December 27, 2013

 

Russia's largest meat and fodder producer - Cherkizovo Group announced the successful completion of a project to double capacity in its Bryansk poultry cluster (Kurinoe Tsarstvo in Bryansk) from 35,000 to 85,000 tonnes of poultry meat live weight per year.
 

A number of large facilities were constructed as part of a project to double capacity, at an investment of over RUB3 billion (US$91.81 million). These include 52 bird houses with 1.8 million poultry places at the Roshcha site, 56 bird houses with 1.9 million poultry places at the Pervomaiskaya site and a modern hatchery for 66 million eggs per year.

 

 

Strict health and veterinary monitoring is implemented at the upgraded production facilities. Airborne droplet chilling method for dressed poultry, which is more efficient than water chilling, was chosen for the processing facility to ensure the highest possible level of bio-protection. A new multi-purpose line for grading and packaging poultry meat was also launched at the processing facility.

 

The Bryansk poultry cluster was set up in 2007 after Cherkizovo Group acquired Kurinoe Tsarstvo OJSC, which was integrated into Cherkizovo Group's existing manufacturing and sales structure. Kurinoe Tsarstvo OJSC was Russia's fourth largest poultry meat manufacturer at the time, with a brand that was popular in Central Russia and production facilities in Bryansk and Lipetsk regions.

 

   
 

On the project's completion, Sergei Mikhailov, CEO of Cherkizovo Group, commented, "We completed a number of large-scale investment projects in 2013 that will strengthen the company's leadership in the country's meat market. We have completed the investment programme in the pork division, where available capacity is now 180,000 tonnes per year, and projects to double poultry capacity in Penza and Bryansk Regions."

 

Looking ahead, he added,"We are planning to launch a number of infrastructure facilities next year, including hatcheries, grain elevators, and feed mills, which will allow us to control costs and make the company more competitive."

 

Within the last five years alone, Cherkizovo has invested more than US$1 billion into the development of Russia's agriculture sector. In addition to existing production facilities, the Group is also investing in a RUB20-billion (US$612.09-million) hi-technology agro-industrial production complex in Elets in the Lipetsk region.

 

Governor of Bryansk Region, Nikolai Denin, said the project was a fine example of cooperation between business and government. "We have watched the development of a poultry cluster capable of manufacturing large quantities of high-quality products in any season. Cherkizovo Group has completed a major project that has created new jobs in the region, increased tax payments to the regional budget and made high-quality domestic meat products available in stores. The company's products are sold in Bryansk Region under the Kurinoe Tsarstvo brand, which has always been a favourite in the region for its great taste and affordable prices."

 

Cherkizovo Group previously doubled capacity in the Penza poultry cluster (Vasilyevskaya poultry factory), at an investment of over RUB4.5 billion (US$137.72 million). Production capacity was boosted from 60,000 to 125,000 tonnes live weight per year, making Penza Region one of the country's largest poultry producers. In 2013, Cherkizovo Group expects to produce about 345,000 tonnes of poultry meat (sellable weight).

 

 

Cherkizovo Group is one of the top three companies serving Russia's poultry, pork, and meat processing markets. The Group owns 7 full-cycle poultry production facilities, with a total capacity of 425,000 tonnes live weight per annum; 14 modern pork production facilities with a total capacity of 180,000 tonnes live weight per annum; six meat processing plants with a total capacity of 160,000 tonnes per annum; six fodder plants with a total capacity of 1.4 million tonnes per annum; grain storage facilities with a total storage capacity exceeding 500,000 tonnes; and a land bank exceeding 100,000 hectares.

 

In 2012, Cherkizovo produced more than half a million tonnes of meat and processed meat products. In 2012, Cherkizovo's US GAAP consolidated revenue exceeded US$1.5 billon, and net profit amounted to US$225.2 million. Cherkizovo's strategy includes both organic growth and investment in new projects, driving the consolidation of the Russian meat market.