Cherkizovo hopes to expand Tambov Turkey

Cherkizovo Group is considering expanding its Tambov Turkey operations, which would increase turkey capacity by 50 percent.

(Courtesy Iowa Turkey Federation)
(Courtesy Iowa Turkey Federation)

Cherkizovo Group is considering expanding its Tambov Turkey operations, which would increase turkey capacity by 50 percent.

According to a press release from the Russian meat, poultry and grain company, Cherkizovo CEO Sergey Mikhailov recently met with Alexander Nikitin, head of the Tambov Region Administration, at the St. Petersburg International Economic Forum.

The parties discussed further cooperation between Cherkizovo and the region's government. Tambov Turkey, one of the company’s key assets in the region, had a live-weight output of around 55,000 metric tons in 2018. The meeting highlighted the steadily growing domestic demand for turkey meat seen in recent years.

In view of this trend, the company would like to implement the second stage of Tambov Turkey and hopes that the region's government will support the project to ramp up its capacities by 50 percent and effectively achieve a 29 kilo-tonnes per annum (KTPA) increase in live-weight turkey output. The second stage also might include building several more nursery and finisher sites in the region's Pervomaysky District. Depending on the number of sites and total investments in the processing facility, the project costs may hit RUB3.5–4.5 billion (US$54-69 million).

The company would like to complete the project in two years after the investment decision. The ramped-up facility, if realized, will create 100–200 jobs.

Cherkizovo Group formed a partnership with Spanish company Grupo Fuertes in 2012 to start the Tambov Turkey business.

Another issue discussed at the meeting with the governor was the transport accessibility of Cherkizovo Group’s existing and new facilities to secure their seamless operation. This is where the Group needs the local administration's support.

Cherkizovo Group is the largest investor in the Tambov Region’s agriculture sector, according to the company. Over the past ten years, the group has invested around RUB9.7 billion (US$150 million) in its grain, feed, poultry and pork segments. Its facilities in the region employ some 2,000 local residents. In 2017, the Group harvested 50,000 metric tons of crops and produced 131,000 metric tons of feed, about 55,000 metric tons of turkey and 50,000 metric tons of pork. The facilities incorporated in the Tambov Region are its major bona fide taxpayers.

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