RusAgro plan to invest in China

RusAgro plan to invest in China

The target is to attract the Chinese COFCO (China National Cereals, Oils and Foodstuffs Corporation ) and several other Chinese agricultural companies to participate in future Russian-Chinese pork trade.

Maxim Basov, CEO of RusAgro, revealed that in addition to a major pig production hub in Primorsky Krai, Russia, the company is also considering construction of some pig farms in China. Currently, he said, RusAgro is choosing the appropriate region for the project, however some investment agreement must be signed with the local authorities and the project will be taken for final approval.

In early july the Russian vice Prime Minister Yuri Trutnev visited China and held some discussions on the Russian-Chinese meat trade with the Deputy Premier of the State Council of China, Wany Yang. Following the meeting, Russian Ministry for the Far East Development issued a release, confirming the plans to RusAgro to build a pig complex in Russia, which would be focused primarily on export supplies to China. According to the release, Trutnev said that some Chinese firms could be attracted to provide some bilateral support to the project, including the support on the Chinese side.

RusAgro also plans to invest additional 300 million USD into construction of the several poultry farms in the Russian Far East with the combined production capacity of 100,000 tons of chicken meat per year. According official data from the Russian State Statistical Service, all poultry farms in Russian Far East manufactured 62,000 tons of chicken meat in 2016.

According to officials at RusAgro the new pig farm will open in 2018 in Primorsk Krai. It will be a full-cycle complex with facilities for growing feed crops, as well as a feed mill and slaughterhouse. Also, the company wants to invest in increasing production at its assets in the central part of the country – in particular in Tambov Oblast.