Poland’s Konspol plans €46m meat processing investment

By Jaroslaw Adamowski

- Last updated on GMT

Fact: Konspool are one of KFC's largest suppliers of chicken in Poland
Fact: Konspool are one of KFC's largest suppliers of chicken in Poland

Related tags: Chicken, Meat, Livestock, Poultry

Polish poultry meat processor Konspol is planning to invest up to PLN200 million (€46m) with the aim of significantly increasing its meat processing capacity and financing acquisitions of competitors in Poland and other European countries, according to senior company representatives.

In the past seven years, Konspol has invested about PLN250m (€57.5m) to expand and modernise its processing capacities. The new investment programme is scheduled for the next two to four years, Konrad Pazgan, the company’s chief executive, told local news site Portalspożywczy.pl.

“Our exports should continue to rise, owing to the preferable rate of the Polish zloty to the euro,” Pazgan said. “The Russian market continues to be the most prospective one, but unfortunately, it remains temporarily closed to Polish companies. I hope the new government in our country will succeed in… establishing friendly relations with Russia. We need affordable raw materials, and Russia needs high-quality food products. This is why we are perfect for each other as trading partners.​”

Pazgan was referring to the 25 October parliamentary election which paved the way for the formation of a new government in Poland. As a result of the conflict in neighbouring Ukraine, Poland’s authorities have maintained stringent relations with the Russian government, which impacts on the two countries’ trade relations.

Indonesian investment

The investments are also to contribute to the company’s ongoing plans to expand its presence in a number of foreign markets. In late 2014, Konspol launched the construction of a new poultry meat processing plant in Indonesia to boost its foothold in Asia. Under the plan, the plant’s output is to be supplied to the Japanese market.

Konspol’s main export markets include the UK, Germany, Ireland, France, Switzerland, the Scandinavian countries and Slovakia. The meat processor said that exports were responsible for some 30% of its sales revenues, and, with the ongoing and planned investments, this is expected to further rise. With this in mind, the company is considering acquiring an unnamed European meat processor.

Largest KFC supplier​ 

Konspol’s broiler slaughtering facility is fitted with a capacity of 12,000 head per hour, and the firm’s subsidiary Konspol Holding operates a plant capable of producing 4,000 tonnes (t) of processed meat products per month, according to data from Konspol.

Set up in 1982, Konspol is based in Nowy Sącz, in Poland’s southern Małopolskie region. The firm says it specialises in poultry meat processing, and its product range comprises ham, pâtés, chicken wings, frankfurters, sausages and other processed meat products.

Over the past years, Konspol says it has been focusing on adding new light and gluten-free meat products to its portfolio. The company also makes halal meat, and it is BRC-certified. In addition to this, the meat processor is one of the largest suppliers of poultry meat products to US fast food chain Kentucky Fried Chicken (KFC) in the Polish market. Konspol is controlled by the Pazgan family.

Related topics: Meat

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