Danish firm to invest in pig breeding facilities in Russia

Danish agro-holding Rurik A/S, during the next 10 years is planning to invest US$200 million in the construction of ten pig-breeding complexes in the North-West Russia with a capacity of 150,000 heads.

According to media reports, the project can be considered as one of the largest in Russia, comparable to those implemented by the biggest local players Miratorg and Cherkizovo.

Experts believe that despite the large number of projects in the field of pig breeding, announced in Russia over the last past five years, the balance of imported and manufactured in Russia pork has not significantly changed.

A source close to the project said that an interest of Rurik A/S to the Russian agribusiness can be explained by the large number of uncultivated farmland in the country and low saturation of its market. Rurik already has experience of working in Russia supplying its live pigs produced in Lithuania.

According to the head of the Executive Committee of the National Meat Association Sergei Yushin, the current business environment in Russia is favourable for the development of pig breeding due to relatively low prices for feed and high purchase prices for slaughter pigs.

However, Yushin did not exclude a possibility of pork overproduction in the country during the next few years and possible problems with exports due to regular outbreaks of dangerous diseases such as African swine fewer.