Damate

Damate Group of Companies (Damate Group of Companies Russian agricultural) is a holding.

Performance indicators

2023: Cut duck meat output to 18.6k tonnes

Russia's largest duck meat producer Damate cut its output in 2023, but remained the market leader. The company announced this in mid-February 2024, referring to the materials of the Rosptitsesoyuz.

In 2023, Damate Group of Companies produced about 18.6 thousand tons of products from duck meat in live weight (or 13.7 thousand tons in slaughter weight). The first indicator in 2022 was higher (24.5 thousand tons). According to Rosptitsesoyuz estimates, in 2023 Damate occupied 45% of the Russian duck meat market.

source = Damate

This result became possible thanks to the systematic implementation of the project for the production of poultry in the Rostov region. In particular, we have created a parent herd in order to minimize biological risks and reduce dependence on the import of hatching eggs, - noted in the leadership of the Damate holding.

According to Damate's own data, by the end of 2023 the group produced more than 50 items of duck products. Products were sold both in Russia and abroad, including in, Saudi Arabia,, UAE,, Liberia,,, and Azerbaijan Kazakhstan. Uzbekistan Kyrgyzstan Tajikistan Armenia

The press service of "Damate" notes that the group is systematically implementing a poultry project for the production of duck in the Rostov region - LLC "New Duck Farms." It has formed its own parent bird herd to reduce dependence on the import of hatching eggs and to minimize biological risks.

In 2023, New Duck Farms successfully passed certification for compliance with the requirements of Chinese veterinary and sanitary services and were the first in the Russian Federation to receive the right to export meat and duck offal to China. The first batches of products were sent in January 2024, the Damate group said. The holding plans to continue the implementation of the project and ensure the stable operation of the enterprise while maintaining the production of duck meat, as well as increase the range and volume of exports.^[1]

History

2024

Purchase of bankrupt duck manufacturer Donstar for 1.3 billion rubles

The Damate group of companies, which is the leading producer of turkey meat in Russia, acquired the bankrupt Donstar duck producer in the summer of 2024. The value of the transaction amounted to ₽1,282 billion. It included all the facilities of the complex, infrastructure facilities, vehicles, land plots, equipment and inventory. Read more here

Launch of digital transformation program for 300 million rubles

In August 2024, it became known that the largest turkey producer in Russia, the Damate group of companies, launched a large-scale digital transformation program worth more than ₽300 million. The project will cover all the company's enterprises and is aimed at comprehensive production automation, warehouse management and sales planning. The first phase of the program is scheduled to be completed by the end of 2025.

According to the press service of the company, the digital transformation program is a system process adapted to the specifics of each business line. As part of this project, it is planned to introduce a number of IT solutions, including enterprise management systems based on, 1C ERP automation of service processes Human Resources Management and other technologies that will help optimize the company's work. These measures will allow Damata not only to maintain market leadership, but also to significantly increase the efficiency of everyone, business processes including managing production facilities and warehouse operations.

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Freepik

During the implementation of the program, the company focuses on the use of Russian IT developments, supporting domestic software. According to Stanislav Varich, First Deputy General Director for Economics and Finance of Damate, digitalization of work processes and reducing production costs are the key goals of this initiative. He stressed that the transition to new digital technologies will support the growth of the company and allow you to quickly make the most effective decisions in the context of a dynamically changing market.

As of August 2024, Damate is implementing 13 strategic projects in five regions of Russia, while more than 340 IT specialists and experts from business areas of the company are actively involved in the development and implementation of these initiatives. Each project is accompanied by a thorough assessment of economic results and business effects, which allows the company to flexibly respond to changes and adjust its actions depending on the indicators achieved.^[2]

Purchase of Rostov assets of Eurodon for 2.5 billion rubles

Russia's largest turkey producer Damate bought the Rostov assets of rival Eurodon for 2.5 billion rubles. This deal became known in July 2024. Its perimeter includes turkey cultivation and fattening sites and a meat processing complex. Read more here.

Business section by co-owners

At the end of January 2024, it became known that the founders of the largest producer of turkey, duck, lamb and dairy products in Russia, Damate Group of Companies, Naum Babayev and Rashid Khayrov, divided the business. The purpose of the reorganization is to strengthen the positions of various structural divisions in the domestic market.

According to the newspaper "," Kommersant under the terms of the agreement, Khairov becomes the sole owner of Penza Dairy Plant JSC (Molkom), and Babayev becomes the sole owner of Damate Group of Companies with assets in turkey, duck, lamb and dairy farming. Khayrov left the capital of the parent company of the MKOOO Damate group: his share in the amount of 50% was transferred to Damate LLC AGRARIAN AND INDUSTRIAL COMPLEX , a subsidiary of MKOOO Damate. Babayev retained another 50% in the MKOOO.

source = Damate

There is no information on the financial terms of the agreement as of the end of January 2024. Dmitry Gabyshev, Managing Director of Peregrine Capital, notes that the business separation scheme traditionally provides for the valuation of separable assets. At the same time, the recipient of a larger direction can pay the partner the difference between the value of his share in the group and the value of the asset. In addition, the different debt burden of the two directions may be taken into account.

Market participants note that the main advantage when working within one group is general administrative and management costs and part of sales costs. In the short term, the separation could lead to some reduction in the profitability of one of the areas. However, in general, the reorganization will help optimize the activities of the enterprise. The fact is that turkey production and consumption in Russia has the potential for further growth, while the dairy market is more stable and competitive. Therefore, the company needs to focus on developing high value-added products and creating strong consumer brands.^[3]

2023: Re-registration of the company from Cyprus to Kaliningrad

The largest turkey producer in the Russian Federation, Damate, has re-registered the company from Cyprus to Russia. According to the Unified State Register of Legal Entities (Unified State Register of Legal Entities), on February 16, 2023, a deal was held in which the International Company Damate LLC, which is registered on Oktyabrsky Island in Kaliningrad, became the owner of 99.9% of the shares in the company "Agro-Industrial Holding" Damate "instead of the Cypriot AC Damate Turkey Limited.

Vedomosti drew attention to this entry in the Unified State Register of Legal Entities. Stanislav Varich, First Deputy General Director for Economics and Finance of Damate, confirmed to the newspaper that "the group has recently taken a number of systematic steps related to moving to a special administrative region (SAR) on Oktyabrsky Island in Kaliningrad." It is also noted that MK Damate LLC became the owner of 100% of Damate Management Company.

The largest turkey producer in the Russian Federation "Damate" re-registered the company from Cyprus to Russia

SAR on the territory of Oktyabrsky Island is an area with a flexible regime of tax and currency regulation, explains Kira Vinokurova, special adviser on sanctions issues of the Pen & Paper Bar Association. SAR is now used by Russian companies to transfer their structures from territories included in the list of "unfriendly," adds Anna Zelenskaya, associate partner of the MEF.

When registering with the SAR, companies receive a number of concessions, continues Vinokurova. Among them is the right to transfer foreign currency from Russian to foreign accounts without restrictions and vice versa. According to her, in addition, companies can count on zeroing the income tax rate or reducing dividend tax to 5%.

Damate Group of Companies has been a resident of the SAR in Kaliningrad since the end of December 2022. According to Stanislav Varich, the company has always worked within the Russian legal framework.^[4]

2021: Assets

As of June 2021, the geography of the activities of the Damate Group of Companies covers the Penza, Rostov and Tyumen regions, the North Caucasus Federal District. The company's products are sold throughout the country from Kaliningrad to Vladivostok and exported abroad.

The largest full-cycle turkey production complex in Russia with a capacity of 155 thousand tons of slaughter weight products per year is located in the Penza region. A high-tech turkey deep processing plant was launched here, designed for 303 tons per day. The Damate group of companies owns the leading milk processor in the region - the Penza Dairy Plant (Molkom), which processes up to 300 tons of raw milk per day.

In the Tyumen region, a modern dairy complex with a capacity of 55 thousand tons of milk-cheese per year is developing, on the basis of which projects unique for the country in the field of genetics and tribal affairs are being implemented. Damate plans to build a turkey reproducer and a sheep farm in the region.

In the Rostov region "Damate" restarted complexes for the production of turkey and industrial production of duck meat.

In the North Caucasus Federal District, Damate is developing lamb production. The project provides for the construction of breeding and fattening sites, the launch of a service company for farmers and the reconstruction of a meat processing plant capable of producing 12.6 thousand tons of products per year.

The Damate land fund is 98 thousand hectares in the regions of presence, of which over 77 thousand hectares are agricultural land. More than 9 thousand people work at the company's enterprises throughout the country.

2015: Assets

The Damate company is implementing a project to grow and process turkey.

As of June 2015, the geography of the Damate Group of Companies covered three regions: the Penza Region, the Tyumen Region and the Republic of Bashkortostan.

In the Penza region, the main asset of Damate is a complex for the production of turkey meat. The enterprise is a vertically integrated structure with a full production cycle:

• incubator,
• growing and fattening areas,
• turkey meat slaughter and processing plant,
• fodder production.

The objects are located in the Kolyshleysk and Nizhnelomovsky districts of the region.

Notes