News last update:14 Jan 2016

Russia: Large animal feed mill put up for sale

Vereschaginsky Mill (VKHP), the largest animal feed producer in the Perm Region of Russia, has been put up for sale, with its creditors asking for about RUB312.6 mln (US$10mln) for the complex, according to the Russian media Kommersant. According to official data the mill’s capacity is 630 tonnes of feed per day.

"It is very important to keep production at VKHP going, as it's the only facility in the region producing animal feed on an industrial scale," Acting Agriculture Minister of Perm Region Ivan Ogorodov.

However, VKHP has for a long time been unprofitable and in 2011 it was declared bankrupt. At the time experts predict that the mill will be hard to sell.

"The negotiations on the sale are on-going but they are still only at the talk’s stage. In such situations we cannot be sure that the mill will be bought any time soon," says the manager of the mill Lyudmila Vlasova.

One of the main reasons for lack of interest from potential buyers, according to Vlasova, is that the mill requires a serious investment to modernize the production process.

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