Polish meat business develops pig breeding programme

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Gobarto's expansion plans include a new pig breeding programme

Poland-based meat business Gobarto has reported higher sales revenues for the first half of 2018 at about PLN1.057 billion (€247.4m), an increase of 24.7% compared with the same period a year earlier.

As part of its expansion plans, the group is also pursuing a programme to develop pig breeding operations in partnership with local farmers.

Under the Gobarto 500 programme, the meat business is recruiting farmers and providing various forms of support to their investments. The recruited farmers provide their land, allowing the development of pig breeding facilities with capacities of up to 2,000 head. Gobarto signs 15-year contracts with the farmers, who are also given financial support, the company said in a statement.

Efforts to support pig breeding

“We show how to run modern pig breeding, we share best practice. We pass on knowledge and support,” said Paweł Spyrka, the director responsible for Gobarto’s pig breeding development programme, as quoted in the statement.

To date, about 80 farmers from eight Polish regions have joined the Gobarto 500 programme, according to figures from the meat business.

Gobarto has claimed to be the largest player in Poland’s red meat slaughtering, cutting and distribution industry. The group sells pork, beef, and game meat. The company currently comprises more than 30 offshoots located in Poland, Germany and Ukraine.

In total, the group’s facilities are operated by a workforce of more than 1,500 employees. Among its assets, Gobarto runs a slaughterhouse in Grąbkowo, in western Poland, with a capacity of about 1m head annually. The group said it produces 90,000 tonnes (t) of red meat per year at its Grąbkowo facility. Gobarto also operates a meat processing plant in Ciechanowiec, in the country’s north-eastern region.

Export sales on the rise

In addition to the Polish market, Gobarto sells its products to a number of foreign markets. From January to June 2018, the group generated about PLN147.6m (€34.5m) in export sales. This represented an increase of 22.5% compared with the same period a year earlier. Owing to the reported sales hike for the first six months of this year, the share of foreign sales in the company’s total revenues for the first half of 2018 fell to 13.97%.

Gobarto’s export destinations among the EU’s member states include the UK, Ireland, Italy, Spain, Denmark, Austria, Slovakia, and Lithuania, according to data from the company. In addition, Gobarto says it has a market presence in Ukraine, as well as various countries in North and South America, Africa and Asia.

Polish poultry meat producer and processor Cedrob is Gobarto’s majority shareholder, and holds a 84.06% stake in the meat business.