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Damates Babayev Milks at 520 Cows Per Hour

Published: April 16, 2014 (Issue # 1806)



  • Babayev has thrived on importing best foreign practices to Russian farms.
    Photo: Courtesy of Damate

Naum Babayev remembers when canned meat was more sought after than money.

During thefinancial convulsion of1998, Babayev realized that food was agood thing tohave ina crisis. Themeat was real, while money was acruel joke.

Babayev is now atthe cutting edge ofRussian dairy farming. He extensively toured foreign farms toidentify andco-opt best practices, but despite having afacility that has achieved milking speeds of520 cows anhour, he has so far been unable toturn back thetide ofdairy imports intoRussia.

Babayevs first model was Fair Oaks Farms inIndiana. Boasting incredible cow comfort andharvesting thefreshest milk with thelatest technology, Fair Oaks left Babayev smitten.

He borrowed thelayout andconcept ofthe farm, toured another 40 tomake sure that no new innovation was passing him byand built abusiness ofhis own inRussia.

Quitting his cousins poultry andpork producer, Cherkizovo, after its London share flotation, he set up Rusmolco in2007.

In2012, he sold amajority stake toa major trader inagricultural commodities, Singapore-based Olam International.

Deploying another ofhis companies, milk producer andturkey farmer Damate, Babayev partnered with dairy giant Danone last year tobuild large farms inSiberia andBashkortostan that will ensure theFrench companys local supply.

TheDanone deal illustrates one ofthe paradoxes ofBabayevs career thecontinued underdevelopment ofdomestic dairy. Dairy imports tothe Russia-led Customs Union surged by18 percent inthe first 11 months oflast year, according tothe unions governing body, theEurasian Economic Commission.

Inpart, this is due toa lowering oftariff barriers after Russias accession tothe WTO in2012. Inpart, it is because production costs inRussia are still too high tocompete with producers overseas.

Babayev sat down with TheSt. Petersburg Times todiscuss thewhat he learned fromU.S. farms and thetale ofstrikingly high competition toenroll inIndian colleges.

Q: How did your trips toU.S. farms affect your own business?

A: Russian agriculture has learned alot fromWestern experience. I have had 15 years of observingfarming practices, beginning with poultry.

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ALL ABOUT TOWN

Sunday, Nov. 23


Get in the holiday spirit at todays Winter Bazzar at the Astoria Hotel. Featuring gifts from around the world such as French eclairs, Dutch cheeses and Indian jewelry, the annual event organized by the International Womens Club will feature 18 international stands and raise money for charity through the sales of a diversity of products that further illustrate the citys international connections.



Monday, Nov. 24


Dr. Axel Schulte, Department Head at Fraunhofer Institute for Material Flow and Logistics in Dortmund, Germany, is the featured speaker at the SPIBA Industrial Committee lecture on The Fourth Industrial Revolution: Digitalization of the Supply Chain. The event begins at 4 p.m. at the Graduate School of Management at 3 Volkohvsky Pereulok and registration is required by Nov. 21 either by emailing office@spiba.ru or calling 325 9091.



Tuesday, Nov. 25


Tag along with AmCham during their Industrial St. Petersburg Tour program today. This incarnation of the ongoing series will visit Philip Morris Izhora and include an Environmental Health and Safety Committee meeting.


Find out how to expand your business east during the Business With China forum beginning today and concluding tomorrow at the Lenexpo convention center. The largest Russian forum dedicated to business with the Asian giant, topics that will be discussed include logistics, customs clearance, trade financing and many more.



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