Cherkizovo Group to engage in crop farming in Tula Region
The company is acquiring 10,000 ha of cropland
13 September 2023
2 minute read
By: Cherkizovo Group, Russia’s largest meat producer, is expanding its land bank as part of the grain segment development by acquiring 10 ha of agricultural land in the Tula Region. The deal will help the company cover its growing needs for raw materials used in feed production, according to a company-issued press release.
Cherkizovo Land Company and Cherkizovo Grain Production (both part of Cherkizovo Group) have entered into agreements to purchase agricultural assets in the Tula Region. As a result, the Group will take possession of land plots totalling approximately 10,000 ha as well as agricultural machinery and warehousing facilities, purchasing them from two individuals.
Barley, wheat, rapeseed and buckwheat are currently grown on the acquired land. This year’s crop will be harvested by Cherkizovo Grain Production, with wheat and soybean to be cultivated on these sites going forward.
The deal gives Cherkizovo Group its first crop production assets in the Tula Region, marking a departure from its previous focus solely on poultry farming and meat processing in the region. Following the acquisition, Cherkizovo’s total land bank will increase to 340,000 ha.
"The Tula Region holds strategic importance for Cherkizovo Group as this is where we are actively expanding our business and building the country’s largest meat processing cluster," said Anastasia Mikhailova, head of communications at Cherkizovo Group. "Therefore, it was a logical move for us to acquire well-maintained crop farming assets locally. The transaction will increase our self-sufficiency in raw materials required for feed production."
