Cherkizovo eyes pork export opportunities to China

Cherkizovo Group of Russia has officially opened its fifth pig farm in the Penza region, and plans further expansion as the result of a favorable business environment in the region, and the prospect of pork export opportunities to China. The firm has also recently announced plans for further investment in the Siberian poultry sector.

chayakorn76 | Bigstock.com
chayakorn76 | Bigstock.com

Cherkizovo Group of Russia has officially opened its fifth pig farm in the Penza region, and plans further expansion as the result of a favorable business environment in the region, and the prospect of pork export opportunities to China. The firm has also recently announced plans for further investment in the Siberian poultry sector.

Since Cherkizovo Group began its pork operations in the region, Penza oblast has risen to join the top 10 meat-producing regions of Russia, according to Ivan Belozertsev, the region’s governor. He was speaking at the inauguration of the company’s latest pig farming project.

At a cost of RUB580 million (US$9.2 million), the latest addition to Cherkizovo’s operations is a wean-to-finish facility with an annual capacity of 5,100 metric tons (mt) of pork on a liveweight basis, with housing for up to 20,000 pigs at any one time.

Boosted by the favorable business environment in Penza and the prospect of exports to China and other countries, Cherkizovo is planning further investment in the area, which is part of the Volga federal district in western Russia.

“Our goal is to bring pork production in the Penza Region to 300,000 mt in the next five to seven years,” said the group’s founder, Igor Babaev. “To meet this ambitious target, we are considering building an additional 40 farms of this type in the region.”

Babaev highlighted local authority support, the allocation of land for construction, and infrastructure developments as reasons for supporting the firm’s investments in Penza, as well as the ambitions of the region to become a leading meat exporter.

Asia in general and China in particular are key export destinations, according to Babaev. Russian poultry meat exports to China began this year, and he hopes the country will soon open up to pork from Russia.

African swine fever (ASF) outbreaks could cut Chinese pork production by as much as 30%, he said, citing recent expert estimates.

“We have great potential for boosting pork production and exports, benefiting from lower biological risks in Russia and the high quality and very competitive cost of our product,” said Babaev.

So far, Cherkizovo Group has invested RUB12 billion in Penza, making it the biggest investor in the region’s agriculture sector. The firm’s presence is as a full integration — from grain production to meat processing. Its pork facilities comply with the highest standards of biosecurity, and the superior performance of its pigs — growing to 6 kg at just 21 days instead of the national average of 27 days — is attributed to the use of genetics from Topigs Norsvin.

Future chicken meat expansion in Siberia

This month, Cherkizovo pledged to invest up to RUB3 billion in the Altai Republic in the Siberian federal district.

Sergey Mikhailov, the group’s CEO, signed an agreement with Altai’s governor to expand their existing partnership in poultry farming, pig breeding and food production.

Altaisky Broiler — acquired by Cherkizovo Group in 2018 — is already the leading broiler producer in the territory, and one of the largest in Siberia. The firm’s capacity could be increased to as much as 100,000 mt per year if the latest expansion plans are realized.

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