8 Feb 2016 17:15

Rusagro to enter retail market

MOSCOW. Feb 8 (Interfax) - Rusagro , one of the leading meat producers in Russia, will enter the retail market.

The company's CEO, Maxim Basov, said at a press conference on Monday in Moscow that products in consumer packaging in the future may occupy up to 20% of sales volume.

According to the company's press release, in 2016 it is planned to sell 12,000 tonnes of such products on the retail market. As a result, the group is planning to immediately go into third place among the producers of pork semi-finished products in consumer packaging.

Rusagro will introduce the Slovo Myasnika brand for the new program.

Basov said that talks with networks for the supply of semi-finished products are already being concluded.

Gulnara Talipova, the director for marketing of the meat business division, said that Rusagro is planning to occupy 6% of the market for refrigerated semi-finished products from pork, which were processed at production capacities. The market of pork semi-finished products is estimated at 211,000 tonnes a year, more than half of this comes from industrial semi-finished products. The remainder is semi-finished products processed at commercial chains.

In the framework of the implementation of the project in the Tambov region, the plant for the processing of pork with a capacity of 1.95 million head a year was launched.

Basov also said that in 2019, the company is planning to enter the Chinese retail market. This will be done after the implementation of the project for the production of pork in the Primorye territory, he said.

The CEO also said that the company is planning to implement the project in the Primorye territory at the end of 2018, but some issues emerged with the construction of infrastructure facilities. Now the position has been agreed upon, and an agreement was signed. "But we will move in parallel, if we see that the construction of infrastructure is slowed down, we will slow down also," he said.

Rusagro commercial director for the meat business, Yevgeny Belov, said at a press conference that the company also is starting pork supplies to Vietnam. This primarily concerns carcasses, and also products which are not in demand on the Russian market - legs, snouts.

Rusagro is the second largest producers of pork in Russia with production volumes of 195,000 tonnes a year.