Cherkizovo to construct an oil extraction plant in partnership with Russian Agricultural Bank

October 15, 2019

Moscow, Russia – October 15 – Cherkizovo Group (Petelinka and Pava-Pava brands), Russia’s largest meat producer, took part in the Golden Autumn Russian agricultural exhibition, having signed a cooperation agreement with Russian Agricultural Bank for the construction of a seed processing plant in the Lipetsk Region and presented an updated line of products under its flagship brand, Cherkizovo.

On the sidelines of Golden Autumn, an annual Russian agricultural exhibition held at VDNKh last week, Cherkizovo Group and Russian Agricultural Bank signed a cooperation agreement to jointly deliver on an investment project involving the construction of an oil extraction plant for processing high-protein oilseeds in the Lipetsk Region. With a total capacity of 2,500 tonnes per day, the plant will process soybeans to produce oil and oilseed meal. The project with an estimated cost of RUB 7.2 billion (including VAT) will help create some 100 new jobs.

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The plant will be constructed within the boundaries of the Yeletsprom special economic zone located in Yelets, the second largest city in the Lipetsk Region. This territory boasts advanced transport infrastructure and excellent location in close proximity to a railway hub and M4 (Don) Federal Highway. Production facilities constructed at Yeletsprom are eligible for a number of tax benefits and state support in the form of subsidized interest rates on bank loans.

“We can see how the Russian agricultural sector is reaching its maturity and moving away from a narrow focus towards vertically integrated chains. Industry majors are striving to create a seamless field-to-fork production cycle. Cherkizovo Group’s project is a classic example of that. The Company seeks to construct an oil extraction plant and use its by-products for feeding its livestock. This is a carefully crafted strategy, which will contribute to the Group’s profitability,” said Irina Zhachkina, First Deputy Chair of the Management Board at Russian Agricultural Bank.

“Feed production is an integral part of meat production operations,” said Leonid Izmailov, Director of Cherkizovo-Masla. “The Company's own oilseed processing plant will help reduce dependency on imported oilseed meals, ensure high product quality and boost production efficiency and safety.”

As part of the Golden Autumn exhibition, Cherkizovo Group also presented its redesigned Cherkizovo brand product offering. All visitors approaching the stands of the Moscow and Penza regions could try new products.

September saw a comprehensive revamp of the Group's Cherkizovo brand. The Company improved the recipes of its sausages and ready-to-cook pork products, and removed products that had failed to meet the customers’ expectations. The new product design and the Heart at Home logo were conceived to breathe new life into the brand and highlight its key message: Cherkizovo shows care for its consumers by maintaining a consistently high quality of its meat products.

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