Liquidation of Ursdon: results and consequences for the turkey meat market in Russia

At the end of 2023, it became known about the decision of the Damate group of companies, one of the leading producers of turkey meat in Russia, to liquidate its subsidiary in the Rostov region - Turkey Parent Herd LLC, formerly known as Ursdon. This decision was made at an extraordinary general meeting of the company’s participants and assumes the completion of all liquidation procedures by January 31, 2025.

Reasons for liquidation

The history of Ursdon is full of ups and downs. In February 2019, the Arbitration Court of the Rostov Region introduced a monitoring procedure against the company at the request of Vnesheconombank (VEB), which presented claims against Ursdon in the amount of 10.1 billion rubles. As a result, in July of the same year, the court declared the company bankrupt and opened bankruptcy proceedings. This was a consequence of financial difficulties caused not only by internal problems, but also by external factors, such as outbreaks of diseases among poultry, which seriously affected the business .

In July 2023, Loman 2, the structure of Damate and the main bankruptcy creditor of Ursdon, decided to enter into a settlement agreement. This agreement made it possible to stop the bankruptcy proceedings and determined the debt repayment schedule: Ursdon must pay the principal debt in the amount of 29 billion 236 million rubles by the end of 2025.

Impact on the turkey meat market

The liquidation of Ursdon has significant consequences for the turkey meat market in Russia. Ursdon was one of the first plants in the country to mass produce turkey meat , and its withdrawal from the market could create a supply shortage. This, in turn, could lead to higher turkey prices, which would negatively impact consumers.

On the other hand, Damate, as an industry leader, can use this situation to strengthen its position. The steady growth of turkey meat production in Russia, supported by modern technologies and effective management, allows Damate to occupy the vacated niche. In addition, the liquidation of Ursdon may lead to a redistribution of resources and personnel in favor of more successful enterprises.

Historical context

The creation of Eurodon and Donstar in the early 2000s became a landmark event for Russian poultry farming. These companies were the first to produce turkey and duck meat on an industrial scale, which gave impetus to the development of an entire industry. However, over time, competition has intensified, and internal and external factors such as economic crises and disease outbreaks have threatened many players in the market.

The liquidation of Ursdon is not just the end of one company, but also an important stage in the evolution of the Russian turkey meat market. In an environment of increasing competition and changing consumer preferences, remaining players such as Damate must adapt and evolve to maintain their position. At the same time, consumers should monitor changes in the market in order to be prepared for possible price fluctuations and changes in assortment.