I & S INNOVATION & SUSTAINABILITY

Under the business segment "Sale of oilseeds processing and agricultural products" EFKO Group performs processing of oilseeds such as sunflower and rapeseed, soybean, and sells the following major products: crude sunflower oil in bulk and meal, crude soybean oil, meal and hulls, raw rapeseed oil, meal and cake. The Group is also involved in foreign trade, including import and resale of vegetable oils on the domestic market and export of raw vegetable oil and oilseed meal. The key element of EFKO's distribution infrastructure is its vegetable oil terminal in the Taman port (Black Sea).

Today EFKO Group is one of the major oilseed processor in the Russia and the Republic of Kazakhstan. The assets are located in potential raw material’s zones and equipped with the advanced facilities, which is one of the strategic advantages of the Company.

The Group sources 100 % of its oil raw materials from third-party suppliers, with each of them accounting for 5 % or less of the total supply volume. As well, EFKO Group is also actively working to increase the yield and gross harvest of oilseeds in Russia and Kazakhstan. High-quality seeds and pesticides, agricultural support are provided to agricultural producers as a part of Pre-Harvest Financing Program to Farmers. An extensive training program, which is intended to strengthen the culture of agricultural technologies, is also implemented. The Group's specialized procurement divisions work in close contact with its agroindustrial companies in Russia and the Republic of Kazakhstan.

The Group stores its raw materials in its own elevators (total capacity of 500 thousand tonnes of sunflower) and 70 third-party elevators.

The main product of the Group's segment of Oilseed processing and agricultural products is raw sunflower oil. Most of the produced raw oil is sold for further processing to the Group's other segments, Food Ingredients and Branded Products. The excess of the bulk raw oil is sold to domestic and international markets.

The by-product of oilseed processing (sunflower, soybean, rapeseed), rich in protein and used as an ingredient for compound animal and poultry feedstuff. Depending on the oilseed quality and the technology used to process them, the yield of oilseed meal varies from 37 to 42 % of the raw material mass.

The Group sells granulated oilseed meal of varying protein value to major agroindustrial companies and fodder producers in Russia and abroad.
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