Russian agribusiness giant Ros Agro has announced a potential expansion into fish farming and plans to expand its existing meat business. The fish farming venture being considered would entail a ‘very large project’ on the Pacific in the far east of Russia and would be backed by Chinese investors. The company is also in talks and considering developing aquaculture operations on the Atlantic coast. The group has also purchased 20,000 hectares in Ussurisjsk near Vladivostock for US$270 million for a pig breeding plant with an annual capacity of 50,000 tons of meat, and corn and soybean cropland to supply feed, and is considering a 14 billion ruble (US$374 million) expansion to its pig operation in Tambov depending on government assistance in funding. The group reported growth in earnings for all of its divisions – agriculture, meat, oils and sugar, however earnings before interest, taxes, depreciation, and amortization (ebitda) were particularly strong for meat as pork on the Russian market is seeing surging prices – up 70% to US$2.67 per kilogram after Russia limited EU pork early in 2014 on fears of Africa swine fever and then banning agricultural imports from the EU, U.S., Canada, Australia, New Zealand and Norway in response to Western sanctions regarding Russia’s activity in Ukraine.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service