Feedstuffs is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

writing-1149962_1920.jpg pixabay

Russian meat company acquiring Cargill poultry plant

Cherkizovo Group purchases $40 million plant that supplies chicken products to McDonald's restaurants in Russia.

Cherkizovo Group, the largest vertically integrated meat producer in Russia, recently announced that it has signed a preliminary agreement with Cargill to acquire its chicken processing facility in Efremov, Russia. The deal is subject to regulatory approval from respective Russian authorities and, if approved, is expected to close in a few months.

“We are excited to add another asset aimed to foodservice clients to our portfolio,” Cherkizovo chief executive officer Sergey Mikhailov said. “Being a vertically integrated meat producer, we see significant synergies of a newly acquired plant with our existing supply chain and have plans to increase capacity at this particular plant over time.”

The acquisition, he said, fits well with the company’s strategic plans to increase its share of value-added products and to broaden its presence with foodservice clientele, transforming the channel into a significant revenue stream for the company.

Cargill opened the $40 million chicken processing plant in 2013 to supply McDonald’s restaurants in Russia with Chicken McNuggets as well as other chicken products.

The industrial site in Efremov is one of Cargill’s largest locations in Europe. Following the transaction, Cargill will still operate five plants at the site, producing starches, sweeteners, feed, premixes and oils.

TAGS: Business
Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish