Dairy farming has the important place in the business model of IMC. It brings in a stable income to the Company, supplies high quality milk for customers-processing enterprises and ensures working places in the regions.
The major portion of milk which IMC produces is rated as a milk of Extra category and the rest – as category I. IMC is one of the few industrialized milk producers which has an Operational permit for Baby Food Products, allowing it to sell milk to baby-food processing plants. This is another evidence of the high quality of the produced milk by the Company.
Unlike agricultural produce sales, which have a clear seasonal character, raw milk sales procure stable cash inflows throughout the year that enable the Company to cover general and administrative expenses as well as other operational expenses during the low season when cash proceeds from the sale of agricultural produce are minimal.
As of 31.12.2016 IMC has 2,210 heads of dairy cattle, including 1,136 heads of milk producing cows. There is constant increase of averaged annual raw milk yields per cow at the dairy farms of IMC. The Company’s averaged annual raw milk yields per caw are considerably higher than the Ukrainian average.