Poland

Polish Gobarto SA wants a new business model in the pig industry

Pork

500 farms are to be built in Poland and sell it to individual farmers to conduct pig production.

Posted on Mar 27 ,14:48

Polish Gobarto SA wants a new business model in the pig industry

Gobarto SA, part of Cedrob Capital Group, wants to follow a business model that pay results in poultry and to implement a similar project in the pig industry.
"Cedrob has the same chicken at the level of millions. Therefore, the recipient wants to buy from Cedrob, because he knows what he will buy. We want to do the same in pigs", announced Dariusz Formela, president of the board at Gobarto SA, quoted by Portal Spozywczy.
The plan is to build 500 farms across the country and to let the individual farmers raise pigs under a 15-year contract in which Gobarto will guarantee the farmer to receive fatteners at a fixed price.
In this program, Gobarto will provide 90% of the investment (1,8 million PLN), the rest of 10% (200.000 PLN) being secured by the farmers. The loan will be repaid by the farmers in monthly rates during the period of the contract.
GOBARTO S.A. is among the largest Polish producers of pork. The company has operated on the Polish market for more than 26 years. In 2002, the company became listed on the Warsaw Stock Exchange.
Since 2014, the company has been a part of the Cedrob Capital Group, which at present holds 83.11% of the shares in the company, being its majority stockholder.
Products of Gobarto S.A. are presently available not only on the Polish market, but also in many countries of Europe, Asia, South America, North America, and Africa. Its core business focuses on pork, poultry, and game production and distribution. Gobarto S.A. operates pork farms in the southern part of Poland, managed by several companies: Agro Gobarto, Agroferm, Ferma-Pol etc.

At this point, the company is looking for interested partners. "We are looking for people. In March, we met with farmers in Boguchwa?a in Podkarpacie. The meeting was attended by 110 people, it was a very good reception. It seems to us that this program is beginning to take shape and we think that in 2018 we will be able to talk about the first investments under Gobarto 500", declared Formela.

He explained that the program is based on integration: a feed producer and a weaner and an individual farmer who will produce the pigs for the slaughter (based on the feed and a piglet provided by the company) and then sell it to Gobarto.

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