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Belaya Dacha To Begin Potato Production In Lipetsk Oblast; McDonald's To Be Main Customer Featured

04 February 2016

Holding company Belaya Dacha plans to sign a corresponding agreement during the first quarter of the year to start work with a new investment partner, the company's founder, Victor Semenov, confirmed several months ahead of concluding the agreement.

The company representative did not mention the name of the other investor in the project because not all the documents are signed.

Before the relationship between Russia and western countries soured, the European Bank for Reconstruction and Development and potato processing companies of the Netherlands were the previous investors in the project to produce French fries in Russia's Lipetsk Oblast.

Semenov also announced the company's plan to connect with McDonald's, which could be the main customer for these products.

“They are a motivator of this project,” he said. “They motivated us from the beginning and said that they need it. If they didn't 'need' it, then it would have been unlikely that we would have taken up the task with its many risks.”

Other than McDonald's, the company is planning to supply potatoes to retail chains and catering companies.

The company also plans to increase its cultivation area for potatoes to 4 thousand hectares. Raw materials for the needs of enterprises will be grown in the neighboring region of Tambov where the company already has 2 thousand hectares of land. Total production is expected to be able to fulfill 30 percent of the demand for raw materials, and as for the rest of the potatoes needed, the company is to purchase them from farmers in Russia's Black Earth Region. The total planned capacity of the enterprise will be about 100 thousand tonnes of finished products annually.

Belaya Dacha is a publicly traded company that focuses on real estate developments in industrial, commercial and residential real estate in Russia.

FruitNews article (Russia): http://www.fruitnews.ru/home-page/jams/45532-belaya-dacha-nachnet-proizvodstvo-kartofelya-v-lipetskoj-oblasti-dlya-seti-mcdonald-s.html
Source: http://tass.ru/ekonomika/2619907

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