According to the official information released by the company in its latest press-release, company purchased PC “Syrodel”, cheese production company in Kursk region. Russian company currently produces 3.5 thousand tons cheese, cheese products and butter production per annum.

At the moment company is utilizing only 10% of its total capacity. Company’s products are sold in Kursk, Voroneg and Lypetsk regions of Russia.

Milkiland is planning to use acquired company for selling cheese and cheese products in Russian market as well as supply of butter, cream and other products for Ostankino milk plant in Moscow. Milkiland is planning to increase capacity utilization of the newly acquired company to at least 60% in 2013 as well as modernization of the plant in 2014-2015.

AgroInvest comment: Acquisition will allow company avoid the situation when trade barriers between Ukraine and Russia interfere with company’s sales volumes in the Russian market.

UkrAgroConsult