Cherkizovo Group acquires broiler farms and feed mill through auction

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Cherkizovo Group, Russia’s largest meat producer, has won the auction for the sale of Russian Grain Ufa's poultry, crop, and feed businesses.

The new assets give the group a production foothold in the Bashkortostan region. The company said the acquisition will thus strengthen its position in the poultry market in the Urals and neighboring Russian regions. The newly acquired businesses will benefit from synergies with other Cherkizovo group sites, it added.

An open auction for the sale of the Russian Grain Ufa businesses was held at the Auction House of the Russian Federation. The seller was non-core asset bank, Trust.

AIC Mikhailovsky, part of the Cherkizovo Group, won the bid, with a purchase price of RUB 6.37 billion (US$101.3m). It had previously obtained approval from the Federal Antimonopoly Service to acquire the assets.

The acquired companies include five poultry farms with an annual live-weight capacity of 65,000 tons of broiler meat, annual processing capacity of 25,000 tons, annual marketable egg production of 750 million eggs, a feed mill with an annual capacity of 240,000 tons and a land bank of 18,000 ha. The poultry products are exported as well as being sold domestically.

Russian Grain Ufa’s headcount currently stands at 2,700 employees.

Cherkizovo said it is planning an upgrade of the acquired facilities with the goal of boosting the broiler meat output.

The leader in broiler meat production in Russia, Cherkizovo produced 813,000 tons of live-weight meat in 2021.

Pig genetics 

In October, Cherkizovo acquired Vishnevsky Genetics and Breeding Center in the Orenburg Region, gaining expertise in the area of swine genetics and artificial selection. The deal, it said, would enable it to bolster domestic production of breeder pigs, reducing the industry’s dependence on imports.