January 6, 2012

Denmark's Saerimner allocated the receipts on a 20% stake sold to IFC last year for expansion in Russia, the business daily reports on Thursday (Jan 5).

Although Lithuania is short of pork, production volumes here cannot be increased due to environmental restrictions and public pressure. IFC, which is part of World Bank's group, paid EUR16.8 million (US$21.5 million) for a 20% stake in Denmark's holding company Idavang, which owns pig growing complexes in Lithuania and Russia.

"IFC saw us as a company, which has achieved everything that could be achieved in such market as Lithuania, and decided that it will not be possible to expand business here. Russia, which has a lot of space, is something different. Complexes near St. Petersburg and Pskov are being built. The goal of our group and shareholders is to work in the markets that are short of raw materials," said Saulius Leonavicius, Saerimner CEO.

The consumption of pork in Lithuania exceeded the output, he said adding that production could not be increased due to environmental requirements and pressure exerted by certain public figures.

The company grows 420,000 pigs in Lithuania per year.