News Pigs
Russian meat giant invests billions
The Cherkizovo Group, the largest meat producer in Russia, will invest heavily in the coming years. The production capacity of both pork and poultry is being significantly increased.
The meat giant plans to invest more than $2 billion in production capacity over the next 3 to 1,1 years. The investments are mainly made in the regions of Tula, Lipetsk and Altai.
The vast majority of the amount will be used for the construction of a new pig slaughterhouse in Tula. There, respectively, $660 million will be invested. The slaughterhouse will have a capacity of 4,2 million pigs per year. Several other slaughterhouses (pigs and poultry) will be built in Lipetsk and an existing slaughterhouse will be expanded in Altai.
Sergey Mikhailov, CEO of Cherkizovo Group, commented on the investment: “We are pleased to announce new large-scale investments in our capabilities. The expansion boosts pork and poultry production in the next 2 to 3 years and strengthens our leadership in the domestic meat industry".
Russian pig sector
The fact that the Cherkizovo Group wants to expand is not entirely unexpected. The Russian pig sector has made great strides in recent years. The pork giant cannot stay behind and wants to grow with the market. Recently, however, The National Union of Pig Breeders shared a forecast that takes into account lower production growth as the country continues to be hit by African Swine Fever (ASF). However, a decline is also not taken into account, so in that sense expansion at Cherkizovo is a development in line with the market.
Chanti Oussoren
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