News 1505 views

Bankrupted poultry producer gets state assistance

Kirovhelb, once a large poultry meat and egg producer in Russia, is to receive US$30 million (RUB953 million) to aid its recovery from bankruptcy.

Russian state owned Agricultural Bank has issued several loans to the value of RUB953 mln for the reconstruction of poultry farms and renewal of operation of Kirovhleb, which went bankrupt last year.

Serious financial problems in the past year resulted in four of the five poultry farms closing. There were also reported deaths 100,000 birds simply because the company had no money to buy feed.

Restoration is currently in process at the company's production facilities and they plan to reach full production capacity by the middle 2014. The company plans to reach its former level of production output of about 100 thousand tonnes of poultry meat and 107 million eggs per year.

The government decided to save Kirovhleb after its bankruptcy badly affected the economy of the Kirov region, as well as at the local poultry market. When the poultry farms stopped operating there was a poultry meat deficit in the region which prompted an increase of imports.

Or register to be able to comment.