Moscow, Russia – August 12, 2016 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, has dispatched its first shipment of poultry meat to Egypt. By the year-end, total shipments to the country are expected to reach 10,000 tons.
The first batch of 270 tons was shipped via Cherkizovo’s Chicken Kingdom poultry farm in the Lipetsk region. This facility received its licence to export poultry products to Egypt in April 2016, along with Cherkizovo’s two other poultry farms – the Vasilevskaya poultry farm of the Penza region and the Lisko-Broiler in the Voronezh region. The production process at these facilities has been certified by the Halal Center of Moscow, which confirms that these facilities fully adhere to Islamic rules regarding the slaughter of animals. The General Organisation of Veterinary Services of the Ministry of Agriculture and Melioration of the Arab Republic of Egypt has also confirmed Cherkizovo’s adherence to halal standards.
Cherkizovo Group was one of the first Russian agricultural companies in its segment to enter export markets. The Company re-engineered its poultry production process to meet Middle Eastern standards and to produce smaller broilers weighing 1-1.2 kg. They are shipped to Egypt in frozen form under the newly created export brand, Dajajti.
Sergey Mikhailov, CEO of Cherkizovo Group, commented: “Beginning shipments of our poultry products to Egypt marks an important milestone in our journey to expand into export markets. The exceptional quality and biological safety of our products lead the way on the domestic market and our goal is to position our products on export markets and develop our country’s image as a reliable exporter of food products. Now we have begun exports of poultry meat to Egypt, we are actively pursuing ways to further develop our export strategy in Egypt and beyond. We have already received a licence to export to the UAE and are in the process of entering new markets in the Middle East, South Eastern Asia and Africa.”
Exports of agricultural products, including poultry meat, are set to become the new growth driver for the Russian agricultural sector. Growing exports also remains a key development area for Cherkizovo Group, and the Company expects exports to account for 20% of total revenue within the next three years.