DMS Vostok will build a dairy plant in Kaliningrad region

The document was signed by Governor Anton Alikhanov, General Director of JSC Development Corporation of Kaliningrad region Andrey Tolmachev and General Director of LLC DMS Vostok Mikhail Breitman.

DMS Vostok company is a new investor for the region, which intends to build a plant for the production of dairy products, including butter, whole milk powder and skimmed milk powder. According to the plan, the output of butter will exceed 5.4 thousand tons per year, whole milk powder and skimmed milk powder will amount to more than 22.5 thousand tons.

‘Dairy cattle breeding in Kaliningrad region has been showing high growth rates over the past few years. The investments made and the state support for the construction of modern livestock complexes of the European level have created a solid foundation for a new stage of development of the industry – deep processing of milk, the creation of products with a high degree of processing, which are in demand not only on the Russian, but also on foreign markets. The construction of a new milk processing plant, as we hope, will give a synergistic effect of stable demand for the products of local dairy farms, create new jobs in rural areas, ensure the development of the food industry, increase investment and tax deductions,’ Anton Alikhanov said.

‘I hope that this will be a mutually beneficial project, and we will achieve good results. Of course, we create new jobs, produce exchange-traded products that will go both to the domestic market and for export. We hope to open this plant in 2023,’ Mikhail Breitman said.

The construction of a dairy processing plant will begin this year in Chernyakhovsk city district. About 3 billion rubles will be invested in the project. The management of the company also clarifies its intention to launch a full cycle of dairy production in the region, including the creation of livestock complexes. The partner of the company in the region is one of the leaders in the dairy industry of Kaliningrad region – Group of companies Zalesye.

‘The territory of Kaliningrad region is most effective in the production of raw milk, the cost of production of a liter of milk here is one of the lowest in our country. If we talk about exports, Kaliningrad region is a port, seas, so from the point of view of logistics, it is also a very profitable territory,’ said Tatyana Obukhova, a representative of the group of companies.

‘Dairy farming is the driving force of agriculture in Kaliningrad region. The climatic conditions and the long growing season allow us to grow high-quality feed and, accordingly, to obtain high-quality products in demand: both dairy products and breeding young animals of the dairy direction. We will continue to develop the dairy industry. I hope that this work will bring benefits in the form of taxes, which will help the region to develop as a whole,’ said the Minister of Agriculture Natalia Shevtsova. ‘In the next three years, we plan to allocate about one billion rubles to support the development of the dairy industry. This money will be used for the construction of livestock complexes and milk processing enterprises. All potential investors who express a desire to work in the region in this direction can participate in this program.’

It should be noted that in Kaliningrad region, livestock farms of all categories received 212 thousand tons of milk in 2020 (an increase of 14.6% compared to the level of 2019), including agricultural enterprises – 130.4 thousand tons (an increase of 18.6% compared to the level of 2019), peasant farm holdings – 12.2 thousand tons (an increase of 19.7% compared to the level of 2019) and households – 69.3 thousand tons (an increase of 7.1% compared to the level of 2019).

The milk yield per forage-fed cow in large, medium and small agricultural enterprises as of January 1, 2021 amounted to 8,506 kg, which is 636 kg more than for the same period in 2019.

With the increase of milk production in Kaliningrad region, the production of dairy products increased (in % compared to the same period in 2019), including butter – 3.7 thousand tons (172 %); cheese and cottage cheese, including cottage cheese and cottage cheese products for young children – 16.5 thousand tons (143 %); fermented dairy products (except cottage cheese and cottage cheese products) – 29.5 thousand tons (131 %).