January 22, 2019
Cherkizovo to invest more than US$3.8 million in Altaisky Broiler
Cherkizov Group's investments in the first stage of an upgrade at Altaisky Broiler, now a subsidiary of the group, will exceed RUB250 million (US$3.8 million), the company said.
Last December, Cherkizovo announced the acquisition of Altaisky Broiler for RUB4.6 billion (US$69.3 million). The top poultry producer in the Altai Territory, Altaisky Broiler is also among the largest poultry producing companies in the Siberian Federal District, with a yearly output of 67,000 tonnes (live weight) of poultry products (58,000 tonnes of finished products).
Established in 2007, the company delivered its first products to the market in December 2008. Today, it is a state-of-the-art poultry production facility comprising a hatchery, a feed mill, four fattening sites, a slaughterhouse and a meat packing plant in Biysk. Chickens are raised on a well-balanced diet of compound feeds produced in-house.
Altaisky Broiler offers around 100 chilled and frozen poultry products.
There are plenty of opportunities for Cherkizovo's development in Siberia, the group said. It plans to use Altaisky Broiler as the foundation for its own distribution system in the Siberian Federal District.
Cherkizovo sells under the Altaisky Broiler brand but will introduce other poultry brands, such as Petelinka, at the plant going forward.
To produce premium brands, Altaisky Broiler will need to give a major upgrade to its biosafety system, to ensure its compliance with group-wide standards.
The first stage will see some RUB20 million (US$301,247) worth of investments, with RUB55 million (US$828,430) and RUB180 million (US$2,711,225) to be spent on warehouse logistics and upgrading the cut up facilities, respectively.