January 3, 2006

Major Russian importer to build new meat processing plants

Major Russian meat importer Euroservice would start building ten new plants to process meat from domestic animals this year. This move is an effort to help meet growing domestic demand for meat.

The first four plants to be built in Pensa Oblast (region) would cost the group EUR277 million.

Serghey Stankevich, chairman of the Euroservice committee of directors, said meat imports are expected to grow by less than 3 percent annually in Russia, according to quotas set up to 2009. But domestic demand for meat would grow much faster, such as by about 15 percent annually for chicken meat.

Euroservice plans to focus especially on raising production output of sausages this year, from four tonnes a month to 20,000 tonnes a month, in light of rising domestic demand for sausages.

Musheg Mamikonyan, chairman of the Russian Meat Union, said domestic pork and chicken demand is growing by 10 percent and 15-18 percent annually respectively. Thus, it made sense for meat importers to start meat production domestically to meet the demand, he said.