Cherkizovo Group has met 100% of its target for sowing winter wheat. A total area of 28,600 ha was planted, which is 11,000 ha more than the last year’s figure. The sowing campaign was completed in the optimum agronomic period, so it is expected that winter crops will be in good condition for wintering over.
Planting was concentrated in four Black Earth regions, where the weather last month was ideal for sowing. Altogether, 10,700 ha were planted in Voronezh Region, 8,100 ha in Lipetsk Region, 1,100 ha in Moscow Region, and 5,100 ha in Orel Region. The Group plans to treat the crops on schedule and to the highest standards, as well as monitor their condition.
Cherkizovo Group had high winter wheat yields this year. The company harvested a record 176,000 tonnes from 32,200 ha, or 54% more than the gross yield of the same crops in 2013. Dry and hot weather in late August allowed a quick, high-quality grain harvest.
At present, most of the agricultural equipment is concentrated on fields where the corn harvest is well underway. The machinery is working at peak capacity without any downtime that may be caused by heavy rain. The Group’s machine operators have already worked 6,000 ha, and will work another 4,200 ha in the near future. As of October 8, 62% of the planned corn harvest had been completed.
About Cherkizovo Group
Cherkizovo Group (LSE:CHE; MOEX:GCHE) is the largest meat and feed manufacturer in Russia. The Group is one of three leaders on the poultry meat, pork, and sausage product markets. The company's best known brands are Cherkizovsky, Petelinka, Kurinoe Tsarstvo, and Mosselprom. CEO Sergei Mikhailov and members of his family control 63% of Cherkizovo Group, and 37% of the shares are quoted on the LSE and RTS/MICEX.
Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, own feed production, livestock breeding, growing and slaughtering, as well as meat processing and integrated distribution, Cherkizovo has consistently delivered sustainable revenue and profit growth. In 2013, the company's consolidated revenue exceeded $1.6 billion, and the Group produced more than 500,000 tonnes of meat products.
Cherkizovo Group’s strategy calls for organic growth and setting up new plants, as well as consolidating its assets. In the past 5 years alone, Cherkizovo Group has invested more than $1 billion in development of the domestic agroindustrial sector.