Cargill builds chicken plant for McDonald's

Cargill is to invest in chicken processing facility in Russia that will focus on producing chicken products for McDonald's.

The firm has announced its intention to construct a chicken processing facility at its complex in Efremov, Russia. The plant represents an investment of US$30 million at the company's existing industrial complex, located 330 kilometres south of Moscow.

The complex is set to have the capacity to produce 18,000 tonnes of further processed chicken products per annum for the Russian market. The facility will focus on supplying high quality chicken products, including Chicken McNuggets, for McDonald's restaurants in Russia.

Until recently, Cargill had been supplying the bulk of McDonald's chicken volume requirements in Russia from its facility in Orléans in France, and the decision to make this investment is in line with McDonald's strategic choice of pursuing local supply in Russia.

Cargill will also use this facility to develop business opportunities with other customers in the retail, wholesale and food service sectors in Russia.

The chicken meat will be sourced from a number of selected Russian producers, and Cargill intends to develop local supply partnerships, ensuring that the chicken sourced meets McDonald's demanding quality, food safety and welfare requirements.

Construction is expected to begin in the autumn of 2010 and it is anticipated that the facility will be operational by the end of 2011.
 

Meanwhile, Cargill's refined oils business supplies oil to McDonald's restaurants in Russia from the Efremov site, and the poultry processing plant will be able to further benefit from on-site supply of oil for its production process.