Babayev has said he would assume 30% of the 10 billion rouble cost himself. State-controlled banks Sberbank, VTB, Gazprombank and Rosselkhozbank would provide loans to cover the remaining 70%.
Babayev’s own firm, Molochny Holding (Milk Holding), will create the chain of small farms. Each will have 100-150 cows, a processing plant with capacity for 40-45 tonnes of milk a day and mobile retail shops, Babayev told reporters.
“In September, we plan to open the first plant and farm and to start retail trade in Lipetsk,” he said, referring to a region 450km south of Moscow in Russia’s Black Earth agricultural region. The families that run each farm will have the right to buy out the owners within 15-20 years.
Babayev and members of his family own the controlling stake in London-listed Cherkizovo, which posted net income of $78.1m in 2008, up 27% year on year. The milk investment is a separate business.
Source: Reuters
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