Moscow, Russia – October 17, 2019 – Cherkizovo Group, Russia’s largest meat manufacturer, has signed an agreement with the Tambov Region administration to receive support from the regional government for the construction of the second stage of its Tambov Turkey production site. With an estimated RUB 4 bn of investments, the project is expected to boost the facility’s production capacity by as much as 50%.
The agreement was signed by Sergey Mikhailov, CEO of Cherkizovo Group, and Alexander Nikitin, Head of the Tambov Region Administration, during a ceremony held on Thursday at the region’s representative office in Moscow.
The agreement provides for the construction of new nursery and finisher sites in the Tambov Region’s Pervomaysky District by mid-2021. The new facilities will ramp up Tambov Turkey’s output by nearly 50% to 82,000 tonnes of live weight meat per year, while its current annual volumes stand at some 55,000 tonnes of turkey. An estimated RUB 4 bn will be spent on production expansion, and the project will create 205 new jobs in the region.
Under the agreement, the region will provide a total of RUB 211 m in property tax benefits to Tambov Turkey in the period from 2020 to 2025.
“Cherkizovo Group is a strategic investor in the Tambov Region, having invested some RUB 9.7 bn in our economy over the past 10 years. Close to 2,000 of our residents are employed at the Group’s facilities. It is therefore critical that we create favorable conditions for companies with major investments in the region by facilitating infrastructure construction and providing legislative support. By helping them achieve their production targets, we are contributing to the social well-being of our people and bringing in tax revenues for the region. On top of that, investment projects like that promote food security and import substitution,” commented Alexander Nikitin, Head of the Tambov Region Administration.
Tambov Turkey is an equal-stake JV between Cherkizovo Group and Spain’s Grupo Fuertes. It produces a wide range of products under the Pava-Pava brand using a special extra lean turkey breed. In 2018, Pava-Pava received the Product of the Year award in the Eco-friendly Meat category.
“We greatly appreciate the efforts by the regional administration and Mr Nikitin personally to support our project, which is of great significance for Cherkizovo Group, our partners at Grupo Fuertes, and the region's economy. Turkey consumption in Russia is relatively low compared to pork and poultry. However, we have seen it double over the past decade, and expect the demand for turkey to rise considerably in the coming years. By boosting capacity at Tambov Turkey, we are planning to increase the offering of our quality product to fully meet market demand and hopefully become the number one turkey producer in Russia”, said Sergey Mikhailov, CEO of Cherkizovo Group.