Information Agency “Khakassia”

Traditionally, Khakassia is considered a region where an industry of cattle breeding dominates. Demand for flour and fodder has always been satisfied with the help of the neighbouring regions which are richer in that respect: the Krasnoyarsk Territory, the Altay Territory, the Omsk and Novosibirsk regions.One of the leading suppliers of these products to the Republic is OJSC “PAVA”, which unites a number of grain processing enterprises. Andrey Igoshin, Chairman of the Board of Directors at the PAVA company tells the IA “Khakassia” reporter about the prospects of the company’s activities and development of the industry.

- Your products are well-known in Khakassia, although probably only your partners are familiar with OJSC “PAVA” itself. Could you describe the company in more detail – when was it founded and what divisions does it comprise?

- OJSC “PAVA” is one of the 5 leading grain processing companies in Russia. The company produces and sells flour, cereals and confectionery under the brands “PAVA” and “Altay-Batyushka”, and also combined fodder and feed mixtures under “Zhitnitsa” brand. The products are popular and in high demand in regions of Siberia, Urals, the Far East and the Central Russian markets. Since 2005, the company has gone public, its shares are placed on MICEX (Moscow Interbank Currency Exchange) and RTS (Russian Trading System).

The “PAVA” group includes such subdivisions as Rebrikhinsky flour mill, Mikhailovsky flour mill, both situated in the Altay Territory and Achinsk flour mill situated in the Krasnoyarsk Territory. Besides, as of January 31, 2006 OJSC “PAVA” holds control over OJSC “Romanovskoe grain-processing enterprise”, OJSC “Zauralskiy Kreker”, “Selhozholding” Ltd.

- What regions provide raw materials for your company? What are the individual characteristics of the grain processed by the enterprise, are there any differences if compared to the neighbouring regions’ output?

- OJSC “PAVA” production is oriented on processing local raw wheat, grown where the company’s industrial facilities are situated: the Altay and the Krasnoyarsk Territories. These regions are the largest wheat manufacturers over the Urals. The Altay Territory ranks third in Russia after the Krasnodar and the Stavropol Territories. Altay grain is considered the best in Russia. And the matter is that flour made of the Altay soft wheat has high-grade baking qualities and high gluten content, therefore it is in big demand.

Lately, the company has endeavoured to develop its own production. This year “Selhozholding” Ltd, a company integrated in the “PAVA” group, sowed 6,900 hectares. Among them 6,800 ha is wheat, and 100 ha – feed grain mixtures. 1,400 ha is left for fallows. Next year it is planned to increase the planted area as well as the number of crops. Along with wheat, peas and winter rye will be sown.

Moreover, OJSC “PAVA” has capacities for grain storage in the nearby regions and abroad. Primarily, in the Republic of Kazakhstan – where the grain has been purchased during the past 3 years. The neighbouring territories such as the Novosibirsk, the Kemerovo and the Omsk regions are also among the suppliers and manufacturers of grain.

- OJSC “PAVA” doesn’t only sell its products to the neighbouring regions, but also exports them, to Mongolia in particular. Do you plan to increase the production volume and expand markets?

- For 2 years that “PAVA” has acted as the UN World Food Programme partner and has been one of the largest domestic suppliers of food to developing countries. Over the last year of work in the line of WFP the company made a series of shipments of high-quality vitaminized flour to Tadzhikistan. The total amount of shipped product stood at more than 10,000 tons. In May of the current year “PAVA” started a huge shipment to Kenya. In St.Petersburg port 2820 tons of vitaminized “PAVA” flour was stowed on board. In the history of contemporary Russia this is the first shipment of food products to a “black continent”. Apart from that, OJSC “PAVA” conducts market sales to Mongolia, Georgia and the Ukraine. “PAVA” products are known in Moldavia too.

- Do you plan to organize your representative office in Khakassia?

- Since its foundation, “PAVA” has established firm partner relations with the Republic of Khakassia, and products are shipped here directly. This region is removed from the grain-producing areas, and the natural climatic conditions in the Republic are such that the grown crop isn’t sufficient to meet the demand for flour. Every year Khakassia receives 1,000 tons of flour and the same amount of fodder.

The full assortment of flour manufactured by OJSC “PAVA” is shipped to Khakassia. High demand is steadily seen for fodder under the “Zhitnitsa” brand, and also for semolina. Today there is a “PAVA” affiliate in Krasnoyarsk (400 km) and a mill flour in Achinsk which is 380 km from Abakan, therefore there’s no need for an affiliate in Khakassia so far.


- The processing industry of this country is gradually developing. Is there a tendency for production growth nowadays?

- OJSC “PAVA” anticipates a step-by-step transition to an advanced complex grain processing and manufacturing of the following products: bioethanol, vital wheat gluten, yeast fodder concentrate, carbon dioxide, wheat germ oil. These will be manufactured since 2009. Although, already in July, 2007 production of wheat germ oil was launched on the base of Rebrikhinsky flour mill.

Overall, there are two supposed stages for the implementation of the new strategy in the Altay Territory. In 2007-2008, a bioethanol-producing plant with a capacity of 100,000 tons a year will be built. Two more years later, when the second plant is introduced, the output may be doubled.