January 3, 2011

Russia's Kudryashovskoe meat plant to double pork production

Russia's meat-processing plant Kudryashovskoye plans to invest RUB3.64 billion (US$0.12 billion) to increase pork production to 40,000 tonnes per year from 21,000 tonnes by 2013.

"Kudryashovskoye will launch the second phase of development in 2011. The project will result in doubling production volumes. We will build a new modern full production cycle pig farm. A designer has been chosen, we are looking for equipment suppliers," General Director Sergei Gorbachev told a local government meeting.

"As a result, the volume of pig-breeding at the Kudryashovskoe will amount to 350,000 pigs per year or 40,000 tonnes of pork in natural weight. Revenue of the company is to reach RUB3.4 billion (US$0.11 billion) per year and net profit is to be RUB600 million (US$19.7 million) in 2015."

The company will invest only RUB100 million (US$3.3 million) of its own funds.

"We are holding talks with Sberbank and we have received a loan approval," Gorbachev said, adding that the pig farm was to be built in the second half of 2012. It will break even in six years.