November 26, 2013

Cherkizovo's 2013 grain harvest rises 50% on-year

Cherkizovo Group, Russia's largest meat and feed manufacturer, reported that its 2013 harvest amounted to 175,000 tonnes (bunker weight), up 51% from 116,000 tonnes in 2012 (bunker weight).

The net harvest amounted to 163,000 tonnes versus 110,000 tonnes in 2012 (+48%). This year, the Group planted and harvested approximately 40,000 hectares in the Orel and Voronezh regions.

Cherkizovo Group demonstrated a significant increase in yields. For example, winter wheat yield increased by 48%, from 3.4 tonnes/hectare in 2012 to 5.0 tonnes/hectare in 2013 (bunker weight), and from 3.3 tonnes/hectare to 4.9 tonnes/hectare in net weight (+50%). This is significantly higher than the average yield in Russia of 2.3 tonnes/hectare (bunker weight, Ministry of Agriculture's data).

Sergei Mikhailov, Cherkizovo Group CEO, stated: "Our grain segment demonstrated strong operational results for the second year in a row. This year, we doubled the wheat harvest and tripled the corn harvest. Our land is located in the fertile Black Earth region of Russia, and the Company aims to combine the most modern agro with the use of the best management practices. This is why we speak of good results and strong growth potential. Our competitive advantage is the combination of our own land and our grain storage facilities that may hold approximately 500,000 tonnes of grain. With that, we are able to build a flexible grain procurement programme and act with the confidence under any market conditions."