Cherkizovo Group Achieves Record Winter Wheat HarvestSeptember 8, 2017
Moscow, Russia – 8 September 2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces the completion of its winter wheat sowing campaign and transition to the next sowing season.
This year, Cherkizovo Group harvested almost 270,000 tonnes of winter wheat, nearly doubling the amount of last year’s harvest of 140,000 tonnes. This growth was achieved through the expansion of winter wheat acreage. The area increased by 22,500 hectares (ha), mainly due to the acquisition of NAPKO, resulting in the growth of the Groups’ total land bank by 147,000 ha, with land located in Lipetsk, Tambov and Penza regions, which are strategically important areas for the Group.
In the 2016-2017 growing season, the winter wheat acreage amounted to 49,900 ha, compared to 25,600 ha last season, in line with the Group’s crop production strategy. In the coming season, the Group plans to increase total acreage by around 10% to 55,200 ha.
Moreover, a range of measures has been applied to increase land fertility and liming treatment of soil was carried out. The process reducessoil acidity where necessary, significantly increasing a plant’s access to nutrients and improving crop yields.
This fodder wheat is processed by the Group’s own facilities. Cherkizovo Group is systematically developing its Grain segment, increasing the level of vertical integration of the company. Along with investing in land and agricultural machinery, it also investing in modern elevators as a measure to ensure the security of the grain and secure livestock with a necessary amount of high quality feeds.