Cherkizovo Group – Update on 2017 Harvest CampaignOctober 12, 2017
Moscow, Russia – 12 October2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces continuing work under the 2017 harvest campaign.
The Group has already harvested more than 109,000 ha, equal to 64% of the total crop area. The harvested volume exceeded 465,000 tonnes, while the average yield on cereals increased by 17% compared to the target level, and amounted to 4.8 tonnes per ha.
Around 270,000 tonnes of winter wheat has been harvested, nearly twice the 2016 yield (140,000 tonnes). Winter wheat is a promising crop in the Group's crop production strategy, as evidenced by the increase in the share of winter wheat in the 2018 crop structure. The area under this crop for 2018 has increased by 10% to 55,000 ha.
In addition, over 82,000 tonnes of spring wheat and 45,000 tons of barley have already been harvested this year. Yields for spring wheat were 23% higher than planned. This resulted in 4.0 tonnes per ha as harvested volume doubled. For 2018, it is planned to increase the area under this crop by 41%, as well as harvesting volume by 35%. For barley, the yield is higher than the budget by 20% at, 3.8 tonnes per ha.
Harvested winter rye amounted to 164 tonnes, with 5.3 tonnes per ha. Harvesting volume for peas amounted to 38,000 tonnes, an increase by 43% compared to last year. The yield was higher than budgeted by 22% with 3.2 tonnes per ha. The area under barley and winter rye will be reduced and land redistributed in favour of more productive crops.
Active soybean and sunflower harvesting is now in progress. The bean harvest is forecast at 33,000 tonnes, while the production of oilseeds is expected to reach 49,000 tonnes.
The acquisition of NAPKO and expansion of the sow areas allowed the Group to expand its sowing area. As a result of this transaction, Cherkizovo Group increased its agricultural land bank by 147,000 ha, with new land located in Lipetsk, Tambov and Penza regions.