December 11, 2018
Cherkizovo Group buys over Siberia-based poultry producer
Russia's Cherkizovo Group has completed the acquisition of Altaisky Broiler from the Prioskolie holding company, the integrated meat producer announced in early December.
The deal amounted to RUB4.5 billion (US$67.7 million), and was approved by the Russian Federal Antimonopoly Service. Cherkizovo announced its intent to acquire the Altai Territory-based poultry producer in summer 2018.
Altaisky Broiler is one of the leading players in the Siberian poultry market with an annual output of 67,000 tonnes (live weight) of poultry products (58,000 tonnes of finished products). The acquisition will enable Cherkizovo to access the Siberian Federal District market and strengthen its market-leading position in the domestic poultry market.
"We see plenty of opportunities for our development in Siberia. Nationwide retail chains are actively expanding in the region, and we are determined to match their growth," said Sergey Mikhailov, CEO of Cherkizovo. He added that the group was mainly interested in moving into the region's major cities.
In order to supply the Altai producer, and cover Cherkizovo's self-sufficiency in hatching eggs supply, the group also acquired production facilities of the Krasnoyaruzhsky Broiler (Belgorod Region) from Prioskolie along with the parent stock.
Cherkizovo plans to use Altaisky Broiler as the foundation for its distribution system in the Siberian Federal District, selling chicken products under the Altaisky Broiler, Petelinka and Chicken Kingdom brands. It also intends to increase its processed meat supplies to Siberia.
Established in 2007, Altaisky Broiler delivered its first products to the market in December 2008.
Today, the company owns 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 that are produced in-house. Altaisky Broiler offers around 100 chilled and frozen poultry products.