Further consolidation in Russian poultry sector
Russian poultry producer, White Bird has increased the number of its production units in the Rostov Oblast with the acquisition of another poultry farm, Zadonskaya, in a deal worth RUB 645 million (US$ 9.9 million).
The farm, which previously was part of Optifood, a major poultry processor which went bankrupt last year, includes 31 poultry house, 34 broiler areas, more than 40 hatcheries, several feed warehouses and agricultural land.
12,400 tonnes of poultry meat
According to the rating agency Ekspert-F, the production capacity of Poultry farm Zadonskaya is 12,400 tonnes of poultry meat a year, which makes it one of the largest in Rostov Oblast.
These new deal however, will allow White Bird to strengthen its position as one of the largest poultry producers in Russia and engage in import replacing programs at the south of Russia.
Increased demand for domestically produced chicken
"After the introduction of retaliatory sanctions the demand for poultry meat in Russia is growing, and this trend can be called long-term," commented the Development Director of Investment and Finance Company, Solid, Andrew Smurygin.
According to him, the use of existing poultry farms area is much cheaper than to design and build a production from scratch, despite the considerable amount of investment. The overall capacity of White Bird currently stands at 220,000 tonnes of chicken meat per year.
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