TH Group and Russia break ground on new dairy complex

By Jim Cornall contact

- Last updated on GMT

RDIF and TH Group are also considering construction of dairy plants in other regions of Russia as part of the partnership, including regions in the far east of the country.
RDIF and TH Group are also considering construction of dairy plants in other regions of Russia as part of the partnership, including regions in the far east of the country.

Related tags: Vietnam, Russia, Milk

A ground-breaking ceremony has been held to mark the construction of an integrated dairy complex in Russia’s Kaluga region, around 80km southwest of Moscow.

Representatives of the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation, and TH Group, the largest Vietnamese agricultural conglomerate, took part in the event.

The investment totals $633m, the largest single investment by a Vietnamese company in Russian agriculture. The funds will be spent on the construction of integrated facilities for the production of dairy products in the Moscow and Kaluga regions. The complex will have a capacity of more than 300,000 tons of milk per year.

More facilities planned

RDIF and TH Group plan to announce the completion of a deal to build more integrated dairy complexes in the Moscow and Kaluga regions by the end of 2018.

The launch of the first farm for the production of raw milk in the Volokolamsky district of Moscow region took place in Q1 2018. The launch of the remaining four dairy farms in Moscow and Kaluga regions is scheduled for 2019 and 2020.

The facilities for the production of dairy products and a proprietary distribution network are expected to be launched in 2020. By 2025, the company plans to reach full production capacity and take a leading position in Russia in terms of the volume of raw milk production.

The project will involve a complete production chain from growing fodder and milking to the production of raw milk and its processing into a wide range of final dairy products.

Promoting innovation

RDIF and TH Group are also considering construction of dairy plants in other regions of Russia as part of the partnership, including regions in the far east of the country.

Kirill Dmitriev, CEO of the RDIF, said the partnership with TH Group will promote innovation in dairy production and have a positive impact on the development of the Russian dairy industry.

“Our joint investments have important social significance – the creation of new high-tech dairy plants will help to reduce the deficit of dairy products in the Russian market and provide consumers with high-quality domestic products,"​ Dmitriev said.

Thai Huong, founder of TH Group, said the cooperation will make a significant contribution to the restructuring of Russian Federation agriculture.

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