The new co-owner of Eurodon - Bisersky Foundry (BLZ) - intends to keep the enterprise’s capacities at the same level, while the volume of production is supposed to be maintained at least. Now the Federal Antimonopoly Service of the Russian Federation transaction is being verified. Possible dates for the resumption of the enterprise are not known.
According to the president of Agrifood Strategies Albert Davleev, restarting Eurodon in full or even in the one in which the company worked before the crisis is unlikely in the near future for two reasons. Firstly, it is not clear how much money the new shareholders or tenants are willing to invest in a restart. Secondly, the situation in the meat market is now difficult. "The supply of cheap pork is putting pressure on the poultry segment, and although demand for turkey has remained stable, a fall in pork prices by 18% has a serious impact on the market and may hinder the restoration of production at Eurodon," Davleev said.
If we talk about the demand for turkey, today it is twice the supply - with a market potential of 550-600,000 tons, the production volume is only 300,000 tons, Davleev estimates. "Thus, turkey meat is still not enough, especially in conditions when consumers are concerned about a healthy diet, increased immunity and, whenever possible, try to buy foods rich in vitamins."
Source: meatinfo.ru.
