OREANDA-NEWS. December 3, 2007. The ranks of the Ukrainian steelmakers keen on pig-breeding are increasing in number. Vadim Novinskiy, co-owner of Ingulets Mining and Makeevka Iron and Steel, Vladimir Boiko, co-owner of Illich Iron and Steel, Sergei Taruta and Vitaliy Gaiduk, co-owners of Industrial Union of Donbass, who possess large pig-breeding farms now have new members of their club – Oleg and Konstantin Zhevago, owners of Poltava Mining. Today, the largest pig-breeder among the steelmakers is Vadim Novinskiy, who controls Kalita agrarian complex located in Browary district of Kiev region, which includes a farm of 82 thousand pigs. The largest meat processing company in Poltava region – Kremenchugmiaso OJSC, controlled by Finance and Credit group owned by Zhevago brothers, decided to build a modern pig-breeding farm worth UAH 8 mn and intended for 15 thousand pigs in Kremenchug district of Poltava region by 2009. According to the specialists of agro-industrial complex, the profit margins of pig-farms with full production cycle and with the possibility to implement the modern breeding technologies, may reach 40-60%. Oleg Babaev, the company supervisory board chair, says that the farm will provide the factory with key input: "We are going to borrow for construction of this farm." Indeed, this Kremenchug-based company will have no problems with that, taking into account that Finances and Credit bank has been successfully lending to the factory long since. In August 2007, the bank opened a $10 credit line to this Kremenchug-based factory. Under this credit line the company is going to launch new facilities for production of semi-finished meet products and organize a production of salami. According to Mr Babaev, presently, the capacities at Kremenchugmiaso can process 50 tonnes of meat and produce 30 tonnes of sausages per shift.

Kremenchugmiaso OJSC produces 220 names of various sausages, smoked meat and meat semi-finished products under the Farro trade mark, and sells its products in the domestic market across the whole Ukraine. The company ended 2006 with net profit of UAH 1.394 mn, while its net income increased by 16.6% or by UAH 32.430 mn to UAH 228.174 mn.

According to the company data, approximately a 25% stake in Kremenchugmiaso is owned by Neftekhimipex LLC (Kiev), 20% - Askania LLC (Kiev)), 15% is owned by individual – Oleg Babaev, and 10% stakes are owned by Finance and Credit bank, Finance and Credit JV LLC, Finance and Credit CJSC, and Finance and Credit OJSC.