Damate closed a deal to acquire complexes for turkey and duck production in Rostov region

Turkey production

Damate Group acquired 100% stake in the authorized capital of Loman-2 LLC, a subsidiary of Rosselkhozban JSC. Thus, the company completed the transaction for the acquisition of complexes for the production of turkey and duck in Rostov region, including Eurodon and Donstar.

It should be reminded that the duck production complex was acquired by Damate Group in May 2020, in August last year, Damate leased the duck production complex, previously owned by Evrodon LLC, from Rosselkhozbank JSC, and began to implement the project to restart the production.

“For Damate, the acquisition of Loman-2 from Rosselkhozbank is the completion of a complex deal with Rosselkhozbank that fits into our development strategy,” said Stanislav Varich, Vice President for Strategic Financing at Damate. “The deal allowed us to consolidate our leadership in the turkey market, get a geographic diversification of the business and enter a new niche segment of duck meat”.

Within six months, 167 facilities of the turkey processing complex and 61 facilities of the country's largest duck production complex were restored in the Millerovo and Oktyabrsky districts of Rostov region.

It is important to note that in a short time, Damate launched full production cycles from incubation to processing in both directions. At the end of last year, the company already launched the first lots of turkey and duck meat on the market.

Restarting enterprises at a higher quality level under control of Damate made it possible to restore jobs, reduce social tension in the region, and resume tax payments to the budget.

“We see that Damate Group is gradually commissioning all capacities for turkey and duck meat production, which fully complies with the agreements and plans,” said Viktor Goncharov, First Deputy Governor of Rostov region. - This allows us to speak about the restoration of the position of Don region in the production of poultry meat. Moreover, the social aspect is also important – the provision of jobs for the population of rural areas where turkey and duck facilities are located”.

At the end of 2020, Damate for the third time in a row confirmed its leadership in the Russian turkey meat market with a production volume of 151 thousand tons per year.             149 thousand tons of these were produced at the complex in Penza region, 2 thousand tons - at the facilities in Rostov region.

Currently, Damate continues to revive the activities of the enterprises, takes measures to eliminate technological risks, while modernizing equipment and improving production processes.

Great attention is paid to the issues of biological safety of facilities and their bringing in line with the high veterinary and sanitary criteria applied in Damate. The company has already revised a number of existing design solutions, purchased all necessary equipment and introduced modern poultry technologies that have been successfully tested in other regions.

The planned indicators will be achieved according to the plan as all production facilities are launched. In 2021 Damate plans to produce 41.5 thousand tons of turkey and 15.5 thousand tons of duck in Rostov region.