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US Global Beef to invest US$35 million in Russia
21.04.2010 12:57 "Agro Perspectiva" (Kyiv) —
US Global Beef Company, which specialize in feeding and genetic study of cattle, and Kazakh meat producer Kazmeat has signed an agreement on the establishment of a joint venture, which will focus on the production of meat products and breeding of highly productive breeds of cattle.
The joint venture called KazBeef was established on a parity basis.
It is expected already this month that both companies will start the construction of feedlots designed for five thousand head of cattle with the full cycle of meat processing and killing department. Also a plant for the production of meat products will be constructed.
During the next two years the new joint venture plans to build an additional 15 feeding sites, which will allow it to start meat exports overseas. The US company has already provided guarantees for the supply of 2000 head of cattle of Angus and Hereford beef breeds to Kazakhstan.
All the construction works are scheduled to be complete by the end of this year.
Total cost of the project is about T5 billion (US$35 million), of which T1,2 billion (US$8 million) will be invested in the construction of feedlots.
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