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  • Unconventional Ag

Russia’s Cherkizovo Group Aims for 40% Hike in 2015 Feed Grain

Russia’s largest meat and animal feed manufacturer, Cherkizovo Group, is targeting a 40% increase year on year for its grain harvest in 2015 to more than 400,000 tons. Since developing its own grain division, the group has become more vertically integrated – manufacturing all of its own feed and reaching a 20% self-sufficiency rate in grain in 2014. Eventually the group aims to become 40% self-sufficient in grain.

In 2012 the group harvested 116,000 tons of grains and oilseeds from 40,000 hectares, increasing to 175,000 tons from 60,000 hectares in 2013, and 242,000 tons from 60,000 hectares in 2014. The company’s yields are rising as well, increasing from 5.1 tons per hectare in 2013 to 6.2 tons per hectare in 2014.

Earlier this year the group expanded its land bank with the acquisition of 20,000 hectares for the production of wheat, corn, sunflowers, and soybeans in the Tambov region, and the company is investing 500 million rubles (US$9.4 million) for the purchase of high capacity combines, seeders, sprayers and trucks. The group’s total grain storage capacity currently stands at 800,000 tons, but the addition of another facility under the Eletsprom project will soon increase the company’s capacity to 1 million tons.

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