Thailand’s largest agribusiness Charoen Pokphand Group (CP) and China’s Banner Dairy together with the Russian direct investment fund (RFPI) are to invest $1 bln to build a diary facility in the Russian city of Ryazan with production capacity of 300-350 thousand tons of milk annually. That could make it the biggest raw milk producer in Russia.
The plant will include dairy farms with 80,000 milking cows and 40,000–60,000 hectares of grain, as well as a feed factory, the head of the Russian Direct Investment Fund Kirill Dmitriev told Vedomosti daily. The project is expected to be up and running within 3-5 years. The CP Group will run the enterprise.
Relevant agreements have been signed on Wednesday in St. Petersburg with the participation of the Russian Prime Minister Dmitry Medvedev and the Prime Minister of Thailand Prayut Chan-o-cha. Back in 2015 during the St. Petersburg International Economic Forum (SPIEF) CP Group and RFPI have agreed to create a joint investment fund for $1 bln for the projects in Russian’s agriculture sector.
Also last year, the Thai conglomerate said it was looking to invest $600 million in meat and milk production in Russia, and was examining opportunities in several Russian regions.
CP Group is not the first company form Southeast Asia that is interested in investing in dairy in Russia. On May 18, the Vietnamese TH Group is starting construction of a dairy facility in Moscow region of total cost of $500 mln. What’s more, a similar project the company is planning to realize in Kaluga Oblast investing another $220 mln. TH True Milk (TH Group) also showed interest in investing $2 bln in Russian dairy sector.
Founded in 1921, CP Group is one of world’s largest conglomerates with investments in over 20 countries. The corporation’s Charoen Pokphand Foods is one of the biggest producers of animal feed with plants in Cambodia, China, India, Indonesia, Malaysia, Burma, Turkey, Singapore, Vietnam, Taiwan and US.
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