September 16, 2014

Cherkizovo to increase poultry and pork production via US$104 million investment

Cherkizovo Group plans to substantially increase poultry and pork production in the Voronezh region, Russia, by investing close to US$104 milion in business development, said the company's chairman of the board of directors, Igor Babaev.

The largest meat and fodder manufacturer in Russia has been present in Voronezh for eight years. During that period, Cherkizovo has invested nearly US$261 million in the regional economy, including the acquisition of Lisko Broiler in 2014.

Activities in the Voronezh Region include poultry and commercial pork production, swine nucleus units, grain farming and fodder manufacturing. In 2013, Cherkizovo produced 14,000 tonnes of pork, 95,000 tonnes of poultry and harvested nearly 103,000 tonnes of crops on 27,000 hectares in the region.

According to Babaev, Lisko Broiler will launch additional slaughtering lines this year, which will increase output by 15,000 tonnes in 2015.

The company is also preparing a construction programme for new bird houses, which will provide another 10,000 tonnes of sellable weight in 2016. Babaev estimated planned investments in the poultry division within Voronezh at up to US$34 million.

In addition, Cherkizovo plans to build seven feedlots with a total capacity of more than 35,000 tonnes of marketable pork yearly. Implementing the project will enable the Group to triple pork output at regional facilities to more than 50,000 tonnes live weight per year.

Cherkizovo is already building a feed mill with a capacity of 375,000 tonnes yearly in the Semiluksky District. Commissioning of the new feed mill will cover the increasing feed requirements of the Group's facilities.