OREANDA-NEWS. April 18, 2014. Cherkizovo Group, Russia’s leading meat and fodder producer, has started the 2014 sowing campaign. This year, the Company increased its operational land bank in the Moscow, Lipetsk, Orel and Voronezh Regions by 45%, to 58 thousand hectares. If weather conditions are favourable, Cherkizovo expects its harvest to increase by 45% compared to 2013, to approximately 250 thousand tonnes (bunker weight).

As in previous years, most of the land will be sown with wheat, corn, sunflower and barley. In 2013, the Group had high yields significantly exceeding the production average for Russia. Wheat yield was 5 t/ha vs. an average of 2.3 t/ha for Russia; corn yield was 9 t/ha vs. an average of 5.3, and sunflower yield was 3.5 t/ha vs. an average of 1.6 (all figures in bunker weight, source for averages; Ministry of Agriculture of Russia).

Cherkizovo has invested in modern high-tech agricultural equipment in order to promote the efficiency of the grain segment. In 2013, the company purchased imported tractors and harvesters, transfer bins, tow cars, and special equipment as part of a 200 million rouble (\\$7 million) investment. A new grain drying facility was constructed in Voronezh Region, and the Company plans to expand its agricultural equipment fleet in 2014.

Commenting on the launch of the 2014 agricultural sowing campaign, Sergei Mikhailov, Cherkizovo CEO, said: “We are constantly increasing our degree of vertical integration to improve our overall efficiency. Our strategy is a combination of cultivating grain for our fodder production needs and flexible procurement on the grain market. This helps us to ensure that we are always in the best possible position, from both an operational and financial point of view”.