Norwegian company to launch pig farm in Russia

By Vladislav Vorotnikov

- Last updated on GMT

The farm is due to be commissioned in the third quarter of 2015
The farm is due to be commissioned in the third quarter of 2015

Related tags Russia Livestock Pork

Norwegian-based company Russian Baltic Pork Invest (RBPI) will open a large pig farm in Russia’s Nizhny Novgorod Oblast, with a major investment in biosecurity at the new facility, according to company representatives and regional officials.

Involving a total investment of RUB1.8 billion (US$30m), the new farm will have the capacity for 180,000 pigs at any one time. The commissioning of the farm is scheduled for the third quarter of 2015.

As stated by Alexei Morozov, minister of agriculture and food resources for Nizhny Novgorod Oblast, the new farm will use the most modern technology for producing pigs, including European technologies used against African swine fever (ASF). "Strong protection against ASF has been implemented,"​ he explained. In particular, no outside transport will be allowed into the farm’s territory, he added.

The new venture will benefit from the fact that farms with the highest biosecurity are still able to continue to supply meat to the local market and the market of the neighbouring regions, even if they are located within an ASF quarantine zone.

Governor of the Nizhny Novgorod Oblast Valery Shantsev said: "The commissioning of a new pig-breeding complex is a very important project for the region, as it will significantly increase pork production here."

According to Shantsey, the Nizhny Novgorod Oblast currently lags behind neighbouring regions in terms of pork production per capita. "Of course, this does not mean we have a shortage of pork, as we import meat, but it is certainly better to have our own production capacity. In 2015, the region should increase the number of pigs it handles by 1.5 times,"​ Shantsev added.

In addition, RBPI has signed an investment agreement with regional authorities, which are providing state support for pig farm in the form of exemptions on property tax for the period from 1 January 2015 to 31 December 2018, up to a total of RUB73.2m (US$1.1m).

RBPI spokesperson Anders Jacobsen stated that the project will use "the best European experience in the creation of pig farms"​. According to representatives of the project, the pay-back time will be around 69 months.

The regional agricultural ministry also disclosed that RBPI will start construction of a second pig farm in another area of Nizhny Novgorod Oblast in the near future.

"Investors today have to assess the demand and competition, not only in our region, but also in neighbouring regions. Also, the situation with the Russian ban [on pork imports from the European Union] and domestic prices today is not clear, so a decision on the new investment project is expected to be taken at the beginning of 2016,"​ he said.

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