Ekosem-Agrar, the German company that runs the largest dairy farm in Russia, increased its herd by 10% to 27,500 cows last year. This increase, along with a rise in milk yield per cow of close to 26l/day, saw total volume produced by Ekosem’s Russian farm increase by more than a fifth (+22%) to 220m litres in 2016.

Revenue from the sale of this milk increased 19% to just under €75m, despite a very weak Russian Ruble and poor milk prices. Ekosem supplies its milk to a number of processors including Danone.

The dairy farm now accounts for 50% of Ekosem’s entire business in Russia. The German company also operates a number of beef feedlots, finishing 40,000 mainly Angus head.

Added to this, Ekosem operates large-scale cereal farms at seven locations throughout Russia. More than 220,000ha (545,000 acres) is planted in wheat, barley, oats, maize, soybeans, peas, sugar beet and potatoes every year.

Total revenue from these combined operations increased 3% to €149.2m last year, while earnings (EBITDA) fell 11% to €50m. This gives the group an earnings margin of 34%. Stefan Durr, the majority shareholder and managing director of Ekosem described the results as “decent” in light of the weak milk prices in 2016. Based on the upturn in global milk prices so far this year, Durr is forecasting an increase in sales to a range between €175m and €185m for 2017.