For export to China
Russian pig giant builds mega complex
RusAgro, one of the largest meat companies in Russia, is going to build a new production location for pigs and poultry. With a view to export, the complex will be built in eastern Russia, a stone's throw from China.
According to Maxim Basov, CEO of RusAgro, the pig section consists of 7 departments with 3.000 sows each. RusAgro is said to become the largest propagator in Russia at 1 location. By way of comparison: 21.000 sows equals approximately 2% of the Dutch sow herd. A feeding and slaughter location would also be built.
The total investment cost is estimated at more than 400 billion rubles (converted $705 million). The objective is to run at full capacity within 2 years. From May, RusAgro will start importing breeding sows.
Export to China
There is a reason that RusAgro chooses Eastern Russia. While the local Russian market is likely to benefit from the complex's arrival, analysts believe the company is building there in order to easily export to China. The Primorski Province is pleased with the arrival of the complex and has promised RusAgro to facilitate the construction. The province would also support the project financially by exempting the pig giant from some taxes.
Not the first
RusAgro is not the first meat company with growth plans in Russia. Also the German Tonnies expanding in Russia, while Miratororg even invest billions of dollars. All these plans are based on the great export potential of Russian pork to China.
Incidentally, the Russian pig sector still does not have access to the Chinese market, even though the ambition was to 2017 to be realized† According to insiders, both governments are still in talks about this.
Wouter Job
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