It revealed the details of those growth initiatives earlier this month. The group is ploughing a total of RUB 12.5bn ($166.5m) into the two projects.
Cherkizovo outlined how it is planning to spend in excess of RUB 4bn ($53.28m) to ramp up the capacity of its feed mill in the Pervomaysky District. The mill currently supplies feed for birds in its Tambov Turkey operations. The expanded facility is expected to have output of 60 to 80 tons of feed per hour. The additional production capacity is anticipated to come on stream in 2023.
The producer is also looking to develop new pig farms in that region, with it planning to build four finisher sites, each capable of accommodating 40,000 pigs. The project’s CAPEX is estimated at RUB 8.5 bn (US$113.22m). Those new sites will enable Cherkizovo to increase its pork output by more than 45,000 tons per year.
The construction of pig farms and the feed mill ramp-up will help create 200 new jobs in the region, added the Russian firm.
“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.
Commenting on the planned development was Maxim Yegorov, acting head of the Tambov region administration: “The investment projects announced by Cherkizovo will strengthen the role of the Tambov Region as Russia’s major food hub.”
In June last year, Cherkizovo announced another series of investments aimed at boosting regional pork and poultry production over the next two to three years, including the construction of a feed plant.