December 20, 2005

Tyson may start broiler production in Russia

US meat processor Tyson Foods may start broiler production in Russia soon, with agricultural group Euroservice--also Russia's largest importer of US chicken--expected to help in the project, according to media reports in Russia.

Tyson will provide the training of personnel in the joint venture while Euroservice will use the expertise and breeding technologies of Tyson, according to Euroservice head Kofman.

Tyson Foods has been looking to expand to Russia since 2003, and with poultry consumption in Russia rising, analysts regarded investments from foreign processors such as Tyson as a logical move.

The cooperation of Tyson Foods and Euroservice will be the second large-scale project in meat production in Russia. The project is estimated at US$50-100 million and will add 30,000-60,000 tonnes of poultry to the country's annual production, according to Russia's National Meat Association.

In mid-2005, Brazilian company Sadia also reached a deal to build a meat processing plant worth an estimated US$100 million in Kaliningrad, the capital and main city of the Kaliningrad Oblast, which is the Russian exclave between Poland and Lithuania on the Baltic Sea.

According to the Russia's Meat Union, poultry consumption in Russia will be 2.5-2.8 million tonnes in 2005, with the figure expected to grow 8-10 percent annually.