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Ukraine's Pig Industry Attracts Investment

08 February 2014

UKRAINE - The country's meat market shows stable growth, with the pig meat sector attracting substantial new investment.

Agricultural analysts note the growing interest of investors to development of pig farming in Ukraine, according to ForUm, citing a report in the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine.

Agricultural holding BEZRK-Belgrankorm (RF) announced its plans to build a pig farm for 15,000 head or 25,000 tons of pig meat annually at Belgrankorm-Poltavschina Ltd. (Poltava region). The decision was made by the Russian agricultural holding on the basis of performance of its Ukrainian subsidiary. In 2013, Poltava facilities of the Russian agricultural holding became the most profitable.

Ukraine hosts three companies of the agricultural holding: Belgrankorm-Poltavschina (pig farming complex), Yasnye Zori-Poltavschina (processing plant) and Gromada-Agro (plant growing).

The profits of the Ukrainian subsidiary of the Russian agricultural holding from pig farming (10,300 tons annually) was over RUB300 million (about US$8.5 million), taking into account compensations and subsidies provided by Ukrainian authorities. For comparison, the same profit was received by Belgorod enterprises from producing 38,400 tons of pork.

Much more extensive plans are made by Seaboard Foods Company (agricultural unit of Seaboard Corporation included in Fortune 500), the second largest pork producer in the United States. The revenue of Seaboard Foods in 2012 was over US$2 billion annually.

Seaboard Foods intends to work with Kernel holding to build the largest pig farm in Kharkiv region, investing US$600 million in a pig farm and US$100 million in a meat-packing plant.

ThePigSite News Desk

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