Cherkizovo will invest 3 billion rubles in the reconstruction of poultry farms in Bashkiria

The project was presented to the HEAD of Bashkiria Radiy Khabirov by the DIRECTOR of Turbaslinskie Broilers (part of Cherkizovo) Maxim Zudin at Invest Hour. According to him, as a result of the reconstruction, the volume of poultry MEAT production is expected to increase by 28 thousand tons to 97 thousand tons next year. The funds will be invested in the Ufimskaya and Yubileinaya poultry farms, as well as a processing plant in Turbasly. The investor will be reimbursed for part of the costs for the purchase of technological equipment, as well as the construction of engineering infrastructure, the press service of the regional government noted.  

Agrifood Strategies President Albert Davleev believes that the reconstruction of these enterprises is really necessary. “Many assets in RUSSIA were built anew between 2010 and 2015. Now it is necessary to update the technological park, as well as “tailor” the enterprise to its own needs, the expert told Agroinvestor. — The fact is that Cherkizovo has its own production technologies. And the most important thing is the production cycle. Based on this, appropriate equipment is selected, which should be standard across all enterprises of the group.” In his opinion, the process, in addition to replacing old equipment, will also require enterprises to adapt to the production cycle of the agricultural holding. 

The Turbaslinskie Broilers company, formerly part of the Russian Grain agricultural holding, was registered in 2002 in Blagoveshchensk. The company’s website says that it produces about 70% of broiler meat from the total volume of its production in Bashkiria. In 2022, the revenue of Turbaslinsky Broilers amounted to 7.6 billion rubles, the loss was 761.1 million rubles. 

At the end of 2022, the Cherkizovo structure was recognized as the winner of the auction for the sale of Russian Grain assets in Bashkiria, controlled by the Trust non-core assets bank. The assets were sold at the initial price of RUB 6.37 billion. with an auction step of 127.4 million rubles. The rights of claim to JSC Poultry Farm Bashkiria, JSC Turbaslinsky Broilers for 3.1 billion rubles were sold in a single lot , as well as shares of these companies, 100% shares in the trading house Turbaslinsky Broiler, the companies Bashkir grain, Bashkir grain +" and "Ufa Bread Products Plant".

Taking into account the production volumes of Russian Grain poultry farms, the total capacity of Cherkizovo for the production of broiler meat will be about 900 thousand tons in live weight, the company’s press service previously reported to Agroinvestor. The purchase of these assets is intended to strengthen the holding’s leading position in the Russian poultry meat market, and also gives the company the opportunity to increase product sales in the regions of the Volga and Ural Federal Districts. The company noted that the enterprises are planned to be modernized to update and expand their production capacities.

Davleev previously noted that after the arrival of Cherkizovo in Bashkortostan, a sharp increase in meat production in the republic should not be expected. “Everything will depend on the group’s strategy regarding the market and its ability to develop assets,” he said.