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llc poultry complex “south”: new opportunities and new markets

The investment climate in Republic of Ingushetia has been changed for good. The volume of investments into large infrastructure projects and development of small and medium-sized businesses grows.
Moreover, the question of agro-industrial complex effectiveness of the republic became one of the most important directions of development area.
According to the President of Ingushetia Yunus-Bek Yevkurov, the development of agriculture has always been and remains one of the top priorities of regional policy. A food security and well-being of Ingushetia residents depends on agricultural efficiency. A solution to the problems of import substitution is a priority, which will increase the competitiveness of Ingush products at Russian market. Moreover, the government of the region is sure that today there are new opportunities and new markets for Ingush farmers.
“In accordance with external country’s economic conditions, we must understand the seriousness of this issue and start working. Our task - to produce more and better”- said Yunus-Bek Yevkurov.
The role and importance of investment projects of agricultural sector of the North Caucasus has been noted by the Prime Minister of Russia Dmitry Medvedev at the recent meeting in Nalchik at Government Commission of the socio-economic development of the North Caucasian Federal District. One of a main issues of this event was the participation of North Caucasus Federal District in import substitution case, as well as providing government guarantees to support investment projects in the district.
According to Dmitry Medvedev, agriculture has a great importance for a region development, especially since the very nature of Caucasus makes this tremendous opportunity to be implemented, together with a state support of efficient investment projects that implement on territory of North Caucasian republics.
Adam Kostoev: We know how to build factories.
Such a project of building poultry complex for industrial production and processing of turkey meat is currently implements in the Malgobek region of Ingushetia. The importance of this for the republic accented at the ceremony of laying the first stone, by Yunus-Bek Yevkurov, who noted that the beginning of this, without exaggeration, grand building is a landmark event for the country. By building this enterprise, it will create the objective conditions for the further development of agricultural production in Ingushetia, will stimulate infrastructure and logistics transformation and will give impetus to the trade development.
“This project is especially attractive for us because there will be a use of most advanced technologies and innovations, of the most efficient world’s production scheme. Future company will dramatically reduce a meat purchase from abroad and thus makes a significant contribution into food security not only in Ingushetia, but in the whole Russia ", - said Yunus-Bek Yevkurov.
About how the project’s realizations goes, we talked to its initiator, the founder of Poultry complex “South”, entrepreneur Adam Kostoev.
-Experts say that turkey breeding has huge perspectives in Russia. Is it true?
- Of course. We conducted a very serious market research in this direction. This was one of the bank’s requirements where we going to be financed. In short, in the next five years, Russia will increase the consumption of turkey meat, minimally threefold. Due to today, in Europe, America and Israel consume annually from 7 to 17 kg of turkey meat per person, while in Russia this statistic is extremely low, is only about one kilogram per year. Therefore, it is evidently that product’s consumption can grow in 7-8 times. It is real.
- Adam Ezmanovich, what the essence of your project?
- In short, we create a new vertically integrated agricultural enterprise for production of turkey meat with production volume about of 10,235 tons of finished products per year. The cost of the project is 2.6 billion rubles. It is planned to be build 35 production facilities on 10 sites. At the premises will be built an incubator, rearing zone and growing zone, own feed mill, slaughterhouse, meat processing plant and rendering, litter, administrative and maintain complex.
The project designed by Israeli engineering company M.A.D Developing Agricultural Projects Ltd., one of the leaders in the field of turkey breeding, together with a participation of local and Moscow project companies.
In order to find a right customer, of course, need a marketing. How do you plan your work in this direction?
- Indeed, marketing in business is a very important point. We are creating this service. However, should be noted, that today in Russia there is a huge shortage in turkey meat. In addition, the country has a great need in meat products of "Halal". Many companies in Russia declare that they produce according to this standard. However, all we are aware of these products because they are not always strictly complies with "halal" standards, which is quite difficult to implement in industrial production. Our products will be strictly complied with these standards. In order to perform it, we have visited Arab Emirates, other Middle Eastern countries, where most of population consumes products of "Halal". We have watched, learned and adopted experience, because for us, Russian Muslims - this is a brand new thing. Of course, we all know how to make it at home, but the production of "halal" on industrial scale it is a novelty. Therefore, we have been trying to provide all nuances and subtleties. Our meat processing products will be strictly complied with the standards of "Halal", which undoubtedly will be our competitive advantage.
- This means that you expect to export too?
- First, the products of our company will be supplied to markets and trade networks of the North, South and Central federal districts. In the future, we expect to deliver our products to the Middle East and Central Asia. We conducted a pre-work, but it is still far for us to sign some serious documents now, the project is in a process. However, there are very serious developments in this direction. Moreover, in these countries there is a demand for our products.
- You are a big investor in Ingushetia. What kind of regional and federal support do you expect for?
- Republic governance has provided us all legally tax benefits. There were allocated plots of land and industrial site "Voznesenovskaya" that was created by decision of the Government of the Republic of Ingushetia. This site already has a gas, water, electric substation and treatment facilities. We count on federal government’s support to subsidize us with a percent rate of the loan.
- How fast can your project to be paid off and get a profit?
- Business plan’s project pays off in 5 years but we laid in business plan maximal difficult conditions. We hope that it will be paid off sooner.
- Adam Ezmanovich, your project is sufficiently serious, for how long have you been involved in agriculture sphere?
- Agriculture is a new direction for me but we know how to build factories. So we decided to create in our country something meaningful, for what we wouldn’t be ashamed. In Ingushetia, in the agricultural sector we don’t have any real modern production, an efficient work. This project will be a first step in creating a foundation for the republic modern processing industry.
- Not by accident, the most important people of the country and your republic, while their speaking about the importance of investment projects for the economy, mention their social component. Do you provide it in your project?
- Of course. The project has a strong public-strategic and socio-economic significance for the country. In production it will create 445 new jobs and over 1 300 jobs in related industries. It is planned to build housing for employees, it will increase an attractiveness of work in our company for rural young people, which will reduce the overall social tension in the area. Moreover, we plan to invite experts from other regions of Russia, to attract them with high salaries and provision of accommodation. Recently, our country has become a mononational, which on my opinion, is not quite correctly. I believe that our project will create conditions for returning of Russian-speaking population.
- Due to today, Russia attributes considerable importance to import substitution issue. Does the realization of this project solve this issue at your country?
- Yes, our production will increase proportion of local products in the markets of North Caucasus Federal District and Russia in whole. Especially, that we can offer our customers a wide range of products - turkey meat carcass, meat-processing products, semi-finished products, sausages, pastarmas and smoked products. All those will replace imported goods in local high quality products.
At the end of our conversation Adam Kostoev gave us a dry but very significant statistics: a planned enterprise’s share in agricultural sector of processing turkey meat in Russia will be estimated as 6%; in the Republic of Ingushetia - about 100%; annual tax deductions - about 180 million rubles, including a regional budget - 140 million rubles. Is this a lot or not - not difficult to calculate.
Such effect on Russian economy will be caused by only one investment project in a small Ingushetia.





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