes per annum.

2

Agrofeed has secured 30% of the Hungarian market: two-thirds of our premixes are sold on the export market out of which, currently, Russia is the most significant. Of course, our goal is to expand our market share in all the markets we are involved and also enter into new markets.

Our factory in Hungary operates under the most stringent QC/QA programs and has been under continuous improvement and expansion.

We will be celebrating start up of second factory in Russia in 2015 to be able to meet the requirements and provide better service to our growing customers worldwide.

The keys to our success are detailed attention for selecting best quality raw materials and ingredients, scientific formulation, and ongoing quality control and assurance supervised by welltrained staff and a professional team during all levels of production. We emphasize the importance of professional technical service activity, which we provide to partners in several fields, from the feeding strategy, technological and operational advice through reproduction biology and animal health to production and quality assurance.

We also support the success of our partners with regular meetings, organizing trainings and publishing professional papers as well as publications from time to time.

Tibor Csitkovics

István Szekeres

PEOPLE behind the knowledge Dynamic development and increasing success of both Agrofeed Ltd. and its partners are only achievable with professional knowledge and devotion to customers’ requirements. The focus of our strategy is on applying up-to-date knowledge, species specific expertise, and practical experience in everyday production, product development and professional service; in one word: we serve our customers.

Agrofeed’s professional team contribute to the success of both company and partners with their daily activity and involvement with both production units and feed producer partners. It means an up-to-date feed recipe development and on-going collaborations, professional visits, and communication.

As a participant of animal feed industry our main focus is on professional work, but in parallel we emphasize on quality assurance system, logistics and formidable marketing activity to ensure results and positive progress for both Agrofeed and partners. We are proud of our 200 workers who accomplish the goals and contribute to the company’s success with their professional knowledge, loyalty and diligence.

3

History and structure Agrofeed Ltd. was established in 2001 by Hunga­ rian owners and started its sales activity since then to the Hungarian market and to Eastern Europe. The two owners, Mr. István Szekeres and Mr. Tibor Csitkovics as managing directors actively take part in direction of the Agrofeed Group.

Parallel with our start the Russian (OOO «AgroPremix») and Ukrainian (TOV «Agrofeed Ukraina») sales companies began their activity. The earlier contract manufacturing had changed into fully in-house production in our factory, built up in Szalkszentmárton by 2005. We

targeted the most advanced technology in premix, concentrate and pre-starter feed production. At the end of 2010 and the beginning of 2011, the factory went through the expansion. In 2011, Agrofeed purchased Vivafarm (our test pig farm), which was renovated. In the future, we aim to broaden the activity of Vivafarm with poultry test houses. Vivagen artificial insemination station has belonged to Agrofeed Group since 2012.

In 2014 and 2015, a new premix and concentrate factory (OOO «Agrofeed Rus») which is being built in Jasnogorsk (located south from Moscow) will be supplying Russian, Belarusian, Uzbek and Kazakh partners in a more flexible and cost effective manner.

The professional team of Agrofeed Ltd. supports our commercial, sales and professional service activity not only in the Hungarian but also the export markets as well. Agrofeed, as a modern and 21st century enterprise, takes business ‘personal’ and partners’ interest into account. Our activity is assisted by Navision enterprise resource planning software, including all areas: production development, feed formulation optimization, supply chain, production, quality, traceability, sales and finance.

4

Activity, product range, innovation Agrofeed’s credo is “knowledge which feeds”; this perfectly describes our endeavours to provide innovative and quality feed products at a reasonable price with high level of service support.

The expanding markets and the increasing number of partners proves the efficiency and success of our team. Agrofeed has been experiencing a very positive growth rate, and has become the biggest premix, concentrate and prestarter feed producer in Central-Europe. Our production has exceeded 80 thousand tons while the sales revenue has reached 70 million Euros. During the last decade, Agrofeed have met the market demands and challenges well above expectations and could avoid the effects of the economic crisis and thus maintain its continuous dynamic development.

Agrofeed line of products for all animal species that include premixes, concentrates and other feed additives are solely produced form reliable raw material. The present production volume exceeds the needs of the Hungarian market. Excellent processing results of our partners prove the success of Agrofeed’s product development and innovative activity ac-

companied by support of the quality department. This has enabled us to expand our market both in terms of volume and regional territories.

Advanced knowledge and practical experience are the determining elements of our product development and production. The factory in Szalkszentmárton is one of the most modern and newest premix factories in Europe, which makes it possible to manufacture over 1,500 types of products each year. Automatic production line, quality assurance and traceability, barcode system for raw material and end product contribute to the production of excellent products and help to avoid potential mistakes during the production. Precise logistic SOP’s ensures the accurate service of our partners. Aside from this, we use modern laboratory techniques and audit programs.

using up-to-date research and practical results as well as international recommendations. We prepare and offer more than 1,000 different – custom designed – based on the specific needs of our customers. We review and take into considerations the species, climatic specifics, production intensity, length of production period, special production expectations, technology, hygiene and animal health aspects of each client and account, separately. We keep in mind all the regulations determined by the animal health authorities and the quality department as well as other feeding aspects and economic expediency defined by the partner.

Effectiveness of our approach and company success can only be verified by the success of the programs and products we offer based on the production results, which based on a general program offered to each customer. Our experts regularly analyse and evaluate pilot productions/test productions and practical results to be able to determine the directions and proper steps for future development.

Agrofeed Ltd. provides its domestic and international partners with quality products and raw materials. Premixes are formulated based on the genetic, technological, production requirements and feeding strategies of modern genetic lines in all species. Throughout manufacturing our products, we put stress on

5

Agrofeed Group Agrofeed Group consists of the following companies besides Agrofeed Ltd.: the Russian OOO «Agro-Premix», OOO «Agrofeed Rus», the Ukrainian TOV «Agrofeed Ukraina» and the Hungarian VivaFarm and VivaGen. Ea st-European partners

OOO «AgroPremix» and OOO «AgroFeed Rus»

Our Hungarian companies

Tov «AgroFeed Ukraina»

The artificial insemination station, specialized for pigs, in Bag, has been supplying pig-breeding sector with precooled sperm and reproduction biology consultancy. Thus, to be able to optimize production results, we not only provide feeding advice but also support partners from the side of production and reproduction biology.

Agrofeed’s activity in Russia started on 2001, which was same year as the start up of the company.

OOO «Agro-Premix» in Tula is our commercial and consulting company dealing with more than 2 million tons of compound feed per year. This company arranges import product registration, customs clearance, storage and distribution and transportation.

This volume clearly shows the importance of the Russian market, as with our 10% share we are one of the most significant premix suppliers of the leading pig and poultry integrations. Encouraged by the success, our new company’s OOO «Agrofeed Rus» premix factory is being built and will be ready in 20142015 through a greenfield investment. The factory is located in Jasnogorsk from where Russian, Belarusian, Uzbek, and Kazakh markets will be supplied.

6

Our company in Kiev organizes commercial and consulting activities on the Ukrainian market, including product registration, customs clearance, storage and transport. Our pig and poultry production partners are the leading companies in the Ukrainian animal breeding sector. Besides the 40 employees working and taking care of personal contact with the customers in East-Europe, Agrofeed Ltd.’s Hungarian managers and professionals also take part in Russian and Ukrai­nian works. They are integral parts of trading, market developing and consulting activities.

The test farm in Lovászpatona, built in 2011 and totally renewed in 2013-14, is an important place for pig premix and feed development. Before offering the new products to our partners for large scale usage, we have the opportunity to test their efficiency, achievable production results and economic aspects in our pig farm of 200 sows. Considering the potential of the farm in Lovászpatona, in 2015, we wish to install also a poultry test farm here.

Markets and references of Agrofeed Ltd. Agrofeed Ltd. is the reliable supplier of animal breeders and feed producer integrations as well as large and medium scale companies and distributors in Hungary, Eastern Europe, the Middle East and North Africa. Besides strong local presence of our business units we have a significant market share in Eastern Europe. Poultry business is continuously expanding its activity in all the above mentioned regions. At present, we cooperate and have business relationship with 450 Hungarian and 250 foreign companies.

Our successful activity is proved not only by the dynamic development in production, but also the expanding sales markets. Agrofeed Ltd. highlights the importance of involving their partners and reflecting on their feedback. This way, we can develop competitive prices. Professional service also strengthens our market development and expansion possibilities. We have excellent references both with Hungarian and international companies confirmed by international publications. International results can be shared and discussed at our partner meetings and trainings and we also publish them in our professional issues.

BY CZ A I

RUS

SK

UA

HU

KZ

MD RO

UZ TR MA

DZR

IR

ET SA 7

Agrofeed’s premix producer factory Close to Szalkszentmårton (in Nagyvadas), central Hungary, one of the most modern premix, concentrate and prestarter producing factory of Europe can be found. It was established in 2005 with the help of EU funding, and in 2010, we modernized it from own resources. Dutch Van Aarsen technology, e.g. SID and MID micro component dosing units, fast mixer with fluid system, granulating lines with dual hygienic conditioners, ensures safe and reliable production. Human factor and error is completely excluded by the automated production line.

Microsoft Navision is used for automated production line and production can be followed from any aspects. This guarantees a fail-safe, precise and quick process. The basis of traceability and identification is the EAN code system. Incoming ingredients and raw materials get a LOT number before being used. A product code and customer identification code is also given to be able to trace back all products at any stage of production, with maximum security.

EAN code system is also applied while filling silos and preparing or measuring premixes and semi-finished products.

At any given time, we may hold over 100 products in the storage area. To control any potential problem with mix up, applying identification of end-products guarantees perfect security while dealing with the goods. Within 2 minutes, highspeed mixers mix homogeneous end products even in case of the smallest amounts with ease and highest accuracy. We have implemented

8

regular controls that have created better results than the international standards. Homogeneity CV in case of premixes does not exceed the 2,5% while in case of feeds it is 7%.

Up-to-date bagging lines and palletizing ABB robots are responsible for finishing the end products.

Quality assurance system, controlling products The main pillar of our quality control policy is to be a significant participant of food chain with the best quality products. Modern production technology allows us to offer stable and reliable quality – as it is the primary aim of Agrofeed Ltd. To be able to reach this, all our workers and professionals make efforts and enhance excellent cooperation with suppliers. Production and distribution of the whole product structure is controlled by internationally recognized and audited system, such as Fami-QS and ISO 22000-2005. Our quality control system possesses HACCP plan and manual including all stages and elements of our production activity. Before producing any of our products, we regularly control and evaluate all suppliers and their products, which are used. With using Navision system and EAN code system during production and storage, we can meet all the quality requirements, i.e. traceability and identification. Raw material and finished product go through specific quality control and tests, which take place in our own laboratory and also in Hungarian accredited laboratories. We cooperate with the internationally recognized LUFA west-European laboratory group as well.

European Feed Additives and PreMixtures Quality System

9

Raw material supply, management, feed additives business

An

ti

t ain Fa t s B e

Sa In

zy

s

En

uc

m

es

s

B

rs

ts

gm

xi in

ac

b

ino

n

Am

ids

rs

da

nt

s

En

er

Ac

gy

idi

ic

do

rg

ts

ne

Ve te su

f ie

an

pp

rs

ra

r in

P ig

ls

ar y

lem

pro

ent s

an

let

duc t

ic m

pre s

ine

r al s

t a r te r

s

Besides raw materials and premixes, feed additives are added to the feed or water to reach a more significant effect during animal breeding or product quality. (Aside from our main product lines, we offer specific feed additives including pre and probiotics, trace element mix, micro-elements, etc that improve the potency of the products) Positive effects:

O r g a ni c

xi

de

en

Mi

tio

as

s at st

om

io

ar

An

id

and

cc

ur s

Co

F l avo

To

fe

Pi

an

acids

pr

rg

o

la

od

ce

te s

ur

el a

so

el

ein

on

ot

Ch

Our professionals through technical service and consultation solve specific demands and challenges effectively.

lm

Pr

e

ine

P r o b iotic s

V i ta m

uf

pr A g r f e em o f e e d ed i x e s an ad diti d ves

10

The key of achieving profitability in concentrated large-scale animal production is to apply the most advanced, scientific and innovative but practical techniques in livestock management and operations. Agrofeed Ltd. has recognized the need for the above mentioned innovations and started its most modern, independent feed additive and raw material business. The goal of the new team is to provide the highest level of professional products for premix and feed mixer factories, animal breeding and production integrations and companies. Utilizing the experience, the expertise, research, field observations, and test results of our partners, professionals and contributors are capable to manufacture the best products in terms of price and quality.

Antibiotic Free: eliminating pathogenic agents (such as Coliform, Clostridia) which are important in terms of food safety (Salmonella, Campylobacter) without the use of antibiotics, by preventing their spread, binding their virulent compounds and thus preventing negative effects and enhancing general animal health conditions,

Efficiency improvement: feed additives help to reduce the stress factors affecting animals and to stimulate immune system; we can regulate the intestinal epithelium and the rumen micro flora for an optimal digestion and epithelial cell nutrition; thus we maximize nutrient absorption and utilization which results in growing performance,

High yield in production, breeding, technology and feeding is achievable through feed additives together with continuous breeding, technology and feeding development, Our innovative product range includes microencapsulated organic acids and non-protected organic acids, active substances of plant origin, amino acids and vitamins, antioxidants, enzymes, new generation toxin binders, pre-and probiotics and emulsifiers. Besides the above mentioned products we offer product packages for farm usage as well as additives taken through the nipple drinker system.

All ingredients, feed additives used

by Agrofeed Ltd. derive from suppliers who meet all the high quality and assurance requirements set by us.

11

Poultry Business

Poultry business line prepares individual proposals for premix and feed recipes considering a wide range of factors, such as: newest poultry breeds’ and hybrids’ genetic capabilities, goals of production, technological and operational possibilities and conditions of the farm, or production intensity. The poultry sales consultants, the product manager and the specialists are all available as consultants besides their sales activity both in Hungary and in the export markets.

12

Consultancy activity covers recipe optimization, feeding services, poultry production technology, operation and poultry-health advising, if needed.

Feeding service requires flexibility and quick reflection and accepts the changing raw material market or prices. Our flexibility enhances our partners‘ profitable poultry production.

Beyond our domestic success, we mainly focus on export, as four-fifth of our products is sold abroad. We transport traditionally to Russian, Ukrainian and East European markets, but we are open to the Middle Eastern and North African poultry producing countries too.

Feeds due to breed and intensity

Poultry business is proud of its wide product range that includes the distribution of fish and rabbit products, raw materials and feed additives, besides the well-known poultry panels, premixes, concentrates and pre-starter feeds.

We do not only serve the big poultry integrations and large scale factories but smaller producers are as important as any other client.

Physiological characteristics of the poultry demand several specific considerations: the optimal proportion of high nutrient content and alternative materials, high energy levels, optimization on digestible amino acids and efficient use of protein.

From our product range you can find the ones that suit your activity best: • breed specific broiler breeders premixes, end-product premixes, prestarter and mixed feeds; • premixes and mixed feeds for brown and white layer breeders and commercial egg layers, • turkey premixes, prestarter and mixed feeds,

• meat- and liver duck premixes and mixed feeds, • meat- and liver goose premixes and mixed feeds, • special poultry premixes (intensive and extensive breeds), • rabbit premixes and mixed feeds, • fish premixes.

13

Pig Business

Pig business of Agrofeed Ltd. has been cooperating with Hungarian and foreign pig producers and integrations for more than a decade. The number of sows we supply with feed has increased during the years and reached 275 thousand plus their piglets. This dynamic volume growth is directly as the result of our high quality products, our excellent professionals and the service activity performed by them.

14

The ‘science’ of pig breeding is extremely specialized. Hybrids of genetic potential, new housing technology, new methods in breeding and last, but not least, the possibilities to be found in feeding all have to be utilized. Our colleagues with their special knowledge can make the best out of this potential.

We can say that in our ‘professional workshops’ recognized specialists do their job in the fields of feeding, reproduction biology, animal health and housing management. Continuous cooperation with the partner farms is very important for us because this is the key of quick intervention into farming processes and effective help if necessary.

Flexible product range, continuous product development

In addition, we have had the belief that we could contribute to the progression of the Hungarian pig breeding industry with the Agrofeed Group. On Vivagen A.I. boar farm in Bag there are high performance boars available for the Hungarian pig producers. The only farm in our country is the one in Bag, which has got the right to distribute Danbred duroc terminal line boar’s reproductive material.

Piglet feeds, concentrates, premixes. Our test farm, Vivafarm Ltd., in Lovászpatona greatly helps to develop and outline our various feeding trends.

For us, the most authentic ‘laboratory’ is the animal itself, so products and recipes that have successfully been tested here, are offered to our partners with pleasure.

Research areas: • examination of performance of prestarter feeds, • starter feeds,

• examinations on feeding needs of final product deriving from different genetic background.

• sow feeding, • transition sow feeding, • tests on feed additives, • possible use of new raw materials (by-products),

15

Dairy Business

Leading role of Agrofeed Ltd. in Hungarian dairy feeding is gradually increasing. The reason of the success is utilization of the newest research and practical results.

Our dairy feeding program aims to introduce these results through our products and to contribute to the maximal production, profitability and health of the animals.

16

Agrofeed Dairy Feeding Program consists of the following three parts: • feeding program for milk cows, • feeding program for calves and heifers, • professional service.

The goal of dairy cattle feeding is to ensure a safe supply for high milk performer dairy cattle during the whole lactation. Professionals of Agrofeed Ltd. compiles an optimal feed amount for dairy cattle with the help of our products, i.e. premixes, concentrates and feed additives. It is congruent with the animals’ nutrient demand and notions of the workers on the farms, so it can optimize the nutrient supply and decrease health problems. Our colleagues highlight the importance of feed supply during the transition period.

In this period the program includes: • professional service, • reaching maximal feed consumption, • decreasing negative energy balance of dairy producing cattle, • creating optimal rumen environment for rumen microbes, • increasing the activity of rumen microbes for a better supply of protein and energy, • our special products enables animals to reach better health and reproduction biology results.

Dairy and heifer feeding program

The other important part of Agrofeed’s dairy feeding program, on which usually not enough attention is paid, is calf and grower feeding.

Feeding of calves and young heifers determines the feed supply and milk producing skills after calving.

The most important elements of heifer feeding program: • reducing milk suckling(weaning) period, • evolving crude fibre digestion smart, • optimal energy and protein supply of heifers to reach balanced growth and development, • the feeding program enables heifers to get as fast as possible into early breeding,

• heifers are healthy and have a strong immune system against diseases, • creating a digestion system that is able to higher feed intake and nutrient utilization after calving, • showing excellent reproduction biology results and milk producing results after calving.

Agrofeed Ltd. believes that continuous development of service standards must be part of their feeding program. The purpose of development is to reach a program that meets all requirements of the partners and helps them as much.

Services include not only the feeding program adapted to the farm but also animal health advising and reproduction biology consulting.

17

Service and training Regular consulting and service on the farms are important elements of our success. Agrofeed Ltd. believes that production success can be the link between the partners and the company, on a long term basis.

This is our common interest. Our activity covers not only Hungary but international markets as well. Most of our consultants are multi lingual (English and/or Russian, German and Ukrainian) Consulting activity: • preparing and maintaining basic recipes, cost optimization, and in case of price changes or raw material basis preparing new or altered recipes, • we help with intake and toxin examinations of raw material and compound feed, • technology and operation consultancy, • feeding and feed production consultancy, if needed with external experts, • reproduction biology, • animal health advising and consultancy with external experts, • management consultancy.

Service is accompanied with partner meetings, professional conferences and internal trainings which all contribute to the up-to-date knowledge of our partners and helps the exchange of experience among partners.

18

Exhibitions and issues The most common and recent events, findings, and reports are reviewed and discussed by our team in the meetings both in house and technical meetings with our customers. Over the last two years, we published special reports addressing Russian market in both poultry and pig sectors.

Most recently, we published articles about prevention and control of coccidiosis and reproduction biology in pigs.

Our activity requires regular participation in exhibitions of animal feeding or breeding and personal consultation with our partners. We take part in the Hungarian agricultural exhibition in Hรณdmezล vรกsรกrhely, Utrecht, Moscow, Hannover or other local events. We organize common professional trips with our partners to be able to acquire the newest knowledge together.

Our company cooperates with international feeding and animal breeding associations and organizations.

19

feeding through k now ledge

Agrofeed Ltd. H-9022 Győr, Dunakapu Square 10. · Postal address: 9007 Győr, Pf.: 1007 Phone.: +36 96 550 620 · Fax: +36 96 550 621 · premix agrofeed.hu w w w. a g r o f e e d . h u