Miratorg buys Baltic Seeds in Kaliningrad region for two breeding projects
MOSCOW. April 8 (Interfax) - Miratorg, one of Russia's leading agricultural holdings, has received permission from the government foreign investments commission to acquire seed potato producer Baltic Seeds. The company's assets will be used to implement two breeding projects, the holding told Interfax.
The projects will involve the production of seed and commercial potatoes, as well as the selection of seeds for cereals, leguminous crops and perennial grasses.
The transaction amount was not disclosed. The main owner (99.7%) of Baltic Seeds as of December 31 2023 was Stichting Administratiekantoor Daleod (Netherlands), company reporting shows.
Baltic Seeds also reported that in 2022, it entered the Russian top ten in seed potato certification, having issued documents for 4,000 tonnes of seeds. Its complex is designed for 12,500 tonnes of seeds.
Miratorg, as part of its import substitution program, is implementing a "full potato cycle" project. The agroholding grows various varieties of potatoes in fields in the Tula and Bryansk regions. Previously, European-bred planting materials were purchased. The holding began to develop domestic breeds of original and elite potato seed material in 2023 for industrial and consumer use. The complex scientific and technical project received approval from the Ministry of Agriculture.
In the Kaliningrad region, the project includes a center for microclonal propagation of plants, and an energy-saving greenhouse complex, which includes a phytosanitary control laboratory. This makes it possible to produce high-quality seed material, free from infectious load. In addition, Miratorg has isolated field sites for replicating potato seed reproductions in different soil and climatic zones, including the Kaliningrad, Bryansk, Tula and Oryol regions. To store the harvest, a specialized warehouse with a controlled microclimate and targeted container storage is being used.
The result of the breeding operation will be an increase in the area sown with entirely domestic potatoes, Miratorg said. The main goal of the project is to reorient the Russian market towards domestic varieties. Meanwhile, there are plans to produce both industrial-grade potatoes intended for the French fries plant being built with the Russian Vkusno i Tochka fast food chain (the Grand Fries complex), and table potatoes for consumers. The volume of potatoes needed for Vkusno i Tochka is estimated at 250,000 tonnes per year.
In addition, the new project will increase the production of grain seeds, leguminous crops and perennial grasses not only for Miratorg's own needs, but for the market as well. The agricultural holding will begin selling seed material from the Kaliningrad region to the market this year.
Miratorg harvested 103,000 tonnes, and harvested 52,000 tonnes of vegetables and potatoes in 2023.
Miratorg was founded in 1995. The holding consists of a crop production division, feed mills, pig breeding, poultry, livestock breeding sites, slaughter, processing and deep processing enterprises. The company's main assets are located in the Belgorod, Bryansk, Kaliningrad, Kaluga, Kursk, Moscow, Oryol, Tula and Smolensk regions. The holding is owned by Victor and Alexander Linnik.