Polish-Russian joint venture to open pig farm in Russia
The pig farm, currently under construction, is designed to have at least 240,000 head, Ociepka told local news site portalspozywczy.pl. Each investment group has a 50% stake in the joint venture.
Ociepka said the project in Krasnodar Krai is a unique opportunity for Polish investors to acquire a stake in the Russian meat industry. The investment could also provide Polish meat processors with an opportunity for future expansion in the Russian market, according to the diplomat.
"Russia is a country that craves modernisation and has weak processing capacities," Ociepka said. "It is a market with an unlimited capacity for sales expansion for many years to come, and not only to Russia, but also to other [countries] with whom Russia maintains excellent relations."
Meanwhile, local observers say that Polish pork exports remain low compared to the potential of the Russian market. In 2013, Poland’s meat processors exported some 438,000 tonnes (t) of pork, up 19% compared with a year earlier, generating revenues of €912m (US$1.26bn).
The European Union countries remain the largest importer of Polish pork, with 218,000t, translating into 40.5% of the total, according to data from the state-run Agricultural Market Agency (ARR). China ranks in second, with 52,000t and, among the EU member states, Italy is the largest importer of Polish pork, with 43,000t. Poland’s neighbours Belarus and Russia, with 42,000t and 36,000t, rank in third and fourth, respectively. This means Russia’s pork imports from Poland represent only 8% of the total.
The project is also a chance for Polish investors to expand their presence to Russia’s south. As much as 82% of Polish investments in Russia are located in the Moscow, Leningrad and Kaliningrad regions, according to data from the Polish Institute of International Affairs.
