October 12, 2007

 

Russia's Miratorg expands into poultry production

 

 

The Miratorg agricultural holding company, one of the largest pork and poultry importers in Russia, is developing its own production.

 

The holding company is to choose a construction site for a poultry factory with an annual capacity of 100,000 tonnes and put it into operation in 2009.

 

Investments are projected at US$300 million, with Miratorg's own funds to make up 20 percent of the venture.

 

The company has held talks with the Kursk and Belgorod regional administrations and is also reviewing options for other Russian regions.

 

The poultry factory would be added to the Miratorg vertically integrated production structure.

 

In August this year, the Miratorg agribusiness holding launched a formula feed plant in the Belgorod region at a cost of 630 million rubles (US$25.3 million), according to Argotel, a Russian agricultural news website. 

 

The plant, one of the largest in Russia's Black Earth region, is outfitted with foreign equipment and will be run by Dutch feed producer Trouw Nutrition, according to Miratorg

 

The plant had capacity to produce 220,000 tonnes of feed per year and was built as part of Miratorg's programme to expand its pig farms to 1 million head by 2009.

 

Miratorg, founded in 1995, produces pork, grain and formula feed, distributes imported and domestic food products, processes meat and makes semi-prepared foods, and has transportation and warehouse logistics operations.

 

The group closed 2006 with net profit up to 474 million rubles (US$19.05 million)  from 319 million rubles (US$12.8 million ) in 2005, as consolidated revenue grew 58.1 percent to 14.7 billion rubles. (US$591 million).

 

The company, one of the most important wholesale and retail suppliers of meat and poultry in Russia, expanded their operation to primary production with investments of over US$100 million in 2006.