Russia’s Miratorg announced plans to invest RUB160 billion (US$2.5 billion) on a variety of expansion projects over the next five years that will see the giant’s pork and beef production capacity double as the company raises its global standing.

 

Company CEO, Viktor Linnik has stated that the company’s beef production could be doubled by as early as next year, as it works to attain its goal for overall production of 130,000 tons of beef per year by 2020.

 

“This year we will produce 40,000 tons of beef, including 4,000 tons of premium beef,” he said. “Next year we will produce about 8,000-10,000 tons of premium meat.” Company data indicates that the business produced 370,000 tons of pork last year – a 4% increase over 2013.

 

The company is also undertaking a variety of pork production expansion projects across the country. Mr. Linnik indicates that the company is expanding to other regions, including Smolensk and Kaluga Oblast, and is currently engaged in negotiations with the government of Tula Oblast. The group is also currently accruing a land bank in Kursk Oblast where it has plans of establishing a vertically integrated facility for the purpose of pork production.

 

Expansionary strategies being fulfilled by the country’s largest meat producers, such as Miratorg and Rusagro, have had a boosting effect upon Russia’s meat exports, according to the country’s agriculture minister, Alexander Tkachev, who noted at a recent government meeting that earnings sourced from food exports surpassed earnings gained from military sales for the first time last year.

 

The majority of Russia’s agribusinesses are in the midst of creating export platforms, according to Mr. Linnik, and Miratorg is planning to export up to 15% of its meat output by the end of 2016, as it plans to begin shipments to countries including Brazil, Canada, and the U.S.