February 11, 2010

CPF to invest US$500 million in Russia

Thai leading agro-industrial and food conglomerate Charoen Pokphand Foods (CPF) plans to invest up to RUB15 billion (US$500 million) to expand its Russia meat business.

Most of the funds will be invested in the construction of a new large agricultural holding, which will complement an already existing feed milling plant, piggeries and a meat processing plant owned by CPF in Russia. In addition, CPF is currently in talks to launch its own retail chain in Russia.

Charoen Russia deputy director general Surat Rakhimbabaev said currently the company is completing the construction of two pig complexes, which will include a multiplication farm designed for 2,400 sows and fattening complexes for 28,000 pigs. Their official launch is scheduled for May 2010.

CPF also plans to build two pig farms in the Kaluga region this year. The company will increase the number of its pigs in Russia up to one million head by the end of 2013.

Russian analysts said a successful launch will place CPF as the top 10 largest operators of the Russian pork market.

Rahimbabaev said that some of the funds could be used to buy a meatpacking plant in the Moscow region, as well as the existing retail chain in order to develop the company's Seven-Eleven network of economy stores.