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“RosAgro” plans building large dairy complex of 3,600 cows in Penza region

15:42 | 08.12.2014 | Economy


Penza, 8 December 2014. PenzaNews. “RosAgro” group will build a large dairy complex that would be able to accept 3,600 cows in the Penza region. The protocol of intentions and mutual cooperation between the regional government and company was signed by the chairman of the Penza region government Mikhail Kosoy and the president of “RosAgro” Magamed Abubakarov during a ceremony in the Penza governor’s house on Monday, December 8.

“RosAgro” plans building large dairy complex of 3,600 cows in Penza region

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“This is what the President [of Russia] is talking about – import replacement. A large project that will cost almost 3 billion rubles during its first stage and will involve high-end technologies and over 120 new jobs. The governor Vasily Bochkarev personally directed the project and persuaded the investors to come to Penza, and this is exactly the occasion when others are only talking about replacing import while the Penza region governor and us are already doing it,” Mikhail Kosoy said during his briefing at the end of the ceremony.

Commenting to the journalists on potential risks of this business, the president of “RosAgro” Magamed Abubakarov claimed they are practically absent.

“Our country has enormous unfulfilled demand for milk – about 10 million tons. The government aims for supporting internal demand, and the Penza region has created very comfortable atmosphere for an investor and a supplier. In our opinion, this region is the best in terms of support – and we are working in six regions. This is why we decided to build the first complex in the Penza region. In the future, we plan to expand production and assemble an advanced grain and corn processing factory,” Magamed Abubakarov said.

According to the director of Penza region “RosAgro” branch Lomali Albakov, the company obtained ownership of over 400,000 ha of land in Saratov, Penza, Voronezh and Orel regions, as well as Stavropol Krai.

“JSC ‘RosAgro’ has been working in the Penza region since 2010. This is one of the priority development regions for the company. Currently, we own 268 thousand ha of land, and about 190 thousand are used for farming. In the Penza region, we grow wheat, sunflower, triticale, oil seed, rapeseed, corn, barley, peas and soy, and results are stable year to year,” Lomali Albakov remarked.

In his opinion, they plan to begin construction in the Kolyshley area in 2015 and complete the complex in 18-24 months.

“‘RosAgro’ in Penza is maintaining close relations with its financial partners, ‘Binbank’ and ‘Troika-D-Bank’,” Lomali Albakov emphasized.

In his turn, Vyacheslav Orel, deputy chairman of the Penza region government, stressed the significance of the fact that the company decided to expand into cattle-breeding industry to evolve.

“‘RosAgro’ is one of the largest land owners in the Penza region, and we are pleased by the tempo it took to achieve goals. They understand that cattle-breeding is the cornerstone of agricultural production. It has a much higher margin, that will later on form a significant tax base,” emphasized Vyacheslav Orel.

He ensured the investors that the Penza region government will provide multilateral support in implementing the plans.

After signing the protocol of intentions, the participants took part in an opening ceremony of a new “RosAgro” representation office in Penza on the second floor of “Plaza” business center.

JSC “RosAgro,” founded in 2003, is currently one of the largest Russian agriculture industries that controls over 400 thousand ha of land in Saratov, Penza, Voronezh, Orel regions and Stavropol Krai.

The holding employs modern grain elevators and drying bins, as well as refineries and storages for grain and oil cultures, potatoes and seeds exceeding 200,000 tons.

“RosAgro” uses over 1,500 modern agricultural equipment units and uses the most high-end farming techniques. A well-researched combination of new approaches and tried techniques allows the company to maintain high output throughout the years.

“RosAgro” also owns a buckwheat refinery factory, and aims to build new projects, including a grain elevator in the Orel region and a compound feed factory in the Penza region.

“RosAgro” industries employs over 2,000 people over the country.

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