11 Oct 2017 14:45

Cherkizovo plans substantial increase in area sown with wheat in 2018

MOSCOW. Oct 11 (Interfax) - Russian meat products group Cherkizovo plans to substantially increase the area sown with wheat in 2018.

The winter wheat crop for harvest in 2018 covers 55,000 hectares, 10% more than a year earlier. The area for the spring wheat planting is targeted to increase 41%.

This year Cherkizovo harvested about 270,000 tonnes of winter wheat, nearly double the previous year's harvest of 140,000 tonnes. "Winter wheat is a promising crop in the company's plant cultivation strategy," Cherkizovo said.

This year, over 82,000 tonnes of winter wheat was harvested, double last year's amount. The yield was 23% above target at 40 centners/hectare. The winter wheat harvest is expected to increase 35% in 2018.

The area sown with barley and rye will be reduced and reallocated in favor of other crops.

Work to harvest soybeans and sunflowers continues. A total of 109,000 hectares has been harvested, or 64% of the total sown area.

"Growth in the harvest was achieved primarily due to the acquisition of [agribusiness holding] NAPKO and expansion of the sown area, Cherkizovo said, noting that NAPKO added 147,000 hectares of farmland in Lipetsk, Tambov and Penza regions.

Cherkizovo Group has eight full cycle poultry production facilities, 15 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land.

In 2016, Cherkizovo Group produced 903,000 tonnes of meat and meat products, 9% more than in 2015. Revenue increased 7% to 82.4 billion rubles, up from 77 billion rubles the year before. Net profit dropped 30% to 1.9 billion rubles, down from 6 billion rubles.

Igor Babaev and members of his family control 89.5% of Cherkizovo shares via MB Capital Partners.

Shares circulate on the London Stock Exchange and Moscow Exchange .