World meat industry news

The Cherkizovo Group, one of the largest producers of meat and meat products in Russia, after purchasing the enterprises of the Russian Grain Ufa Group, plans to modernize them in order to increase the production of broiler meat, the company said.

Russian Grain Ufa is the largest agricultural holding in Bashkiria. Its enterprises will have synergies with other sites of the Cherkizovo Group, helping to strengthen the company's position in the poultry meat market in the Urals Federal District and neighboring regions of the country. In the future, Cherkizovo plans to modernize the acquired enterprises, which will increase the production of broiler meat.

Cherkizovo is the leader in the production of broiler meat in Russia: in 2021, the company produced 813 thousand tons of products in live weight. On the eve it became known that APK Mikhailovsky LLC, which is part of the group, became the winner of the auction, which included six enterprises of the Bashkir group.

A single lot included 100% stakes in Bashkirskaya Poultry Farm JSC, Turbaslinskiye Broilers JSC, Ufa Grain Plant JSC, Bashkirskoye Zerno+ LLC, Bashkirskoye Zerno LLC, Trading House Turbaslinsky Broiler LLC, and as well as the rights of claims under the Trust's loan agreements to Bashkirskaya Poultry Farm JSC and Turbaslinskiye Broilers JSC. The purchase price amounted to 6.37 billion rubles.

The report clarifies that the production assets in Bashkiria include five poultry farms with a capacity of 65,000 tons of broiler meat per year (in live weight), deep processing capacities - 25,000 tons of products per year, production of marketable eggs - 750 million pieces per year, a feed mill with a capacity of 240 thousand tons per year, as well as a land bank with an area of 18 thousand hectares. Now 2.7 thousand employees work at the Russian Grain Ufa enterprises.

The Cherkizovo Group is one of the leaders in the markets of chicken meat, turkey, pork, meat products, and it is also the largest feed manufacturer in the Russian Federation. The main shareholder is the family of the founder of Cherkizovo Igor Babaev; Spanish Grupo Fuertes owns 11.12% of the company, free float is about 2.4%.