The agreement will see the construction of a turkey and cattle production complex that will include incubation, feeding and growing facilities, a processing and packing plant, a combined feed plant and other infrastructure.
As a result Penza, located 400 miles south east of Moscow, should become the biggest producer of turkey meat and beef in Russia, predicted to produce 1.5% of the total production of meat and meat products in the Russian Federation.
The revenue from the development of related industries in the region is estimated at RUB9.8bn.
Damate Agribusiness is itself a joint venture between Russian company Rusmolco and the Singaporean Company Olam International. Legal firm Gide Loyrette Nouel, which acted as advisor in the setting up of the new venture, said Rusmolco and Olam had embarked on an agricultural investment project unprecedented in scale. The Penza initiative was in line with ambitious plans for agriculture development in the region, it said.