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A consortium comprising RDIF and C P Group invests USD1bn to create Russia’s largest dairy complex

The Russian Direct Investment Fund (RDIF), the Thai conglomerate Charoen Pokphand Group (C P Group), Banner Infant Dairy Products from China (Banner Dairy), as well as leading Middle Eastern investors and banks together with Ryazan Region Government are to establish Russia's largest integrated dairy complex. The project will be located in the Ryazan region.

This significant agreement demonstrates the commitment from all parties to this important project involving an estimated investment of USD 1 billion. The MoU was signed today in the presence of the Prime Ministers of the Russian Federation and the Kingdom of Thailand Dmitry Medvedev and Prayut Chan-o-cha.
 
The new complex will have the competitive advantage of incorporating the full production cycle for dairy products – from the cultivation of feed crops for livestock, right through to the production of finished products, packaging and logistics.
 
The total production capacity of the complex will be 400,000 tons of finished products per annum, with the broad product range including pasteurised and UHT milk, cheese, and sour-milk products. The project will be managed by C P Group in collaboration with Banner Dairy. 
 
The complex will utilise Banner Dairy’s unique model of new generation in the dairy industry, which is characterised by the comprehensive integration of the latest technology and best practices in modern dairy production from around the world together with Banner’s own innovation and experiences. Such technology reduces the processing time of raw milk from the cow to the bottle to just two hours. This model also allows the complex to produce the safest and best quality dairy products, as well as to retain all the beneficial properties of natural milk, including its immunologically active factor, which cannot be preserved using other modern milk-processing technologies.
 
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), says: "Russia is one of the world's largest milk producers in absolute terms, however, its production processes are not very efficient. Through the use of modern dairy technologies, cows in some countries produce almost two and a half times more milk than in Russia. C.P. Group and Banner Dairy have achieved strong results in the production of dairy products and their experience in implementing such projects is unique. Their participation in the construction and the operational control of the complex will significantly enhance its effectiveness, which will mark an important step towards increasing the share of domestic dairy production and reducing milk imports."
 
Bai Shanlin, CEO (China Area) of C P Pokphand Co Ltd, a subsidiary of C P Group, says: "We see great potential to develop the most advanced and modern dairy production system in Russia due to its abundant agricultural resources and high level of milk product consumption. With the world class milk production complex, we will be able to produce the best quality dairy products to meet Russian consumers’ demand. We wish to bring our experience together with our partner Banner Dairy Products to leverage the latest technologies and best practices and create shared value not just to our business, but also to the local communities and the country."
 

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