European meat giants plan to invest in Russia
Toennies plan is to invest up to 95 mill. USD, for building at the first stage a slaughterhouse in Belgorod (Oblast) in southern Russia. According to officials, the new slaughterhouse will have the capacity to process up to 728,000 pigs a year, making it one of the largest slaughtering yards in Russia.
Further investment is planned so that the plant can reach a capacity of 1.04 mill. head per year at 2020, and Toennies has a longer term plan to increase capacity up to 2.08 mill. heads. Toennies has already purchased a property of 30 ha in the Belgorod region. The plan is that up to 70% of the production capacity will be sold in Russia, and the rest exported, probably to EU countries.
This announcement follows the release of Toennies plans from September 2016, to build 20 pig-breeding complexes throughout Russia and a packing plant in the Voronezh area with costing from around 618 mill. USD.
Also Idavang from Denmark, another leading European meat giant is planing to increase its Russian operations. The company already operates two pig farms in Russia located in the St. Petersburg and Pskov. Idavang wants to increase the annual output capacity of its Russian pig farms by 98,000 units by the end of this year, up from the current level of 300,000 pigs. This would include a new complex which will be build also in the St Petersburg region.