March 13, 2014

Investors from Poland and Russia have entered a 50-50 joint venture on  new 240,000-head pig farm in southern Russia's Krasnodar Krai, said Marek Ociepka, head of the Moscow-based WPHI - the foreign trade and investment arm of Poland's Foreign Ministry.

Ociepka said the project, which is currently under construction in Krasnodar Krai, is a unique opportunity for Polish investors to acquire a stake in the Russian meat industry. The investment could also provide Polish meat processors with an opportunity for future expansion in the Russian market, according to the diplomat.

Meanwhile, local observers say that Polish pork exports remain low compared to the potential of the Russian market. In 2013, Poland's meat processors exported some 438,000 tonnes of pork, up 19% compared with a year earlier, generating revenues of €912 million (US$1.26 billion).

The EU countries remain the largest importer of Polish pork, with 218,000 tonnes, translating into 40.5% of the total, according to data from the state-run Agricultural Market Agency (ARR). China ranks in second, with 52,000 tonnes and, among the EU member states, Italy is the largest importer of Polish pork, with 43,000 tonnes. Poland's neighbours Belarus and Russia, with 42,000 tonnes and 36,000 tonnes, rank in third and fourth, respectively. This means Russia's pork imports from Poland represent only 8% of the total.

The project is also an opportunity for Polish investors to expand their presence to Russia's south. As much as 82% of Polish investments in Russia are located in Moscow, Leningrad and Kaliningrad, according to data from the Polish Institute of International Affairs.