Miratorg Agroindustrial Holding has obtained permission in court for the construction of a distribution center in Novosibirsk region with an investment volume of 350 million rubles ($ 6.14 million).
Local authorities refused to issue a building permit to the company, since it began construction of the complex until the necessary documents were received. The Logocenter will allow Miratorg to increase meat supplies to Novosibirsk by 25%. Meanwhile, the regional authorities say that the region is almost 100% self-sufficient in meat. Local producers are concerned about possible tightening of competition.
The construction of the first Miratorg Distribution Center in Siberia is an indicator that the company will develop to the East, experts say. "Miratorg has prepared a powerful production base in the central part of Russia: since early 2016, it has invested more than 620 million rubles ($ 10.85 million) in the construction of four additional cattle farms.The strengthening of Miratorg in Novosibirsk is an absolute signal for local producers: they will have to compete with a very strong player," said Kirill Yakovenko (Alor Company analyst). Taking into account the growth in Miratorg's supply volumes to Novosibirsk region, the company will need more space in the trade networks, the expert notes: "In this case, local players can lose part of the consumer if they can not offer an alternative for prices or assortment."
Source: agrorus-news.ru.
