Moscow, Russia – 24 April, 2017 – Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, expects to harvest over 562 thousand crops in 2017 due to improvements in yield, which represents a 20% year-on-year increase on the 2016 level.
The Group is in the middle of its sowing campaign in the central part of the Black Earth Belt region. A total of 95,700 hectares of land will be cultivated in the Voronezh, Lipetsk, Orel and Tambov regions in 2017. The main crops are wheat, corn and bean cultures, with corn production volume expected to increase 30% from the 2016 level. The Company’s new state-of-the-art equipment will be used to cultivate corn and soy.
The Group widely employs high-intensive technologies, manure and non-organic fertilisers, along with higher-yielding market and hybrid seeds, to boost yields. Cherkizovo Group’s fleet of advanced agricultural vehicles, which includes high powered tractors, wide-cut self-propelled sprayers and seeders equipped with electronic precision planting systems, also boost efficiency. The Group intends to continue expanding this fleet.
The grain division plays a key role in the Company’s vertically integrated business model and is one of the Group’s strategic growth drivers. The Company raises crops to produce feed for its eight feed mills in the central part of the Black Earth Belt region, which then gets allocated between the Group’s poultry and pork divisions. In 2016, Cherkizovo was 24% self-sufficient in grain and it is expected that this figure will reach 35% by the end of this year.
By the end of 2016, the Company’s operational land bank was 103,000 hectares, including fallows. Cherkizovo will continue to consolidate its land bank over the course of 2017.