MSP Issue 23

Regional News
New Duck Farm Near Novosibirsk will Provide
Meat to Siberia and China
“Ulybino” poultry factory
plans to produce up to
17,000 tons of duck meat
which will be sold in the
market of Siberia, Russian
Far East and Asia.
The project startup will
require 4.2 bln roubles
lybinskaya” poultry factory,
“Uestablished in 2016, intends
to invest 4.2 bln roubles in the
construction of 55 production facilities
for duck feeding, incubator, poultry
slaughtering and further processing.
The parent stock will be bought from
France. Around 30% of the total amount
of 4.2 bln roubles will constitute the
investor’s own funds, while the rest
will be provided in the form of credit
resources. The new poultry factory
will be able to produce up to 17,000
tons of duck meat with a view to
tap the markets of Siberia, Russian
Far East, Asia, and particularly China.
Furthermore, the new duck farm, the
construction of which will be started
in 2017, will create 400 jobs.
Dmitriy Lymischenko, Director
General of “Ulybino” poultry factory,
said in an interview to TASS that
the investments in the factory
construction would pay off in eight
years. According to him, the animal
production unit development,
particularly the duck farming, will use
the production capacity of “Vega”
feed milling plant in Iskitim which is
the founder of the poultry factory.
At the end of December 2016, the
Investment Council of Novosibirsk
Oblast backed the duck farm project.
Dmitriy Lymischenko, the poultry
factory’s director, said to the Council
that there was a strong unsatisfied
demand for duck meat in Russia.
According to Lymischenko, the
demand for duck meat was around
200,000 tons in 2015, while only
100,000 tons were actually produced.
At the same time, the Novosibirsk
natives who are not used to duck
meat may not respond to its
appearance on grocery shelves.
Timur Nigmatullin, financial analyst
in GK “Finam” said in an interview to
“Kommersant” newspaper that the
duck factory construction was a risky
project because the Novosibirsk
natives were not used to consume
duck meat, although the investor’s
own fodder base would help him
achieve “a significant positive
synergistic effect”. “The duck meat
market is narrow and specific. This
type of meat is more expensive than
chicken and even turkey meat, and
the investor will have to habituate
the Novosibirsk residents to the
consumption of this product”, Daniil
Hotko, expert in the Institute for
Agricultural Market Studies says.
“Ulybino” poultry factory went into
decline in the 90s, however, it was
restored after that. Today, it is one
of the largest feed milling plants in
Siberia. According to the Unified
State Register of Legal Entities, the
poultry factory owners are Vadim
Stepura and OOO “Vega” feed milling
plant with the shares of 60% and
40% respectively. Vadim Stepura
is also the sole owner and director
general of the plant. According
to Vadim Stepura’s company TD
“Iskitimskie Korma”, in 2015, the
profit of the feed milling plant with
the capacity of up to 600 tons per
day was approx. 2 bln roubles, while
its net profit was 84.7 mln.
Nikolay Mochalin, Deputy of
Novosibirsk Oblast legislature, was
also sceptical about this project.
He believes that the production of
17,000 tons of duck meat will lead
to market reallocation due to the
competition with poultry factories,
and its effect on the region may be
unpredictable.
Vasiliy Pronkin, Minister of
Agriculture of Novosibirsk Oblast
thinks that the region will only
benefit from the duck meat
production. “Throughout my work
experience I had to gain insight
into the competition related to
certain products. Turkey meat, for
example, is a direct competitor with
pork. Duck meat is a competitor
with beef. There is an imbalance in
the diet of the Russian population.
The population doesn’t get 28% of
the necessary beef because it is
unavailable. That’s why today the
duck meat will not compete with
poultry, it will fill the beef gap in the
market”, the Minister said.
22 | MSP Magazine • December 2016/January 2017