Between October 23-26 2012 Mr. Igor Babaev, Chairman of Cherkizovo Group and Mr. Musheg Mamikonyan, Independent Member of the Board and President of the Russian Meat Union, visited the Far East Region of Russia. During the visit, Mr. Babaev held meetings with Igor Averin, Deputy Far East Development Minister, Vyacheslav Shport, Governor of Khabarovsk region, other local authorities and business leaders.  

Mr. Babaev stated that there is huge potential for both poultry and pork development in the Far East Region, and Cherkizovo Group is interested in unleashing this potential, working with the local authorities.  

Mr. Babaev said that cooperation between large Russian agricultural companies and local authorities would allow the formation of new farming and meat processing clusters, to create a large production cluster in the Far East Region, which, in turn, will result in new jobs, increase tax inflows and fully meet the requirements of Khabarovsk region, Primorsky region, Amursky region and Jewish Autonomic Region for local, high quality meat.  

There is corn and soybean production in the region, which could support feed production for pork and poultry breeding, so a strong base exists for meat processing. Moreover, pork and poultry production will result in increased farming, release more land into agricultural use and develop the market for farming products.  

Mr. Babaev said the integrated development of farming and animal breeding, if supported by local authorities, could result in the self-sufficiency of the Far East Region in local high quality meat. This will also help to increase the quality of life of rural people in the region.  

Mr. Babaev said that in mid-November, Far East Region authority representatives will visit Cherkizovo Group’s production facilities in Central Russia to view its vertically integrated production processes and to evaluate its potential for the development of the Far East Region. 

Mr. Babaev stated that Cherkizovo Group may work on imported meat replacement and develop both corn and soya farming and animal breeding in the Far East Region.  

To form a Far East animal breeding cluster, the development of greater cooperation between state authorities and business leaders Business is necessary,  along with use of the experience from Central Russia, said Mr. Babaev. This is a strategic task not only for the region’s social development, but also for the growth of Russia’s activity  on the global food market, particularly in the APEC region.