February 10, 2014

Russia's BEZRK-Belgrankorm to build pig farm in Ukraine

Investors have been expressing interest in developing pig farm in Ukraine, informs the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine.

Agricultural holding BEZRK-Belgrankorm (RF) announced its plans to build a pig farm for 15,000 heads/25,000 tonnes annually at Belgrankorm-Poltavschina Ltd. (Poltava region). The decision was made by the Russian agricultural holding on the basis of performance of its Ukrainian subsidiary. In 2013, Poltava facilities of the Russian agricultural holding became the most profitable. Ukraine hosts three companies of the agricultural holding: Belgrankorm-Poltavschina (pig farming complex), Yasnye Zori-Poltavschina (processing plant), and Gromada-Agro (plant growing).

The profits of the Ukrainian subsidiary of the Russian agricultural holding from pig farming (10.300 tonnes annually) was over RUB300 million (US$8.5 million), taking into account compensations and subsidies provided by Ukrainian authorities. For comparison, the same profit was received by Belgorod enterprises from producing 38,400 tonnes of pork.

Much more extensive plans are made by Seaboard Foods Company (agricultural unit of Seaboard Corporation included in Fortune 500), the second largest pork producer in the US. The revenue of Seaboard Foods in 2012 was over US$2 billion annually.

Seaboard Foods intends to work with Kernel holding and build the largest pig farm in Kharkiv region.

Investors are planning to invest US$600 million in a pig farm and US$100 million in a meat-packing plant.