Miratorg to continue implementing large-scale projects in Kursk region

February 16, 2016

Today, the Kursk House of Soviets hosted a working meeting between Alexander Mikhailov, the Governor of Kursk region, and Viktor Linnik, the President of ABH Miratorg. The meeting brought together chief administrative officers of the regional government and a number of district governments and heads of the holding’s major structural units, the press service of the Government of Kursk region informed.

The parties summarized their teamwork in 2015, discussed the holding’s future plans to develop agricultural projects in the districts of the region, as well as existing problems and solutions.

At the end of the meeting, the parties signed a protocol to the existing cooperation agreement for the year 2016. Commenting on the meeting results, the parties emphasized that the constructive cooperation had a positive impact on the pace of development of the cattle breeding industry in our region.

“Several facilities of the holding have been operating in Kursk region, in Pristensky and Oboyansky districts, for years,” Alexander Mikhailov said. “All together they provide jobs to 1,600 people. Future plans envisage a vertically integrated pork production and processing complex and a veal production project.

Commenting on plans for the next year, Viktor Linnik announced the company’s plans to invest about RUB 10 billion in the development of agriculture in Kursk region, to create 300 jobs and to implement a project worth RUB 6 billion for the production of high quality veal in Sudzhansky district. Construction of the production facilities will start this April, the disposition of animals in November.

“This is a unique project for Russia. If it proves to be successful, we will continue to develop in this segment. We are also engaged in teamwork to implement a major pig-breeding project,” Viktor Linnik said.

Miratorg’s project of a vertically integrated pig breeding business assumes the construction of 60 pig farms, 4 feed mills, a slaughter and processing plant with a capacity of 3.7 million pigs per year to produce 346 thousand tonnes of meat (carcass weight) per year, with an increase in crop and forage acreage up to 165,000 hectares.

According to Viktor Linnik, the project will become efficient in three years. “Russia will hardly see a better project, whether in scale, or in technology, in the next five years, I believe," Miratorg President emphasized.

The holding’s products will be in demand not only in Russia but in Southeast Asia where Miratorg will export 30-40% of the total output.

The first stage of the pig production project will require investments amounting to RUB 120 billion.

“The regional government is of great help to us in forming a bank of land to optimally locate the new pig-breeding complex in terms of logistics, and to ensure maximum cost effectiveness of the feed mills,” Viktor Linnik said.

He also believes that Kursk region is “one of the most attractive places, with opportunities to implement both large and medium-sized projects".

Another local asset of Miratorg is the Blagodatnenskaya dairy farm. According to the investor, the enterprise is already profitable.

“If I had been told one or two years ago we would engage in a dairy business I would not have believed that,” Linnik admitted. “Kursk region has given us pretty good experience which we will try to build on.”

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