Chinese firm announces joint venture in Ukraine

By Vladislav Vorotnikov

- Last updated on GMT

China and Ukraine collaborating on pig project
China and Ukraine collaborating on pig project

Related tags Pig Livestock Pork

Chinese company Xinjiang Production and Construction Corps (XPCC) has entered into a joint venture with Ukrainian firm KSG Agro to implement a large-scale project for the production of pork and feed crops.

The project, in the Dnipropetrovsk Oblast (province) of Ukraine, will include the construction of several pig farms, which will have a total production capacity of up to 90,000-100,000 tonnes of pork per year, according to estimates from Ukrainian experts. The new enterprise could become one of the largest pork producers in the country.

However, the project has been plagued by controversy, with English language media claiming that XPCC bought the land in Ukraine and will implement the project on its own. KSG Agro has insisted that this information is false. “It’s not about a purchase and not even about a sublease, as they [English-language media] have reported, but a joint venture,”​ said Sergey Kasyanov, owner and CEO of KSG Agro.

“We will grow corn and raise pigs on land that we rent. The workers on the new enterprise will be Ukrainian citizens, and the largest part of production, in particular pork, will be sold in Ukraine; only the surplus will go to the Chinese market. The company has no intention to sell the land and the rights to foreigners, including the Chinese.”

According to preliminary reports, total investment in the project will amount to US$2.6bn

Ukraine’s Ministry of Agriculture has predicted a growth in agri-food turnover between Ukraine and China, with the meat trade accounting for the largest part of this.

“Last year agricultural turnover between Ukraine and China amounted to US$364m, while in the first half of this year, this figure has already reached US$330m, with a comparative growth of 46% year-to-year,”​ noted the Ministry.

Related topics Meat

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