Russia’s Miratorg opens country’s biggest beef processing complex

By Vladislav Vorotnikov

- Last updated on GMT

Miratorg currently owns 250,000 head of cattle, mostly Aberdeen Angus
Miratorg currently owns 250,000 head of cattle, mostly Aberdeen Angus

Related tags Vladimir putin Russia Miratorg Beef

Russian meat giant Miratorg has opened the largest plant in Russia for beef processing, located in the Vygonichsky District of Bryansk Oblast.

The plant boasts a total production capacity of 40,000 tonnes (t) per year, according to an official report from the company. It marks the latest stage in a large beef-production cluster, which the company has been establishing over the past several years.

"Currently the complex processes about 100 head of cattle per day, but when it reaches full capacity in 2015, it will process up to 1,000 head,"​ reported Miratorg.

Company representatives also revealed there were two different production lines at the plant – one producing general beef products for Russian consumers, while the other produces halal meat.

"The new processing plant is the final link in Miratorg’s entire beef project. With the launch of this business, we are starting to get quality domestic products at affordable prices. Production of high-quality beef requires a special approach and fine-tuning of the entire production chain,"​ said Dmitry Moyseenko, CEO of Miratorg’s Bryansk division.

The total cost of the plant’s construction is RUB6 billion (US$250m, based on the exchange rate at the time when the money was allocated). In general, the project for rearing and processing cattle, which Miratorg has been implementing in Bryansk Oblast since 2010, required an investment of around RUB25bn (US$757m based on the same exchange rate).

"We will gradually fill the planned capacity and, this year alone, we will put more than 5,000t of beef products into the market, while in 2015 we plan to increase production to 40,000t, which will replace about 7% of the total beef imports to Russia,"​ added Moyseenko.

Miratorg currently owns 250,000 head of cattle – mostly Aberdeen Angus, imported from the US and Australia. At present, the cattle are grown at 33 farms, but by the end of 2014, Miratorg plans to finish the construction of and commission another five farms, which will increase the total investment cost of its beef project.

"Within our beef project we will produce a wide range of products – more than 70 different products to suit every taste and purse. The first batches of marbled beef are already being supplied to the company’s stores,"​ said Moyseenko.

Previously, Russian Prime Minister Dmitry Medvedev said the Miratorg project was very important for the Russian market, as it will gradually improve the country’s self-sufficiency in beef production.

Moreover, Miratorg plans to double the production capacity of its beef project by 2020. Construction work for the second stage of the project is scheduled to start in the first half of next year, while the new farms will be also located in the central part of Russia in the Kaluga, Orel and Smolensk Oblast.

The total investment cost of both stages of the project is estimated at RUB70bn (US$1.62bn at current exchange rates), which will allow the company to replace up to 15% of the total beef imports on the Russian market.

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