The Thai company CP Foods has announced its intention to invest $1 billion in the dairy business in our country.

It is worth noting that previously the organisation had intended to do this independently. But due to the high growth in milk production in the RF, which as a consequence leads to market saturation, the Thai investor is now considering entering the Russian market only in co-operation with a local entrepreneur.

CP Foods has already discussed a possible partnership with the Ekoniva holding. If the Thai company fails to find a partner for cooperation, it may refuse to invest in dairy production in Russia and concentrate on the meat business.

CP Foods, a member of the Thai conglomerate CP Group, announced back in 2016 its desire to participate in investments in the dairy industry in our country. At that time, the company, together with the Russian Direct Investment Fund and China's Banner Dairy, had expressed its intention to invest $1 billion in the construction of a dairy complex.

A year later, CP Foods decided to start investing in this area by buying up the existing facilities. However, so far nothing has been reported about the deal, the media write.

According to Stefan Duerr, the main owner of Econiva, the largest milk producer in Russia, the Thai company has been discussing the creation of a joint venture, but the discussions have not led to any results so far.

The Thai company is engaged in the production of mixed fodder in Russia, it manages the pork production facilities in several regions of the country and a number of poultry farms. CP Foods generated around $17bn in revenues last year at the current exchange rate.

Made in Russia // Made in Russia

Author: Ksenia Gustova