FDBusiness.com

Cargill, the global food, agricultural, financial and industrial products and services group, has further expanded its presence in Russia by opening a new animal feed facility in Efremov. The facility has the capacity to produce 50,000 tonnes of swine and poultry feed products and will operate under the LNB brand in Russia.

The new facility forms part of Cargill’s cluster of operations at Efremov (pictured), which include corn and wheat sweeteners plants; a vegetable oil refinery and bottling facility; a malt plant and an animal feed mill. A previously announced poultry processing plant is also in construction at present.

Natalia Orlova, head of Cargill in Russia, says: “Since we acquired the Efremov site in 1994, we have continued to expand and upgrade operations. The overall investment in Efremov industrial site is about $400 million to date. This addition reinforces our commitment to both the economy of the Tula region and to primary processing in Russia.”

“In recent years, we have seen a significant increase in meat consumption and meat production in Eastern Europe,” notes Luis Masroua, general manager of Cargill’s animal nutrition business in Russia. “This investment will enable us to leverage our global expertise, technology and knowledge to support the growth of the local feed industry in Russia. Our main goal is to help Russian farmers use high quality feed to get the best results.”

Cargill began its activities in Russia in 1991 with the opening of a representative office in Moscow, although a prior trading relationship with Russian-based organizations dates back some 30 years. Today, aside from the company’s significant grain and oilseeds activity, a large number of other Cargill businesses operate in Russia, in locations including Voronezh, Efremov, Krasnodar and Rostov.

The company employs over 1,500 people and is one of the most significant foreign investors in Russia with over $700 million invested in the local agriculture and food industries. Main activities in Russia include grain processing and trade; production, processing and packing of oils; starches, sweeteners and other ingredients production; an animal feed mill and consultations to specialists in the meat, confectionary and other food businesses.