Russian meat and feed producer Cherkizovo Group has announced that it harvested almost 270,000 tonnes of winter wheat this season, nearly doubling last year's figure of 140,000 tonnes.
The company says that this record growth was achieved through the expansion of wheat acreage in Lipetsk, Tambov and Penza, following the group's acquisition of grain producer NAPKO.
In the 2016-2017 season, the winter wheat acreage amounted to 49,900 hectares, compared to 25,600 hectares last season. The group plans to increase this by a further 10% in the coming season.
This fodder wheat is processed at the group's own facilities, to ensure that its livestock have a necessary amount of high quality feeds.
Company Growth
Last month, Cherkizovo reported that revenue increased by 12% to RUB 43.3 billion in the first half of 2017.
It remains optimistic about the second half of 2017, and prospects for 2018. It said that the stronger ruble compared to major foreign currencies continues to drive lower feed prices, keeping meat prices lower, while an on-going recovery in Russian consumer spending should support continued profitability.
The company has also recently been named as Russia's top meat supplier.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
