Oleksiy Shevchenko (Petrinja Chicken Company): By Realizing the Poultry Complex Project, We Will Become One of the Largest Employers

Over 500 million euros will be invested in the construction of the poultry complex project in the Sisak-Moslavina County, creating 3,500 new jobs. The project consists of a poultry processing plant with a capacity of 150,000 tons of chicken meat per year. The plant will include an integrated veterinary service with laboratories, an innovation and development sector, and a biogas plant for green energy production. The project also includes hatcheries (incubators), a feed production plant, and a poultry fattening complex (24 locations with 12 poultry houses each), with a capacity of 600,000 chicks per location.

Undoubtedly, this is the most significant investment in Croatia in recent times, not only due to the size of the investment itself but also because of its export character. Almost the entire capacity is intended for export, which will position Croatia as a ‘global’ player in poultry farming. Croatia currently imports 25,000 tons of chicken annually, while Petrinja Chicken Company plans to supply between 10,000 and 15,000 tons to the domestic market.

Every export, especially of this intensity, contributes to economic growth, a surplus in the balance of payments, employment, GDP, and overall competitiveness. Additionally, there is a multiplier effect, as successful projects attract new foreign investors, repeating the cycle and further strengthening the system.

On this topic, we spoke with Oleksiy Shevchenko, CEO of PCC.

To start, why did you choose Sisak-Moslavina County? Is there a plan for residential buildings alongside the factory construction?

– Sisak-Moslavina County needs social and economic revitalization after the devastating earthquake. It is also an area with a high unemployment rate, and this project will create a large number of jobs and boost the economy. After the project is realized, Sisak-Moslavina County and local government units will benefit financially from taxes, surtaxes, and other contributions amounting to over 50 million euros annually.

By realizing this project, Petrinja Chicken Company will rank among the largest employers, considering that over 70 experts are already working on the project, and there are plans to employ 3,500 workers, primarily from Croatia, specifically from Sisak-Moslavina County.

Aware of all the challenges, the company has timely decided to provide accommodation for its employees and their families. Thus, the project includes the construction of two multi-family residential buildings with a capacity of 800 people each, ensuring that they will attract young Croatian professionals and provide them with the opportunity to stay in Croatia while developing this region, especially after the recent earthquakes.

There are also plans for a scholarship program for talented students in local schools, as well as a scholarship program for university students. Encouraged by their openness and welcome, Petrinja Chicken Company will also engage with the local community by supporting local sports clubs, tourist events, and associations.

Do you think Croatian poultry farming might be overwhelmed by the amount of chicken meat? There are talks about exceptionally large numbers…

– No, because our target markets are outside Croatia. With this investment in poultry farming, Croatia will place itself on the global map of chicken and poultry product traders.

In the last 20 years, the increase in chicken meat consumption, according to data from the Ministry of Agriculture, SDA, shows an increase of 86 percent, averaging 3 percent annually. It is estimated that this growth could continue at an average of 2 percent annually. All trends indicate a continued increase in demand for chicken meat, and our investment is a timely response to these growing market needs.

Croatia is not self-sufficient in chicken production, as evidenced by the fact that 25,000 tons of chicken meat are imported annually. Petrinja Chicken Company will supply only 10,000 to 15,000 tons of chicken meat to the Croatian market from a total annual production of 150,000 tons.

What is the value of the investment and what are the subsidies from the Republic of Croatia for the project?

– The investment value is over 570 million euros. Of the total investment amount, the investment in construction infrastructure is slightly over 350 million euros, in technological equipment and green technology 143 million euros, while the rest pertains to investment in working capital necessary to start operational activities of such a large project.

We did not seek financial support from the Republic of Croatia because we are financing the project exclusively with our own funds and the funds of investors.

What will your investment bring to the market? What are your plans and goals?

– By realizing the project, Petrinja Chicken Company will rank among the largest employers.

If we look at the project’s potential in terms of generating additional value, it is an investment with significant returns and relevant annual profitability – we estimate the net profit margin at around twenty percent, which will generate exceptional business results over a projected period of 15 years, both for shareholders and all related participants.

Investments of this size also stimulate the overall economy of the country. For the success of the project, besides our employees, important stakeholders are the cooperatives, which will primarily be from Croatia and in all necessary sectors. We invite all interested potential cooperatives to contact us to negotiate possible cooperation.

Projects like this require large processes; how compliant are they with ESG standards?

– At Petrinja Chicken Company, a significant part of the investment relates to investments in renewable energy sources (RES). Their integrated system (SE) has a capacity of 10 MW, while the biomass system (BP) has a capacity of 1 MW. The company also uses fermentation to produce 63,000 tons of organic fertilizer annually. The biomass systems and fermentation use production by-products as fuel, minimizing waste generation. The company is genuinely implementing a green transition and sustainability in production through all these processes.

An increasingly significant ESG dimension in business and reporting, with the support of relevant international auditing firms, has been implemented in the company’s processes, with a particular focus on the environmental impact component, which is understandable given that this involves a large food complex.

The farm will apply IFS standards and ESG principles, which positively affect the entire supply chain in all stages of food processing, ultimately ensuring a quality product. Petrinja Chicken Company will raise chickens in accordance with the European Chicken Commitment initiative, which guarantees optimal conditions during rearing, such as access to daylight, sufficient space for free movement, ecological nutrition, and all other conditions for animal welfare.

And finally, how has the war in Ukraine affected your business?

– The war negatively affects each of us, and my only wish is for it to end as soon as possible and for peace to be restored. Mr. Andrii Matiukha, although he has lived in Croatia for many years, has continuously donated necessary items to Ukraine since the beginning of the war. Thus, the ‘Favbet Foundation’ has donated over 5 million euros in equipment for the Ukrainian army since the start of the war, including over 250 SUVs and trucks. The foundation has also organized assistance for 5,500 families in Ukraine and invested in the education of over 600 children in war-affected areas.