Cherkizovo to invest in new broiler firm

By Aidan Fortune

- Last updated on GMT

Cherkizovo is set to upgrade Altaisky Broiler following its acquisition of the company last year
Cherkizovo is set to upgrade Altaisky Broiler following its acquisition of the company last year

Related tags: Poultry

Russian meat processor Cherkizovo is expected to make an investment of RUB250m to upgrade its recently acquired Altaisky Broiler.

Acquired in December 2018, the site currently comprises a hatchery, a feed mill, four fattening sites, a slaughterhouse, and a meat packing plant in Biysk. However, to produce premium brands, Cherkizovo said Altaisky Broiler would need to give its biosafety system a major upgrade, to ensure its compliance with group-wide standards.

The first stage will see some RUB20m worth of investments, with RUB55m and RUB180m to be spent on warehouse logistics and upgrading the cutting facilities.

Altaisky Broiler has an annual output of 67,000 tonnes (live weight) of poultry products and the acquisition was expected to enable Cherkizovo to access the Siberian Federal District market and strengthen its market-leading position in the domestic poultry market.

“We see plenty of opportunities for our development in Siberia. Nationwide retail chains are actively expanding in the region, and we are determined to match their growth,”​ said Sergey Mikhailov, CEO of Cherkizovo.

To help maintain the supply chain, Cherkizovo also acquired the production facilities of the Krasnoyaruzhsky Broiler (Belgorod Region) from Prioskolie, along with the parent stock.

Also in December, Cherkizovo signed a sale-purchased agreement to acquire 75% of Samson – Food Products, a group of companies offering meat products under brands such as Samson, Grillmania, Fileya and others.

The business recently reported a 4% year-on-year increase in volume sales of chicken, while value sales rose 9%. Meanwhile, its sales of pork rose 18% in volume terms and 7% in value terms and turkey saw a 49% increase in volume sales and a 2% increase in value sales. 

Related topics: Meat

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