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«AgroInvest» — News — Experts: Investment in food industry a trend of this year

Experts: Investment in food industry a trend of this year

2010-12-21 12:25:21

The investment strategy has become a trend of the outgoing year. For example, bakery Khlibprom invested UAH 100 million (UAH 7.96 / USD 1) in the construction of a plant on the production of semi-frozen products in Lviv (western Ukraine). Nestle is planning to invest 25 million Swiss francs in the creation of a service center in Lviv until the end of 2013.

Meat producer Hlobyne intends to invest USD 25 million received from the International Finance Corporation in expanding its production facilities, says Olena Malitska, the director of the department for investment and banking services at Astrum Investment Management.

It is expected that the funds will be used to increase the capacity on the production of sausages and meat products, increase the productivity of a pig farm, as well as modernize and expand facilities on the production of cheese and butter.

Smart Holding is to invest EUR 3 million in animal breeding. The funds will be spent on the reconstruction of the Kalyta pig farm whose production capacity is estimated at 108,000 pigs per year.

Credit Rating expert Kateryna Vasina told UKRINFORM that the strategies of most enterprises in the food industry this year were aimed at reducing the existing debt burden while maintaining the level of working capital.

"Success in the fulfillment of tasks largely depended on market conditions in which separate companies operated," the analyst said. She also said that it could be assumed that in the medium term the most effective could be a strategy aimed at building vertically integrated associations.

UKRINFORM