China requests more than 50,000 hectares for soy plantations in Russia’s Primorsky Krai
The Chinese company Joyvio Beidahuang Agricultural Holdings wants to grow soy in Russia’s Primorsky Krai, announced Alexei Chekunkov, director of Russia’s Far East Development Fund.
JBA is a joint enterprise between Legend Holdings Joyvio Group and the Chinese state-owned Jiusan Grain and Oil Industry Group, and is interested in using Russian land for soy plantations.
The Chinese investors have already registered a Russian subsidiary, LegendAgro Holdings, which has leased 3,500 hectares in Primorsky Krai.
Now the company wants to increase its land holdings in the region to 50,000 hectares and to build a soy processing plant with a capacity of up to 240,000 tons per year. The plant would produce soy concentrate, soya oil, lecithin and molasses.
Russia has agreed to a 9.7 billion ruble deal (around $150 million), of which it will invest 2 billion independently. The corresponding agreement between JBA and the Far East Development Fund will be signed at the St. Petersburg International Economic Forum, said Dmitry Savenkov, CEO of LegendAgro.
Land in Russia is much cheaper than in China, explains Vladislav Novoselov, managing director of the BEFL consulting company. As a result, Chinese farmers are flowing into Russia’s Amur province, Khabarov Krai and Primorsky Krai. These farms will be operated by Chinese personnel using Chinese technology, and most of the products will be sold in China.
As a result of the deal, the Chinese JBA will become one of the largest landowners in the Far East, observes Andrei Sizov, director of the SovEcon analysis center.
At present, the largest landowner is Vadim Moshkovich’s RusAgro Group, which owned 96,000 hectares in 2018.