December 12, 2024 | 10:05 GMT +7

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Thursday- 10:05, 12/12/2024

Russia’s GAP Resource looks to establish poultry processing in Africa

(VAN) GAP Resource, one of the leading Russian broiler meat manufacturers, is considering establishing poultry processing capacities in Africa, Dmitry Antonov, GAP Resource’s senior vice president, unveiled during an industry conference in Sochi.
GAP Resource, one of the leading Russian broiler meat manufacturers, is considering establishing poultry processing capacities in Africa and is primarily interested in the production of poultry products in the ready-to-eat and ready-to-cook segments. Photo: Canva.

GAP Resource, one of the leading Russian broiler meat manufacturers, is considering establishing poultry processing capacities in Africa and is primarily interested in the production of poultry products in the ready-to-eat and ready-to-cook segments. Photo: Canva.

The company could become the first Russian poultry meat manufacturer to run assets outside the post-Soviet space. Antonov unveiled that GAP Resource has already started work in this direction, though he refrained from providing additional details.

Ready-to-eat and ready-to-cook poultry

The company is primarily interested in the production of poultry products in the ready-to-eat and ready-to-cook segments. Among the most promising locations, Antonov mentioned South Africa and Angola. There is hope that GAP Resource can count on local funding.

“We have held very meaningful negotiations with Afreximbank as part of the working group of the Eurasia Economic Union’s Business Council and agreed that there are opportunities for financing this activity and that the [African] market needs teams mentally and physically capable of implementing these projects together with our African partners,” Antonov said.

However, Antonov admitted that the company had not yet drafted economically feasible projects in Africa. GAP Resource does, however, have a successful track record in exporting poultry to Egypt, Congo, Liberia, Ghana, Tanzania, Angola, Mozambique, and 10 other African countries over the past 2 years.

Last year, GAP Resource manufactured 1.045 million tonnes of poultry against 1 million tonnes in 2023, as estimated by the Russian National Union of Poultry Farmers. The company was ranked first in the list of the largest Russian poultry manufacturers, ahead of Cherkizovo Group, with 986,000 tonnes of poultry meat production in 2023.

Focus on exports

GAP Resource’s exports stood at 145,000 tonnes last year, which is 15% up compared with 2022.

The company is eager to ramp up sales to foreign customers in the coming years. In September 2024, GAP Resource signed an agreement with the Russian leading logistics firm FESCO, aimed at expanding poultry product exports to China, Southeast Asian countries, India and the UAE. The parties will also establish cooperation to ensure reverse loading to make logistics costs more attractive.

“The result of the cooperation will be the development of optimal transport and logistics solutions based on FESCO’s key services and assets for the export of meat and poultry products to new markets in Asian countries,” FESCO said.

Under the deal, Russian poultry products are due to be shipped through the Russian Far East. As revealed by Antonov, this new route holds promise for the company to further boost exports. In particular, he added, GAP Resource was in negotiations to establish exports to Japan.

H.D

(Poultryworld)

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