The MK Farming Division rests on four pillars: arable farming, vegetable growing, fruit growing and cattle breeding. The companies operating within this division are Agrounija, Flora, MK Agropanonija and Erdevik.
The MK Farming Division owes its leadership position in Serbian agriculture to pioneering efforts in the digitization of agriculture and constant innovations, thanks to which it achieves yields above the average for Serbia.
The main activities in which we operate within the Farming Division are:
• Production and storage of fruit (apple orchards)
• Production and processing of vegetables
• Cattle breeding
• Viticulture and wine production
When it comes to husbandry, we cultivate more than 13,500 ha of land in Vojvodina, and 70% of the MK Group's total area that we cultivate is under irrigation systems, which is significantly above the average in Serbia (2%). Almost 70% of the total land area is first and second class. By applying the double sowing system, on the same plots, during different vegetation periods during the year, we sow and harvest different crops, achieving higher production and maximum income with optimal costs.
All members of the MK Farming Division cultivate more than 15 different types of crops, of which the most strategically important are sugar beet, corn, and wheat. The total annual production of all agricultural and vegetable crops amounts to 250,000 tons.
Production and Storage of Fruit
Sales amount to 15,000 tons of products.
The apple orchards, which cover 85 ha, have the most modern equipment - a drip irrigation system, an anti-hail net and an anti-freeze system. When it comes to Agrounia and our apple orchards, we invested 2 million euros in the most modern equipment for calibration and packaging of apples. Agrounija produces 6,500 tons of apples, and exports them to more than 25 countries on 3 continents. The production of apples from orchards gains added value, in terms of technological and logistical performance, through storage in a state-of-the-art cold store with a total storage capacity of 7,500 tons. In this way, we have the possibility to store and keep apples completely fresh for up to 10 months after harvesting with 30% savings in electricity consumption.
Finantial indicators 2021 in 000 EUR
Income € 54.000
EBITDA € 13.000
Total Division-level investments € 132,000,000
We’ve made significant investments in irrigation system and modernization of equipment and machinery.
Only in the last five years, we’ve invested € 82,000,000.
Production and Processing of Vegetables
On 1,497 ha of arable land, we grow vegetables (green beans, peas, sweet corn, potatoes), which we further process and freeze in the vegetable processing plant of Flora, a company with a 60-year tradition. Annual sales amount to 15,000 t of frozen and canned vegetables under the Flora brand, which we distribute not only in Serbia and the region, but also in the markets of the Middle East, North Africa and South America. Flora is constantly expanding the portfolio of vegetables it grows, stores and processes, and that is exactly why 2,300,000 euros were invested in the 9,500 tons storage capacity of the modern cold storage of this factory. We also purchased the property of the ABC company from Ruski Krstur, and the reconstruction of this cold storage is already underway.
In the production structure of agriculture, livestock production plays a very important role because without stable and developed livestock production (in which cattle breeding makes up more than 40%), there is no developed agriculture. We have 950 dairy cows on our farm in Bečej, and we deliver more than 9 million liters of milk annually. The automatic milking system is the most significant investment we have had so far in the cattle industry and it currently covers 70% of the production. Also, currently 6 milking machines are in operation, and the acquisition of 4 more is planned.
Viticulture and Wine Production
During 2012, we became richer for another member, the Erdevik Winery, with which MK Group entered the field of viticulture and wine production. The winery is equipped with the highest quality processing equipment and accommodation facilities for grape processing and wine production. It has 16.5 ha of its own vineyards, and the winery's storage capacity is 3,000,000 liters of wine.
We see our development within the Farming Division in sustainable business through greater efficiency and speed of operations and introduction of modern technologies through precision agriculture, use of fleet management platform, further optimization of sowing structure, commissioning of new apple cooler stages, further strengthening of synergy among Divisions.