CPF plans investment in Russia

CPF plans investment in Russia

Thailand agricultural holding Charoen Pokphand Foods (CPF) plans to invest up to 44.5 million USD, to build two new poultry breeding units in Russia this year. The first one will be established at CPF already existing poultry farm in Severnaya, and a second breeding unit is on plan at CPF's Voiskovitsy farm close to Gatchino. The projects have been confirmed by the St Petersburg regional government, which has given permission to proceed.

These new breeding units will give the CPF the ability to establish major grandparent breeding flocks that can create subsidiary breeding flocks, delivering eggs to hatch broiler chickens. The company's goal is to lower costs and improve flexibility by reducing the dependence of its Russian operation on imported breeding stock.First major investment in Russia CPF acquired Severnaya and Voiskovitsy in 2015 from Dutch van den Brink family for 680 million USD. Through their local subsidiary Agro Invest Brinky BV, the Brinks had invested about 200 million USD to expand capacity significantly in both production units.The construction of related breeding units will be the first major financial investment Charoen Pokphand have made into their Russian business since the 2015 acquisition.