Cherkizovo Group, Russia's largest meat and fodder producer, has started the grain harvest. The Group harvests winter wheat and peas from its lands in Voronezh, Lipetsk, and Orel Regions in July. More than 40 pieces of equipment are operating 16 hours a day during the harvest campaign.
The weather in Central Russia is now fairly dry, creating favourable conditions for gathering and storing the harvest. The Company's agronomists estimate that winter wheat yields are currently 58.1 centners per hectare in Lipetsk Region, 64.5 centners per hectare in Voronezh Region, 63 centners per hectare in Orel Region. The winter wheat harvest will continue until about the end of July. Spring wheat, soybeans, and sunflower will be harvested next, according to the plan. Corn will be harvested last in September and October.
The harvest campaign is backed up by increasing grain storage capacity. After commissioning the Mikhailovsky grain storage facilities in Kamensky District of Penza Region in 2014, Cherkizovo's overall grain storage capacity reached 700,000 tonnes. Storage capacity will reach an impressive one million tonnes by the end of the year when the Eletsprom grain storage facilities are commissioned.
In 2014, Cherkizovo Group expects a gross harvest of about 250,000 tonnes of grain from 60,000 hectares in Voronezh, Lipetsk, and Orel Regions.
About Cherkizovo Group
Cherkizovo Group (LSE:CHE; MOEX:GCHE) is the largest meat and fodder producer in Russia and one of the top three companies serving Russia’s poultry, pork and sausages markets. The Company’s brands include Cherkizovsky, Petelinka, Kurinoe Tsarstvo and Mosselprom. CEO Sergei Mikhailov and his family control 63% of Cherkizovo Group, and free float on LSE and MOEX amounts to 37%.
Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, feed production, livestock breeding, growing and slaughtering as well as meat processing and distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. In 2013, Cherkizovo’s US GAAP consolidated revenue exceeded $1.6 billion, and the Group produced more than half a million tonnes of meat and processed meat products.
Cherkizovo’s strategy includes both organic growth and consolidation of the Russian meat market. Within the last five years alone, Cherkizovo has invested more than $1 billion into the development of Russia’s agriculture sector.