Tambov Turkey reaches full production capacity
Tambov region, Russia - 30 May 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, announces it has reached full production capacity at the Tambov Turkey facility, a joint venture between Cherkizovo Group and Grupo Fuertes, Spain's leading agricultural producer.
The ceremonial opening of the production facility for the growing and processing of turkey meat was held in the Pervomaisk district of Tambov region. This project will allow Cherkizovo Group to become one of the largest producers of this type of meat on the Russian market and allows Spanish partner Grupo Fuertes to test its business localisation model in Russia.
The business model of the plant envisages the comprehensive control of the entire production process: from raw materials used for production of mixed feeds to the sale of the finished products. This approach allows biosafety monitoring, primarily looking after the birds' health and housing conditions, which ultimately underpins the task of controlling meat quality.
"It took us five years and RUB 10.2 billion to launch this project," Sergey Mikhailov, General Director of Cherkizovo Group, said. - Today the enterprise has reached its full installed capacity and the payback period is eight years. Turkey meat has great potential on the Russian market and total turkey meat production in Russia was about 230,000 tonnes in 2016. Tambov Turkey added another 50,000 tonnes today and can double the install capacity up to 100,000 tonnes. This is a serious step on the way to Russian food security, and towards developing its export opportunities over the long run."
Environmentally clean products by Tambov Turkey under the new "Pava-Pava" brand can already be found on the shelves of large retail chains. International food safety management compliance certificates ISO 22000:2005 and FSSC 22000 allow Tambov Turkey to make products of the highest quality for both Russian and European markets.
For more information please visit www.cherkizovo.com or contact
Head of Investor Relations
+7 (495) 660 2440 ext. 15962
About Cherkizovo Group
Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in the poultry, pork and processed meat markets and is the largest feed manufacturer in the country.
Cherkizovo Group encompasses eight full cycle poultry production facilities, 15 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land. In 2016, Cherkizovo Group produced 903,000 tonnes of meat products.
Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has consistently delivered stable, long- term sales growth and profitability. The Group's consolidated revenue reached RUB 82.4 billion in 2016.
Cherkizovo Group shares are traded on the London Stock Exchange (LSE) and on the Moscow Exchange (MOEX).
About Grupo Fuertes
Grupo Fuertes has consolidated its position as an international benchmark for gross mass consumption thanks to its strong agri-food core, which is complemented by a diversified portfolio of investments that guarantee its solidity and future. Among the companies that make up the Group, ElPozo Alimentación and Sediasa are distinguished as leaders in their segments.
The group provides direct employment to more than 6,500 people and creates 33,500 jobs indirectly with a turnover of more than 1,535 million euros in 2016. Its' business philosophy is based on constant improvement, reinvestment and sustainable development.
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