Kalmyk meat for capital money

Moscow group "Prodcontract" began to establish in Kalmykia modern meat processing complex. This is the first major project of the private investor in the agricultural sector in the country, known for high investment risks. The new company should compensate the shortage of Russian beef and even plans to do export.

This summer, the Moscow group of companies "Prodcontract" (OOO "Biff Art") has signed a loan agreement with the regional branch of the Agricultural Bank Kalmyk co-financing of the project of construction of meat processing complex for fattening, slaughtering and primary processing of cattle in the area Ketchenerovsky Kalmykia. The cost of the project is 3.42 billion rubles, of which 2.755 billion — Agricultural Bank loan funds, 665 million — the company's own funds, of which 147 million has already been spent rubles. Construction is scheduled to end after one year of funding. Payback period — 8 years.

This will be the first in the steppe country of modern cattle complex — after many years of talking about the huge potential of Kalmykia in this area.

Back in 2006, the then head of the republic Kirsan Ilyumzhinov represented by the President Vladimir Putin project "beef belt of Russia", saying that "if this program will go, after four or five years, half of the needs of the Russian population in the meat can be closed." According to Ilyumzhinov, the Russian herd of beef cattle from the Soviet period was reduced from about 7.5 million head to 350,000, with half of them — the Kalmyk breed. It has been argued that the creation of a "beef belt" on the basis of Kalmykia, Buryatia and its sister Orenburg region could produce up to 400,000 tons of meat a year. However, like most ambitious undertakings Ilyumzhinov, this mega project has remained virtually — to real investment it came only two years after his retirement.

On the export prospects

The negotiations on the construction of meat processing complex began in the fall of 2010, when the first agreement was signed letter of intent. "The first stone" of the future of the complex was laid in December last year. Participating in the ceremony, the new head of Kalmykia Alexey Eagles said that in this way in the republic created the foundation for the transition from extensive to intensive livestock.

Now the project is under the personal supervision of the Prime Minister of Kalmykia Ludmila Ivanova. According to the CEO of GC "Prodcontract" Tatiana Bitko, the republic's leadership has provided substantial assistance in solving related problems — due to the lack of experience of Kalmykia large projects there is a lot of them. "For example, with the choice of site — says Ms. Bitko. — For this project, you need plenty of fresh water, not everywhere in Kalmykia it is in substantial quantities. We were offered Ketchenerovsky area where this problem is solved with a minimum of difficulty. There have already organized a meeting of representatives of the veterinary services, architects, land surveyors, public utilities and employees of other departments — all those who will be accompanied by an investment project. "

The structure of the declared capital investor in the project will include facilities for fattening, slaughtering and primary processing, leather processing complex and collagen raw materials, and manufacturing and trade and logistics center in the Moscow region. Through the construction of energy-efficient technologies will be introduced — for the production of electricity? Heat and planned to build a biogas plant.

Power set for slaughtering and primary processing of 300 cattle heads (or 69 tons) per day, a complex for fattening cattle — 6.6 thousand head, and in the trade and logistics complex will be a time to store 1.2 million tons of products. Raw material for processing is planned as purchasing from local farmers and grow in their own fattening complexes such as "feedlots" (year-round livestock technology in special outdoor pens). 70% of meat products to be realized by the gross, and the remaining 30% — in retail hyper? and supermarkets. Also in the plans "FoodContract" — starting line for the production of food and pharmaceutical collagen.

The company expects that its products will be in demand in foreign markets. "According to the plans, in our project is and" halal "and" kosher "so we immediately want certified and ISO, and HACCP (system of food safety management Hazard Analysis and Critical Control Points — risk analysis and critical control points. "Expert SOUTH"), — Says Tatiana Bitko. — This is to ensure that we had the opportunity to export meat overseas. The plant is built according to all European standards. We set ourselves high standards of quality, and the production of quality products is always expensive, so the complex will be quite expensive. " The company plans to install the Dutch and French equipment, which in the early stages of attraction require professionals from outside the republic, including foreign ones. According to Ms. Bitko, unskilled labor in excess of Kalmykia, but not enough skilled workers.

Forced production

Meat Processing in Kalmykia — the first industrial project group "Prodcontract", existing since 1992. Prior to that, the company has invested only in the construction of the refrigeration facility in the Moscow region, and the main profile of the "FoodContract" — sale of beef and beef offal frozen. The parent company of the group — JSC "Prodcontract" — one of the three Russian leaders in production and sales of beef (2009-2010 turnover, according to the company, amounted to more than 10 billion rubles).

According to Tatyana Bitko, construction of meat processing complex for "FoodContract" — is to some extent a necessary measure: "In 2009, the company sold 42,000 tons of beef, and the quota for imports we now only 21,000. That is 50 percent of the company is not loaded volumes that it can sell. Therefore, it was decided to engage the Russian beef and implement this project. "

Kalmykia was not accidentally chosen for the construction of the complex — it is one of the leading regions of Russia in the number of cattle for meat, and the Kalmyk breed — the only domestic beef breed of cattle. According to the information-analytical agency "IMIT" in agricultural Kalmykia at the beginning of 2012 contained 62.9 thousand head of beef cattle, accounting for 12.4% of the total Russian herd of beef cattle, contained in agricultural enterprises. Much of it will go for processing in the new complex. "Given the fact that domestic production is expected in the amount of 6.6 thousand head per year, and the slaughter of 300 heads per day capacity at the expense of its own cattle will download only 8.8 percent — says a leading analyst IMIT Alexey Plow. Only the total number of cattle, including dairy and meat and dairy, farms of all categories of Kalmykia is now exceeded 680,000 head, an annual increase — more than 12 percent. Thus, the processing capacity at competitive purchase prices for cattle will be able to download the full. " The company's
share in the actual production of livestock in Kalmykia, according to Mr. plow, only slightly more than 5%, but with the processing of livestock purchased in other farms, "Prodcontract" will be the largest beef producer in the region.

The chances of success of the project are large in relation to tangible deficit in the Russian domestic production of high-quality beef. "About 97 percent of cattle in Russia — it's dairy and meat and dairy breeds, the share of beef cattle accounting for three percent of the total herd of cattle, — says Alexei plow. — In recent years, in the field of dairy farming an increase yields, thereby to meet the market demand for milk requires fewer cows. Consequently, the production of beef derived from dairy cattle, and has been steadily declining. " Tatiana Bitko points and the perceived lack of meat in foreign markets, "Today, China is becoming an importer of beef, is constantly struggle for the vendor. Often there is a closure of the territories of many countries supplying beef on veterinary diseases. In general, the volume of products to find the required quality — this is a serious problem for importing beef today — a very sought after commodity in the world. "

In addition to the importance of the project to make up for the deficit of the Russian meat, it should be noted and its special role in Kalmykia. Experts agree that the new facility will contribute to the development of cattle breeding in the country. "At the moment, unfortunately, the real initiators of projects that can do anything on the territory of Kalmykia, very little — said the deputy director of the office of Vnesheconombank in the Southern Federal District Herman Krasheninnikov. — Under the patronage of the Head of the Republic today to develop your own project for the production and processing of meat "marbled meat Kalmykia," for which the search is on for the investor. Perhaps the arrival in Moscow of the investor to the country will push interest from other companies, and who will take over this project. "   

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