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Russia invests EUR 500 million in new slaughterhouses 13 Nov 2009

The Russian government is planning to invest up to 24 billion rubles (EUR 500 million) in the construction of new slaughterhouses in Russia with a total processing capacity of 7 million heads annually.
By Evegen Vorotnikov
 
The realisation of the project will replace imports and create 4,500 new jobs. The average per capita red meat consumption in the country will rise from 63 kg in 2008 to 67 kg by 2012.

According to Russian Meat Union estimates, “the launch of the new state-of-the-art slaughter facilities will significantly improve the quality of the whole industry," says the President of the Russian Meat Union Musheg Mamikonyan.

Local analysts say that in the U.S. a half carcass cut into 40 pieces, differ from each other by the quality and price. The cheapest part can cost 0.1 dollars per kg, while the premium cuts up to $40. Lack of normal slaughterhouses is one of the reasons for the high cost of production in Russian meat processing plants.

Innovative projects
According to initial plans the government will invest in 3-5 large-scale innovative projects. The total amount of investments in each slaughterhouse is estimated at the level of 6 billion rubles (EUR 125 million).

Already lauched
In fact, the project has already been launched. Miratorg Company, one of the largest Russian meat producers, has put into operation a plant for slaughtering and primary processing of meat in the Belgorod region with the cost of EUR 125 million. Its capacity amounts to 420 heads per hour, or 2 million pigs annually.

 
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