Cherkizovo to expand pork and feed production capacity

The project is expected to add 45,000 tonnes per year to the production of the company’s pork division, which currently stands at 300,000 tonnes per year in central Russia. As part of the project, Cherkizovo plans to build 4 finishing sites designed to accommodate 40,000 pigs each.

Increase food production

Cherkizovo also said that it plans to invest more than 4 billion rubles in increasing the production of animal feed by developing the production of an animal feed factory in the Pervomaysky district of the Tambov region. The facility currently only serves the needs of the poultry division of Cherkizovo, Tambov Turkey.

After the expansion, which is expected to be completed in 2023, the feed mill is expected to produce 60 to 80 tons of feed per hour.

Increase meat processing volumes

Sergey Mikhailov, CEO of Cherkizovo Group, said: “Over the next few years, Cherkizovo plans to significantly increase its meat processing volumes, which means that we are going to need additional pig farms. For their construction, we opted for the Tambov region thanks to its healthy investment climate and many years of successful projects in the production of pork, poultry, crops and animal feed.

Maxim Yegorov, head of the Tambov region, said the new project will strengthen the region’s role as Russia’s main food hub, added that the agreements reached with Cherkizovo will be formalized at the International Economic Forum in St. Petersburg, mid-June 2022.

Growth despite oversupply of pork in Russia

With the new Tambov project, Cherkizovo is trying to intensify competition in the oversaturated Russian pork market with the aim of taking market share from competitors, taking advantage of the good level of production costs, Russian newspaper Kommersant reported, citing local market players.

Increase hog production volumes

Yuri Kovalev, director general of the Russian Union of Pork Producers, told the publication that building new pig farms was part of Cherkizovo’s plans several years ago.

Kovalev said: “This is in line with the paradigm of increasing production volumes, according to which the group has announced its intention to create a meat processing cluster in the Tula region. Companies at this level try to create a closed circuit so as not to buy live animals on the side – this reduces the risks, including those of the introduction of African swine fever.

Kovalev explained that Cherkizovo is ready to be competitive even in the context of the oversupply currently seen in the Russian pork market. He added: “It is one of the strongest players with good productivity and cost indicators, comparable to global best practices. The fight for market share will continue.

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