Rusagro, one of Russia’s largest vertically-integrated agriculture groups, will become the country's largest dairy producer if a rumoured $1bn investment goes through.
According to reports the Chairman of the Board, Vadim Moshkovich, made an announcement to that effect at the recent Russian Investment Forum in Sochi, although there is nothing currently on the company's website to substantiate this.
Rusagro reportedly sees potential in exporting dairy to China, South Korea and Japan, and as such Russia's Far East is seen as a potential location for the dairy investment.
It’s estimated that a $1bn investment would result in 0.5-0.6mmt of annual milk production which would make Rusagro the largest producer of raw milk in Russia.
To put that into context, it will require around 100,000 cows and would increase Russia's current milk output by around 2%.
The company posted 2016 Q3 sales at $815 million and are listed on the LSE with current shares valued at $13.85, down from last March when they reached a peak of $18.00.