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Cherkizovo Group to build new pig farms in the Tambov Region

Cherkizovo Group to build new pig farms in the Tambov Region

14 february 2022

Tambov.jpg

Moscow, Russia – February 14 – Cherkizovo Group (MOEX: GCHE), the largest vertically integrated meat producer in Russia, is planning to invest RUB 8.5 bn in new pig farms in the Tambov Region. The project will enable the Company to increase its annual pork capacity by more than 45,000 tonnes of meat. Cherkizovo also intends to invest more than RUB 4 bn in ramping up the local feed mill. 

Maxim Yegorov, Acting Head of the Tambov Region Administration, held a working meeting with Sergey Mikhailov, CEO of Cherkizovo Group, on Friday. They discussed the Company’s further development in the region, including a project to create new modern pig farms in the Pervomaysky District. Cherkizovo is planning to build four finisher sites, each capable of accommodating 40,000 pigs.

The project’s CAPEX is estimated at RUB 8.5 bn. The new sites will enable Cherkizovo Group to increase pork output by more than 45,000 tonnes of per year. The existing pig farms in central Russia today can produce over 300,000 of meat. 

Along with building the new pig farms in the Tambov Region, Cherkizovo plans to ramp up the capacity of its feed mill that is also located in the Pervomaysky District. It currently supplies feed to the bird houses of Tambov Turkey (part of Cherkizovo Group). Following the launch of additional capacities in 2023, the mill is expected to reach the output of 60–80 tonnes of feed per hour. The Group's CAPEX in this project will exceed RUB 4 bn.

The construction of pig farms and the feed mill ramp-up will help create 200 new jobs in the Tambov Region.   

“In the next few years, Cherkizovo plans to significantly increase its meat processing volumes, which means that we are going to need additional pig farms. For their construction, we have opted for the Tambov Region thanks to its sound investment climate and many years of successful projects in pork, poultry, crop, and feed production,” said Sergey Mikhailov, CEO of Cherkizovo Group.

“The investment projects announced by Cherkizovo will strengthen the role of the Tambov Region as Russia’s major food hub. We pay special attention to cooperation with investors who intend to evolve in step with the region and provide them with comprehensive support. We seek to ensure the most favourable investment conditions for them. The agreements reached today will be formalised at St Petersburg International Economic Forum,” said Maxim Yegorov, Head of the Tambov Region.

Since 2013, Cherkizovo has invested more than RUB 15 bn in the region, with the Company’s local production sites now employing nearly 2,500 people. Cherkizovo is actively involved in the region’s social life: since 2020, it has donated more than RUB 11.5 m to charity projects.

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