AGRICULTURAL COMPLEX DEVELOPMENT AND PORK PRODUCTION EXPANSION

 
1,000 billion rubles Total investments
1 000 Number of jobs
Mercy Agro Primorye started to develop its projects in the Primorsky Krai long before the country shaped its course towards import substitution on the food market. Construction of the first stage of the largest pig breeding farm in the region for 39 thousand livestock units in Prokhory village of Spassky district commenced already in 2011 and became a foundation for a series of technologically innovative projects in breeding, plant cultivation and agricultural infrastructure.

The idea to create pig breeding farms was born after a thorough analysis of competitive advantages in the Far East and the prospects of projects, which had been launched earlier. The analysis showed that agriculture is a complicated but promising industry, and Primorye possesses competitive advantages to capture this potential. Domestic production of pork in the region only covered 16% of the demand – this is why the company started to build pig farms.

After detailed project development it became clear that the Primorsky Krai lacks the required infrastructure to produce compound feed. In this way, the company made a decision to create a vertically integrated holding with a full production cycle – from soybeans and corn as key components of compound feed to production of chilled pork products.

The project is operated by LLC Merci Trade and LLC Primorsky Bacon, which became residents of Mikhailovsky priority development area in November 2015.

Having become residents of the priority development area, the partners decided to expand production capacities to 7 pig breeding farms. Epic plans made it necessary to streamline management. Primorsky Bacon will build and operate pig farms, and Merci Trade will focus on plant cultivation projects, growing grains and production of feed.

Present-day agriculture is a complicated process and one of the most labor-intensive industries, which requires advanced approaches to process management. The company became a regional pioneer in using 4WD agricultural machines and modern attachable equipment for tractors and harvesters. Pig farms use the modern “wean-to-finish” production technology.

Project implementation will create ~1,000 jobs. This will mostly include such jobs as pig farm operators, machine operators, agriculturists, metal workers, mechanics etc.

The state provides support to businesses registered in priority development areas – infrastructure for new production facilities and tax benefits. This helps businesses release funds for further development, recruitment of highly qualified personnel and improvement of its competitiveness on domestic and external markets.

LLC Merci Agro Primorye general director:

“Becoming a resident of a priority development area helped us to seriously engage in the expansion of production. Today, we cultivate over 10 ha of land, but we need five times more. After increasing the cultivated area, we will build a new elevator for grain storage – we have already purchased the required equipment. Besides, we launched two out of seven pig farms with the total capacity of 122 thousand livestock units per year.”

Start-up: 2015–2024
Internal rate of return (IRR): 22.5%
Raised investments: 14.8 billion rubles
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