Let them eat turkey
Within the next three months WSE-listed Indykpol will decide whether its new production plant will be built in Ukraine or Russia.
"We can't afford to start the investment from scratch in both countries. In Ukraine poultry production facilities already exist and we could start pretty fast, but in Russia we were offered government guarantees and tax breaks," said Piotr Kulikowski, CEO of Indykpol.
He expects the EUR 10 (zł.38) million investment to pay for itself within 18 months. Half of the money will come from the company's own resources and the other half will be financed from bank loans. Indykpol wants to build an abattoir, part of a turkey farm and a feed-mixing facility.
Kulikowski believes the Eastern market has great development prospects. "The consumption of turkey in Eastern countries equals that of Poland 15 years ago," he said, adding that while the average Pole eats 5.5 kg of turkey annually, his or her Russian counterpart consumes only 0.1 kg, and in Ukraine the figure is a mere 0.25 kg.
Indykpol's financial result for this year will be weaker than last year because of the impact of avian flu on poultry prices. In 2005, Indykpol's sales revenues amounted to zł.665.6 million and net profit reached zł.23.2 million.
