Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Sustainable Manure Management in Animal Farms in Leningrad Oblast, RUSSIA Phase II of the Operation of PIU MANURE MANAGEMENT DATA UPDATE AND FARM-SPECIFIC DEVELOPMENT NEEDS February 28, 2014 Financiers: Northern Dimension Environmental Partnership (NDEP), the Ministry of the Environment of Finland (FMoE), the Ministry of Agriculture and Forestry of Finland (FMoAF) Russian Partner: Leningrad Committee of Agriculture Implementing Agency: Nordic Environment Finance Corporation (NEFCO) PIU Consultant: Maxwell Stamp PLC Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Acronyms and Abbreviations AC Agricultural Cooperative EF Ecological Fund EUR Euro FMoAF Finnish Ministry of Agriculture and Forestry FMoE Finnish Ministry of Environment GDP Gross Domestic Product HELCOM Baltic Marine Environment Protection Commission (Helsinki Commission) JSC Joint Stock Company MF Model Farm NDEP Northern Dimension Environmental Partnership NEFCO Nordic Environment Finance Corporation OECD Organisation for Economic Cooperation and Development OJSC Open Joint Stock Company PIU Project Implementation Unit PF Pedigreed Farm RUR Russian Rouble SF State Farm Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Executive Summary This report was commissioned as part of the “Sustainable Manure Management in Animal Farms in the Leningrad Region” project and provides insight intothe complex issue of livestock manure management at the farm level in the region through direct contact with individual farmers and livestock production managers. Information from a range of standardised aggregate resources have been correlated to give a picture of the livestock sector in the region and this is augmented by the results of survey information from individual livestock operationson livestock numbers and annual manure/litter production, storage and handling. The study has focused on larger scale operations only and has been able to capture survey information from most farming operations in the area. This integration of the aggregate and individual survey results highlights the difficulty in quantifying and discussing sustainable manure management issues effectively at the farm levelin the absence of a direct understanding of the volume of manure involved. By necessity this report has adoptedstandardisedfigures for individual livestock production of phosphorus (P), and nitrogen (N) which are key environmentalconsiderations at the landscape scale. The farm survey results, particularly from the poultryproducers, show that manure/litter is currently treated as a challengingbulky wastethat is an unavoidable by-product of production.The survey makes clear that a main issue is still thehandling of manure/litter on adaily basis, as its value as an organic fertiliser is poorly understood and undervalued. Any progress toward sustainable use of the manure/litter on the landscape level will not be achieved untilthe basic issues such as storage and volume reduction at the farm level are understood and controlled.The survey also provides anecdotal evidence of secondary issues such inadequate collection of contaminate effluent and wash water. The report shows that, aside from a few notable cases, sustainable manure/littermanagementis not an integral part of production system design in the region, and problemsassociated with any increase in the volumes createdare not understood as a constraint on current or future livestock production. The impact on regulations surrounding the management of manure/litter are touched upon in individual farm assessments along with a discussion on individual cases where public complaints and regulatory non-compliance have highlighted the need for changes to manure/litter management for individual poultry operations. The producers’ answers to these issues are primarily based upon investment in additional “value added” treatmenttechnology to convert the manure/litter into a marketable product. The report discusses those technologies that have already been put in place as well aspotential new ones and highlight some of the issues they may face. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Across all sectors the lack or limited capacity of purpose-built facilities to handle and treatmanure\litter is highlighted, as well as the very real economic restrictions that limit potential investment in improved manure management strategies. Most cattle farms report a reliance on in-field storage on a long term basis followed by land application without any detailed management plans that can establish that this is beingdone in an environmentally sustainable fashion. The pig sector is slightly different, with a larger proportion of farms having purpose-built manure storage facilities.Based on the estimates of annual production of pig manure made in the reportfor each farm, the overall capacity for storage is insufficientto ensure sustainable land spreading. Land spreading is the primary outlet for all manure in the region and the report highlights the challenge of establishing if there is a sufficient suitable land base for its environmentally sustainable usein theLeningrad Oblast that can support current and projected livestock numbers.The report shows that there iscurrently no capacity to directly link the land base available for spreading to individual sources oflivestock manure production. In addition there is no mechanism available to assess the suitability and efficacyoffarm level manure management planning. The report concludes that the lack of effectiveenforcement of environmental regulations remains a systemic problem as it is the only primary mechanismto encourage the investment in and adoption of more sustainable manure management strategies. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Contents Executive Summary ............................................................................................................................. 3 1. Introduction and Context ................................................................................................................ 9 2. Objectives and Scope ....................................................................................................................... 9 3. Methods and Data ......................................................................................................................... 10 4. Manure Management Practices on Farms in the Leningrad Region .............................................. 11 4.1 Aggregate Farm Data .................................................................................................... 11 4.1.1 Amount of Poultry / Livestock in Leningrad Oblast ............................................. 11 4.1.2 Amount of Manure/Litter and Nutrients ............................................................ 12 4.1.3 Availability of Manure Storage Facilities .............................................................. 1 4.1.4 Manure Management Methods and Shortcomings ............................................... 6 4.1.5 Projected figures for the development of livestock and poultry sectors .............. 10 4.1.6 Summary of Problems Identified across Farms in the Leningrad Oblast ............... 10 4.2 Individual Farm Data ..................................................................................................... 11 4.2.1 Poultry farms (>40,000 hens) ............................................................................ 11 4.2.2 Big livestock farms (>400 animals) .................................................................... 14 4.2.3 Pig Farms(>2,000 pigs) ...................................................................................... 19 4.2.4 Individual Poultry Farm Development Needs ...................................................... 20 5. Brief Financial Overview of the Agricultural Sector in Leningrad Oblast ....................................... 26 5.1 Profit/loss, productivity, and indebtedness at Rayon level ............................................... 26 5.2 Possible support for investments into manure management technologies ...................... 30 5.2.1 Ecological Financing Options Available Worldwide ............................................. 30 5.2.2 Ecological Financing Options Available on the Russian Market ........................... 32 Annex 1. Individual Farm Data Sheets ............................................................................................... 35 A. Open Joint Stock Company "Poultry Farm Primorskaya" (JSC "Poultry Farm Primorskaya") .... 35 1. General Information ........................................................................................................ 35 2. Production levels/ Future plans ........................................................................................ 36 3. Manure / Poultry litter situation summary ....................................................................... 36 5. Summary of PIU activity to date with farm ...................................................................... 37 B. Open Joint Stock Company “Poultry Farm Udarnik” (JSC “Udarnik”) ....................................... 39 1. General Information ........................................................................................................ 39 2. Production Levels / Future plans ...................................................................................... 39 3. Manure / Poultry Litter Situation ..................................................................................... 40 5. Summary of PIU activity to date with farm ...................................................................... 41 C. Closed Joint Stock Company “Poultry Farm Lagolovo” (CJSC “Lagolovo”)................................ 41 1. General Information ........................................................................................................ 41 2. Production Levels / Future plans ...................................................................................... 42 3. Manure / Poultry Litter Situation ..................................................................................... 43 5. Summary of PIU activity to date with farm ...................................................................... 43 D. Open Joint Stock Company "Lenptitseprom" ........................................................................... 45 1. General Information ........................................................................................................ 45 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs E. F. G. H. I. J. K. L. 2. Production levels/ Future plans ........................................................................................ 45 3. Manure / Poultry litter situation summary ....................................................................... 46 5. Summary of PIU activity to date with farm ...................................................................... 46 Limited Liability Company Poultry Breeding Farm “Lebyazhye” ............................................... 48 1. General Information ........................................................................................................ 48 2. Production Levels / Future plans ...................................................................................... 49 3. Manure / Poultry Litter Situation ..................................................................................... 49 4. Summary of PIU activity to date with farm ...................................................................... 50 Open Joint Stock Company “Poultry Farm Lomonosovskaya” (JSC Lomonosovskaya”) ............ 51 1. General Information ........................................................................................................ 51 2. Production Levels / Future plans ...................................................................................... 51 3. Manure / Poultry Litter Situation ..................................................................................... 52 Closed Joint Stock Company “Poultry Farm “Nevskaya” (CJSC “Nevskaya”) ............................. 53 1. General Information ........................................................................................................ 53 2. Production Levels / Future plans ...................................................................................... 53 3. Manure / Poultry Litter Situation ..................................................................................... 54 5. Summary of PIU activity to date with farm ...................................................................... 55 Closed Joint Stock Company "ZAO AgrokomplexOredej" ......................................................... 56 1. General Information ........................................................................................................ 56 2. Production levels/ Future plans ........................................................................................ 56 3. Manure / Poultry litter situation summary ....................................................................... 57 5. Summary of PIU activity to date with farm ...................................................................... 58 Closed Joint Stock Company “Poultry Farm Roskar” (JSC “Roskar”) ......................................... 60 1. General Information ........................................................................................................ 60 2. Production levels/ Future plans ........................................................................................ 60 3. Manure / Poultry litter situation summary ....................................................................... 61 5. Summary of PIU Activity to Date with Farm ..................................................................... 63 Limited Liability Company “Poultry Farm Russko-Vysotskaya” (LLC “Russko-Vysotskaya”) ...... 64 1. General Information ........................................................................................................ 64 2. Production Levels / Future plans ...................................................................................... 64 3. Financial Situation .......................................................................................................... 64 4. Manure / Poultry Litter Situation ..................................................................................... 65 5. Summary of PIU activity to date with farm ...................................................................... 66 Open Joint Stock Company “Poultry Farm Severnaya” (JSC “Severnaya”) ................................ 67 1. General Information ........................................................................................................ 67 2. Production Levels / Future plans ...................................................................................... 68 3. Manure / Poultry Litter Situation ..................................................................................... 68 5. Summary of PIU activity to date with farm ...................................................................... 70 Closed Joint Stock Company "Poultry Farm Sinyavinskaya named after the 60th anniversary of the USSR" (CJSC "Poultry Farm Sinyavinskaya") ...................................................................... 71 1. General Information ........................................................................................................ 71 2. Production levels/ Future plans ........................................................................................ 71 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs M. 3. Manure / Poultry litter situation summary ....................................................................... 72 5. Summary of PIU activity to date with farm ...................................................................... 73 Open Joint Stock Company Poultry Breeding Farm “Voyskovitsy” ........................................... 75 1. General Information ........................................................................................................ 75 2. Production Levels / Future plans ...................................................................................... 75 3. Manure / Poultry Litter Situation ..................................................................................... 76 5. Summary of PIU activity to date with farm ...................................................................... 77 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Tables and Figures Table 1: Livestock numbers on all types of farms by the end of the year 2012, K heads* ...........................................11 Figure 1: Livestock Numbers on all types of farms by end of the year 2012(K heads) ............ Error! Bookmark not defined. Table 2: Livestock numbers on large scale farms by the 1st of April, K heads ...................................................................12 Table 3. Annual nutrient production by different livestock (kg/head/y, Ympäristöministeriö 2008, NTP 17-99)1 ...........................................................................................................................................................................................................................13 Table 4: Total number of poultry, cattle and pigs (heads), manure (tons/y) and N & P (tons/y) produced on all farms surveyed in Leningrad region by 1 January 2013 ............................................................................................................13 Figure 2: P (tons/y) produced by farm type surveyed in the Leningrad region by 1 January 2013 .........................13 Figure 3: N (tons/y) produced by farm type surveyed in the Leningrad region by 1 January 2013 ........................14 Table 5: Nutrient Production from livestock for those farms surveyed along with required land for ...................14 environmentally safe organic fertilisation.......................................................................................................................................14 Table 6: Primary Farm Sources of P and N from manures across the Leningrad Oblast. .............................................15 Table 7: Nutrient output and farm types in different rayon’s. ................................................................................................17 Table 8: Manure/litter production on different farm sizes and land availability calculation for organic fertilization ...................................................................................................................................................................................................18 Table 9 On-farm manure/litter storage facilities in Leningrad region ................................................................................... 1 Figure 4 Availablility of on-farm equipped storage facilities (%) ............................................................................................ 1 Figure 5 Types of on-farm manure/litter storage facilities in the Leningrad region, as a % of overall farm numbers, per specialization area ........................................................................................................................................................... 2 Table 10 On-farm manure/litter storage facilities in different rayons of Leningrad oblast.......................................... 3 Table 11 On farm manure/litter storage facilities on different size farms in Leningrad oblast .................................. 4 Table 12 Availability Level of on-farm manure/litter storage facilities on different farm groups ............................ 4 Table 13 Availability Level of on-farm manure/litter storage facilities of farms of different size ............................. 5 Table 14 On farm levels available within manure/litter storage facilities on different sized farms .......................... 6 Table 15 Methods of manure/litter utilization on the farms of different specialization in Leningrad oblast ....... 7 Table 16 Methods of manure/litter utilization on the farms of different specialization in Leningrad oblast ....... 8 Figure 6 Methods of manure/litter utilization farms in Leningrad oblast, by farm specialisation ............................. 9 Table 17 Methods of manure/litter utilization on the farms of different sizes in Leningrad oblast ......................... 9 Table 18 Manure Management Data and Development Needs for Poultry Farms in the Leningrad Region .......21 Table 19 Share of profitable and loss making agricultural enterprises in Leningrad oblast .......................................27 Table 20 Credit-indebtedness of agricultural enterprises in Leningrad oblast, K. RUR.................................................28 Table 22 Volume of agricultural production in different rayons of Leningrad oblast (in actual prices), K. RUR. ...........................................................................................................................................................................................................................29 Table 23 Farm Financial results in different rayons of Leningrad oblast ............................................................................30 The update and its analyses have been carried out within the framework of the project “Sustainable Manure Management in Animal Farms in Leningrad oblast” project, funded by NEFCO, NDEP, FMoE and FMoAF. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 1. Introduction and Context This report was commissioned as part of the project “Sustainable Manure Management in Animal Farms in the Leningrad Region”. The overall objective of this project is to reduce nutrient runoff into the Baltic Sea and the Gulf of Finland (the Gulf) by implementing sustainable manure management practices on large scale livestock farms in the Leningrad region. Manure management is fairly underdeveloped in most farms in the Leningrad Region. Safe spreading of manure to fields is often not possible due to a lack of field areas, so manure is often spread in excess quantities over the available fields, or is stored in heaps or ponds, many of which are now overfilled and risk having their structures collapse. Poultry farms in particular suffer from the lack of sufficient fields for environmentally safe manure management, and poultry manure is the main source of nutrient runoff, due to its high nutrient content. In this context, farms in the Leningrad Oblast, and poultry farms in particular, pose a major pollution threat for the Gulf. Unsafe manure management practices on cattle and pig farms also represent a growing threat, and it is important to understand the extent of these practices in order to provide a reliable indication of the risk of nutrient leaching to receiving water bodies and, eventually, to the Gulf. 2. Objectives and Scope The objective of this report is to inspect and, where possible, quantify and qualitatively describe the manure stores and manure spreading practices at poultry and other large livestock farms in the Leningrad Region. This report is based upon data analysis carried out by the Sustainable Manure Management Project Implementation Unit (PIU) between April and May 2013. Recent changes to legislation relating to data security, including those specifying broad non-disclosure to “foreign” organisations, resulted in the PIU encountering difficulty in obtaining detailed physical and financial data from farms. Nonetheless, the current report details statistics related to the issues of sustainable manure management in terms of general poultry/livestock numbers, quantity of manure produced, and current methods of manure management on farms in the Leningrad Oblast, including: 13 out of 17 industrial scale poultry farms in the Oblast (82%) The total poultry numbers in entire Oblast is notcurrently known. All 15 industrial pig farms (100%) in the Oblast, including 7 pure pig farms and 8 mixed livestock farms with pig units All 124 livestock farms (100%) in the Oblast, including 116 cattle livestock farms and 8 mixed farms with cattle units Statistics from Family farms and Private Plot Holders are not part of this study. Statistics from these large scale industrial farms are analysed in light of anecdotal, physical and other evidence gathered by PIU experts, and contextualised to provide as complete a picture of manure management practices on farms in the Leningrad Oblast, while respecting data security legislation and the confidentiality of some of the information that farms’ provided. The information produced in this report will be used in future phases of the NEFCO-funded Sustainable Manure Management project, and will contribute toward the overall implementation of the HELCOM Baltic Sea Action Plan in Russia. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 3. Methods and Data The research employed the following data collection methods and sources: Farm visits Face-to-face meetings Phone interviews Email inquiries Monitoring of regional printed and electronic business and specialized media and market reviews Internet research Previous studies conducted by marketing and consulting companies Analysis of the manure output in Russia, Discovery Research group, 2012; SZNNIMESH Justification of the ecologically sound technologies of manure/litter utilisation on agricultural enterprises of north-west okrug of RF, Agriecological magazine #2 2011, Kyiv; Overviewof the organic fertilisers market in Leningrad Region, Maxwell Stamp Plc2012; Sub-consultancy for development of technology for modernisation of manure processing lines including detailing plant and machinery, preparation of complete packages of project documents for three pilot livestock farms in the Leningrad region, NIRAS, 2012: Review of potential Russian and International Markets for Organic Fertilisers Produced in the Leningrad oblast by Large Animal Farms, POYRY, 2013. The study contains data on: Number of stock on big poultry, cattle and pig farms ( Main indicators of the development of the agriculture in the Leningrad region, Annual reports of the Committee for Agriculture and Fishery Complex of the Leningrad region for 2008-2012); Volume of manure production on each farm (farm interviews,The system of normative documents UDK.631.95.63621/4); Type of manure storage facilities, and their capacity (site visits and farm interviews, Annual reports of the Committee for Agriculture and Fishery Complex of the Leningrad region for 2008-2012); Methods of manure/litter processing used on farms (site visits and farm interviews Annual reports of the Committee for Agriculture and Fishery Complex of the Leningrad region for 2008-2012); Farm profitability for the last 4 years (Annual farm financial reports for 2008-2012, farm information update interviews); The output from the project include livestock numbers of key farms in the region based onreal world data andstandardised assessment of the P and K loading. The primary output is the narrative on how individual farms are approaching manure management Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 4. Manure Management Practices on Farms in the Leningrad Region This analysis begins by presenting an overall picture of the number of livestock and amount of manure produced by all farms in the Leningrad oblast, with some rayon-level analysis. The report then breaks down the available data on the basis of individual farms, with a particular focus on poultry farms. It attempts to provide individual farm development needs, given the known and estimated scale of manure management deficiencies on individual poultry farms. 4.1 Aggregate Farm Data Livestock production is a leading agricultural branch in Leningrad oblast. It not only plays a very important role in the region’s agricultural sector, accounting for a large proportion of the regional GDP, but also holds significant social importance as it provides year-round employment and a stable income for rural people. 4.1.1 Amount of Poultry / Livestock in Leningrad Oblast Nationally it was reported that in 2012 the total number of livestock reached 179,000 cattle (including 80,300 cows), 197,300 pigs, and 28.3 million poultry (see Table 1 below). Most livestock production is concentrated on farms of different sizes and legal forms. 124 farms are involved in cattle rearing (116 of these specialize in milk production, 8 mixed), 15 in pig rearing (7purely pig production, 8 mixed) and 17 in poultry production. Table 1: Livestock numbers on all types of farms by the end of the year 2012, K heads* Type of animal Cattle – total of which are cows Pigs Poultry 2006 2007 2008 2009 2010 2011 190.3 78 66.5 18,400 184.2 77.5 66.3 19,600 185 77.5 90.8 20,400 183.3 77.7 166.2 20,600 176.8 76.9 182.2 22,.800 178.6 82.9 194.4 25,300 2012 179.7 80.3 197.3 28,.300* *http://agroprom.lenobl.ru Monitoring of the main indicators in AIC (Agroindustrial complex) Statistical Reports of the Agroindustrial Complex of Leningrad oblast in 2009, 2010, 2011, 2012 All poultry farms included % increase from 2011 to 2013 100.6 96.9 101.5 111.9 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs The project team was able to obtained data on most of the livestock operations in the region (13 poultry, 15 Pig, and 97 cattle farms) for the first quarter of 2013 and a comparative analysis was made between current and previous data(Table 2) available from national statistics. Table 2: Livestock numbers on large scale farms by the 1st of April, K heads Type of animal 2012 2 2013 Cattle – total 179.7 161 of which are cows 80.3 NA1 Pigs 197.3 201 Poultry 28300 27812 1 Information unavailable *http://agroprom.lenobl.ru Monitoring of the main indicators in AIC (Agroindustrial complex) Statistical Reports of the Agroindustrial Complex of Leningrad oblast in 2009, 2010, 2011, 2012 2 As shown in Table 2 the field survey was able to provide a close approximate to the regional statistics. Difference in the numbers are attributed to changing stock numbers, focus on larger farms in the survey, and lack of figures for some farms due to non-participation in the survey. 4.1.2 Amount of Manure/Litter and Nutrients As part of the survey direct estimates of the amount of manure/litter generated on each farm were made along with current stock numbers. The estimates of manure volumes have known limitations but are included as they represent direct farm results and provide at least some insight in the volume of material produced on an annual basis. A calculated levels of N and P loading are based on per animal basis not on manure volumes. The actual livestock population found as part of the survey, on the basis of numbers of heads, can be found in Tables 4 and in Annex 1 to this report (Individual Farm Data Sheets). Collectively, large poultry and livestock farms produce close to 5 million tons of manure/litter per year (see and Table 4, overleaf). The breakdown of litter/manure produced in the region is the following: Poultry litter – 1102034t Pig manure – 627399t Cattle manure – 3205282 t This is problematic, particularly for poultry and pig farms, as many of these have no or a very small amount of agricultural land suitable for spreading manure/litter as organic fertilizer, which means that biogenic nutrients are leached into surrounding water bodies. According to the project estimations the litter/manure produced on the regional farms in the Leningrad area contains 9,223 tons of P and 38,219 tons of N (Table 4). The project experts calculated the annual amount of P & N nutrient excretions based on the animal numbers multiplied by the Russian HELCOM nutrient-excretion coefficients(Table 3) used for Russia, which are specific for each animal group. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 3. Annual nutrient production by different livestock (kg/head/y, Ympäristöministeriö 2008, NTP 17-99)1 Live Stock Group Nitrogen (kg/head/y) Phosphorus (kg/head/y) i Dairy cattle 74.5 18.3 Other cattle ii 30.1 6.65 iii Pig 15.3 3.75 Poultry iv 1.02 0.25 - egg laying 1.11 0.27 - broiler 0.92 0.23 SYKE & MTT / HELCOM Feb 2010 Towards Enhanced Protection of the Baltic Sea from Main Land-based Threats: Reducing Agricultural Loading (BaltHazar) Final Report iCows were assumed to be dairy cowsiiAn average excretion of a cow, a bull, a heifer and a female and male calf. iiiAn average excretion of a sow with piglets and a meat pig. The Russian values refer to the average of pigs less than 70 kg and pigs more than 70 kg. ivAn average excretion of a broiler chicken and egg-laying hen. Table 4: Total number of poultry, cattle and pigs (heads), manure (tons/y) and N&P (tons/y) produced on all farms surveyedin Leningrad region by 1 January 2013 Animal Estimated Manure Farm Type numbers tons/y P tons/y (RUS) N tons /y (RUS) Poultry 27812090 1102034 7400 30300 Cattle – all classess1 161094 3205282 1071 4850 Pigs 200562 627,399 752 3069 Total 4934715 9223 38219 1 Due to the lack of detail cattle types all calculation are done based on “Other Cattle” Figure 1: P (tons/y) produced by farm type surveyed in the Leningrad region by 1 January 2013 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs P tons /y (RUS) Poultry Cattle Pigs Figure 2: N (tons/y) produced by farm type surveyed in the Leningrad region by 1 January 2013 N tons /y (RUS) Poultry Cattle Pigs HELCOM recommends that the nutrient amount used when fertilizing should not exceed 170 kg/ha of nitrogen and 25 kg/ha phosphorus. On this basis, farms in the Leningrad Region would collectively need 368,920 ha of land for P application and 224,818 ha for N application to meet environmentally-sound standards Table 5: Nutrient Production from livestock for those farms surveyed along with required land for environmentally safe organic fertilisation. Percentage of Number of Groups of Nutrients TotalNutrients farms in the Livestock numbers farms produced (t/year) Produced(%) in the group region1 Max Arable land needed, Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs (ha) Total Livestock P N P N Poultry 13 27,812,090 7,400 30,300 80 79 Cattle 97 161,094 1,071 4,850 12 13 Pig 12 200,562 752 3,069 8 8 296,000 42,840 30,080 * In Russia, agricultural land is classified into arable land (cultivated land), natural meadows and permanent pastures. Fertilization of manure can be applied only on arable land. SYKE & MTT / HELCOM Feb 2010 Towards Enhanced Protection of the Baltic Sea from Main Land-based Threats: Reducing Agricultural Loading (BaltHazar) Final Report 1 Table 6: Primary Farm Sources of P and N from manures across the Leningrad Oblast. % of total regionalorganic % of total regional organic Farm name Rayon Farm type P output P output Severnaya Kirovskiy Poultry 33.33% 33.02% Sinyavinskaya Kirovskiy Poultry 15.64% 15.50% Roskar Vyborgskiy Poultry 14.69% 14.44% Total 63.66% 62.96% Table 5 shows the arable land requirement required for organic fertilization for each farm groupas per the methodology described above in Section 4. The survey results found that poultry farms have the highest land requirement for spread but have either none or only a small amount of agricultural land suitable for applying manure in the form of organic fertilisers (460 ha have been estimated as available out of the 296,000ha required to safely spread all manure produced). Table 6 shows that three poultry farms in the region account for over 60% of the P and N production across the survey region. This large and concentrated source of nutrients is of primary concern in terms of risk assessment for pollution control. The survey results were unable to fully establish the location and extent of land currently being used for the spreading of manure by each individual farm. While there is the possibility that manures could be spread on adjoining land and not reported, the large distances between the farms presents a problem. Not only this, but there additional costs relating to processing manure/litter to an applicable condition, including those associated with long storage, transportation (pellets, granules) and spraying machinery, and the relatively higher costs for farms to apply organic versus mineral fertilizers. Table 7 shows the breakdown of N and P organic production across the rayons.There are substantial variations between rayons and it is possible farms can sell/give manure/litter outside the boundaries of their own rayon. However, in the rayons where many of the poultry farms are concentrated (e.g. Vyborg, Kirov and Lomonosov), there is insufficient arable land to allow redistribution of manure/litter as organic fertilizer. In these areas, new approaches to manure/litter utilization are required to safeguard the environment. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs The livestock number survey has provided an estimate on the amount of manure and nutrient content. From this an estimate of the land required to spread these nutrients in an environmentally safe manner has been estimated. The primary sources (Table 6) of nutrient production have also been highlighted and these should be the focus in the assessment of risk associated with surface water loading of nitrogen and phosphorus from either inappropriate manure storage or unsustainable land spreading. A breakdown based on Rayon’s is shown in Table 7 and demonstrates that from an administrative perspective nearly half the nutrients arising from animal manure in the Leningrad Oblast comes from Kirovskiy rayon. Farming rules and obligations and other pressures in this region regarding manure management should be the focus of a review to understand why this concentration of animal manures has occurred. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 7:Nutrient output and farm types in different rayons. Percentage of Total Annual Nutrient Production NutrientsOutput for the (t/year)From Manure Region P output N output Rayon t/year t/year %P %N Gatchinskiy 948.82768 3943.516 10.29% 10.31% Kingissepp 64.15255 290.3747 0.70% 0.76% Kirishky 35.7903 161.9982 0.39% 0.42% Kirovskiy 4522.6713 18596.3 49.05% 48.61% Lodeynipolskiy 20.0691 87.3846 0.22% 0.23% Lomonosovskiy 415.80768 1713.066 4.51% 4.48% Luzhskiy 159.58175 719.6395 1.73% 1.88% Priozerskiy 171.7123 752.1908 1.86% 1.97% Slantsevskiy 29.6324 134.1256 0.32% 0.35% Tikhvinsky 39.53425 178.9445 0.43% 0.47% Tosnenskiy 513.5564 2135.648 5.57% 5.58% Volkhovskiy 91.1388 403.224 0.99% 1.05% Volosovsky 153.59505 695.2197 1.67% 1.82% Vsevoldhskiy 275.29495 1157.813 2.99% 3.03% Vyborgskiy 1779.14679 7286.857 19.30% 19.05% Total 9220.5113 Farm numbers 19 4 4 3 3 12 12 10 2 4 10 7 13 9 10 38256.3 16% 3% 3% 2% 2% 10% 10% 8% 2% 3% 8% 6% 11% 7% 8% 122 18 Percentage of those Farms in Region Farm types Poultry 4 Pig 3 2 1 1 1 1 3 2 1 1 3 2 13 12 Cattle 12 4 4 1 2 8 11 9 2 4 8 6 13 6 7 97 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 8: Manure/litter production on different farm sizes and land availability Number of farms in the group Groups of farms as per livestock numbers Total Without livestock Up to 2,585 From 2,585 to 7,714 More than 7,714 Total in the region 41 123 13 9 186 % of the total 22.0 66.1 7.0 4.8 100 Average livestock in the group, head 0 992 5,161 57,308 3,789 19 Livestock numbers Total, head 0 121,970 67,091 515,773 704,834 Manure produced % of total Total, K. t. 0 17.3 9.5 73.2 100 0 3,162 550 1,342 5,055 % of total 0 62.6 10.9 26.6 100 Arable land Total, ha 11,666 185,394 13,378 250 210,688 % of total 5.5 88.0 6.3 0.1 100 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 4.1.3 Availability of Manure Storage Facilities The current study showed that livestock enterprises in the region mainly use outdated methods of manure storage – composting grounds, manure piles and pits etc. – which, in most cases, are poorly fitted and are located on the edges of fields, or in specially-designated areas (Table 9). Only 12.1% of cattle farms have specially-designated areas for manure storage, 21.4% of poultry farms, 57.1% of pig farm, and 25% of mixed farms. Most cattle farms (68.1%) store manure on a specially-organised (soil) field, whereas poultry farms prefer to have concrete grounds (71.4%). Table 9 On-farm manure/litter storage facilities in Leningrad region Storage and processing of manure/litter Number of Group of farms as per farms in the Equipped Concrete Soil field Data not specialisation: group storage grounds grounds available Cattle 116 14 0 79 23 % of total 100 12.1 0.0 68.1 19.8 Poultry 14 3 10 0 1 % of total 100 21.4 71.4 0.0 7.1 Pig production 7 4 0 1 2 % of total 100 57.1 0.0 14.3 28.6 Cattle and pigs 8 2 0 4 2 % ofthe total 100 25.0 0.0 50.0 25.0 Total in the region* 145 23 10 84 28 % of total 100 15.9 6.9 57.9 19.3 *The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms Figure 4 Availability of on-farm equipped storage facilities (%) 1 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Figure 5 Types of on-farm manure/litter storage facilities in the Leningrad region, as a % of overall farm numbers, per specialization area Storage and processing of manure/litter Soil field grounds Storage and processing of manure/litter Concrete grounds Storage and processing of manure/litter Equipped storage 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cattle Poultry Pig production Cattle and pigs Having completed the analysis of the available storage facilities it is worth mentioning that the overall numbers presented in Table 9 above and Table 10 overleaf are insufficient to guarantee ecologically sustainable manure/litter management in the region. Table 10 overleaf demonstrates that livestock farms of 9 rayons in the Oblast have either no specially-equipped manure/litter storage facilities, 4 rayons (Vyborgskiy, Volkhovskiy, Lomonosovskiy, Priozerskiy) have such facilities on between 11.1-16.7% of all farms in the rayon, and another 4 rayons (Vsevolzhskiy, Volosovskiy, Kingissepskiy, Slantsevskiy) have such facilities on 25-37% of all the farms in rayon. 2 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 10 On-farm manure/litter storage facilities in different rayons of Leningrad oblast Method of manure/litter storage Number of Rayon name farms in the Equipped Concrete Soil/field Data not available rayon storage grounds grounds Boksitogorsk 2 0 0 0 2 % of total 100 0 0.0 0.0 100 Volosovskiy 14 5 0 8 1 % of total 100 35.7 0.0 57.1 7.1 Volkhovskiy 8 1 0 6 1 % of total 100 12.5 0.0 75.0 12.5 Vsevolzhskiy 8 3 0 5 0 % of total 100 37.5 0.0 62.5 0.0 Vyborgskiy 18 2 1 7 8 % of total 100 11.1 5.6 38.9 44.4 Gatchinskiy 19 0 4 12 3 % of total 100 0.0 21.1 63.2 15.8 Kingissepskiy 4 1 0 3 0 % of total 100 25.0 0.0 75.0 0.0 Kirishskiy 4 0 0 4 0 % of total 100 0.0 0.0 100.0 0.0 Kirovskiy 3 0 2 1 0 % of total 100 0.0 66.7 33.3 0.0 Lodeinopolskiy 3 0 0 3 0 % of total 100 0.0 0.0 100.0 0.0 Lomonosovskiy 13 2 3 7 1 % of total 100 15.4 23.1 53.8 7.7 Luzhskiy 12 0 0 11 1 % of total 100 0.0 0.0 91.7 8.3 Podporozhskiy 2 0 0 0 2 % of total 100 0.0 0.0 0.0 100.0 Priozerskiy 12 2 0 8 2 % of total 100 16.7 0.0 66.7 16.7 Slantesvskiy 4 1 0 1 2 % of total 100 25.0 0.0 25.0 50.0 Tikhvinskiy 8 0 0 4 4 % of total 100 0.0 0.0 50.0 50.0 Tosnenskiy 11 6 0 4 1 Total in the region 145 23 10 84 28 % of total 100 15.9 6.9 57.9 19.3 3 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 11 suggests that farms of groups B & C have more opportunity to set up specially-designated and equipped manure/litter storage facilities. Farms of group A, which constitute 84.8% of that total number of farms, primarily use soil field grounds, whereas medium and large sized farms use more specially-designated and equipped storage facilities (30.8% and 33.3%, respectively) as well as concrete grounds (30.8% and66.7%, respectively). The group A farms (up to 2,586 conventional heads) produce 3,162 mln tons of manure (62.6% of the overall regional amount), whereas the B and C scale farms that constitute 15.2% of overall farm numbers produce 37.4% of manure (1,882 mln tons). A group farms by this classification have 88% of the arable land, whereas medium and big enterprises own only 6.4% of the arable land. Table 11 On farm manure/litter storage facilities on different size farms in Leningrad oblast Numbe Manure/litter storage and processing Average in the % Group of farms as per r of method group, of livestock numbers, farms conventionalhea tota Equip. Concrete Soil Data not heads in the d l storage ground ground available group GROUP A - Up to 2,585 991.6 123 84.8 16 0 81 26 % of total 100 13.0 0.0 65.9 21.1 GROUP B - 2,5857,714 5,160.8 13 9.0 4 4 3 2 % of total 100 30.8 30.8 23.1 15.4 GROUP C - over 7,714 57,308.1 9 6.2 3 6 0 0 % of total 100 33.3 66.7 0.0 0.0 145* 100 Total in the region 3,789.4 23 10 84 28 % of total 100 15.9 6.9 57.9 19.3 *The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms 23 1 2 2 28 79.49 2,984.4 62.5 11.1 1,117.46 23.4 4.3 96.8 2.0 5.1 578.9 12.1 100 4,778 100 4 %of total Capacity of the manure storage with turnaround,Kt. %to the total 93 13 5 6 117 Manure output, K t. 82.14 3.6 7.1 7.1 100 % of total number 116 14 7 8 145* % of total Cattle Poultry Pig Mixed cattle & pig Total in the oblast number Number of farms in the group Table 12 Availability Level of on-farm manure/litter storage facilities on different farm groups Including farms: On farms provided data Not data Data provided provided Group of farms 442.5 50 180 20.4 66 7.5 195 22.1 884 100 Levelof availability of equipped storage facilities, % The level of provision within the available specialized equipped storage facilities is quite low. The overall provision within specialized equipped storage facilities among the regional farms that provided data is 18.5%, including: 14.8% among cattle farms, 16.1% among poultry farms, 68.2% among pig farms, and 22.7% among mixed cattle and pig farms (Table 12). 14.8 16.1 68.2 33.7 18.5 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs * The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms 2 1 1 0 8 3 0 0 0 0 1 1 2 2 2 4 1 28 7.1 3.6 3.6 0.0 28.6 10.7 0.0 0.0 0.0 0.0 3.6 3.6 7.1 7.1 7.1 14.3 3.6 100.0 0.0 180.0 15.0 82.5 120.0 0.0 30.0 0.0 0.0 0.0 30.0 0.0 0.0 66.0 30.0 0.0 330.0 883.5 % of total 0 0.0 481 10.1 247 5.2 268 5.6 474 9.9 492 10.3 209 4.4 122 2.6 639 13.4 46 1.0 274 5.7 331 6.9 0 0.0 386 8.1 50 1.1 103 2.2 656 13.7 4,778 100.0 Capacity of storage with trurnover,t. 0.0 11.1 6.0 6.8 8.5 13.7 3.4 3.4 2.6 2.6 10.3 9.4 0.0 8.5 1.7 3.4 8.5 100.0 % of total number 0 13 7 8 10 16 4 4 3 3 12 11 0 10 2 4 10 117 Manure output,K.t. 0 2 14 8 8 18 19 4 4 3 3 13 12 2 12 4 8 11 145* % of total Boksitogorskiy Volosovskiy Volkhovskiy Vsevolzhskiy Vyborgskiy Gatchinskiy Kingissepskiy Kirishskiy Kirovskiy Lodeynopolskiy Lomonosovskiy Luzhskiy Podporozhskiy Priozerskiy Slantsevskiy Tikhvinskiy Tosnenskiy % of total Rayon number Number of farms in the rayon Table 13 Availability Level of on-farm manure/litter storage facilities on farms of different size including: Farms provided data Not provided Provided data data 0 20 2 9 14 0 3 0 0 0 3 0 0 7 3 0 37 100 Levelof availability of equipped storage facilities, % The available levels of provision within specialized storage facilities varies from 0% (Gatchinskiy, Kiroshskiy, Lodeynopolskiy, Luzhskiy, and Tikhvinskiyrayons) up to 59.6% (Slantsevskiy) (Table 13). 0.0 37.4 6.1 30.8 25.3 0.0 14.3 0.0 0.0 0.0 10.9 0.0 0.0 17.1 59.6 0.0 50.3 18.5 * The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms Table 14overleaf demonstrates that the available levels of equipped manure/litter storage facilities are higher among big farms. 5 57,308 9 3,789 145* 2 28 7.1 100 6 117 %to the total 93 13 Capacity of the storage with turnover factor,K t. 82.1 3.6 % of total 23 1 Manure output,K.t. 123 13 % of total 992 5,161 number % of total GROUP C - over 7,714 Total in the region number GROUP A - Up to 2,585 GROUP B - 2,585- 7,714 Number of farms Farm group, heads Average in the group, con.head Table 14 On farm levels available within manure/litter storage facilities on different sized farms Including farms: Farms provided data No data Data provided provided Levelof availability of equipped storage facilities, % Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 79.49 2,984.4 62.5 442.5 50 14.8 11.1 1,117.46 23.4 180 20.4 16.1 5.1 100 578.9 12.1 4,778 100 195 22.1 33.7 884 100 18.5 * The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms Among the farms that provided data, the level of availability in storage facilities is 14.8% in total, which is lower than the average in the oblast by 3.7%. The availability rate among the 11.1% of medium-sized agricultural enterprises that provided data was 16.1%, which is 2.4% lower than the average in the oblast. The level of availability of equipped storage facilities among the 5.1% of large farms that provided data is virtually twice as high, at 33.7%. 4.1.4 Manure Management Methods and Shortcomings The low rate of availability of equipped storage facilities, combined with the lack of agricultural land around a number of poultry and pig farms, leads to a high excess of accumulated manure/litter during the agricultural season, sometimes exceeding the capacity of available storage facilities by twofold or more. Because of this, farmers need to place manure/litter on non-prepared sites, where it is washed away by rain, and affluent waters contaminate underground and open water resources, as well as land around manure/litter storage places. The lack of manure/litter storage facilities, especially for the liquid fraction, results in the farm distributing it on the fields (where possible) all year round, or using soil grounds and terrains for manure storage. The absence of protection facilities for affluent and storm water on the farms is therefore a serious hazard. On a number of farms the capacity of existing manure/litter storage facilities is too low to allow manure application only in the period of its active use by the plants. The current practice of manure/litter storage provides for the methods of its utilization in the region- mainly long storing, composting and application on the fields (including application on other neighbouring farms). 6 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs When analysing manure utilization practices by type of farm (Table 15), we see that all farms in the Leningrad oblast use either long storing, composting or application on fields to deal with their litter. New methods of manure storage and processing (separation of liquid and solid fractions before storage/application) have been introduced on only 1.7% of cattle farms, 14% of pig farms and 12.5% of mixed farms. Table 15 Methods of manure/litter utilization on the farms of different specialization in Leningrad oblast Methods of manure utilization Number Separation, Farm of farms Long storage Composting, long storage Composting No specialisation in the and long storage and and application data group application and application application Cattle 116 2 10 79 2 23 % of total 100.0 1.7 8.6 68.1 1.7 19.8 Poultry 14 0 2 11 0 1 % of total 100.0 0.0 14.3 78.6 0.0 7.1 Pig 7 1 3 1 0 2 % of total 100.0 14.3 42.9 14.3 0.0 28.6 Cattle & pig 8 1 1 4 0 2 % of total 100.0 12.5 12.5 50.0 0.0 25.0 Total in the 145* oblast 4 16 95 2 28 % of total 100.0 2.8 11.0 65.5 1.4 19.3 * The figure includes 14 poultry, 7 pig, 116 cattle and 8 mixed livestock farms Similar results are found on the rayon level in Leningrad oblast (Table 16). New methods of manure/litter application are only used in Priozerskiy and Tosnenskiyrayons. 7 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 16 Methods of manure/litter utilization on the farms of different specialization in Leningrad oblast Methods of manure/litter utilisation Number of farms separation, composting, Rayon grouping Long storage Composting & No in the long storage long storage & application application data rayon &application & application Boksitogorskiy 2 0 0 0 0 2 % of total 100.0 0.0 0.0 0.0 0.0 100.0 Volosovskiy 14 1 4 8 0 1 % of total 100.0 7.1 28.6 57.1 0.0 7.1 Volkhovskiy 8 0 1 6 0 1 % of total 100.0 0.0 12.5 75.0 0.0 12.5 Vsevolzhskiy 8 0 1 6 1 0 % of total 100.0 0.0 12.5 75.0 12.5 0.0 Vyborgskiy 18 0 2 8 0 8 % of total 100.0 0.0 11.1 50.0 0.0 38.9 Gatchinskiy 19 0 0 16 0 3 % of total 100.0 0.0 0.0 84.2 0.0 15.8 Kingissepskiy 4 0 0 3 1 0 % of total 100.0 0.0 0.0 75.0 25.0 0.0 Kirishskiy 4 0 0 4 0 0 % of total 100.0 0.0 0.0 100.0 0.0 0.0 Kirovskiy 3 0 0 3 0 0 % of total 100.0 0.0 0.0 100.0 0.0 0.0 Lodeynopolskiy 3 0 0 3 0 0 % of total 100.0 0.0 0.0 100.0 0.0 0.0 Lomonosovskiy 13 0 2 10 0 1 % of total 100.0 0.0 15.4 76.9 0.0 7.7 Luzhskiy 12 0 0 11 0 1 % of total 100.0 0.0 0.0 91.7 0.0 8.3 Podporozhskiy 2 0 0 0 0 2 % of total 100.0 0.0 0.0 0.0 0.0 100.0 Priozerskiy 12 2 0 8 0 2 % of total 100.0 16.7 0.0 66.7 0.0 16.7 Slantsevskiy 4 0 1 1 0 2 % of total 100.0 0.0 25.0 25.0 0.0 50.0 Tikhvinskiy 8 0 0 4 0 4 % of total 100.0 0.0 0.0 50.0 0.0 50.0 Tosneskiy 11 1 5 4 0 1 % of total 100.0 9.1 45.5 36.4 0.0 9.1 Total in the oblast 145 4 16 95 2 28 %of total 100.0 2.8 11.0 66.2 1.4 18.6 8 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Figure 6 Methods of manure/litter utilization farms in Leningrad oblast, by farm specialisation 100% 80% 60% 40% 20% 0% Cattle Poultry Pig Cattle & pig Total in the oblast Methods of manure utilisation Composting, long storage and application Methods of manure utilisation Composting and application Methods of manure utilisation Long storage and application Methods of manure utilisation Separation, long storage and application Big farms use new methods of manure/litter utilisation more widely when compared with small farm units (Table 17). Thus in the first group of farms (Group A) only 1.6% use separation with long storage and application, in the second group (Group B) this figure is equal 7.7%, in the third group (Group C) – 11.1%. GROUP A - Up to 2,585 % of total GROUP B - 2,585- 7,714 % of total GROUP C - Over 7,714 % of total Total in the oblast % of total 992 5,161 57,308 3,789 123 100 13 100 9 100 145 100 2 1.6 1 7.7 1 11.1 4 2.8 9 13 10.6 2 15.4 1 11.1 16 11.0 82 66.7 7 53.8 7 77.8 96 66.2 1 0.8 1 7.7 0 0.0 2 1.4 No data composting, long storage & application Composting and application Long storage and application separation, long storage and application Number of farms in the group Farm size. Average in the group con.heads. Table 17 Methods of manure/litter utilization on the farms of different sizes in Leningrad oblast Methods of manure/litter utilisation 25 20.3 2 15.4 0 0.0 27 18.6 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 4.1.5 Projected figures for the development of livestock and poultry sectors The projected figures for the development of livestock and poultry sectors for the period 2020 have recently become available to the public. These figures forecast a substantial increase of poultry, livestock and pig numbers in all farm categories of the Leningrad Region. It is expected that the bird population will increase from 28,300 mln (2012) up to 32,300 mln (2020), a 14.1% increase, pig numbers from 197,330 (2012) to 400,000 (2020), a 202.7% increase, and cattle numbers from 179,700 (2012) to 262,000 (2020), a 45.8% increase. 4.1.6 Summary of Problems Identified across Farms in the Leningrad Oblast Combined data and observations from the current study demonstrate that most of the manure/litter facilities on farms in the Leningrad oblast do not meet ecological requirements. Farms often tend to underreport the volume of manure/litter produced, as well as how much of this is appropriately used in the form of organic fertilizer. Farms in the region consistently demonstrated a low capacity for correctly storing manure in the nonagricultural season, when it cannot or should not be spread on fields. On the studied farms, the volume of manure produced during winter housing season was found to be 1.5-2 times higher than the capacity for storing it. Some farms did not have any storage facilities at all. Other problems revealed by the current study include: Farms spreading the liquid fraction of manure on fields all year round, in violation of current legislature; Usage of ground folds, terrain folds and fields for manure/litter storage, which are unable to be fully cleaned , thus leading to the contamination of the subsurface waters; Absence of protective facilities which can retain and gather effluent and drain waters contaminated by manure content from the farms’ territories; Discharge of sewage waters from milk storage buildings and equipment washing into the manure pits, terrain andreclamation canals; Absence of drain collection systems and effluent storages on farms; Lack of qualified farm personnel; poor on-farm technological control equipment; violation of technological storage requirements; regulations relating to transportation and the application of organic fertilisers. The above factors affect the environment and also result in heavy losses in agricultural production. Shortfall in yields due to manure/litter underutilization is estimated at around 100–120 K. tons of grain, and it is estimated that around 5-7 billion RUR of environmental damage results (data from draft programme “Manure/litter utilization by agricultural enterprises in Leningrad oblast for 20132020”). 10 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs As the population of livestock constantly increases, the amount of manure/litter output also continues to grow, requiring ever more sophisticated and larger scale methods for processing and utilizing manure/litter. The increase of numbers of livestock, pigs and poultry should be accompanied by the construction of new equipped manure storage facilities, modernization and expanding the existing ones, and applying new technologically proven manure processing technologies. The current analysis suggests the following reasons are behind the slow development and introduction of new efficient manure/litter utilization methods: High capital intensity of the majority of manure/litter management projects at a reasonably low agricultural production efficiency; Absence of demonstrated production units of manure/litter utilization; Lack of companies capable of designing and implementing safe manure/litter utilization technologies on a professional level; Credit burden of most agricultural enterprises; Manure and other by-products of milk, meat and eggs production are considered of secondary or little importance, and therefore it is not a primary concern for farms to implement non-hazardous manure management practices; Current ecological legislature does not provide sufficient financial penalties for agri cultural enterprises who do not implement environmentally sustainable manure management practices. Current ecological sanctions and penalties (e.g. 10,000-40,000 RUR per annum for poultry farms) are seen as preferable to the costs of introducing manure man agement and utilization technology; Lack of economic incentives for enterprises to introduce environment friendly technologies, or to apply organic fertilisers produced from manure/litter; Lack of information on new progressive methods of manure management, and on nutritive values of organic fertilisers and their importance for agriculture and the environment; Capital costs to implement investment projects targeted at improving manure/litter utilization could cost half the price of the whole agricultural enterprise construction. With this view in mind the development of low cost, highly efficient technologies and equipment for ecologically safe manure processing/utilization has not only ecological but economic and social importance. 4.2 Individual Farm Data 4.2.1 Poultry farms (>40,000 hens) The number of birds stated in the below table represents the total number of birds on the poultry farm (including youngsters) as at 1 October 2013. Individual poultry farm data sheets found in Annex 1 of this report give annual average of layers/broilers on each farm. Name of the farm Total Number of birdshea Layers, heads Broilers,he ads Quantity of manure(t/ye ar) 11 Type ofmanure storage and capacity Manure management(techno logy, t/year) Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs ds 579,120 579,120 579,120 579,120 0 26,808 Vyborgskiy rayon Poultry factory“Udar nik” 6,670,62 7 577,400 4,626,52 7 329,400 2,044,000 202,629 248,000 JSC " Poultry Factory Primorskaya" 810,427 810,427 JSC " Poultry Factory Roskar" 5,282,800 3,48700 0 Vsevolzhskiy rayon JSC "Poultry Factory Nevskaya" 26,808 1,796,000 Storage facility (40,000 m3) 26,808 t/year Concrete storage facility with total capacity of 40,000 m3 Still operating but closing soon after bankruptcy 36,700 4 open reservoirs with paved bottom and sides (total capacity 40,000 m3) 450 ha of own land for manure spreading 32,000 4 open reservoirs with paved bottom & sides (total capacity 40,000m3) 167 ha of own land for manure spreading 133,929 Compostinggro und 20,000 m2 600 ha of own land for 23,238t/year Approximately 30,000t manure is currently in 3 of the 4 concrete reservoirs (one is empty, one is in the process of being emptied) 5,850 t (16% of annual output) can be safely spread on farm’s own land 32,000 t/year 199,480t of manure is currently in storage and on fields 27,500t manure is currently in the 4 concrete storage reservoirs (2 full, one ¾ full, one empty) 2,171 t (6.8% of annual output) can be safely spread on farm’s own land Drying and incineration is being considered as a solution 133,929 t/year 20,000 t in composting ground 13,000 t dried, granulated and 12 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Gatcinskiy rayon "Perepyeloch ka" Ltd JSC "Lenptitsepro m" JSC "Oredezj" JSC "Poultry Factory Voiskovitsi" Kirovskiy rayon JSC "Poultry Factory Sinyavinskaya " 2,437,09 4 161,240 1,378,73 8 161,240 137,006 309,530 309,530 13,849 1,157,324 1,157,32 4 79,000 809,000 97,494 809,000 16,723,0 11,381,0 00 00 5,342,000 5,342,00 0 7,518 manure spreading marketed in granulation plant 93,129 t processed into organic fertiliser using the microbiological preparation "SilyUrozjaya" (“The Power of the Harvest”) 7,800 t (5.8% of annual output) can be safely spread on farm’s own land Drying and incineration is being considered as a solution Concrete composting ground Concrete composting ground Concrete composting ground Composting, 7,518 t/year Concrete composting ground Composting, 13,849t/year 79,000 t/year 32,704 t stored on farm 8,690 t (11% of annual output) can be safely spread on farm’s own land 460 t used on farm 1,011t biofermented 67,679 t given to farms in Luga region Composting, 97,494 t/year 618,170 242,435 13 Concrete and soil composting grounds Composting, 242,435 t/year Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs JSC "Poultry Farm Severnaya" 11,381,00 0 11,381,000 375,735 Lomonosovsk iy rayon JSC "Poultry Factory Lagolovo" 1,444,03 8 379,450 "Poultry factory RusskoVysotskaya" LTD "Poultry Factory Lebyazhye" LTD Concrete and soil composting grounds 375,735 t/year There are speciallyequipped manure storages on site, but 375,000 tons of manure will still remain after long term storage and fermentation The farm has none of its own land for manure use 631,039 808,999 56,566 367,830 11,620 16,840 Speciallyequipped manure storage facility (9,000 t capacity) Concrete composting grounds (2,000 t capacity) Composting grounds (3,000 t capacity) 12,500t/year 14,000 t can be stored and composted according to current capacity of manure management facilities, and these are currently filled with 13,000 t of manure (nearly at capacity) 2,379 t (19% of annual output) of manure can be safely spread on farm’s own land 735599 91,829 643,770 27,037 Concrete and soil composting grounds 27,037 t/year Farm bankrupt: will probably close or be taken over by Sinyavinskaya 287,000 183,000 104,000 12,689 Concrete and soil composting grounds Composting, 8,210 t/year 4.2.2 Big livestock farms (>400 animals) Name of the farm Number Quantity Type & capacity of 14 Manure management (technology, Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs of animals Volosovsky rayon JSC"Pedigreed Farm Gomontovo" 23,230 2,873 of manure, t/year 490585 51,756 manure storage quantity t/year) yes (15,000 m3) on ground storage compound yes (15,000 m3) Separation, long storage and application, 51,756 t/year Composting and application 25,058 t/year Long storage and application, 35,280 t/year Composting and application 25,878t/year Composting and application 9,920 t/year Composting and application 53,049 t/year Composting and application 43,130 t/year Long storage and application 57,578 t/year Long storage and application 57,362 t/year Composting and application 32,347 t/year Composting and application, 36,660 t/year Composting and application 34,504 t/year Composting and application 28,336 t/year "Seltso" 1,145 25,058 "Trud" 1,989 35,280 JSC "Ushevitsy" 1,199 25,878 JSC " Syaglitsy" 470 9,920 JSC "Ostrogovitsy" 2,379 53,049 JSC "Symino" 1,730 43,130 OJSC "Udarnik" 2,319 57,578 On ground storage compound yes (30,000 m3) JSC " Pedigreed farm Rabotitsy" JSC“Pedigreed Farm Torosovo" JSC "Pedigreed Farm Leninski put" SF "Demonstration Farm Kalozhitsy" "Volna" 3,372 57,362 yes (35,000 m3) 1,722 32,347 1,863 36,660 1,379 34,504 657 28,336 On ground storage compound On ground storage compound On ground storage compound On ground storage compound Volkhovsky rayon JCS "Volkhovsky" 10,572 2,027 225436 43,431 JCS "Zarechye" 2,037 49,599 JCS "Aleksino" 1,144 26,309 OJCS "Pedigreed Farm Myslinsky” OJCS "Pedigreed Farm Novoladozhskiy" 2,006 44,423 2,655 46,148 “Ferma" Ltd 703 15,526 Vsevolzhskiy rayon 10,022 195,244 on ground storage compound On ground storage compound yes (25,000 m3) On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound 15 Composting and application 43,431 t/year Composting and application 49,599 t/year Composting and application 26,309 t/year Composting and application 44,423 t/year 46,148 t/year has slurry separator needs storage for liquid faction and injection equipment Composting and application 15,526 t/year Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs AC “Progorodny" 2,766 48,089 JSC "PF Prinevskoye" 2,134 39,463 "Milk farm Bugry 711 12,205 OJSC "SovkhozVsevolzhsky" OJSC "Sputnik" 1,659 34,503 1,074 17,855 "Ruchyi" 1,678 43,129 Vyborgsky rayon "Matrosovo" Ltd 8990 1,355 196235 25,877 "Losyevo" Ltd 1,384 30,276 AC "Shestakovskiy" 532 15,785 AC"Polyany" 1,653 35,797 "Smena" Ltd 1,658 37,522 AC"CoophazNiva" 1,607 31,915 AC"Ryabovskiy" 801 19,063 Gatchinskiy rayon JSC "Gatchinskoye" 17,462 1,464 356825 36,660 OJSC PF “Plamya" 2,575 49,685 JSC "Orlinskoye" 1,405 27,387 AC "Kobralovskiy" 1,314 25,877 OJSC PF “Krasnogvariskiy” JSC "Chernovo" 2,209 40,541 1,658 32,347 JSC “PF Bolshevik" 1,640 32,347 ОJSC "PF Lesnoye" 1,948 39,247 "Slavyanka" Ltd. 1,100 22,211 On ground storage compound On ground storage compound + storage (10000 m3) On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application 8,089 t/year Composting, long storage and application, 39,463 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application 25,877 t/year Composting and application 30,276 t/year Composting and application 15,785 t/year Composting and application 35,797 t/year Composting and application 37,522 t/year Composting and application 31,915 t/year Composting and application 9,063 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage Composting and application 36,660 t/year Composting and application 49,685 t/year Composting and application 27,387 t/year Composting and application 25,877 t/year Composting and application 40,541 t/year Composting and application, 32,347 t/year Composting and application, 32,347 t/year Composting and application, 39,247 t/year Composting and application, 22,211 16 Composting and application 12,205 t/year Composting and application 34,503 t/year Composting and application 17,855 t/year Composting and application 43,129 t/year Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs SF DF"Suida" 513 13,542 JSC "Iskra" 517 11,515 JSC PF "Niva" 1,119 25,446 Kingissep rayon JSC "Pribrezhnoye" 9,647 1,005 209,090 22,643 JSC "Kotelskoye" 2,629 56,844 JSC "PF"Agro- Balt" 3,301 66,850 JSC "Opolye" 2,712 62,753 Kirishsky rayon Farm Cooperative "Osnichevskiy" JSC "Kirishskiy" 5,382 2,030 122,54 47,571 1,021 21,435 JSC "Budogosch" 1,510 34,503 JSC "Berezovskoye" 821 18,545 Kirovskiy rayon Farm Coooperative "DalnayaPolyana" Lodeinopolski rayon JSC"Oyatskoye" 1,122 1,122 20,702 20,702 1,854 412 39,894 8,410 JSC “ Rasvet” 1,442 31,484 Lomonovskiy rayon JSC "Pobeda" 8,472 1,520 180,279 33641 JSC "Mozhaiskoye" 849 19,796 JSC "Predportovoy" 1,285 27,732 JSC"Koporye" 722 14,534 "Koporye” Ltd. 412 13,672 compound On ground storage compound On ground storage compound On ground storage compound t/year Composting and application, 13,542 t/year Composting and application, 11,515 t/year Composting and application, 25,446 t/year On ground storage compound On ground storage compound On ground storage compound + storage facility (20000 м3) On ground storage compound Composting and application, 22,643 t/year Composting and application, 56,844 t/year composting, long storage and application, 66,850 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application, 47,571 t/year Composting and application, 21,435 t/year Composting and application, 34,503 t/year Composting and application, 18,545 t/year On ground storage compound Composting and application, 20,702 t/year On ground storage compound On ground storage compound Composting and application,8,410 t/year Composting and application,31,484 t/year On ground storage compound On ground storage compound Storage facility (15,000 m3) On ground storage compound On ground storage compound Composting and application,33,641 t/year Composting and application,19,796 t/year Long storage and application,27,732 t/year Long storage and application,14,534 t/year Long storage facility and application,13,672 t/year 17 Composting and application, 62,753 t/year Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs JSC DemoFarm "KrasnayaBaltica JSC "Kipen" 1,740 31,484 875 17,640 JSC "Krasnoselskoye" 1,069 21,780 Luzhskiy rayon ОJSC "Voloshovo" 23095 926 325,320 23,289 JSC PF “Rapti" 2,173 41,490 "Sheremetyevo" Ltd 854 17,467 ОJSC "Partisan" 1,584 32,778 "Satis" 481 20,745 "Pravda"Ltd 872 32,778 JSC "Novoyevremya" 950 21,909 JSC "Oredezhskiy" 1,513 34,934 JSC "Skreblovo" 1,547 34,805 PF"Urozhai" 1,023 21,996 ОJSC "Rassvet" 11,172 43,129 Priozerskiy rayon JSC "PF Razdolye" 17,787 1,526 339123 31,484 JSC PF "Petrovskiy" 2,300 43,172 JSC PF "Rastsvet" 1,669 29,759 JSC "PF Grazhdanskiy" 3,155 51,755 JSC PF “Krasnoarmeiskiy” 1,915 38,902 JSCPF "Krasnoozernoye" 2,393 47,442 JSC PF 1,736 43,129 On ground storage compound On ground storage compound On ground storage compound Composting and application, 31,484 t/year Composting and application, 17,640 t/year Composting and application,21,780 t/year On ground storage compound On ground storage compound Composting and application, 23,289 t/year Composting and application,41,490 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application,17,467 t/year Composting and application,32,778 t/year Composting and application,20,745 t/year Composting and application,32,778 t/year Composting and application,21,909 t/year Composting and application,34,934 t/year Composting and application,34,805 t/year Composting and application,21,996 t/year Composting and application,43,129 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application,31,484 t/year Composting and application,43,172 t/year Composting and application,29,759 t/year Composting and application,51,755 t/year Composting and application,38,902 t/year On ground storage compound+ storage facility (20000 m3) On ground storage Composting, separation, long storage and application,47,442 t/year Composting and application,43,129 18 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs "Pervomaiskoye" compound On ground storage compound On ground storage compound t/year Going to go to separation, storage application liquid faction on own land Composting and application,31,053 t/year Composting and application,22,427 t/year Storage facility(20,000 m3) On ground storage compound Long storage and application, 48,305 t/year Composting and application,37,738 t/year On ground storage compound On ground storage compound On ground storage compound On ground storage compound Composting and application,40,541 t/year Composting and application,24,152 t/year Composting and application,31,484 t/year On ground storage compound,15,526 t/year Storage facility (30,000 m3) On ground storage compound On ground storage compound Storage capacity (15000 m3) Storage facility (25000 m3) On ground storage compound Storage facility (20000 m3) Long storage and application,61,157 t/year Composting and application,20,702 t/year Composting and application,60,597 t/year Long storage and application,36,358 t/year Long storage and application57,793t/year Composting and application,17,424 t/year Long storage and application,33,641 t/year 18,804 On ground storage compound Composting and application,18,804 t/year Quantity of Type of manure storage & capacity Manure management (technology; t/year) JSC "Melnikovo" 1,670 31,053 JSC "Sudakovo" 1,023 22,427 Slantsevskiy rayon JSC "Rodina" 4,456 2,376 86043 48,305 JSC "Osminskoye" 2,080 37,738 Tikhvinskiy rayon JSC “ Andreyevskoye" 5945 1,969 111703 40,541 JSC "Gorskiy" 1,316 24,152 JSC "Cultura-Agro" 1,906 31,484 JSC "Isakovskiy" 754 15,526 Tosnenskiy rayon Farm Cooperative " PF Detskoselskiy" Farm cooperative"Shushary" JSC "PF Telman" 13591 2,844 306476 61,157 974 20,702 2,286 60,597 JSC "Agrotechnika” 1,777 36,358 JSC "Lyuban" 2,722 57,793 " Voskhod" Ltd. 719 17,424 "Petrokholod. Agricultural technologies" " Farm Voskhod" Ltd, 1,518 33,641 751 4.2.3 Pig Farms(>2,000 pigs) Name of the farms Number of pigs 19 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Volkhovskiy rayon "Rassvet plus" 5,556 5,556 manure t/year 20,786 20,786 Vsevolzhskiy rayon JSC PF "Ruchyi" 13,943 10,591 45,305 32,764 "Svinka" Ltd 3,352 12,540 Gatchinskiy rayon JSC “PF Plamya” 46,584 7,822 144,113 24,198 "Rusbelgo"LTD JSC "Novyisvet" Lodeynipolskiy rayon "Oyatskoye" Ltd 25,713 13,049 2,064 2,064 79,545 40,368 5,611 5,611 Lomomosovskiy rayon "Psofida" Ltd 3,011 3,011 11,264 11,264 Luzhskiy rayon JSC PF"Rapti" 1,600 1,600 4,949 4,949 Priozerskiy rayon "Livestock complex Bor" Ltd 14,957 14,957 46,271 46,271 Tosneskiy rayon "Ryurik -Agro" 112,847 95,384 349,103 295,080 Agroholding "Pulkovskiy" 17,463 54,023 Storage capacity (10,000 m3) Long storage and application, 20,786 t/year Storage capacity (20,000 m3) Storage capacity (5,000 m3) Long storage and application, 32,764 t/year Long storage and application, 12,540 t/year Storage capacity (15,000 m3) - Long storageand application, 24,198 t/year Soil grounds Composting and application, 5,611 t/year Storage facility (5,000 m3) Long storage andapplication, 11,264 t/year Soil grounds Composting and application, 4,949 t/year Storage facility (24,000 m3) separation, long storage, building peat “cascade” filtration system for liquid faction 46,271 t/year Storage facility (100,000 m3) Storage facility (30,000 m3) separation, composting, long storage,295,080 t/year Long storage and application, 54,023 t/year 4.2.4 Individual Poultry Farm Development Needs Individual data sheets for each poultry farm in the Leningrad Region can be found in Annex 1 to this report. These data sheets contain detailed information on past and current production levels, estimated financial data, information on the current manure/poultry litter situation, current manure management issues identified, and PIU work with each farm to date. 20 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 18 below summarises the key findings from the individual poultry farm data update, namely what issues have been identified with managing each farm’s annual manure output, and how the PIU has been and continues to work with each farm. Table 18Manure Management Data and Development Needs for Poultry Farms in the Leningrad Region Farm Manure Details Development needs Primorskaya At present, the poultry farm has an average Analysis by the PIU has shown that under of 700,000 laying hens. The poultry farm the current production conditions, being produces on average 80 tons of manure a lack of agricultural land and limited day; up to 37,543 tonnes annually. The regional marketsfor organic fertilizers, manure is stored in four stores of a total there is a constant need for heat to warm area of 40,000 m2. The farm has no land of the poultry houses. The most appropriate its own; recently the farm tried to buy method of poultry litter management is some land in the Pskov region but was therefore incineration to produce heat for unsuccessful. The farm is also unusual in poultry houses, and to sell resultant ash for that is has no piped gas so relies on diesel mineral fertilizer or as use as a filler in the fuel and coal for heat for the chicken manufacture of concrete blocks. Cage litter houses, processing plant and other farm is at the wetter end of the spectrum buildings. around 70% moisture content on average. The best moisture content for incineration of litter is put at 30% so this will necessitate some drying beforehand. The farm has agreed with the PIU that the only acceptable manure management solution is that of litter drying followed by incineration without the use of supplementary fuel. Currently the farm’s annual fuel bill is 29M RUR (€674,000).All this cost could be eliminated with a litter drying incineration plant. Spare heat could also be sold into the nearby local community. Udarnik The farm produces eggs and chicken meat. Recent modernization of production facilities were carried out. Presently there are 329,000 laying hens and 248,000 broilers. There are plans to utilize recently renovated poultry sheds to house up to 900,000 broilers it is expected that numbers will be 320,000 by the end of October. Currently the farm produces up to 40 tonnes of litter a day amounting to 23,238 tonnes annually. In 1985 poultry litter storage was built 1,000m away from the farm’s production zone. The storage consists of 4 open reservoirs- 1,000 tons 21 The fact that the farm has some land is helpful but will not solve the problem as it is too small an area and can only take a maximum of 6,750 tonnes of litter. Alternative litter management technologies therefore need to be used. The PIU has introduced and discussed several different litter management technologies with the farm at different times, including poultry litter drying, incineration and bio-fermentation. Recently the farm has received a commercial offer from “OOO Dynamic” for a bio-fermentation system including a Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Oradezj Lagolovo each. Today two of them are completely pelletizing plant to produce organic full. The farm has 450 hectares of land fertiliser able to cope with up to 85 some few kilometres from the farmstead. tonnes/day of litter. So far the farm is still undecided on the manure management technology it wants to adopt, despite the PIU’s best efforts. The farm director has recently been replaced which has not helped. The farm was invited to send two members of staff to the recent PIU organised poultry litter study tour but declined to send anybody at all. Certainly if the level of broiler production is increased to the figure of 900,000 heads then the manure problems can only become considerably worse, principally through lack of storage space and no processing of litter beyond some relatively small amount being spread on the land and composting. The farm has 1,157,324 laying hens in The farm wishes to reduce their cages, 673 hectares of their own land, and considerable transport costs for taking produces a total of 82,138 tonnes of poultry litter to the south of the region manure annually. Currently 12,988 tonnes and being paid little or nothing for it. The are stored on concrete, 460 tonnes are used farm considers the first step to be the around the farm, 1011 tonnes are bio- installation of poultry litter drying fermented (Biozem) leaving 67,679 tonnes equipment as this will considerably reduce that are effectively given away to 5 farms the annual tonnage to be transported to in the Luga region. The litter being the 5 farms that currently take the litter. transported there at the farm’s own cost Once the litter drying equipment is amounts to around 18M RUR (€420,000) successfully installed and up and running annually. then further treatment of the dried litter can be considered. The farm was visited by VDL Agrotech in early October when a detailed proposal was drawn up for litter drying as a starting point for a total litter management plan for the farm. Once the poultry litter equipment is detailed then the PIU will assist the farm in producing project documentation The farm has 278,303 laying hens and The farm is not a pilot farm, but has 202,000 broilers. Currently the farm engaged with the PIU and has been produces 12,500 tons of manure annually, proposed several options for poultry litter and has 183 hectares of arable land, which management including accelerated enables them to apply up to 2,379 tons of fermentation using drum fermenters, and the total litter output on the fields. There is poultry litter incineration without use of also a specially-equipped manure storage supplementary fuel. facility which takes up to 9,000 tons of In recent years, the farm has experienced a 22 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs litter, concrete composting grounds for up to 2,000 tons, and composting grounds for 3,000 tons. At the time of the survey, 13,000 tons of litter were accumulated in poultry manure storage. Lebyazhye Lenptitseprom Lomonosovskaya Nevskaya Currently the farm has 180,000 heads of layers, and 104,000 heads of broilers, and produces over 10 million heads of day-old chicks per year. The farm produces 22-29 tons of litter per day, or 16,184 tons per year. There are two concrete composting grounds used for manure storage (taking at any one time between 8-10,000 tons of litter mixed with peat), and a soil composting ground. The farm owns none of its own arable land, and would require at least 1,245 hectares of land to dispose of litter safely. The number of birds on the farm is more than 309,000 heads, including 162,000 heads of youngsters. The farm produces 13,849 tons of manure annually. It has specially constructed concrete composting grounds in the vicinity of the farm (currently storing 9,000 tons manure). Field grounds are also used for composting. “Lenptitseprom” has 120 ha or arable land allowing it to safely apply 19.8% of the total annual manure output. To spread the remainder safely, it would require at least an additional 855 ha of agricultural land. Since its merger with Poultry farm “Severnaya” in October 2011, the main activity of “Lomonosovskaya” farm has been the leasing of property, plants and equipment. There is no data available on current or past production levels. There are currently 432,604 heads of layers on the farm. The annual litter output is 33,537 tons of wet manure per year which, after natural shrinkage, yields 26,807 tons of litter. There is a specially-constructed 40,000m3 manure storage facility, divided 23 decline in profitability and an increase in debt, and decided to cease operations in 2013, likely instead converting into a logistics centre. The PIU therefore put farm experts in touch with GNU SZNIIMESH to discuss the possibility of processing the remaining accumulated manure into organic fertilizer using SZNIIMESH drum fermenters. “Lebyazhye" is not a pilot farm, but has engaged with the PIU, participated in seminars and events organized by the PIU, and received the safe manure management manual. Currently, SZNIIMESH/PIU is working with the management company KER-Holding Ltd to develop various proposals for the accelerated fermentation of manure on Lebyazhye, including composting at sites with active mixing by agitators, using chamber bio-fermenters, and using drum fermenters. Poultry farm “Lenptitseprom” is not a pilot farm. Nonetheless, specialists of the poultry farm have participated in seminars organised by the PIU, and received the manure management manual. In October 2011 broiler meat production was discontinued. During 2012 the remaining poultry litter (after disinfection) was taken out on the fields The farm is not a pilot farm, but the PIU has proposed Nevskaya several options for poultry litter management, including poultry litter incineration without use of supplementary fuel (energy recovery), and supplying neighbouring “Interflora” green Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Roskar RusskoVysotskaya Severnaya into 4 sections. The farm has none of its own arable land, and to dispose of all its litter would require at least 2,062 ha. The farm has previously been fined for dumping bio waste, and land contamination by organic waste. Local residents have complained about the smell from unsafe dumping of manure. Estimated poultry numbers in 2012 was 4,797,500 heads. The farm produces more than 135,000 tons of poultry litter annually, about 400-500 tons per day. They have a 20,000m2 concrete composting ground on site, a granulation plant (deals with 13,000 t manure annually), and also have developed a technology for processing manure into organic fertiliser using the microbiological preparation "SilyUrozjaya" (93,129 t processed annually). Only 7,800 t (5.8% of annual output) can be safely spread on farm’s 600 ha of its own land. They would require at least an additional 9,702 ha of agricultural land to safely spread the at least 126,000 tons of excess manure. In 2012, the number of broiler youngsters was 643,770 heads, laying hens 91,829 heads, and rearing chickens 34,909 heads. The poultry farm produces more than 39,000 tons of fresh chicken litter annually, or about 100-120 tons per day. There are specially-equipped concrete and soil composting grounds on the farm, which can store no more than 18 thousand tons of manure. The farm would require at least an additional 2,080 ha of agricultural land to dispose of its entire annual output of poultry litter. It has received sanctions and fines from regional environmental authorities for dumping of litter and contamination of water bodies. In 2012, there were more than 11 million heads of poultry on the farm. Because of current construction of a new branch, the poultry farm will soon produce more than 560,000 tons of fresh chicken litter annually, about 1,536 tons per day. There 24 house with manure for biogas generation. Experts of the farm have been invited to all seminars and events organized by the PIU. The current difficult financial situation of “Nevskaya” has not allowed the PIU to carry out further work with the farm. Roskar is not pilot farm, but representatives have nonetheless attended seminars and events organized by the PIU, and have received the manual for safe manure management. Roskar is currently working with firm "Dunamis" who are looking into a variety of different solutions including assisting in the marketing of granular fertilizer, installation and maintenance of a unit for drying, and sale of additional products made from granulated poultry litter. Roskar attended the recent PIU workshop on drying/incineration technology and are also considering this as a possible solution. Russko-Vysotskaya is not a pilot farm. Farm representatives have been invited to all seminars and events organized by the PIU however, the very difficult financial situation of the farm (which has filed for bankruptcy) has not allowed the PIU to carry out further work with them. The farm is not a pilot farm, however two new major projects are under preparation by companies Rika Biofuels and Gasumin the Leningrad region, and specialists of these companies participated in the seminars organized by the PIU. The essence Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Sinyavinskaya are specially-equipped manure storages on site, but 375,000 tons of manure will still remain after long term storage and fermentation. To dispose of the entire annual output of poultry litter, the farm would require at least an additional 28,903 ha of agricultural land than what it already owns. Despite measures taken by the management to ensure environmentally safe poultry litter management, problems of disposing of liquid waste remain, particularly due to the mismatch in the time needed to store/disinfect manure versus the when organic fertilizers can be applied on the fields. The farm has been reported for problems of systemic runoff of affluent waters flooding forest areas, for example in a recent report from NGO Green Front which alleges a pipe running from Severnaya is discharging liquid waste directly into nearby forests.1 In 2012, the number of poultry on JSC Poultry farm "Sinyavinskaya" amounted to more than 5.3 million heads, including 1.8 million heads of youngsters. The annual output of poultry litter is more than 240,000 tons of fresh manure; about 660700 tons per day. The farm uses specially constructed concrete composting grounds for manure storage, although the farm is unable to market the resulting compost product, and so they transport it to neighbouring farms for free. Sinyavinskayadoes not own any of its own land, and would require at least 18,649 hectares to safely dispose of the annual output of litter. The farm has received sanctions from regional environmental inspectors for overflowing composting grounds, and dumping of bio waste. Since then, the farm has taken steps to rectify the situation and has been cleared of violations by the Regional authorities, although questions over their manure management practices remain. 1http://www.greenfront.su/post/746 25 of these projects are to recycle manure in biogas plants, with the resulting gas to be purified from extraneous gases, then liquefied and sold to consumers. The main products are: liquefied biogas, carbon dioxide, and magnesium. There are plans to build a plant in the vicinity of town Kirovsk, with the bulk of raw materials to be supplied from poultry farm “Severnaya”. The products from the biogas plant are planned to be sold to Sweden (liquefied biogas), Russia (CO2), Latvia (magnesium). Poultry farm “Sinyavinskaya” is not pilot farm, but has participated in seminars organised by the PIU, and have received the PIU’s manure management manual. The farm intends to introduce a system of manure incineration, costing 1.5 billion RUR, and which would generate electricity and heat for the farm. The PIU had a brief meeting with the farm’s General Directorin September 2013, at which the farm denied the existing manure management problems, expressed several contradicting opinions, and stated: “Management of the farm is not interested in manure management technologies. We do not trust European equipment”. Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Voyskovitsy Perepelochka In 2012, there were 507,000 heads of layers and 302,000 heads of broilers on the farm. After current upgrading and modernisation of production facilities, it is estimated that this will reach approximately 5401,000 and 322,000 heads respectively. The farm produces 150 tons of poultry litter per day, or 45-55,000 tons annually. There is a concrete composting ground for poultry manure storage, in which 30-35,000 tons of litter is stored in piles for long term disinfection. To dispose entire amount of produced poultry litter on its own fields, the farm would require at least 7,500 hectares of land. Instead, the farm stores litter on open field sites (particularly in winter, when it cannot be used as a fertiliser), exposing it to various weather conditions including snow, rain, high/flood water, etc., and leading to manure effluent that leaks into the soil and water sources. This poses problems/nuisances to local residents,and has been repeatedly reported by the media. The “Prepelochka” farm is a structural unit of the “Lenptitseprom” farm. The farm is situated in Gatchinskiy rayon The farm was registered on May 14 2004 on the basis of the poultry farm “Skvoritsi”.The poultry houses were modernised, and new slaughterhouse facilities opened. It is the biggest producer of quail eggs and meat in the region. In 2012 there were 161,240 heads of quails.The farm produces 7,518 tons of litter annually. Voyskovitsy is not a pilot farm, but its managers have been invited to all seminars and events organized by the PIU, and have received the manure management manual. Perepelochka is not a pilot farm, but its managers have been invited to all seminars and events organized by the PIU, and have received the manure management manual. 5. Brief Financial Overview of the Agricultural Sector in Leningrad Oblast2 5.1 Profit/loss, productivity, and indebtedness at Rayon level Agricultural enterprises in Leningrad oblast do not have the financial resources for lump sum investments to introduce advanced manure/litter processing technology. The financial situation on 2 Estimated data, as farms are not able to shared detailed financial data with outside parties 26 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs many farms is also continually becoming worse. In 2012, the number of farms in the region that were making a loss increased from 15.3% to 25.9% (in comparison with 2011) (Table 19), a trend which is noticeable in all rayons of the oblast. Table 19 Share of profitable and loss making agricultural enterprises in Leningrad oblast Rayons Share of loss making farms, % 2009 Volosovskiy Volokhovskiy Vsevolzhskiy Vyborgskiy Gatchinskiy Kingissepskiy Kirishskiy Kirovskiy Lomonosovskiy Luzhskiy Priozerskiy Slantsevskiy Tikhvinskiy Tosnenskiy Total 14.3 28.6 23.1 33.3 60.0 2010 23.1 22.2 27.3 37.5 60.0 2011 16.7 16.7 18.2 16.7 33.3 16.7 20.0 11.1 11.1 33.3 11.1 55.6 40.0 20.6 44.4 16.7 24.8 33.3 20.0 15.3 Share of profitable farms, % 2012 36.4 20.0 33.3 20.0 25.0 50.0 20.0 44.4 22.2 44.4 25.9 2009 100.0 85.7 71.4 76.9 66.7 40.0 100.0 66.7 100.0 88.9 88.9 100.0 44.4 60.0 79.4 2010 76.9 100.0 77.8 72.7 62.5 40.0 100.0 83.3 100.0 66.7 100.0 2011 83.3 83.3 100.0 81.8 83.3 100.0 100.0 80.0 100.0 88.9 100.0 55.6 83.3 75.2 66.7 80.0 84.7 2012 63.6 80.0 66.7 80.0 75.0 100.0 50.0 80.0 55.6 77.8 100.0 100.0 55.6 100.0 74.1 The credit-indebtedness of agricultural enterprises also increased by 24.1% from 2011-2012, reaching 418 billion RUR (Table 20). 27 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 20 Credit-indebtedness of agricultural enterprises in Leningrad oblast, K. RUR Rayon 2009 2010 2011 2012 Boksitogorskiy Volosovskiy Volkhovskiy Vsevolzhskiy Vyborgskiy Gatchinskiy Kingissepskiy Kirishskiy Kirovskiy Lodeinopolskiy Lomonosovskiy Luzhskiy Podporozhskiy Priozerskiy Tikhviskiy Tosnenskiy Total 4,378,240 2,838,698 377,490 1,313,276 2,514,442 3,789,441 604,334 43,592 5,333,365 0 2,270,446 1,246,558 617,607 965,298 931,639 2,148,838 29,373,264 0 2,907,311 314,576 2,046,368 3,028,984 5,487,341 678,949 70,632 6,932,370 0 2,326,151 1,169,864 0 1,044,938 1,000,616 3,284,208 30,292,308 0 3,076,760 276,678 3,912,540 3,083,080 4,916,108 823,463 107,826 8,405,961 0 3,031,820 1,453,934 0 1,197,768 728,848 2,664,710 33,679,496 0 3,340,144 473,351 5,124,701 3,765,054 5,017,356 805,381 63,551 12,003,275 725,511 2,670,633 1,521,901 0 1,322,847 1,213,095 3,758,853 41,805,653 % increase 2011-2012 108.6 171.1 131.0 122.1 102.1 97.8 58.9 142.8 88.1 104.7 110.4 166.4 141.1 124.1 Agricultural enterprises in all rayons in the Leningrad region showed an increase in credit indebtedness, except for Kingissep and Lomonosovrayons, where indebtedness decreased by 2.2% and 11.9%, respectively. In 2012, the sum total of credit-indebtedness in the oblast equaled 96.1% of the agricultural production volume in actual prices, and was 9 times the profits generated (Table 21). The level of credit indebtedness exceeded the value of agricultural production in 7 rayons of the oblast. Table 21 Comparison of credit-indebtedness with the value of products produced in Leningrad oblast in 2012 Credit indebtedness Value of agriMagnitude CreditProfit (+) or products (in % of value Rayon against profit loss (-) before indebtedness, K actual prices), K of agri(or loss) RUR. taxation K RUR production RUR Boksitogorskiy 34,148.92 0 0 Volosovskiy 2,928,108 61,863 3,340,144 114.1 54.0 Volkhovskiy 802,467.3 146,832 473,351 59.0 3.2 Vsevolozhskiy 3,365,018 12,708 5,124,701 152.3 403.3 Vyborgskiy 5,917,853 667,171 3,765,054 63.6 5.6 Gatchinskiy 4,233,460 276,708 5,017,356 118.5 18.1 Kingissepskiy 1,114,719 85,896 805,381 72.2 9.4 Kirishskiy 483,774.4 735 63,551 13.1 86.5 28 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Kirovskiy Lodeynipolskiy Lomonosovskiy Luzhskiy Podporozhskiy Priozerskiy Slantsevskiy Tikhvinskiy Tosnenskiy Total 10,366,729 155,394.2 6,107,711 1,560,348 32,992.82 2,373,923 444,179.7 616,311.2 2,987,663 43,524,801 2,769,075 -10,995 -193,784 -7,626 161,817 12,003,275 725,511 2,670,633 152,1901 0 1,322,847 -111,933 789,117 4,647,584 1,213,095 3,758,853 41,805,653 115.8 466.9 43.7 97.5 0.0 55.7 0.0 196.8 125.8 96.1 4.3 -66.0 -13.8 -199.6 8.2 -10.8 4.8 9.0 While credit-indebtedness increased by 24.1% in 2012 from the previous year (Table 21 above), the value of agricultural production increased by only 12.2%, and profit decreased by 2.2% (Tables 22 and 23, below). Table 22 Volume of agricultural production in different rayons of Leningrad oblast (in actual prices), K. RUR. % change Rayon 2009 2010 2011 2012 2011-2012 Boksitogorskiy 25,942 27,497 30,567.17 34,148.92 111.2 Volosovskiy 1,986,800 1,903,077 2,446,838 2,928,108 128.6 Volkhovskiy 739,554 700,147 761,593.7 802,467.3 108.8 Vsevolozhskiy 2,296,327 2,197,253 3,212,857 3,365,018 146.2 Vuborgskiy 3,827,559 4,503,151 5,480,957 5,917,853 121.7 Gatchinskiy 3,554,130 3,263,943 3,415,502 4,233,460 104.6 Kingissepskiy 799,173 761,516 982,194 1,114,719 129.0 Kirishskiy 351,952 350,053 470,940.6 483,774.4 134.5 Kirovskiy 5,718,878 6,773,602 7,012,490 10,366,729 103.5 Lodeynopolskiy 162,968 158,556 164,830.1 155,394.2 104.0 Lomonosovskiy 6,059,042 6,523,149 5,907,765 6,107,711 90.6 Luzhskiy 1,258,017 1,257,701 1,319,773 1,560,348 104.9 Podporozhskiy 31,006 27,603 31,914.5 32,992.82 115.6 Priozerskiy 1,252,769 1,256,728 1,442,747 2,373,923 114.8 Slantsevskiy 361,218 375,714 458,225.7 444,179.7 122.0 Tikhvinskiy 321,059 349,901 571,960.4 616,311.2 163.5 Tosnenskiy 2,123,686 2,838,650 3,599,630 2,987,663 126.8 Total 30,870,080 33,268,241 37,310,786 43,524,801 112.2 29 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 23Farm Financial results in different rayons of Leningrad oblast Rayons Boksitogorskiy Volosovskiy Volkhovskiy Vsevolozhskiy Vyborgskiy Gatchinskiy Kingissepskiy Kirishskiy Kirovskiy Lodeinopolskiy Lomonosovskiy Luzhskiy Podporozhskiy Priozerskiy Tikhvinskiy Tosnenskiy Total Profit (+) or loss (-) before tax, K. RUR. 2009 -701,362 182,171 79,044 158,770 544,588 65,713 24,741 38,945 1,322,381 1,025,370 38,289 -66,149 130,857 -234,232 -28,132 2,580,995 2010 % change 2011-2012 2011 2012 199,372 63,575 124,910 342,354 123,923 4,796 37,989 713,597 211,864 83,024 167,948 367,417 187,434 94,842 237,884 1,843,042 29,2 176,9 7,6 181,6 147,6 90,6 0,3 150,2 857,582 26,391 673,837 66,282 61,863 146,832 12,708 667,171 276,708 85,896 735 2,769,075 -10,995 -193,784 -7,626 117,987 -68,937 308,907 2,852,446 147,619 310,517 362,587 4,754,297 161,817 -111,933 789,117 4,647,584 109,6 -36,0 217,6 97,8 -28,8 -11,5 5.2 Possible support for investments into manure management technologies 5.2.1 Ecological Financing Options Available Worldwide The brief financial analyses above shows that many farms in Leningrad oblast do not have the financial resources to attract investments at commercial banking rates for the introduction of new manure management solutions. Russia currently does not have a great deal of experience in financing ecological projects, which the manure management solutions under discussion with pilot farms in the Leningradoblast undoubtedly constitute. It would therefore benefit from analysing the financing methods used to support projects elsewhere aimed at environmental protection, production of energy from renewable sources. Currently, the most widely used means of financing ecological projects globally are: 1. Central Governmental budget (and budgets of other levels in case of federal structure of the country); 2. An enterprise’s own financial resources; 3. Commercial banks; 4. Leasing companies; 5. Special investment funds; 6. Ecological funds; 30 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 7. Insurance companies; 8. International financial organisations; 9. Budgetary funds of donor countries (on bilateral agreements); The first seven means of financing are national, and the last two are international. Central government and regional government funds, an enterprise’s own financial resources, and loans from credit banks are most widely used in developed countries, most of which are members of the Organisation for Economic Cooperation and Development (OECD). In these cases, certain environmental imperatives are usually set at a national level (including obligations to abide by international agreements, relating for example to the cessation of use of ozone-depleting substances, reduction of greenhouse gas emissions, and increase in electricity production using renewable sources of energy). To achieve these ends, partial finance is directly allocated from government budge funds, but most finance comes through indirect support measures in the form of tax and other economic benefits. In the majority of cases when state benefits and an enterprise’s own funds are insufficient, enterprises apply to commercial banks for loans. Leasing companies successfully operate in many countries, but in many countries they do not cover environmental activities. This is the case in Russia, where most leasing companies do not provide for purchasing the equipment necessary for manure/litter processing, organic fertilizer production, or biogas production. This type of equipment is still considered illiquid, and leasing operations perceive it as risky. In a number of countries in Western Europe, special investment funds have been established to finance large infrastructure projects that resolve the problems of dumping/utilizing solid waste, through the construction of municipal wastewater treatment plants, etc. Projects financed in this manner usually attract lower profits when compared with other capital investment opportunities. These investment funds could however attract resources from pension, insurance and other funds, as participants in the financial pool receive state support in the form of tax exemptions and benefits Insurance companies are involved in environmental insurance in a few European countries only. International financial institutions and bilateral donors provide financing for the ecological needs of developing counties only, although recently there is a tendency to provide such assistance to countries with economies in transition. The provision of funds is almost always conditional on certain requirements for example: the scope of the environmental activities; a limited choice of technologies; following set rules of equipment purchase; and the level of efficiency of the finance to be invested. Bilateral donors also agree on priority geographical areas for project implementation. Many of them put a condition of purchasing equipment in the donor’s country of origin. Ecological funds are important mechanisms for financing environmental measures and mobilizing foreign investment. Ecological funds (EF) are widely used in the transitional economies of Central and Eastern Europe. They are at different levels of development in various countries, from financing the implementation of large, efficient projects (Poland and Hungary) to solving the issues of revenue formation at the legislative level (Central Asian countries). As a rule EFs are established to finance long- and medium-term ecological projects in countries where financial markets are not 31 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs well developed, banking credit rates are high and banking institutions do not see their interest in crediting ecological projects. 5.2.2 Ecological Financing Options Available on the Russian Market It is estimated that the pilot farms of the current project have varying financing needs (depending on technological manure management solutions they agree upon), varying from 15 mln RUR to 160 mln RUR. Technical assistance projects rarely allocate grants of such amounts. A study was conducted on banking and leasing options on the Russian market, with a view of attracting investment for the introduction of new and advanced technologies of manure management, thus reducing pollution from sewage and emissions. Most credit resources of commercial banks are available at an interest rate of 16-18% per annum (e.g. ALFA-BANK, INDEX BANK, NOMOS BANK, PROMINVESTNANK, SBERBANK). This interest rate is fairly high for livestock and poultry farms that have already invested significant financial resources in production extension and modernization, as seen in the credit-indebtedness figures presented in Section 5.1 above. One way of tackling high interest rates and balancing the existing debts of agricultural enterprises could be to consider federal subsidies forthe introduction of new technologies for manure/litter processing, bioenergy production, and organic fertilizer production on large farms. There is a precedent of such subsidies for small and medium sized enterprises, so it may be possible to extend this to large agricultural enterprises for environmental ends. Equipment for processing organic waste and for biogas production is included in the federal subsidy register for enterprises introducing new technologies and equipment and, if applied, this could reduce the real annual rate to around 6-8%. The Leningrad Regional Government Committee for Agroindustry and Fisheries Complex, along with experts from the PIU, are working on proposals in this direction. When considering the option of buying expensive equipment using lease schemes it is worth mentioning that although monthly payments are, as a rule, higher compared with classic credit schemes, the total repayment sum is less (with economy on profit tax and VAT, especially in cases when equipment is put on a lessee balance at a start of the agreement).The average price increase is 12-14% on lease schemes, and 16-18% at classic credit schemes. Below some basic conditions of some interviewed lease companies are quoted: Company name Equipment price (RUR) RosAgroLeasing VTB 24-Leasing PECO-Leasing Baltic-Leasing 1 mln-50 mln 1 mln-200 mln 1 mln-50 mln 500 000-30 mln Min. matched funding Lease period requirement 7% up to 60 months 15% up to 60 months 20% 13-36 months 10% 12-50 months 12-120 months The majority of leasing companies interviewed still consider manure/litter processing, organic fertilizer production, and biogas production equipment to be illiquid, and leasing operations with 32 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs them are seen as risky, so leasing this equipment for purchase is still uncommon in Russia. Foreign companies selling equipment in Russia are required to have a Representative Office in Russia, otherwise a lease agreement will not be possible. Some of the Russian equipment producers already work with leasing companies, for example there are currently possibilities for obtaining lease financing for the composite fuel production equipment “BioREKS”. Under this scheme, the leasing finance covers up to 90% of the equipment price for a period of 36-84 months. The annual equipment price increase is 8%. An analogue scheme is used when buying equipment produced by “JSC Bezopastniyetechnologii” (first payment from 10%, lease period 24-84 months, average annual price increase 7-15%). Leasing schemes could really be effective in financing new technologies and equipment, to decrease the costs of and thus intensify production. Leasing reduces the need for an outlay of an enterprise’s own capital, as the agreement is almost completely financed by leasor. Other advantages of leasing include: Availability of funds - leasing may be the only option for companies that do not have enough assets for a mortgage; Flexibility of lease payments - payments can be adapted to the cash flow of the enterprise; Accelerated depreciation of the lease object – there are more possibilities to renew obsolete equipment, and decrease the amount of profit taxed; Time - the lease period can besignificantly longer than a credit period, which can smooth unevenness of multi-temporal costs and revenue flow; Tax benefits, governmental support - decrease of taxed profit, customs duties and international leasing operations taxes; Increase of industrial potential; Improvement of production technology; Minimizing risk – this opens the possibility for innovations in manure/litter processing, organic fertilizer production, biogas production, etc. Leading European companies specializing in innovative technologies for producing biogas, fuel pellets, briquettes and biodiesel are commencing operations in Russia. Such companies often offer financing of investment projects and export deals through foreign banks at rates of 5-6% in hard currency. One such example is German company AGRO-T, which acts as an integrator and provides complex projects to organize, equip and manage production processes in Russia, Ukraine, Belorussia, Kazakhstan, Azerbaijan. Large livestock and poultry farms with a stable market for their products may be able to take advantage of this opportunity. A similar approach is used to finance the gas piston cogeneration equipment manufactured by Slovak company ENGUL, and which is used for biogas production, for up to 85% of the cost at 5.5-5.9%. The value of this type of equipment is able to be exempted from tax duties and VAT with a condition that the capacity of the unit is more than 750 kWt and there is a direct contract between the manufacturer and Russian buyer-company (Resolution of the Government of the RF #372 dated 30.04.2009). These foreign-financed projects are subject to the risk of exchange rate volatility, although recently fluctuations in currency have been minimal. 33 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Investment proposals for any type of financing should be submitted when project documentation for selected technical solutions, along with economic projections and documentation, has been prepared and approved by licensed Russian authorities. 34 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Annex 1. Individual Farm Data Sheets (Pilot farms are presented first, followed by non-pilot farms, in alphabetical order) (Note: Bird numbers given are for average number of birds per year so average number of layers, average number of broilers with no account taken of young stock that may be on the farm) A. Open Joint Stock Company "Poultry Farm Primorskaya" (JSC "Poultry Farm Primorskaya") Completed 15 October 2013 1. General Information 1.1 Contact Address: 188840, Leningrad region, Vyborg district, settlement KrasnayaDolina / Tel.: (81378)71-358, 71-309, 71238, 8(812)715-99-24 / Fax: 7(812)337-11-02; 7(81378)7-13-58 / E-mail: [email protected], [email protected] / 1.2 Farm Director General Director FalaleevaYuliyaLeonidovna / Tel.: +79217724633 1.3 Farm Ownership Privately Owned 28.29% shares belong to JSC URIELE Handelsellschaftm.b.H / Address: Esslingasse 4 A1010 Vienna, Austria 42.71% shares belong to JSC “Orgsin Invest” 29% shares belong to JSC Uriele group / Address: 117342, Moscow, Vedenskogo, 13, house b 1.4 Description Open Joint Stock Company Poultry farm "Primorskaya" (formerly "Primorye") was established in 1967 on the basis of a poultry sovhoz (collective farm). At its peak, number of poultry heads on the farm reached 500,000 units, but decreased to 100,000 from 1995. The farm’s current capacity is more than 700,000 laying hens (cross Hisex – brown) with a productivity of323 eggs/layer/year. In late 2003, “Primorskaya” a programme of full-scale renovations was undertaken. In the first phase, there was a major overhaul of poultry sheds, with installation of advanced cages from Spanish company Zukami. This coincided with an increased in the number of heads of laying hens from 26,000 to 71,000 in each shed, and the automation of all production processes. Installation of an automatic ventilation system from Dutch company Hottraco allowed ventilation to be provided to poultry houses according to international best practi ce. In the second phase of renovation, sorting and packaging units were modernised, installing an automated line from Dutch company Staalkat that provides high product quality control and accurate measurement, thus excluding the change of re-grading eggs during sorting. Each egg is tested using egg tester, which can detect up to 15 hidden defects. The slaughterhouse has also been modernised since 2003, with equipment from German company Hartmann, allowing “Primorskaya” to produce a wide range of chilled and frozen meat from laying hens. The use of instant freezing technology ensures high safety of products for a long time. The farm also has a production unit for liquid pasteurized egg products, such as melange, and pasteurised whites and yolks, which was equ ipped by French company Actini. A special machine breaks the eggs and, at 74 degrees Celcius, the raw material is then smeared and pasteurized by an antiseptic anti-bacterial ultra-pasteurizer, Actiflash. This ensures that the nutrients, organoleptic and functional properties of eggs are preserved, increasing the shelf life to up to 8 weeks and completely eliminating any risk of contamination. In 2012, a feed mill was installed and became operational. In 2006, the HAACP system was introduced (Hazard Analysis and Critical Control Points), which allowed the 35 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs identification and elimination of all risks associated with the egg production. In addition, the farm was awarded a certificate of comprehensive evaluation to IQ net standard, a single international standard that is recognised in 36 countries worldwide. 2. Production levels/ Future plans Poultry farm "Primorskaya" focuses on the production of chicken eggs, pasteurized liquid egg products, chicken meat, and frozen chicken meat. Annual production of chicken eggs is currently around 180 million units, chicken meat approximately 570-750 tons, and melange between 370-550 tons. In 2012 number of birds was 740,000 heads, including 555,655 layers, and 184,345 youngsters. In 2012, 186.7 million eggs were produced with an average egg laying capacity of hen layers around 336 eggs per head. The number of bird places for laying hens is currently 810,427units, and the average annual number of laying hens over the past 5 years has been 470 -550,000 birds, with 213-235,000 youngsters. After upgrades and renovations are completed in future, the number of laying hens is expected to increase up to 1 - 1.175 million heads, with egg production to double. Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) Number of Layers (heads) Number of Broilers (heads) Production level – eggs (million) Production level – poultry meat (tons, live weight) 2008 266.5 418,000 N/A 111.4 562 2009 295.9 424,800 N/A 125.7 566 2010 325.3 484,000 N/A 157.5 709 2011 333.3 528,000 N/A 176.0 655 2012 336.0 555,655 N/A 186.7 No data Estimated, postproductivity upgrades 336.0 1,000,000 – 1,175,000 N/A 336.0 – 395.0 No data The main consumer of chicken eggs from Primorskaya is the supermarket network "Lenta", which has 36 shopping centres, 17 of which are located in St. Petersburg, 4 in the North West, 8 in the Central District, and 7 in the Southern Federal District. In 2012, the "Lenta" opened 9 new complexes, of which 7 are located in St. Petersburg, and 2 in the North-Western Federal District. The main buyers of melange are baking enterprises in St. Petersburg, including "Hlebniy Dom LLC", “PervoyeHlebopecarnoyeObedinenye LLC", "Morozko LLC" and "RusskiyeBlinySeveroZapad OOO". Meat products sold by company "Companion". Sale prices are quite competitive, as seen in Table 2 below. Egg prices practically have not changed since 2008 and they are 50% below retail prices, ranging from 23-26 roubles per 10 pcs. Poultry meat prices range from 25-50 roubles per kilo, which has doubled in recent years. Prices for melange are negotiable, thus quite unstable. Table 2 Product Current Selling Price Variation over past 5 years Eggs 21-25 RUR per 10 pieces Stable (nil) Poultry Meat 23-57 RUR per kg Increasing (doubled in past 5 years) Melange 1,669-115,540 RUR per ton Unstable 3. Manure / Poultry litter situation summary 36 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 3 below gives a snapshot of the manure / poultry litter situation on Primorskaya farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 3 Manure / Poultry Litter Situation Annual manure output (tons) 32,000 Tonnage of manure in Long-Term Storage 199,480 Type of Storage 4 open reservoirs with paved bottom & sides: - capacity 40,000m3 Amount of own land Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 2,171 tons (6,8% of annual output) 167 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 2,462 2,295 Field storage facility 4.1 Storage capacity of Manure/Litter According to the data provided by the poultry farm the daily manure output is 80 tons, or 32 -37,000 tons annually. Initial moisture content of the poultry litter of cage birds is 70 -75%, and density 650-750 kg/m 3. There are 4 specially constructed open manure storage reservoirs in the vicinity of the farm with a total capacity of 40,000 tons (10,000 tons each). Currently, one storage reservoir is empty, two are completely full, and the fo urth is three quarters full. There are also field storage facilities, used for the storage of semi -decomposed poultry litter. Currently, 194,000 tonnes of manure is stored in reservoirs and on the fields, a volume of more than 6 times the annual manure output. 4.2 Treatmentof Manure/Litter As a result of its long maturation in manure storages and open field sites (8 -12 months, sometimes longer), poultry litter undergoes a natural process of fermentation, resulting in decomposition and compost. Primorskaya farm is only able to apply up to 2,171 tons of decomposed and/or semi-decomposed litter on its 167 ha of agricultural land in order to comply with HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha). This corresponds to 6.8% of the total annual manure output of Primorskaya farm. To dispose of the remaining 93.2% of the total annual production of poultry litter according to HELCOM standards, the farm requires at least an additional 2,295ha of agricultural land. When plans for expansion of production have been implemented, and the number of laying hens consequently increases, manure output will increased 1.8-2.1 times its current level, and a total of between 4,300 and 5,100 ha of land will be required for safe manure application. 4.3 Manure / Litter Management Problems Identified The main problem is that poultry litter is accumulated on the fields, and the annual increase of manure/litter volume along with poor or insufficient storage/spreading capacity has an adverse effect on the environment. Further expansion of production will exacerbate this problem. 5. Summary of PIU activity to date with farm During the process of fermentation, litter is reduced in volume by 25 -30%, which means that manure management remains a critical environmental problem. Given that the farm has some of its own agricultural land, there are various options for manure management methods which can be applied. Primorskaya have been 37 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs presented these options as follows: 1. Poultry litter incineration with use of supplementary fuel. This project was developed by Finnish company NIRAS. The project cost (capex) 13mn Euros (approximately 1.4 times more than annual revenue from production activities), with annual operating costs for servicing at 3,424,000 Euros in the first 3 years of operation and 2,924,000 Euros thereafter, and other annual costs at 2,319,000 Euros. This me ans that the total losses in the first three years of operation are estimated at 1,800,000 Euros, and 900,000 Euros thereafter. The project deemed by management of the poultry farm to be too expensive and financially inefficient, and so was not accepted. 2. Poultry litter incineration without use of supplementary fuel. Energy recovery - hot water for heating and other needs: A) Commercial proposal of the group of companies Agro-3 «Ecology». The project cost is 60mln RUR, and cost recovery due to savings in the heating cost is 2 years. This was not accepted by the management of the poultry farm due to: i) the lack of evidence of implemented projects on industrial scale by the company, ii) the technology having not been tested on caged bird litter, and iii) distrust of equipment produced in Russia. B) Poultry litter drying and incineration without use of supplementary fuel companies BHSL (Ireland) and VDL Agrotech (Holland). Energy recovery - hot water, electricity. Commercial offer of the company is under preparation. 38 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs B. Open Joint Stock Company “Poultry Farm Udarnik” (JSC “Udarnik”) Completed 17 September 2013 1. General Information 1.1 Contact Address: 188850, Leningrad Region, Vyborg District, Settlement Pobeda / Tel.: 81378) 6 -53-22, 6-53-27; (812) 11536-34 / Fax.: (81378) 2-56-63, 2-08-73 / E-mail: [email protected] / Website: www.spkudarnik.ru 1.2 Farm Director General Director ChistyakovGrigoriyNikolaevich / Tel.: (881378) 65322 1.3 Farm Ownership Privately Owned 100% of shares belong to JSC “Gatchinsky Feed Mill” (http://www.gatchinsky-kkz.ru/index.php?lang=en) 1.4 Description Poultry Farm "Udarnik" was built and became operational on 1 January 1970, with a design capacity of 250,000 laying hens. Since this time, the poultry farm has been consolidated, changed its specialisations, reconstructed its poultry sheds and modernised production and processing areas, including a recent decision to equip poultry houses with cages from Spanish company ARUAS (which complies with EU and WTO requirements). These investments in new equipment should be completed soon, with a total cost of 3.5 million roubles. There are two free range poultry houses equipped according to the EU requirements. The investment in upgrades will allow the farm to increase the capacity of each shed from 32,000 to 56,000 animals. Work is also underway to install a modern and effective microclimate control system in each poultry house. The farm is also diversifying its production, having recently started to rear broilers. Twelve broiler chicken houses have been constructed, with a maximum capacity of 900,000 birds, and a new slaughterhou se has been set up with a maximum capacity of 3,000 birds per hour. 2. Production Levels / Future plans The factory produces more than 35 kinds of products: eggs, chicken, different kinds of cutlets ("Amateur", "Special", "Pozharskie", "Neva"), sausages, escalopes, kebabs and meat in marinade. Production levels have been steadily increasing since investments in productivity upgrades, and expansion into broiler rearing and production of poultry meat, as seen in Table 1 below. Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) 2008 2009 2010 2011 2012 Estimated, postproductivity upgrades 303.5 308 307.1 283.2 252 312 Number Layers (heads) 440,100 445,900 403,600 461,200 329,400 450,000 of Number of Broilers (heads) N/A N/A N/A N/A 248000 800000 Production level – eggs 133.6 mln 137.3 mln 124 mln 130.6 mln 81.9 mln 140 mln Production level – poultry meat (tons, live weight) 569 617 620 471 4,306 14,000 The main consumers of chicken eggs are the supermarket chains «Pyaterochka», «Karusel», and «Diksi». Products are 39 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs delivered to St. Petersburg, Republic of Karelia, Leningrad and Murmansk oblasts. Selling prices are competitive, as demonstrated in Table 2 below. The farm has 4 stores: two in Vyborg and one in Roshchino settlement and Pobeda settlement. All farm products from Udarnik are certified and produced according to the requirements of state standards. Table 2 Product Current Selling Price Variation over past 5 years Eggs 23-25 RUR per 10 eggs Stable (nil) Poultry Meat 25-50 RUR per kg Increasing (doubled in past 5 years) 3. Manure / Poultry Litter Situation Table 3 below gives a snapshot of the manure / poultry litter situation on Udarnik farm. A s can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 3 Manure / Poultry Litter Situation Summary Annual manure output (tons) Tonnage of manure in Long-Term Storage Type Storage of 36,700 40,000 4 open reservoirs with paved bottom and sides Amount of own land 450 ha Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 5,850 tons (16% of annual output) Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 2,823 ha 2,373 ha 4.1 Storage of Manure / Litter The 4 open manure storage reservoirs on Udarnik were built in in 1985, each with a capacity of 1,000 tons, with paved sides and bottom. Poultry litter is transported 1,000m from the farm’s production area to the storage facilities via asphalt roads by lorries and tractors with trailers. Liquid litter is similarly transported using tanks. Currently, two of the four storage reservoirs are full, and one is empty, to which litter is delivered daily from the poultry sheds. The fourth reservoir is in the process being emptied; the decomposed litter from this storage reservoir is partially applied on the fields owned by the farm, partially removed and stored at the field sites, partially transferred to other agricultural organizations, and partially used by personal subsistence farmers and gardeners. 4.2 Treatment of Manure / Litter As a result of its long maturation in manure storages and open field sites (8 -12 months, sometimes longer), poultry litter undergoes a natural process of fermentation, resulting in decomposition and compost. Udarnik farm is only able to apply up to 5,850 tons of decomposed and/or semi-decomposed litter on its 450 ha of agricultural land in order to comply with HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha).This corresponds to 16% of the total annual manure output of Udarnik farm. To dispose of the remaining 84% of the total annual production of poultry litter according to HELCOM standards, the farm requires at least an additional 2,370 ha of agricultural land. If we consider the current expansion of production into broiler chicken rearing, and the consequent increase in manure / litter output, it is estimated that the total land requirement for safe utilisation of the total manure output will be between 6,000-6,300 hectares. 40 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 4.3 Manure / Litter Management Problems Identified The main problem for the farm is how to use the excess of at least 30,000 tons of poultry litter per year that is unable to be safely spread on the farm’s own land. The recent increase in production means that the output of manure will be increased up to 75-85,000 tonne a year. There is no similar increase in the capacity of the farm to process manure which, combined with the fact that litter needs to be stored over the long -term for its disinfection, that there are no other farms on which Udarnik can use the manure, and that current manure storages are overflowing, means that the farm is forced to take manure to the field sites. 5. Summary of PIU activity to date with farm During the process of fermentation, litter is reduced in volume by 25-30%, which means that manure management remains a critical environmental problem. Given that the farm has some of its own agricultural land, there are various options for manure management methods which can be applied. Udarnik have been pre sented these options as follows: 1. Poultry litter incineration with use of supplementary fuel. This project was developed by Finnish company NIRAS. The project cost (capex) 19mn Euros (approximately 2.3 times more than annual revenue from production activities), with annual operating costs for servicing at 3,850,000 Euros in the first 3 years of operation and 3,150,000 Euros thereafter, with annual turnover from sales of 1,560,000 Euros. This means that the total losses in the first three years of operation are estimated at 3,200,000 Euros, and 2,000,000 Euros thereafter. The project deemed by management of the poultry farm to be too expensive and financially inefficient, and so was not accepted 2. Poultry litter incineration without use of supplementary fuel. Energy recovery - hot water for heating and other needs: A) Commercial proposal of the group of companies Agro-3 «Ecology». The project cost is 80 mln RUR, and cost recovery due to savings in the heating cost is 3 years. This was not accepted by the management of the poultry farm due to: i) the lack of evidence of implemented projects on industrial scale by the company, ii) th e technology having not been tested on caged bird litter, and iii) distrust of equipment produced in Russia. B) Poultry litter drying and incineration without use of supplementary fuel companies BHSL (Ireland) and VDL Agrotech (Holland). Energy recovery - hot water, electricity. Commercial offer of the company is under preparation. 3. Biogas plant- commercial proposal by company “Biogasenergostroy”. Not accepted, because there is not enough experience of use of biogas plants in the poultry industry. Given the absence/lack of land for poultry litter disposal, the proposed projectwould not solve all the problems. The digestion of litter in bioreactors results inliquid fraction which needs to be treated resulting in additional costs.Although the solid fraction is reduced, it has to be also disposed safely. Produced methane can be utilized for energy production.. 4. Express bio-fermentation with the preparation of bulk and/or granulated organic fertilizers, feed additives, fuel for boiler houses – “Dunamis” company's proposal is on the final stage of preparation to be considered by the management of the poultry farm. Preliminary capital cost of the project is 88 mln RUR, payback period is 5 -6 years. If successful, various poultry farms would be willing to participate in the implementation of this project. C. Closed Joint Stock Company “Poultry Farm Lagolovo” (CJSC “Lagolovo”) Completed 16 September 2013 1. General Information 1.1 Contact Address: 188517, Leningrad Region, Lomonosov District, Settlement Lagolovo / Tel.: +7(812) 741 -13-68, 6-53-27 / Fax.: +7(812) 741-36-53, +7(812)3295356 / E-mail: [email protected] 41 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 1.2 Farm Director General Director Lihachev Vladimir Sergeevich 1.3 Farm Ownership Privately Owned Likhachev Vladimir Sergeyevich - 83.99% of shares SolovyovaLudmila - 3.1% of shares GishyanLudmilaNikolayevna - 0.45% of shares 1.4 Description Poultry Farm "Lagolovo" is located in the Lomonosov district of the Leningrad region. The farm commenced operations in 1992, since which time it has repeatedly changed ownership. The company was registered in its present form ZAO (CJSC) on 6 November 2002. The main production activities of “L agolovo” are poultry farming, and the production of meat and grass meal. The main specialization of the enterprise is egg production (accounting for 78.9% of total revenue). In recent years, the farm has accounted for between 2.8 -4.6% of total produce on the market of Saint Petersburg and the Leningrad region, with 9.9% of the total production of meat and poultry meat products. The farm owns 183 hectares of arable land used for growing of perennial grasses and annual plants for the production of grass meal. In recent years there has been a decline in egg and poultry production because of the restructuring of poultry technology in order to save costs due to a sharp increase of feed prices which has caused a difficult financial situation for the company. Poultry farm managers developed a plan of anti-crisis measures, but the company cannot yet implement the approved plan and increase production. In accordance with this crisis action plan, several measures were undertaken in order to save energy, including: reducing the heating period of units, installation of nipple drinkers and reserve tanks for stable drinking, rationing of the water supply, irregular electric lighting, and maintenance of electrical installations. These activities helped to reduce production costs. Over the past two years, between 2010 and 2012, average egg production decreased by 11.8%, and the productivity of laying hens decreased by 18.7 eggs per layer. The adult flock replacement rate was 1.29%. At the end of 2012, the number of employees at the poultry farm was 36 less than in 2011, at a total of 199 people. At the time of this study, it was reported that the poultry farm may be decommissioned due to low profitability and accumulated debt. According to unofficial sources, there may be plans to build a logistics center on the current territory of the poultry farm. 2. Production Levels / Future plans The main products of the farm are eggs and poultry meat obtained after the culling/selection of the main flock. In the past two years, the number of heads has been reduced and accordingly the level of production has decreased. The main competitors of “Lagolovo” are large egg-producing poultry farms in the Leningrad region, including JSC Poultry farm “Sinyavinskaya", JSC Poultry farm “Roskar", and JSC Poultry farm “Primorskaya". Between 2008 and 2011, the total volume of production on “Lagolovo” increased overall, from an average annual number of 272,907 poultry heads in 2008 to 360,089 poultry heads in early 2011. Egg production during the same period increased from 82.5 million to 112.6 million, and the company was included in the list of top 100 poultry farms of the Russian Federation (in 92 nd place). Since 2011, however, there has been an overall reduction of poultry and egg production on the farm. In 2012, the poultry flock reduced by 20% (from 346,141 to 278,303 heads) in comparison with 2011, and egg production reduced by 25.3% (from 112.6 million eggs to 79.4 million). The main reasons for the reduction in production was forced measures and change in technology in order to save costs and to overcome the difficult financial situation. In 2012, of the products that poultry farm "Lagolovo" sold, 6.2% were packed eggs, and 7.1% were branded “Lagolovskoe” rustic eggs. Of the packed eggs, 18% were the highest category eggs, 56.9% were the C-1 category, 42 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs and the remaining 25.1% were lower category eggs (including 10.8% mélange). In late 2011, the decision was made to convert from egg production to broiler meat production, as a more profitable option. In 2012, the farm reared 202,000 broiler heads, slaughtered 154,000 heads and produced 310 tons of meat in addition to the 711 tons from end of production layers. Table 1 Past and Present Production Levels Year Egg-laying (eggs/head/year) 2008 302.3 Number of Layers (heads) 272,907 2009 310.5 2010 Number of Broilers (heads) Production level – eggs (million) 82,5 Production level – poultry meat (tons, live weight) 398 338,808 105,2 411 312.7 360,089 112,6 632 2011 307.1 346,141 106,3 348 2012 285.3 278,303 79,4 711 202,000 Poultry Farm "Lagolovo" wholesales eggs in St. Petersburg and the Leningrad region, which are produced according to veterinary requirements and certificates of compliance. Prices over the past 5 years have been relatively stable, at between 21-24 RUR per 10 pieces. 3. Manure / Poultry Litter Situation In recent years, poultry litter output has been reduced due to a sharp decrease in production volume and the partial conversion of the facility to broiler production. In 2011, 16,840 tons of litter was produced, reducing to only 12,500 tons in 2012. The poultry farm owns 183 hectares of arable land, which enables them to apply up to 8,300 tons of the total litter output on the fields. There is also a specially -equipped manure storage facility which takes up to 9,000 tons of litter, concrete composting grounds for up to 2,000 tons, and t composting grounds for 3,000 tons. At the time of the survey, 13,000 tons of litter were accumulated in poultry manure storage. Table 3 below gives a snapshot of the manure / poultry litter situation on Lagolovo farm. Table 3 Manure / Poultry Litter Situation Summary Annual manure output (tons) Tonnage of manure in Long-Term Storage Type Storage 16,840 11,227 Storage facility, concrete of Amount of own land (ha) 183 Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 2379 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 1295 -1112 and soil composting grounds 5. Summary of PIU activity to date with farm Poultry farm “Lagolovo” is not a pilot farm. Nonetheless, the poultry farm has been proposed several options for poultry litter management by the PIU, including: Accelerated fermentation using drum fermenters; Poultry litter incineration without use of supplementary fuel. Energy recovery - hot water for heating 43 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs and other needs. Specialists of the poultry farm participated in a Study Trip (organized by the PIU in partnership with company Agro-3 "Ecology), visiting poultry farm “Konkursnaya” (Moscow region) to study the Russian experience of poultry litter incineration on a production scale; Currently, in connection with the farm’s plans to cease operations, the PIU put farm experts in touch with GNU SZNIIMESH to discuss the possibility of processing the accumulated manure into organic fertilizer using SZNIIMESH drum fermenters. 44 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs D. Open Joint Stock Company "Lenptitseprom" Completed 25 October 2013 1. General Information 1.1 Contact Address: 188351, Leningrad Region, Gatchina District, Settlement Tervolovo / Tel.: 7(812) 960 -01-60, +7 (812) 96001-61/ Fax .:+7 (812) 960-01-61 / E-mail: [email protected], [email protected] / Website: http://www.lopp.ru 1.2 Farm Director General Director TrusovYuriy Vasilyevich 1.3 Farm Ownership Privately Owned 75.72% of ordinary shares belong to Limited Liability Company "NEVAPORT" (St. Petersburg, Sedov street 11, building A) 23.35% of ordinary shares belong to a limited liability company Cascata HOLDINGS LTD (Richard End Verengarias 12 ARAUZUS Castle's Court, 3rd Floor, Office 303, Limassol, Cyprus) 0.01% of ordinary shares belong to TrusovYuriy Vasilyevich (St. Petersburg) 1.4 Description In 1965 "Lenptitseprom" was founded as a state enterprise to manage the poultry industry in the Leningrad region. Specialists of the establishment were responsible for planning and developing the poultry industry in the region and had a direct impact on all aspects of functioning of poultry farms. In 1992, during the period of active privatization of poultry farms, “Lenptitseprom” was transformed into a Joint Stock Company providing consulting services to poultry farms. In 1994, “Lenptitseprom” established its own production capab ilities. Currently, JSC "Lenptitseprom" has the following branches: “Volosovskaya” hatchery and poultry breeding station; Poultry farm "Baltiyskaya"; Poultry Breeding Farm "Lebyazhe"* (a pedigreed reproduction poultry farm, livestock figures are counted separately and are presented in Data Sheet E); Poultry farm "Krasnyezori"; According to rough estimates total number of poultry is about 309,530 birds. The main activities of "Lenptitseprom" are: The production, processing and marketing of poultry products (eggs and egg powder, poultry meat chickens and broilers, quail eggs); Manufacture and sale of poultry breeding products (broiler hatching eggs and day -old chicks); Production and sale of day-old chicks (meat and egg breeds), quail, ducks, geese and turkeys for small plot holders, farmers and small farms; Trade and procurement. JSC "Lenptitseprom" has a slaughter and processing line in its structure. “Trading House Lenptitseprom” was established as a subsidiary for marketing products from its various branches. The total number of employees is 860 people. 2. Production levels/ Future plans The main economic activity is production of chicken eggs. Products from the farm are mainly marketed for retail in St. Petersburg and the wider Leningrad region. In 2012, the number of birds was more than 309,000 heads, including 162,000 heads of youngsters, and the farm produced more than 69 million eggs. The average egg price is currently 23-25 RUR per 10 pieces, and this has remained relatively stable over the past 5 years. 45 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 1 Past and Present Production Levels Year Egg-laying (eggs/head/year) Number of Layers (heads) Number of Broilers Production level – eggs (million) (heads) 2009 301 597,074 179,600,000 2010 313 360,090 112,600,000 2011 304 300,987 91,500,000 2012 286 243,347 69,500,000 Production level – poultry meat (tons, live weight) 3. Manure / Poultry litter situation summary Table 3 below gives a snapshot of the manure / poultry litter situation on Lenptitseprom farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 3 Manure / Poultry Litter Situation Annual manure output (tons) Tonnage of manure in Long-Term Storage 13,849 9,233 Type of Storage Concrete composting grounds Amount of own land Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 210 2,730 1,065 855 4.1 Storage capacity of Manure/Litter In JSC “Lenptitseprom” the annual manure output is13,849 tons, according to the estimated data. There are specially constructed concrete composting grounds in the vicinity of the farm, which are used for poultry litter storage. When necessary, field grounds are also used for composting. Currently, 9,000 tons of manure is stored on concrete composting grounds and on the fields. 4.2 Treatmentof Manure/Litter As a result of its long maturation in manure storages and open field sites (8 -12 months, sometimes longer), poultry litter undergoes a natural process of fermentation, resulting in decomposition and compost. “Lenptitseprom” farm is only able to apply up to 2,730 tons of decomposed and/or semi -decomposed litter on its 210 ha of agricultural land in order to comply with HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha). This corresponds to 19.8% of the total annual manure output of “Lenptitseprom” farm. To dispose of the remaining 80.2% of the total annual production of poultry litter according to HELCOM standards, the farm requires at least an additional 855 ha of agricultural land. 4.3 Manure / Litter Management Problems Identified The main problem is that poultry litter is accumulated on the fields, and the annual increase of manure/litter volume along with poor or insufficient storage/spreading capacity has an adverse effect on the environment. Further expansion of production will exacerbate this problem. 5. Summary of PIU activity to date with farm 46 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Poultry farm “Lenptitseprom” is not a pilot farm. Nonetheless, specialists of the poultry farm have participated in seminars organised by the PIU. The PIU has also givenits manure manual (“Manure / poultry litter management on livestock farms to ensure the ecological security of the territory, ground and underground water bodies in the Leningrad region”) to the General Director of the farmTrusovYuriy Vasilyevich (during a meeting devoted to problems of soil fertility, which was initiated by the Public Chamber of the Leningrad Region ).This manual contains information about different technological solutions and legislative requirements for environmentally safe manure management.YuriyVasilyevich said that he found the manual “very informative and obviously useful”. 47 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs E. Limited Liability Company Poultry Breeding Farm “Lebyazhye” Completed 22 October 2013 1. General Information 1.1 Contact Address: 188522, Leningrad Region, Lomonosov District, Village Shundorovo / Tel.: (+7(812) 423 -09-60, +7 (81376) 7-24-22812) / Fax.: +7 (81376) 7-24-16 / E-mail: [email protected] / Website: http://www.ptitsefabrikalebyazhye.ru 1.2 Farm Director General Director Kuksov Vladimir Mikhaylovich / Tel.: 8 (812) 423-09-60, 8 (81376) 72-416 1.3 Farm Ownership Privately Owned 100% shares belong to JSC "Lenptitseprom” 1.4 Description Poultry breeding farm "Lebyazhye" commenced operations in 1985. The farm specialises in the production of breeding chickens for meat-producing poultry farms, and supplies chickens to other farms in the Leningrad region for subsequent rearing. It is the only producer of breeding chickens for meat production in the North-West region of Russia. Since its establishment, the company has repeatedly changed ownership. From 1993 to 1996 it was in the form of a Joint Stock Company, between 1997 and 2001 it was a branch of "Lentptitseprom" and, since 2001, it has operated in the form of Limited Liability Company as a branch of “Lenptitseprom”. In 1995, shareholders of JSC Poultry Breeding farm “Lebyazhe" requested to join with JSC "Lenptitseprom". At this time, the poultry birds were gone, and there was a debt of more than 19 billion roubles. The Regional Administration supported the idea of a mergerand assisted in the implementation of statutory procedures. Since 1996, JSC Poultry Breeding farm “Lebyazhe" continued its activities as a branch of "Lenptitseprom". In order to restore the poultry farm’s production levels, "Lenptitseprom" attracted a partner, French company "ISA" (today it is "Hubbard"), which created breeds of meat crosses, such asLa Vedetta Isa, Isa 15 and others. They are highly productive and economic breeds of chickens. The system of financial support for the production of breeding chickens (accepted by the Government of the Leningrad region) helped to recover and increase the volume of production, an d partially offset the rising costs of production. Due to improved technology and better use of production space, in 2005 "Lebyazhe" produced more than 3.7 million day-old chicks and became the second largest supplier of breeding production on the Russian market. However, there remained a need to increase production of the pedigree flock and, in the spring of 2006, it became clear that further increase of production will be impossible without major reconstruction. After careful study of the proposals of several West European firms, specialists from “Lebhyzahe” decided to upgrade feeding and watering equipment using the firm "Roxell", and brought in civil Engineers of the “Neofors” group of companies to assist with the development of technical solutions, as well as install and commission equipment. As a result of the reconstruction, 45 poultry houses were equipped with feeding and watering equipment from Belgian company "Roxell"; “KiXoo” oval feeders for the parent and grandparent flocks of chickens ("Hubbard "), a “Vitoo” system of feeders for replacement flock, and the “SPARKcup” drinking system. Two additional poultry houses (71mx 60m) were constructed with a capacity of 15,000 breeding hens and cockerels. New poultry sheds were equipped with a unique ventilation system with overpressure (no analogues in Russia), automated systems for feeding, watering and lighting, as well as effective barriers against harmful micro organisms. The same technical standards are seen in the reconstructed hatchery, located at a distance from the poultry farm in the village of Volosovo. The hatchery was equipped by the company "Pas Reform" (Holland). In 2010 – 2011, two replacement flock poultry houses were reconstructed and four sheds for grown birds. "Lenptitseprom" does not have any plans to stop its reconstruction plans. The company will design the second 48 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs phase of reconstruction of "Lebyazhe" and start to design first order reproducer for the egg layers. 2. Production Levels / Future plans Poultry farm "Lebyazhe" is a reproducer of the first order. It rears breeding chickens of parent forms of meat crosses, which were developed and introduced by selection centre of firm Hubbard. As a reproducer of the first order, it supplies popular crosses, such as resource-saving cross F-15 with a mini chicken on the parent flock. In this bird, a recessive gene for dwarfism in the maternal line allows savings of up to 12kg of feed per head for the 1-64 week period, so farms can use the production area more efficiently, increasing the density of birds in the production area by up to 6.5-7 heads per m 2. “Lebyazhe” supplies day-old chicks of the parental forms to more than 70 poultry farms of the Russian Federation. It produces over 10 million heads of day -old chicks per year. Past data on production levels is unavailable, but currently the farm has approximately 18 3,000 heads of layers, and approximately 104,000 heads of broilers. The selling prices of day-old chicks depend on number to be supplied and ranges from 18 to 35 RUR per head. 3. Manure / Poultry Litter Situation Table 1 below gives a snapshot of the manure / poultry litter situation on “Lebyazhye” farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 1 Manure / Poultry Litter Situation Summary Annual manure output (tons) Tonnage of manure in Long-Term Storage Type of Storage Amount of own land 12,869 8580 Concrete and soil composting ground 0 Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 0 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 990 980 3.1 Storage of Manure / Litter The poultry litter output in “Lebyazhye” farm is 35 tons per day or 12,869 tons per year (according to the estimate data). There are concrete composting grounds used for manure storage, which consist of two reservoirs/trenches of 90m x10m each, and a soil composting ground. During winter periods litter is taken to the concrete composting ground, and in the summer to the soil composting ground. Between 8 -10,000 tons of litter mixed with peat is placed in the concrete composting ground at any one time. During storage and fermentation, the litter reduces in volume by 25-30% compared with the original amount. However, due to precipitation on the stored manure, the mass of the stored manure increases even as its volume decreases. 3.2 Treatment of Manure / Litter Initially, the full amount of poultry litter produced is placed in the concrete composting ground, where it is stored in piles for 8-12 months. Poultry litter undergoes a natural process of fermentation, resulting in decomposition and compost. Compost is then used on the fields of neighbouring farms, or sold to gardeners and small plot holders, as the farm owns none of its own arable land. To dispose of the entire amount of poultry litter produced on its own fields, the farm would require at least 1,245 hectares of land. 3.3 Manure / Litter Management Problems Identified The main problem is that, due to long-term storage on open field sites, poultry litter is exposed to various weather conditions (snow, rain, high/flood water, etc.). This increases its volume and leads to the formation of manure effluent that leaks into the soil and water sources. During this period of time, ammonia is released into the atmosphere, resulting in a decrease in the quality of litter as fertilizer, as well as l eading to air pollution, although 49 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs mixing with peat somehow slows down those processes and improves quality of the resulting naturally fermented compost. 4. Summary of PIU activity to date with farm “Lebyazhye" is not a pilot farm. Nonetheless, “Lebyazhye” farm managers have participated in seminars and events organized by the PIU. The PIU has also distributed to the farm its manure manual ( “Manure / poultry litter management on livestock farms to ensure the ecological security of the territory, ground and u nderground water bodies in the Leningrad region”). This manual contains information about different technological solutions and legislative requirements for environmentally safe manure management. Currently, SZNIIMESH/PIU is working with the management company KER-Holding Ltd (http://www.kerholding.ru/eng/about) to solve the problem of poultry litter management on “Lebyazhye” farm. Specialists of the firm and SZNIIMESH have developed various proposals for the accelerated fermentation of manure, in particular: Composting at sites with active mixing by agitators; Using chamber bio-fermenters; and Using of drum fermenters. 50 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs F. Open Joint Stock Company “Poultry Farm Lomonosovskaya” (JSC Lomonosovskaya”) Completed 18 September 2013 1. General Information 1.1 Contact Address: 188502, Leningrad Region, Lomonosov District, village Gorbunki / Tel.: +7 (81376) 5 -32-10 / Fax.: (+7 (812) 421-26-44 / E-mail: [email protected]. 1.2 Farm Director General Director Willeke van den Brink/ Tel.: (81362) 632641.3 1.3 Farm Ownership Privately Owned 100 % of shares belong to JSC “Poultry farm Severnaya” 187322, Leningrad Region, Kirovskiy District, settlement Sinyavino-1 1.4 Description Broiler Poultry Farm "Lomonosovskaya" began its operations on December 1, 1960. At that time it was the largest broiler poultry farm in Europe, and for a long time it was one of the leading poultry meat producing enterprises of the Lomonosov district of the Leningrad region. For some years, about 40% of the region’s poultry meat was produced there. In 1993, as a result of the farm’s privatization, "Lomonosovskaya" was transformed into a Joint Stock Company, and was similarly modernised with the introduction of new, modern production technology. In October 2011, based on the decision of the sole shareholder of JSC Poultry farm "Severnaya" and JSC Poultry farm “Lomonosovskaya", and according to a merger agreement, the farms were reorganized in line with Articl e 19.1 of the Federal Law "On Joint-Stock Companies". As a result of the reorganization, of JSC Poultry farm "Severnaya" became the sole successor of the property, rights and liabilities of Poultry farm “Lomonosovskaya". 2. Production Levels / Future plans Until October 2011, the poultry farm was the most technologically effective enterprise engaged in production of broiler meat, and the largest producer of broiler meat in the North-West region. The main products of poultry production activities are: completely eviscerated broiler chickens; broiler meat cuts (breasts, legs, and wings); mince; and other products. Most of the farm’s products are fresh meat (kept at 0 – 4 °c) that retains its flavour and 100% of its dietary properties. Products of the farm are marketed in Saint Petersburg, Moscow and the wider Leningrad, Moscow and Novgorod regions. Since its merger with Poultry farm “Severnaya” in October 2011, the main activity of “Lomonosovskaya” farm has been the leasing of property, plants and equipment. There is no data currently available on current or past production levels. 51 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 3. Manure / Poultry Litter Situation In October 2011 broiler meat production was discontinued. During 2012 the remaining poultry litter (after disinfection) was taken out on the fields. 52 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs G. Closed Joint Stock Company “Poultry Farm “Nevskaya” (CJSC “Nevskaya”) Completed 14October 2013 1. General Information 1.1 Contact Address: 188668, Leningrad Region, Vsevolozjsk District, Settlement Leskolovo / Tel.: +7(81370) 5 -41-40, 6-53-27; +7(81370) 5-43-00; +7(81370) 5-42-01 / Fax.: (81370) 5-42-01, +7(812)3295356 / E-mail: [email protected]; [email protected] 1.2 Farm Director General Director Malov Oleg Amirovich / Tel: (881370) 5-41-40 1.3 Farm Ownership Privately Owned LLC Poultry farm “Novaya Nevskaya” – 1.89 % of shares Private persons (861 people) – 98.19 % of shares 1.4 Description The farm commenced operations in 1974 in accordance with a standard design intended for 250,000 heads of laying hens. Since this time, the farm has repeatedly changed ownership, and was registered in its present form ZAO (CJSC “Nevskaya”) on 6 February 1993. The average number of employees is 175 people. The company has undergone modernisation several times. The last renovation was in 2005, when 10 poultry houses were equipped with cages from Spanish firm Zukami, and at which time the number of bird places increased to 900,000. Investment in this modernisation amounted to 3 millio n EUR. The main specialization of “Nevskaya” is egg production, but poultry and egg production levels has been unstable over the years, varying greatly depending on the economic situation of the company. Crosses Loman and Hy -Line are used for the production of eggs. Between 2005-2009, poultry farm "Nevskaya" was one of the largest egg producers in the Leningrad region, accounting for 7% of the market, and 30 -40% of products were exported to Moscow and the Moscow region. There are 18 poultry houses (55,000 laying hens each), of which only 10 are currently used. There is a growing unit designed for 90,00 heads, as well as a feed plant, and a slaughterhouse for culled birds. In recent years, due to management problems and breaches in technological processes (i nadequate repeated “induced molting” of birds to increase production, egg quality, and profitability of flocks in their second or third laying seasons, when it was needed to replace flock), levels of production and profitability declined. This left “Nevskaya” with multi-million RUB losses, severe debt, and put them on the edge of bankruptcy. On 27 February 2013, the Arbitration Court of St. Petersburg and the Leningrad Region enacted an external control procedure for a period of 18 months in respect of “Nevskaya” farm, appointing an external manager, Viktor Bychenkov. The farm has a bad reputation with regional environmental control authorities in connection with the unresolved issue of the disposal of produced poultry manure. 2. Production Levels / Future plans For a long time, poultry farm "Nevskaya" was a major representative of the poultry industry in the North -West region, but over the past five years, the situation has worsened. The number of heads has been reduced and accordingly the level of production has decreased, as well as the egg capacity of remaining poultry.The main products of the farm are eggs (first category) and poultry meat obtained after the culling/selection of the main flock. 53 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 1 Past and Present Production Levels Year Egg-laying (eggs/head/year) 242.8 Number of Layers (heads) 700,000 Number of Broilers (heads) NA Production level – eggs (million) 170 Production level – poultry meat (tons, live weight) NA 2008 2009 246 573,290 NA 140.8 NA 2010 309 557,891 NA 172.5 NA 2011 313 453,994 NA 142.1 NA 2012 252 432,604 NA 108.8 NA Poultry Farm "Nevskaya" wholesales eggs in St. Petersburg and the Leningrad region, in Moscow and Moscow region, where egg prices range between 21-24 RUR per 10 pieces. The end products are produced according to veterinary standards and certificates of compliance. 3. Manure / Poultry Litter Situation Table 2overleaf gives a snapshot of the manure / poultry litter situation on “Nevskaya” poultry farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 2 Manure / Poultry Litter Situation Summary Annual manure output (tons) 26,808 Tonnage of manure in Long-Term Storage 17,872 Type Storage of Storage facility, divided into 4 sections 10,000m3 each Amount of own land (ha) Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 0 0 2,062 2,062 4.1 Storage of Manure / Litter According to the survey conducted, the litter output of caged birds is 33,537 tons of wet manure per year which, after natural shrinkage, yields 26,807 tons of litter. There is a specially-constructed 40,000m3 manure storage facility, divided into 4 sections. 4.2 Treatment of Manure / Litter As a result of its long maturation in manure storages and open field sites (8 -12 months, sometimes longer), poultry litter undergoes a natural process of fermentation, resulting in decomposition and composting. T he poultry farm has no agricultural land which is why decomposed and semi-decomposed manure is taken on the 54 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs fields and to the fields of the farms and individual plot holders. To dispose of the total annual production of poultry litter according to HELCOM standards, the farm requires at least 2,062ha of agricultural land. 4.3 Manure / Litter Management Problems Identified Although management of the poultry farm officially declares that the entire volume of the resulting manure is composted and is brought to the field sites in accordance with the technology, according to available information, this is not true. In 2012, land contamination by organic waste was recorded in the vicinity of poultry farms on an area of 2 hectares. It was also found that waste was being disposed of on composting grounds, with 80m 3 ofwaste (packaging cardboard, feathers, and egg shells) dumped there. Non-compliance was found in the area of recycling and collection of bio-waste, as well as breach of the requirements of veterinary and sanitary rules. Based on these offenses/infringement of the law, JSC Poultry farm “Nevskaya" and the General Director were fined 40,000 and 2,000 RUR, respectively. An order was also issued to rehabilitate land to the condition suitable for use, and bring the land back to a state suitable for agricultural use. In addition, removal of manure on the fields of neighbouring farms also caused complaints from residents living nearby to these fields. Heaps of manure are stored on fields for a long time (time spre ading and application of manure into the soil in crop growing farms do not always coincide with the terms and requirements to clear overflowing manure storages), which threatens to contaminate the environment. These facts indicate lack of available storage, and non-compliance with established standards for the storage and disposal of poultry litter. 5. Summary of PIU activity to date with farm Poultry farm “Nevskaya” is not a pilot farm. Nonetheless, the poultry farm has been proposed several options for poultry litter management by the PIU, including: Poultry litter incineration without use of supplementary fuel. Energy recovery - hot water for heating and other needs. Specialists of the poultry farm participated in a Study Trip (organized by the PIU in partnership with company Agro-3 "Ecology), visiting poultry farm “Konkursnaya” (Moscow region) to study the Russian experience of poultry litter incineration on a production scale; Biogas plant to supply gas to greenhouse complex. The PIU had a meetingwith ma nagers of the “Interflora” green house complex/flower growing dealer, which is situated across the road from the poultry farm. The managers of Interflora have expressed interest to buy biogas, because at the time the greenhouses were already built and with gas burners installed, but the company had experienced difficulties with obtaining all the legal requirements for gas supply. Nonetheless, the owners of the green houses were not ready to invest in building a biogas plant, given that biogas technology for poultry litter has not yet been fully developed. Experts of the poultry farm have been invited to all seminars and events organized by the PIU. The current difficult financial situation of “Nevskaya” has not allowed the PIY to carry out further work with the farm. 55 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs H. Closed Joint Stock Company "ZAO AgrokomplexOredej" Completed 22 October 2013 1. General Information 1.1 Contact 188335, Leningrad Region, Gatchina District, Village Batovo, 1 / Tel.: 13949; +7(81371)54816; 54 -841; 63160 / Fax.: 15824;+7(81371)54335 / E-mail: [email protected] / Website : http://www.ak-oredej.ru 1.2 Farm Director General Director AndreevaNelliVladimirovna / Tel.: +7(81371)54816 1.3 Farm Ownership Privately Owned Since 2002, Oredej has belonged to the one of the biggest food producing holdings in North West Federal District, Aladushkin Group”. This group is the leader in the North-West of Russia for the production of flour, cereal, animal feed and eggs. "Aladushkin Group" consists of the following companies: JSC "Petersburg MelnichniyKombinat", JSC "LeningradskiyKombinat of Hleboproductov, named after Kirov" including branches of the "Kirov feed mill", and JSC Agricultural Complex "Oredej".A list of affiliated persons has not been disclosed. 1.4 Description Agricultural Complex “Oredej” was originally called “Zavodskaya” farm when established on 31 December 1965. Since this time, “Zavodskaya” was formed into a closed Joint Stock Company in 1992, and subsequently renamed Agricultural Complex "Oredej" in 2001. Following a merger with JSC Poultry Farm “Skvoritsy" in 2002, “Oredej” was reorganised and the company became part of the holding "Aladushkin Group". The farm has a land area of 2.8 hectares, and also owns 673 hectares of farmland. There are 4 different crosses of poultry used in the production: "Hisex White","Lohman LSL -Classic","Hisex Brown" and "Lohmann Brown Classic". All equipment on the farm is modern and produced by world's leading manufacturers. Egg sorters come from Dutch company “Staalkat”, and cages from Spanish company “Zucami”. In the summer of 2013, the farm began growing feed cereals to ensure self-sufficiency, and it plans to sell cereals to feed mills, later acquiring the feed at reduced prices. On the poultry farm there are 25 poultry houses: 3 are designed for young birds (287,520 bird places), 18 for laying hens (1,162,264 bird places), and 3 poultry houses are vacant and awaiting renovation. Each poultry house has a different capacity, ranging from 55,660 bird places (poultry house number 11) to 79,680 bird places (poultry house number 12). On the poultry farm there is a feed unit, egg store, slaughterhouse and other ancillary buildings. 2. Production levels/ Future plans ZAO AgrokomplexOredej is one of the leading egg producers in the North West region of Russia.Currently there are 1,157,000 heads of layers, including 162,000 heads of youngsters. Past stock and production levels are shown in Table 1 overleaf. Nowadays the company produces over 200 million eggs a year, making it the third largest egg producer in the Leningrad region. The farm sells chicken eggs and processed eggs, poultry meat and speciality meats, and organic fertilisers. 56 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) Number of Layers (heads) Number of Broilers Production level – eggs (million) Production level – poultry meat (tons, live weight) (heads) 2008 315 595,238 N/A 187,500,000 N/A 2009 317 543,849 N/A 172,400,000 N/A 2010 328 610,128 N/A 200,000,000 N/A 2011 330 724,901 N/A 239,000,000 N/A 2012 324 907,968 N/A 294,000,000 N/A The main consumers of chicken eggs are members of food producing holding “Aladushkin group” and the network of supermarkets in the North West Federal District. Sale prices are quite competitive, egg prices, ranging from 23 25 roubles per 10 eggs, and poultry meat ranging from 25-50 roubles per kg. Over the past 5 years, prices for eggs were almost constant, but prices for poultry meat have almost doubled. Table 2 Product Current Selling Price Variation over past 5 years Eggs 23-25 RUR per 10 eggs Stable (nil) Poultry Meat 25-50 RUR per kg Increasing (doubled in past 5 years) 3. Manure / Poultry litter situation summary Table 3 below gives a snapshot of the manure / poultry litter situation on Oredej farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 3 Manure / Poultry Litter Situation Annual manure output (tons) 79,000 Tonnage of manure in Long-Term Storage 32,704 Type of Storage Concrete composting ground Amount of own land ha Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 673 8749 Land requirements (based on HELCOM standards, approx. 13 tons per ha) 6,076 Land shortfall 5403 4.1 Storage capacity of Manure/Litter According to data provided by the farm, the annual output of caged bird poultry litter is between 70 -80,000 tons.There is a specially constructed concrete composting ground within the farm which, as at 1 January 2013, contained 32,704 tons of poultry litter. HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha). Given that the poultry farm owns 673 hectares of agricultural land, it is only able to apply up to 8,749 tons of decomposed and/or semidecomposed litter on the land. This corresponds to 11.1% of the total annual manure output of Oredej farm. To dispose of the total annual production of poultry litter according to HELCO M standards, the farm would require at least an additional 5,380 ha of agricultural land. 4.2 Treatmentof Manure/Litter 57 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs The majority (approximately 99% of the total amount) of poultry litter on Oradej farm is exposed to the natural fermentation process during its time stored in concrete composting grounds. This natural fermentation process takes around 6-12 months, after which the disinfected poultry litter is partially distributed (for free) to gardeners, private plot holders and agricultural organizations in Luga district. Of the approximately 70-80,000 ton annual output of litter, 50,000 tons goes to agricultural organizations in Luga district, about 13 tons is applied on the farm’s fields, and about 500 tons is sold to gardeners and private plots holders. In addition, about 300-350 tons of fresh manure is mixed with peat, stored for 3-6 months for natural fermentation and sold as compost to local residents (about 1,000 tons in total). The remaining litter – currently approximately 1,000 tons (1.2% of the annual output of litter produced at Oradej) – is processed using an innovative biofermentation process. On 26 October 2011, with the participation of Sergei Vasilyevich Yakhnyuk (Vice-Governor of the Leningrad Region / Chairman of the Committee for Agroindustry and Fishery Complex), Oradej held the "Technopark of Military Engineering Technical University" and opened a pilot “biofermentation” processing unit for chicken manure under the framework of the firm “Biozem”. This "biofermentation" processing unit used American "Biopharm" technology was refined and improved by scientists of Russian Research Institute of Agricultural Land Reclamation in Tver, under the leadership of Professor N. Kovalev, and was awarded the State Prize of Russian Federation in the field of science and technology. The principle of technology is to thoroughly mix poultry litter in certain proportions (depending on the laboratory tests) with peat, sawdust, straw or other organic waste, and then put the resulting mixture into a “bioferment er” tank. The mixture undergoes a process of self-heating due to propagation and processing of a mixture of bacteria (measured by nanometers), until it reaches a certain temperature. The process has a regulated supply of air (no heating), and lasts for 7 days. As a result, the mixture turns into multi-purpose compost (KMN). In 2012, 1,000 tons of fresh poultry litter was given to the firm “Biozem” as part of their long -term agreement with Oradej. The poultry farm also provides a production base to the company "Scarabey" for testing of aerobic microbial processing of chicken manure. 4.3 Manure / Litter Management Problems Identified The concrete composting ground on Oradej farm is open/exposed, and cannot protect poultry litter from the effects of rain, snow, runoff onto the ground, and runoff to the river Oredej. Currently, the farm’s annual transport costs amount to approximately 18 million roubles, largely due to the cost of delivering disinfected poultry litter to crop growing farms in Luga district. Due to the need for long-term storage of litter for its disinfection, and the lack of options to use manure on the fields of other farms, poultry litter accumulates too rapidly for turnover in storage, and the farm is forced to take it to the field sites were it is exposed to precipitation and creates a nuisance for local residents. This is regularly reported on by the media. 5. Summary of PIU activity to date with farm Poultry farm Oredej is not a pilot farm. However, the PIU has under the framework of its Terms of Reference provided the farm with: Support to manure management investments Support to prepare detailed investment plans, necessary funding applications, tendering documents, etc.: advice, review of the plans, etc. Identification of potential buyers of manure for fertiliser processing: o The PIU assisted the firm "Biozem" to develop a business plan for poultry litter processing using bio fermentation technology, which has been tested both on Oradej farm and in other parts of Russia. Biozem was however unable to find investors, and the business plan submitted to NEFCO was therefore not approved. Currently, Biozem is seeking funding sources and more efficient markets including outside of Russia, e.g. Germany (they have obtained the necessary documents to export). o The PIU has presented the farm with poultry litter drying technology developed by VDL Agrotech (Holland), with the objective of reducing transportation costs for Oradej when manure is delivered to farms in Luga district. The technology was seen in action by the head of Oradej farm during the PIU-organised Study Tour in July 2013, was subsequently approved, and a letter of intent for 58 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs implementation was drafted and signed. The VDL Agrotech commercial offer is currently under preparation. 59 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs I. Closed Joint Stock Company “Poultry Farm Roskar” (JSC “Roskar”) Completed 16 October 2013 1. General Information 1.1 Contact Address: 188855, Leningrad Region, Vyborg District, Settlement Pervomayskoe / Tel.: (812) 314-71-04(812) 431 98 41/ Fax.:(812) 312-18-73, (812) 431 98 42 / E-mail: [email protected] / Website: www.roskar-spb.ru 1.2 Farm Director General Director GoryachovValeriy Pavlovich / Tel.: +(812) 431-99-42, (812) 312-18-73 1.3 Farm Ownership Privately Owned by: Goryachev Valery Pavlovich - 28.68% of shares Japaridze George Kukurevich - 21.24% of shares Shvedkova Lydia Mikhailovna - 15.84% shares Kuryleva Margarita Evganyevna - 10.6% of shares Isakov Viktor Alexandrovich - 4.84% of shares 1.4 Description The Poultry Farm was established in December 1972, changing its name to “Roskar” in 1992, which derives from “Russian Karelia”, as the farm is located on the Karelian Isthmus. Poultry Farm "Roskar" is a modern poultry farm with a closed production process including egg production as well as the processing of poultry meat and complete utilization of poultry house waste (feathers, dead a nimals, slaughterhouse waste, etc.). The complex includes an animal feed plant, plants for the production of meat and bone meal, a unit for the production of organic fertilizers, a unit of parent flock, and an incubation plant for laying hens and broiler chickens (comprising units of breeding and production flock). There are also egg sorting and packing plants, an egg processing unit, a poultry slaughterhouse and meat processing unit, and a system of warehouses for storing produce. 2. Production levels/ Future plans The main activities of JSC "Poultry farm Roskar" are poultry breeding, and production of poultry meat and edible by-products. At the time when the farm was established, the design capacity was 260,000 laying hens. By 2012, the number of poultry in JSC "Poultry farm Roskar" reached 5,282,800 heads. Since it started operations, the poultry farm has produced 13 billion eggs, 81,000 tons of liquid egg products, 18,000 tons of dry egg products, and 202,000 tons of poultry meat. Currently, the company successfully works in two directions: industria l production of eggs and broiler meat. In 2012 egg production totaled 873 million units, and broiler meat 20,500 tons. Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) Number of Layers (heads) Number of Broilers (heads) Production level – eggs (million) Production level – poultry meat (tons, live weight) 2008 335 1,894,627 No data 634.7 12,049 2009 341 2,100,293 No data 716.2 No data 2010 340 2,230,635 No data 758.4 No data 2011 340 2,478,235 No data 842.6 No data 2012 344 2,537,791* No data* 873.0 20,500 60 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs * There is only a layers population number in the official statistics, the broilers are estimated to be around 1 mln. heads The farm’s products are marketed in St. Petersburg, Moscow and the North -West region of the Russian Federation, as well as Central and Southern Federal Districts. The range, which already includes more than 400 items/types is constantly expanding, and the company regularly introduces new egg and meat brands to offer consumers high quality products. The main product of "Roskar" is branded packaged eggs. The farm specialises in the production of enriched eggs, which have therapeutic properties due to the increased content of certain elements (trademark "Extra", "Activita", "Omega-3 Active", "Polziki" (for kids), "Happy hen", "Mega"). They also produce a range of meat products, including broiler chicken in marinade, frozen broiler meat, chicken breasts, whole c hickens, broiler chicken stomachs, frozen readymade chicken dishes with vegetables (zrazy), gutted broiler chickens, and frozen nuggets. In addition to chicken meat products, “Roskar” also produces a range of egg products, including quick frozen omelettes, pasteurized liquid egg yolks/whites, and pasteurized egg powder. They also produce dry poultry litter. "Poultry farm Roskar" achieves good selling prices for its products, as seen in Table 2 below. Table 2 Product Current Selling Price Variation over past 5 years Eggs 28-32 RUR per 10 pieces Stable (nil) Poultry Meat 59-70 RUR per kg Stable (nil) At the end of November 2012, "Poultry farm Roskar" was awarded an SGS certificate for their compliance with food safety management requirements for poultry farms, according to international standards set out in the FSSC 22000 scheme. The certificate was issued by SGS after a certification audit, which "Poultry farm Roskar" successfully passed. 3. Manure / Poultry litter situation summary Table 3 below gives a snapshot of the manure / poultry litter situation on Roskar farm. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. Table 3 Manure / Poultry Litter Situation Annual manure output (tons) Tonnage of manure in Long-Term Storage Type of Storage Amount of own land 133,929 No data Concrete composting grounds 20,000m 2 600 Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 7,800 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfallha 10,302 9,702 4.1 Treatment of Manure / Litter Roskar farm annually produces more than 135,000 tons of poultry litter, about 400 -500 tons per day. They have a 20,000m 2 concrete composting ground on site, which stores some of the manure for organic decomposition/fermentation. In 2006, the farm built and put into operation a granulation plant. The plant produces high quality organic fertilizer, applicable to all types of agricultural production. However, the production of this type of organic fertilizer has faced a number of obstacles, including the high price of the product. Not all farmers are willing to 61 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs pay for high-quality organic fertilizer, even if it is priced competitively. Because of this, Roskar management decided to look at alternative solutions to manure management, and subsequently developed and implemented an agrochemical technology for processing poultry litter into organic fertilizer, called "SilyUrozjaya" (“The Power of the Harvest”). This product has been researched and evaluated by experts in leading institutes in Moscow and St. Petersburg. It works by processing dried, stored chicken manure using a microbiological preparation. This preparation contains a mixed culture of microorganisms that exist in the natural environment worldwide. Chicken manure is stored in piles in specially prepared elevated field sites (where there are no nearby water bodies) in autumn, winter and early spring. The piles are a length of about 150 m, constantly mixed by agitator and stored for between 1 and 1.5 months. At all stages of the production the technological requirements of application of organic fertilizers are controlled, and the temperature of the manure piles is constantly monitored. At a certain temperature all pathogens are killed. When organic fertilizer is ready, and tests verify that there are no pathogenic microorganisms present, and when favorable weather conditions occur (such that the machinery is able to enter into the field), the finished product can be applied to soil and subsequently plowed and disked. Only a small amount of the total 135,000 annual manure output can be stored in the concrete composting ground, and less than 10% of the total amount of manure is dried, granulated and marketed. This means that about 80% of the remaining manure is processed into organic fertiliser using the microbiological preparation/substance described above. The finished product is either disposed of for free on the fields of neighbouring farms, delivered to agricultural producers (gardeners and private plot holders) under contracts, or distributed on the farm’s own fields (4-5%). HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha). Given that Roskar poultry farm owns 600 hectares of farmland, it can only safely apply up to 7,800 tons of decomposed or semi-decomposed poultry litter on its own land, which corresponds to 5.8% of the annual volume of production. To dispose of the entire annual output of poultry litter, Roskar would require at least an additional 9,702 ha of agricultural land. This means that they are left with a problem of how to manage the at least 126,000 tons of excess manure. 4.2 Manure / Litter Management Problems Identified Despite the fact that Roskar appear to have both granulation and microbiological technologies of manure management in place, the media regularly reports on complaints of residents of the village of Kirovskoye(Vyborg district of Leningrad region) suffocating from the strong smell of chicken litter, because CJSC "Poultry farm Roskar" stores/dumps the waste on the fields near the village. In a recent conversation with the “Lenoblinform” press, EgorLeontiev (Head of the regional branch of environmental projects of "Green Patrol", a public organization in the North-West region of the Russian Federation), described the “gross violations of enviro nmental regulations" on the farm and said: “Those who transport chicken manure to the fields don’t even bother to distribute it evenly on the territory as a natural fertilizer, instead dumping it in large quantities on the fields. Of course, such actions must be stopped. We have already sent several requests to the number of regulatory agencies about the necessity of environmental inspection, including to organizations such as the Committee for Agroindustry and Fisheries Complex, the “Rospotrebnadzor” (federal service for consumer rights protection and human well-being surveillance) and “Rostehnadzor” (Federal Environmental, Industrial and Nuclear Supervision Service), and the Office of the Public Prosecutor. We have collected evidence base on such cases. We hope that the experts will determine the quality of sanitation and environmental conditions in the enterprise, and enforce the applicable regulations." Meanwhile, workers of “Roskar” refute the claims made by activists and residents of Kirovskoye village , explaining how they have treated the poultry litter so that it is not hazardous. When asked about complaints from residents of Kirovskoye village, “Roskar” noted: “Transport of agricultural fertilizer made by "Power of the Harvest" is done in accordance with the agreement of 27.04.2012 (a contract between the farm and the owner of the plot of land). The sites for organic fertilizer were placed 5km away from the nearest buildings, which is consistent with the requirements of sanitary legislation, that require piles of organic fertilizer to be no closer than 300m to nearby buildings. Thus, there have been no violations of 62 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs environmental laws by the CJSC "Poultry Roskar"”. The poultry farm was visited on 14 October 2013 by Vice-Governor of the Leningrad Region (also Chairman of the Committee for Agroindustry and Fisheries Complex), Sergey Vasilyevich Yakhnyuk, and Chairman of the Regional Committee of the State Control of Natural Resources and Environmental Safety, Mikhail Kozminykh. They looked at the quality of recycling of waste products (poultry litter) at the farm, and Mikhail Kozminykh stressed: “The approach to waste management is a worthy example for all of the producers of the Leningrad Region, and as an environmentalist I am happy. It's no secret that a number of companies in the region have claims against them in this regard. Any process chain for production should be aimed at minimizing environmental risks. Neither the employees of the company, nor the inhabitants of surrounding areas should feel an environmental hazard. "Roskar" is an example to follow.” Sergey Yakhnyuk was also satisfied with the results of trips, and believed that the criticism of the poultry farms does not always correspond to the actual situation. Scientists claim that the main cause of ecological imbalance in areas where poultry farms are functioning is due to the defects by the designers/planners. The doctor of agricultural sciences Valery Lysenko says that many farms use a so-called “simplified” system of manure utilization, whereby waste is removed from poultry houses and stored for long periods, with indefinite terms of application on the fields. In the meantime, waste accumulates precipitation and the amount of stored mass increases, rapidly reducing the possibility for its effective use. Despite the measures taken by the management of “Roskar” poultry farm in order to ensure the environmentally safe disposal of manure, several problems remain, including marketing of granular fertilizer produced, the discrepancy in terms of the application of organic fertilizers and the necessity to clear manure storages, and a lack of land for safe spreading of manure and fertiliser. 5. Summary of PIU Activity to Date with Farm CJSC "Poultry farm Roskar" is not pilot farm. Nonetheless, farm representatives have attended seminars and events organized by the PIU. They have received the manual for safe manure management, containing information about different technological solutions as well as legislative requirements for environmentally saf e manure management. Currently, “Roskar” is working with firm "Dunamis" who are looking into a variety of different solutions including assisting in the marketing of granular fertilizer, installation and maintenance of a unit for drying, and sale of additional products made from granulated poultry litter. 63 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs J. Limited Liability Company “Poultry Farm Russko-Vysotskaya” (LLC “Russko-Vysotskaya”) Completed 30 October 2013 1. General Information 1.1 Contact Address: 187516, Leningrad Region, Lomonosov District, village Russko-Vysotskaya / Tel.: +7 (812) 4230283; (812) 275–57–96 / Fax.: +7 (812) 423-09-75 1.2 Farm Director General Director Rugalov Nikolay Afanasyevich / Tel.: +7 (812) 4230283 1.3 Farm Ownership Privately Owned 100 % shares belong to Agro industrial company “OGO” 1.4 Description Poultry Farm "Russko-Vysotskaya" commenced operations in 1968, at which time its production capacity was 2 million broilers a year. It was then one of the biggest leading enterprises of the North -West region of Russia. At the beginning of the 1990s, the company was privatised and reorganized into a Limited Liability Company. In 2007, the poultry farm was acquired by agro-industrial company “OGO”. On the poultry farm “Russko-Vysotskaya” there are all the necessary facilities for closed production cycle: poultry sheds for parent and youngster flocks, incubators, slaughterhouse, feed preparation centre, weigh station, workshops and others. 2. Production Levels / Future plans The main activity of LLC "Russko-Vysotskaya" is poultry meat production. The farm delivers high quality products due to strict compliance with advanced technology of poultry production, the introduction of high yielding crosses of birds, and balanced feeding. The products are in high demand among cu stomers due to their high quality and superior taste, are confirmed by the Veterinary Service and the State Sanitary and Epidemiological Service through regular laboratory monitoring. The products have veterinary, sanitary and epidemiological certificates and certificates of compliance, allowing them to be marketed. The poultry farm is constantly working to improve and expand the range of products, which in addition to broiler chickens also include various types of semi-finished products (breast, thigh, leg, wing, set for soup, sets of meat, deboned chicken meat and mince, etc.). The farm also sells chicken eggs and hatching eggs. In 2004, LLC Poultry farm "Russko- Vysotskaya” entered into the European Union of Poultry Breeders, which is an indirect confirmation of the high quality of farm’s produce. Owing to their correct approach to breeding of poultry, broiler meat production has been steadily increasing. In 2008, the farm produced 11,000 tonnes of poultry meat and by 2012 this reached 12,000 tons of broiler meat, accounting for 5% of the region’s poultry production (240,000 tons total in 2012). In 2012, the number of broiler youngsters was 643,770 heads, laying hens 91,829 heads, and rearing chickens 34,909 heads. The main products in 2012 were bro iler chicken meat, chicken fillets, legs, breasts, and broiler chickens. The average price of broiler meat ranges from 30 to 74 RUR per 1 kg. 3. Financial Situation The poultry farm is characterized by an unstable financial situation. On 30 May 2013, the A rbitration Court of St. Petersburg and the Leningrad region introduced a monitoring procedure in respect of LLC Poultry farm "Russko – Vysotskaya”, and approved Vakhrameev Mikhail as an interim manager. Their shared debt is estimated at 500 million RUR. The enterprise has entered bankruptcy, largely due to the bankruptcy of their parent company, as the 64 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs owner of poultry farm agro-industrial company "OGO" declared bankruptcy on the basis of conflict with shareholders, with a total debt estimated at 7 billion RUR. The assets (property and equipment) of “RusskoVysotskaya” poultry farm, according to "SPARK-Interfax ", accounted for 123 million RUR in 2011. 4. Manure / Poultry Litter Situation Table 1 below gives a snapshot of the manure / poultry litter situation on poultry farm “Russko-Vysotskaya”. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 be low. Table 1 Manure / Poultry Litter Situation Summary Annual manure output (tons) 27,038 Tonnage of manure in Long-Term Storage 18,025 Type of Storage Concrete and soil composting ground Amount of own land Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 0 0 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 2,080 2,080 4.1 Storage of Manure / Litter The poultry farm produces more than 39,000 tons of fresh chicken litter annually, or about 100-120 tons per day. There are specially-equipped concrete and soil composting grounds on the farm, which can store no more than 18 thousand tons of manure. 4.2 Treatment of Manure / Litter As a result of its long maturation in concrete composting grounds and open field sites (8-12 months, sometimes longer), poultry litter undergoes a natural process of fermentation, resulting in decomposition and composting. The poultry farm has no arable land, therefore after disinfection decomposed and semi-decomposed manure is disposed of for free on the fields of neighbouring farms, or delivered to agricultural producers (gardeners and private plot holders). HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha) which means the farm would require at least an additional 2,080 ha of agricultural land to dispose of its entire annual output of poultry litter. 4.3 Manure / Litter Management Problems Identified Despite the measures taken by the management to ensure environmentally safe poultry litter management, problems of its disposal remain. The Leningrad Inter-District Environmental Prosecutor, jointly with branches of the federal government health care "Center for Hygiene and Epidemiology in the Leningrad region" audited the poultry farm’s compliance with federal legislation. The audit found that the company produces waste with various levels of hazard, including the accumulation of mass volumes of poultry litter on the composting grounds. These and similar violatio ns lead to a significant deterioration of the sanitary and epidemiological situation in the municipalities, and violate the rights of citizens to a healthy environment, which is guaranteed by the Constitution of the Russian Federation and the Federal Law "On the sanitary-epidemiological welfare of the population". In this regard, the Leningrad Inter District Environmental Prosecutor instituted administrative proceedings (under Art. 8.2 Administrative Code failure to comply with environmental and sanitary requirements for the treatment of industrial and domestic waste or other hazardous substances) against poultry farm «Russko -Vysotskaya». The Department of the Federal Service for Supervision of Natural Resources in the North-West Federal District offered LLC poultry farm «Russko Vysotskaya» the opportunity to voluntarily compensate for the damage caused to the stream “Bezymyanny”, which 65 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs is part of catchment area of the Baltic Sea basin. The poultry farm has exceeded established limits/norms for discharges of pollutants. In November 2013 violations of the rules of protection of the water body were found as a result of the planned on-site inspection. In the stream was found an excess of allowable concentrations of pollutants, including nitrogen and phosphorus. For the violations (in accordance with Part 4 of the Administrative Code Article 8.13), the poultry farm was fined 35,000 RUR, and damage brought to the water body was also estimated. A statement was sent to the Director General, proposing payment of damages in the amount of 1,429,000 RUR. If this is not paid voluntarily, the funds will be charged through the court. 5. Summary of PIU activity to date with farm JSC "Russko-Vysotskaya" is not a pilot farm. Farm representatives have been invited to all seminars and events organized by the PIU. The very difficult financial situation of “Russko - Vysotskaya” has not allowed the PIU to carry out further work with the farm. 66 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs K. Open Joint Stock Company “Poultry Farm Severnaya” (JSC “Severnaya”) Completed 21 September 2013 by 1. General Information 1.1 Contact Address: 187322, Leningrad Region, Kirovskiy District, settlement Sinyavino -1 / Tel.: +7 (813) 626-32-64, (812) 961-19-92; (812) 275–57–96 / Fax.: +7 (813) 626-30-00 / E-mail: [email protected] / Website: www.severnaya.ru 1.2 Farm Director General Director Willeke van den Brink/ Tel.: (812) 626-43 52 1.3 Farm Ownership Privately Owned 100% shares belong to “Agro invest Brinky” , according to the law of Holland. 1.4 Description Poultry Farm "Severnaya" began its operations on 1 January 1987, at which time it was state enterprise. In February 1993, "Severnaya" was reorganized into Closed Joint Stock Company Poultry farm "Severnaya", and on 10 January 2007 into Open Join Stock Company Poultry farm "Severnaya". In 1998, "Severnaya" acquired poultry breeding farm "Voyskovitsy" for the production of incubation eggs, and in 2000 bought the poultry farm “Lomonosovskaya". In 2011, as a result of reorganization, all assets of “Lomonosovska ya” poultry farm were transferred to the poultry farm "Severnaya". Since 1996, there has been a modernization of existing production facilities and, in 2006, the largest poultry incubator in Europe and Asia was constructed at “Severnaya”. The process of p roduction and slaughter of broiler chickens meets the highest international hygiene and technical standards. In December 2007, the company was certified according to food safety standard ISO 22000 and HACCP. During 2009, construction of a new incubator with a capacity of 122 million incubated eggs a year continued, as well as construction of a new plant for heat treatment of chicken feed, with a production capacity of 550,000 tons of feed per year. By 2005, “Severnaya” had the following facilities: a feed preparation center with 60t/h capacity, an incubator, slaughterhouse, completed reconstructed poultry houses with upgraded equipment, and a special unit for addressing the disposal of bird waste (feathers, dead animals, waste of the slaughter house etc.). P oultry farms “Voyskovitsy” and “Lomonosovskaya” were also reequipped in 2005, and the infrastructure was rebuilt. Given that the owners have experience in the renovation of old soviet poultry farms built between the 1970 and 80s, they decided not to rebuild, but to build new ones, which is how the project “Mginskoe” (a branch of poultry farm "Severnaya") started. In 2004-2005, the farm started the first building plans including all expertise (EIA) and approvals. As a result of expansion Poultry «Severnaya» now consists of four operating divisions/branches: Poultry Breeding farm “Voyskovitsy” (acquired in 1998); Poultry farm “Lomonosovskaya” (acquired in 2000); Poultry farm “Severnaya”; Broiler production, poultry farm “Mginskoe”, currently under construction . All production units are located in different regions of the Leningrad region, not far from the center of St. Petersburg. The “Mginskoe” complex for the production of broiler chickens will consist of five poultry production areas, each of which will include 16 poultry houses, with a total capacity of 10.2 million poultry heads. The project is expected to be completed at the end of 2013. This expansion, along with the reconstruction and modernization of poultry farms, production of feed, slaughter houses, waste utilization units and incubators contribute “Severnaya”’s status as one of the leading suppliers of fresh chicken meat on the market in Russia. 67 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 2. Production Levels / Future plans Poultry farm "Severnaya" is the largest poultry farm in the Leningrad region. The main activity of JSC Poultry farm "Severnaya" is poultry meat production, and its main products are broiler chicken meat, chicken fillets, legs, breasts, and broiler chickens. In 2012, the number of poultry in “Severnaya” was more than 11 million heads, producing 152,200 tons of poultry meat. Poultry farm "Severnaya" is the leading supplier of fresh chicken meat on the market in Russia, and has reputation as a producer of “Best Russian Chickens" tm. Table 1 Past and Present Production Levels Year Egg-laying (eggs/head/ year) Number Layers (heads) of Number of Broilers (heads) Productio n level – eggs 2008 3,532,929 Production level – poultry meat (tons, live weight) 47,245 2009 3,618,226 48,386 2010 3,751,458 50,168 2011 6,540,930 87,471 2012 11,381,000 152,200 2013 12,000,00014,200,000* 160,000 – 187,000 * The figure includes the branch “Mginskoye”, not yet operating in full capacity The products are marketed in St. Petersburg, Moscow, the North-West and Central regions of Russia. Average prices of poultry meat ranges from 57 to 74 RUR per kg, remaining largely stable over the past 5 years but increasing by 10% in 2012 compared to recent years. 3. Manure / Poultry Litter Situation Table 3 overleaf gives a snapshot of the manure / poultry litter situation on poultry farm “Severnaya”. As can be seen, the farm currently has a significant shortfall of its own land on which to spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. 68 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 3 Manure / Poultry Litter Situation Summary Annual manure output (tons) 375,735 Tonnage of manure in Long-Term Storage 122,953 Type of Storage Specially equipped manure storages, concrete composting ground Amount of own land Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 0 0 28,903 28,903 4.1 Storage of Manure / Litter Because of current construction of a new branch, the poultry farm will soon produce more than 560,000 tons of fresh chicken litter annually, or about 1,536 tons per day. There are specially -equipped manure storages on site, but 375,000 tons of manure will still remain after long term storage and fermentation. The farm’s General Director states "there are several storage tanks for chicken manure on the farm, where manure is stored and then taken out on the fields; the farm has several contracts with agricultural enterprises to transport resulting fertilizers”. HELCOM nutrient loading recommendations (estimated as being 13 tons of manure per ha). To dispose of the entire annual output of poultry litter, the farm would therefore require at least an additional 28,903 ha of agricultural land. 4.2 Manure / Litter Management Problems Identified Despite the measures taken by the management to ensure environmentally safe poultry litter management, problems relating to its disposal remain. There is a problem of systemic runoff of affluent waters flooding forest areas. A year ago, on the basis of applications from local residents, environmentalists recorded/monitored penetration of liquid waste into the “Tetkin” stream. Experts of “Rosprirodnadsor” (The Fede ral Service for Supervision of Natural Resources) revealed that drains are polluted and there is an environmental hazard. Forestry specialists of “Lenoblles” in Kirov district branch discovered a pipe (250mm diameter) that is discharging liquid waste to th e territory of the Mginskiy forest district, and the flooded area is about 2 hectares of forest. The pipe comes from the territory of JSC poultry farm “Severnaya”. The Leningrad District Environmental Prosecutor's Office conducted an audit of “Severnaya” farm’s compliance with environmental legislation in the Vsevolozhsk district of the Leningrad region. As reported by "Lenoblinform", the press office of the regional prosecutor's office, “the audit revealed that the poultry farm dumps liquid waste (inadequately treated wastewater in excess of the maximum allowable concentrations of pollutants) into the “Tetkin” stream, which flows into the channel of Staraya Ladoga (basin of Lake Ladoga)”. Upon gross violation of environmental laws, the acting head of the Leningrad district environmental prosecutor filed a lawsuit in the Kirov City Court (Leningrad region). The purpose of the claim is to oblige JSC Poultry Farm «Severnaya» to ensure treatment of wastewater to ensure it is at the allowable concentration of pollutants. The Prosecutor’s demands were satisfied and the judgement of Kirov City Court has been entered into force. At the same time, ecologists from the "Green Front" report that the problem of "vast forest lagoons/lakes filled with chicken manure waste sludge" is not yet resolved. Residents of nearby gardening societies (dacha plots holders) still complain about intermittent suffocating stink coming from the waste lagoons/lakes. The head of environmental projects of "Green Front", YegorLeontiev, said: “We have already sent the appropriate request to the Kirov district Forestry of Leningrad region, to conduct a site inspection and to take action within the authority. Runoff of effluent 69 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs ends up in some kind of swamp, and already there have been formed wagons of liquid waste. There is a terrible odour/stink. There is no life there, the sanitary and epidemiological situation is very serious, and very dangerous. All of those effluents go into the “Tetkin” stream. The prosecutor's office specialists went with us and recorded an excess of the allowable concentrations of pollutants, but the runoff still takes place and will continue to do so. Forestry officers are now alarmed because of the flooded forest, and there are several hectares flooded. Experts from “Rosprirodnadsor” (The Federal Service for Supervision of Natural Resources) are calculating the extent of the damage caused to “Tetkin” stream from the disposal of industrial and domestic sewage in excess of the maximum permissible concentration.” However, local residents now say that the smell from these lagoons/lakes has become weaker, although there is still runoff into the “Tetkin” stream. The Environmental Prosecutor's Office recorded the maximum permissible concentration in the wastewaters of the farm, but the problem is currently still not solved. There is a necessity to calculate damage caused to the forest and to enforce/recover/collect it and, if the discharge of waste does not stop, there is a need to apply extreme measures such as the suspension of the company’s production activities up to 90 days, according to Article 8.2 of the Code of Administrative Offences of the Russian Federation. According to experts of “Rosprirodnadsor” (The Federal Service for Supervision of Natural Resources), there was technical re-equipment of existing treatment facilities at the poultry farm between 2010 to 2012 inclusive, and there are plans (for 2013 and 2014) to build and install additional equipment at wastewater treatment plants. 5. Summary of PIU activity to date with farm JSC "Poultry farm “Severnaya" is not a pilot farm. Despite the measures taken by the management of the farm to ensure the environmental safety of poultry litter management, the problems remain: disposing of liquid waste, and a mismatch of the time needed to clean manure versus the when organic fertilizers should be applied on the fields. At the present time, two new major projects are under preparation by company Rika Biofuels. Specialists fromthis companyparticipated in the seminars organized by the PIU. The essence of this projectis to recycle manure in biogas plants, with the resulting gas to be purified from extraneous gases, then liquefied and sold to consumers. The main products are: liquefied biogas, carbon dioxide, and magnesium. There are plans to build a plant in the vicinity of town Kirovsk, with the bulk of raw materials to be supplied from poultry farm “Severnaya”. The products from the biogas plant are planned to be sold to Sweden (liquefied biogas), Russia (CO2) and Latvia (magnesium). 70 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs L. Closed Joint Stock Company "Poultry Farm Sinyavinskaya named after the 60th anniversary of the USSR" (CJSC "Poultry Farm Sinyavinskaya") Completed 23 October 2013 1. General Information 1.1 Contact Address: 187326, Leningrad region, Kirov district, settlement Priladozjskiy / Tel.: +7 8136263264, (812) 961 -19-92 (812) 275–57–96 / (812) 449-6095; (812)449 60 90; (812)449 60 93 / Fax: (812) 449-6095 / E-mail: [email protected] / Website: www.pfsin.ru/company 1.2 Farm Director General Director Melnikov Oleg Nikitovich/ Tel.: +7 (812) 449-6092 1.3 Farm Ownership Privately Owned. 60.73% of ordinary shares belong to Limited Liability Company "Lenptitseprom-E” (194200 Russia, SaintPetersburg, Lesnoy prospect, Bldg. 69, 3 A) 25.63% of ordinary shares belong to Melnikov Nikita Olegovich 7.63% of ordinary shares belong to GalkevichVladaVladimirovna. 1.4 Description State Enterprise (Production Association) "Sinyavinskaya" named after the 60th anniversary of the USSR was organized to provide the population in the east of the Leningrad region with eggs and poultry products. Construction commenced in 1976, and the farm became operational in 1978 in the form of breeding complex "Nazia", which later became "Poultry farm “Sinyavinskaya". It was one of the earliest and best examples of the industrialization of agriculture in the USSR and, for over 20 years, the factory was the lar gest in Russia and in Europe. There were 985,000 bird places for keeping youngsters and 2,753,000 bird places for the industrial flock of laying hens. In November 1992, due to privatization, the poultry farm was transformed into a Joint Stock Company. In 2008 a new stage of development of the company started, including major reconstruction as part of a national project for the development of agro-industrial complexes. During the first phase, the production zone was reconstructed, 9 poultry sheds (9 stories each, 250,000 bird places each) were excluded from the production process, and 6 were eliminated. These were replaced with 9 new poultry houses and 3 warehouses. The slaughterhouse was reconstructed, the use of ammonium-compressor units was discontinued, and 5 new cold stores were installed, operating on Freon. During the second phase of reconstruction 7 new poultry houses were built, as well as a warehouse and 8 poultry houses for youngsters. During the third phase, 4 new poultry houses for youngsters were built, as well as 2 poultry houses for industrial scale production (450,000 bird places in each). In 2007, the first egg grading and packaging unit started to work, equipped with modern high -performance equipment and a capacity of 200,000 eggs per hour. Productivity of the sorting unit increased from 1,600,000 eggs per shift before reconstruction to 4,200,000 per shift after reconstruction, making it the most powerful sorting plant in the world. In total as a result of the reconstruction, the following facilities were constructed: 12 industrial scale poultry houses (240,000 heads each), 4 industrial scale poultry houses (120,000 heads each), 4 industrial scale poultry houses (450,000 heads each), and 14 industrial scale poultry houses for rearing youngsters (120,000 heads each). The total number of bird places amounts to 1,680,000 for youngsters and 5,760,000 for industrial flock. 2. Production levels/ Future plans 71 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Egg production has risen substantially since the reconstruction of the poultry farm. At the end of 2012 the number of heads of industrial flock increased to 3.58 million, and the gross production amounted to 1,172,800,000 eggs. Moreover, the poultry farm manufactures as by-products more than 200 tons of egg powder and about 1,900 tons of chicken meat. In 2012, the number of poultry on JSC Poultry farm "Sinyavinskaya" amounted to more than 5.3 million heads, including 1.8 million heads of youngsters. Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) Number of Layers (heads) Number of Broilers (heads) Production level – eggs (million) Production level – poultry meat (tons, live weight) 2008 317 1,832,177 NA 580.8 NA 2009 318 2,306,193 NA 733.6 NA 2010 328 2,321,832 NA 760.4 NA 2011 334 3,001,797 NA 1,002 NA 2012 328 3,575,610 NA 1,172.8 NA 4,000,0005,000,000 NA 1,200-1,500 NA Estimated, postproductivity upgrades Poultry farm “Sinyavinskaya” produces very high quality products, meeting requirements of the residents of Leningrad and other regions of Russia, as confirmed by international quality certificate ISO 22000 -2007. The poultry farm was the first in Russia to received certification allowing them to export chicken eggs abroad. Following the procedures for accreditation and licensing, poultry farm “Sinyavinskaya" obtained an EEC certificate for the production of egg powder, which allows the company to export egg powder to the EU. The poultry farm is the largest agro-industrial complex in Russia and Western Europe, and the largest egg producer in the North-West Federal District of Russia, accounting for one third of the egg market of St. Petersburg and the Leningrad region. The main markets of the farm’s end products are retailers of St. Petersburg (70%), retail chains of Moscow (10%), wholesalers of St. Petersburg and the Leningrad region (10%), and wholesalers of Moscow (10%). Average egg prices range from 22-27 roubles per 10 pcs. 3. Manure / Poultry litter situation summary Table 2 below gives a snapshot of the manure / poultry litter situation on Sinyavinskaya farm. As can be seen, the farm currently has a significant shortfall of its own land on which t o spread the annual manure output, if it is to comply with HELCOM standards. This is further described in sections 4.2 and 4.3 below. Table 2 Manure / Poultry Litter Situation Annual manure output (tons) 242,435 Tonnage of manure in Long-Term Storage 161,623 Type of Storage Concrete and soil composting grounds Amount of own land Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 0 0 18,649 18,649 4.1 Storage capacity of Manure/Litter 72 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Due to the expansion of the farm’s production, and an increase in the number of bird places, the annual output of poultry litter will be more than 240,000 of fresh manure; about 660-700 tons per day. The farm uses specially constructed concrete composting grounds for manure storage. The farm director states that “equipment for composting is constantly working at the poultry farm; the only problem is that nobody wants compost - there is no market”. The organic fertilizer resulting from composting is transported in its entirety to the fields of neighbouring farms for free, as Sinyavinskaya does not own land. The farm would require at least 18,649 hectares of agricultural land to safely dispose of the annual output of litter according to HELCOM recommendations (estimated as being13 tons of manure per ha). 4.2 Treatmentof Manure/Litter There is 1 poultry litter dryer, manufactured by Spanish firm Zukami, installed on the poultry farm. The capacity of the dryer is very low and it is not continuously operating. It was installed first of all to pilot a manure management technology different to what is already in use, and to convince the inspecting authorities that the poultry farm does its best to deal with the manure problem. There are however problems with use of the dryer. It does not dry manure to the desired moisture content, and the resulting material is inconsistent, resulting in “lumps/clots”. The system is also not compact, and is designed according to the prevailing weather conditions in Spain, i.e. many more hours of sunlight and hotter average temperatures than in the Leningrad region. 4.3 Manure / Litter Management Problems Identified Despite measures taken by the management to ensure environmentally-safe manure management, problems with its disposal remain. The Leningrad inter-district environmental prosecutor's office, in conjunction with branches of the Federal government health care "Centre for Hygiene and Epidemiology in the Leningrad Region", held an inspection of poultry farm "Sinyavinskaya" in order to verify compliance with federal legislation. The resulting audit found that "Sinyavinskaya" has no project for organization of the sanitary protection zone. The buildings i n the biological waste processing area are unsanitary, and there are large volumes of manure in concrete composting grounds. Meat-and-bone meal packaging offcuts were dumped there as well, which is a violation of the site’s rules of operation. A previous order/direction issued by the Directorate Centre of Gossanepidnadzor (State Committee of Sanitary and Epidemiological Supervision) of Kirov region, which prescribes the organisation of sanitary protection zones and elimination of violations of sanitary laws, is not implemented by the farm. These and other infringements lead to a significant deterioration of the sanitary and epidemiological situation in the municipalities, infringing the rights of citizens to a healthy environment, guaranteed by the Constitut ion of the Russian Federation and the Federal law "on the sanitary-epidemiological welfare of the population". The Leningrad Office of the Inter-District Environmental Prosecutor therefore directed poultry farm “Sinyavinskaya" to rectify the violations, and warned the director of the farm about the violations of the law. A subsequent review by the Office of the Inter-District Environmental Prosecutor revealed that CJSC Poultry Farm “Sinyavinskaya" has taken actions to implement the order. Participants of t he Inspection Committee of the Legislative Assembly of Leningrad region for Agroindustry and Fisheries inspected the concrete composting grounds at the poultry farm "Sinyavinskaya", finding a huge open air manure storage site that is now almost empty, because waste from poultry production is actively being taken out on the fields. The Director of "Sinyavinskaya" Melnikov Oleg Nikitovich (member/deputy of the Regional Legislative Assembly) states that the “resulting compost is ready-made organic fertilizer, but there are no buyers for such product, so the poultry farm gives it for free to the farms of the Kirov region, to the ploughed fields. In 2006, when we came to the farm, the manure in concrete composting ground was 5m in height, so it was terrible even to come close, but eventually we have solved this issue". 5. Summary of PIU activity to date with farm Poultry farm “Sinyavinskaya” is not pilot farm. Nonetheless, specialists from the poultry farm have participated in seminars organised by the PIU, and have received the PIU’s manure manual (“Manure / poultry litter management on livestock farms to ensure the ecological security of the territory, ground and underground water bodies in the Leningrad region”). This manual contains information about different technological solutions and legislative 73 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs requirements for environmentally safe manure management. The head of the farm has told the press that, having studied international experience, the poultry farm plans to introduce a system of manure incineration. The cost of the project is 1.5 billion RUR. From the power generated in the form of electricity and heat, the incinerator on the farm will match the Volkhov hydroelectric station. (http://agri-news.ru/zhurnal/2012/№ 4/2012/gosudarstvennaya-programma/mirovyie-rekordyi-«sinyavinskoj».html) On 19 September 2013, the Team Leader of PIU had a brief meeting with General Director Melnikov Oleg Nikitovich in the Committee for Agroindustry and Fisheries Complex. During the meeting General Director of “Sinayvinskaya” denied the existing manure management problems, expressed several contradicting opinions, and stated: “Management of the farm is not interested in manure management technologies. We do not trust European equipment”. 74 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs M. Open Joint Stock Company Poultry Breeding Farm “Voyskovitsy” Completed 16 September 2013 1. General Information 1.1 Contact Address: 188360, Leningrad Region, Gatchina District, Settlement Voyskovitsy, Promsona -3 / Tel.: (81371) 632-45, (81371) 631-60 / Fax.: 7 (81371) 63-151 / E-mail: [email protected] 1.2 Farm Director General Director Willeke van den Brink / Tel.: (262) 6-4352 1.3 Farm Ownership Privately Owned 100% shares belong to “Agro invest Brinky” , according to the law of Holland. 1.4 Description Poultry breeding farm "Voyskovitsy" commenced operations in 1968. In May 1993, following its privatization, "Voyskovitsy" was reorganized into a private closed Joint Stock Company, and in May 2010 it became an open Joint Stock Company. “Voyskovitsy” poultry farm is owned by the same person poultry farms "Severnaya" and "Lomonosovskaya", of which the CEO is Willeke van den Brink. Open Joint Stock Company Poultry Breeding Farm “Voyskovitsy" is one of the leading enterprises in the Leningrad region. The farm specialises in the production of breeding eggs for broiler poultry farms, and supplies its products to other farms in the Leningrad region. Pedigree flocks come from the Netherlands, and are highly productive breeds of chickens. Eggs produced for cultivation are directly transmitted to poultry farms in the Leningrad region for further breeding of chicken and broiler meat production. The enterprise consists of following facilities: sheds for parent flocks of broiler chickens, young broiler chickens for breeding flocks, a feed mill, barns, warehouses and other buildings. The farm is constantly upgrading existing facilities and introducing new technologies. New insulated poultry houses were constructed and installed in 2007, equipped with new systems of ventilation, watering, and feeding, forming a single technological complex for rearing birds. In 2011, the construction of two new sanitary inspection rooms was completed. In 2012, there was continued large-scale overhaul and upgrading of the equipment in poultry houses. During the course of 2012, a new sewerage system was put into operation, some minor repairs were made and more new equipment was purchased. Today the JSC Poultry Breeding Farm “Voyskovitsy" is a modern, stable working company with established production and sales policies. The company has reached a level of sustainable development. 2. Production Levels / Future plans “Voyskovitsy” mainly produces breeding poultry eggs for sale to poultry farms that rear broilers for meat. The company is the only such producer in the region and therefore has no competitors in the market. The business owners actively track changes in the broiler meat production market, and have aligned their production expansion with the growth of the market for chicken meat. According to forecasts by the company’s management, the market could rise up to 7% in 2013 (market growth is constrained by the capital intensive ness of production), and “Voyskovitsy” plans to increase production according to these figures. In the future, the company plans to continue developing its core business in the production of breeding eggs, planning an expansion as well as an increase in production. A change in the activity profile, or the development of new products, is not currently planned. 75 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs Table 1 Past and Present Production Levels, and Future Projections on Completion of Productivity Upgrades Year Egg-laying (eggs/head/year) No data Number of Layers (heads) No data Number of Broilers (heads) No data Production level – eggs (million) 81.8 Production level – poultry meat (tons, live weight) No data 2008 2009 No data No data No data 73.7 No data 2010 No data No data No data 74.8 No data 2011 No data No data No data 76.8 No data 2012 180 507,000 302,000 91.0 No data Estimated, post- 180 540,944 322,219 97.4 No data productivity upgrades The main market for products is poultry farms of the North-West region (including Leningrad region), which breed broiler chickens. Before 2011, the main consumers of breeding eggs were JSC Poultry farm "Severnaya" and JSC Poultry farm “Lomonosovskaya". From 2012, due to changes in the profile of the farm "Lomonosovskaya", JSC Poultry farm “Severnaya” is the main consumer of breeding eggs. The selling price of breeding eggs is competitive and has remained relatively stable over the past 5 years, between 6.8-8.7 RUR per egg. 3. Manure / Poultry Litter Situation Table 3 below gives a snapshot of the manure / poultry litter situation on “Voyskovitsy” farm. Table 3 Manure / Poultry Litter Situation Summary Annual manure output (tons) Tonnage of manure in Long-Term Storage Type of Storage Amount of own land 36,639 24,426 Concrete composting ground 0 Amount of total manure output that can be spread (based on HELCOM standards, approx. 13 tons per ha) 0 Land requirements (based on HELCOM standards, approx. 13 tons per ha) Land shortfall 2,818 2,818 4.1 Storage of Manure / Litter The poultry litter output in “Voyskovitsy” farm is up to 150 tons per day or 45 -55,000 tons per year. There is a concrete composting ground for poultry manure storage, in which litter is stored in piles for long term disinfection. Between 30-35,000 tons of litter at a time is placed in the concrete composting ground. During storage and fermentation, the litter reduces in volume by 25-30% compared with the original amount. However, due to precipitation on the stored manure, the mass of the stored manure increases even as its volume decreases. 4.2 Treatment of Manure / Litter Initially, the full amount of poultry litter produced is placed in the concrete composting ground, where it is stored in piles for 8-12 months. Poultry litter undergoes a natural process of fermentation, resulting in decomposition and compost. Compost is then used on the fields of neighbouring farms, or sold to gardeners and small plot holders, as the farm owns none of its own arable land. To dispose entire amount of produced poul try litter on its own fields, the farm would require at least 7,500 hectares of land. The farm owners regulate the number of heads of the broiler parent flock, so there are minor fluctuations (increases/decreases) from year to year. Thus, the small increase in numbers projected in 2013 can be corrected in 2014. For this reason, minor fluctuations in the number of broilers on the farm will not have considerable impact on the future situation with poultry litter disposal. 76 Leningrad Oblast Livestock Farms: Manure Management Data and Farm-Specific Development Needs 4.3 Manure / Litter Management Problems Identified The main problem is that, due to long-term storage on the open field sites, litter is exposed to various weather conditions (snow, rain, high/flood water, etc.). This increases its volume and leads to the formation of manure effluent that leaks into the soil and water sources. During this period of time, ammonia is released into the atmosphere, resulting in a decrease in the quality of litter as fertilizer, as well as leading to air pollution. In addition, the periods when the concrete composting ground is full, given that manure needs to undergo a process of disinfection to decrease its hazardous status, do not always coincide with the possibility and terms of its application as an organic fertilizer on the fields, as during the period of snow from end October to mid-April the fertilizer cannot be spread. During the winter period, the poultry farm usually transports poultry litter to the fields, where it is exposed to precipitation and poses problems/nuisances to local residents, while its quality as an organic fertilizer is lost, resulting in environmental hazard. This has been repeatedly reported by the media. 5. Summary of PIU activity to date with farm JSC "Poultry farm “Voyskovitsy" is not a pilot farm. “Voyskovitsy” farm managers have been invited to all seminars and events organized by the PIU. The PIU has also distributed its manure manual (“Manure / poultry litter management on livestock farms to ensure the ecological security of the territory, ground and underground water bodies in the Leningrad region”) to the Department of Agriculture of Gatchina district for study and use by farms in the district. This manual contains information about different technological solutions and legislative requirements for environmentally safe manure management. i Cows were assumed to be dairy cowsAn average excretion of a cow, a bull, a heifer and a female and male calf. iii An average excretion of a sow with piglets and a meat pig.The Russian values refer to the average of pigs less than 70 kg and pigs more than 70 kg. iv An average excretion of a broiler chicken and egg-laying hen. ii 77
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