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News 1194 views last update:6 Aug 2012

Russian-Spanish JV invests millions in turkey meat production

Grupo Fuerte, one of the most important business holdings of Spain and Cherkizovo Group, one of the largest meat processers in Russia have established a joint venture to develop a comprehensive meat complex for the production of turkey meat with an investment of €100 million.

The initiative covers all stages of production from livestock breeding, growing, production of feed and meat processing
 
The integrated operation is to be located in the Tambov region (480 km southeast of Moscow) on a plot of 5,000 hectares in the areas "Pervomaisky" and "Staroyurevskiy" and is to create 1,000 new direct jobs.
 
The expected annual production, initially, will amount to 25-30,000 tonnes of meat, and will increase in future to a capacity of 50,000 tonnes, which will enable the Joint Venture to become the market leader in turkey meat in Russia, a rapidly growing sector.
 
The project includes:
  • Livestock complex
    • Parent stock turkeys for 4.1 million eggs a year;
    • Hatchery for 7 million eggs per year;
    • Farms with capacity of 2.5 million turkeys a year;
  • Meat processing
    • Slaughterhouse with the capacity of 2,000 turkeys per hour
    • Cutting plant for 1,000 carcasses per hour
  • Feed manufacturing
    • Feed plant with a production of 150,000 tonnes per year;
    • Feed storage of 120,000 tonnes (60,000 tonnes initially)
The project also includes construction of offices, facilities and engineering, infrastructure, including warehouses, housing specialists, transport and a logistics centre. Production is expected to begin in 2014 and reaching full capacity in 2015.
 
Currently in Russia annually over 100,000 tonnes of turkey meat is consumed, with a growth rate above 20%.
 
Turkey consumption in Russia per capita is 0.68 kg per year, and there is a lot to catch up in comparison to countries like the US with a consumption of 7kg, and Canada and some European countries with 4kg.
 
Grupo Fuertes manages more than 20 companies and has a staff of over of 5,450 people distributed in companies operating in different sectors. Its core business, food and agriculture, includes, among others Agrifusa (used for agriculture), Cefusa (livestock), El Pozo Food, (flagship of the company with 3,410 employees), Procavi, Spain's leading turkey meat producer, Sediasa (fractionation centres and food preparation), Fripozo (frozen foods), Aquadeus (bottling and marketing of natural mineral water), Bodegas Luzon Jumilla, and Palancares dedicated to the production of cheese and dairy products.
 
Cherkizovo Group is the largest manufacturer of meat products in Russia with a turnover of approximately 1.5 billion dollars in 2011. It operates among the top three positions in the markets for products of chicken, pork and processed meat products.

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