Atria and AS Dan Invest in pig joint venture
Atria, a Finnish meat and food processing company, which is the owner of Russian KampoMos and Pit-Products meat processing enterprises, has signed an agreement with the Danish firm AS Dan Invest to establish a joint venture for pig breeding in Russia, according to Russian media reports.
Under the terms of the agreement Atria will acquire a 26% stake in the Russian subsidiary of AS Dan Invest, which operates in the local market under 'Dan-Invest' brand name and owns two pig farms – in Krasnodar and Tambov.
Project – €40 million
The production is scheduled to be officially launched in 2010-2011 and by 2013 the new venture will have a total capacity to process more than 180,000 heads per year. The cost of the project is estimated at €40 million.
Local analysts believe that currently Russia's pig market remains one of the most promising for foreign players, taking into account the ambitious plans of the local government to increase the level of the domestic pork production up to 5.6 million tonnes a year over the next several years.
Second pig joint venture
This will be the second joint venture for pig breeding established in Russia by foreign players recently.
Earlier this year Cooperl Arc Atlantique, one of the biggest French pork producers and Russian Pulkovo group of companies, announced its intention to establish a joint center for pig breeding and selection with the total level of investments of 2.5 billion rubles (€50 million). (Evegen Vorotnikov)
• AS Dan Invest
• Atria (in Finnish)
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