"GAP Resource" has acquired assets of the "Shuvalovo" Holding Company: a new direction for the company in meat and milk production, the pork market is strategically important.

In February, the company "GAP Resource" completed a deal to acquire assets of GC "Shuvalovo" in the Kostroma region. The assets include a compound feed plant, three pig breeding complexes, a meat processing workshop, and a complex for the breeding of dairy cattle. This is a new direction for "GAP Resource" that will allow supplying the meat processing plants with raw materials for sausage and delicatessen production.

Integrating the new assets into the technological cycle will increase production volumes and continue the realization of the company's potential. The separate location of pig breeding complexes from poultry farming facilities will allow "GAP Resource" to comply with halal standards in meat production from broiler chickens.

According to a source, "Shuvalovo" is capable of producing about 10,000 tons of live weight pork, 2,500 tons of sausages, and 10,000 tons of milk annually. The company also produces lamb, sausages, vegetable oils, and dairy products. The brand portfolio includes such brands as "Blagoyar," "Dym Dymych," "Rossiyanka," and others.

Executive Director of "Rincon Management" Konstantin Korneev believes that "GAP Resource" will be able to find sales channels for "Shuvalovo" products due to well-developed supply chains. He notes that pig farming has turned out to be relatively profitable, and the pork market continues to be attractive for investors.

However, the implementation of pork processing products may face difficulties due to market saturation. Large producers with economies of scale and a wide distribution network have advantages, while small producers will find it difficult to compete in the market. Management needs to carefully analyze which assortment to enter the market with.

The estimated value of the "Shuvalovo" business is 500 million rubles, based on the financial performance of the enterprises, debt, and the value of fixed assets. Yuriy Kovalev, the General Director of the National Union of Pig Breeders, notes that "Shuvalovo" shows good productivity results, and the complexes allow restoring production after the detection of an outbreak of African swine fever.

According to the Ministry of Agriculture, pork production in live weight in Russia increased by 6.1% in 2023 compared to the previous year. Industrial pig farming accounts for 92% of the total pork production volume. Over the past five years, production has increased by 26.4% and exports have grown more than threefold, mainly to Belarus, Vietnam, Serbia, Mongolia, and Hong Kong.