Gruppa Cherkizovo is a leading Russian agricultural company that invests in various business areas such as poultry, pork, meat and processed food production, as well as animal feed and farming. The company's business model is based on an integrated value chain that allows it to deliver a wide range of high-quality products to customers in Russia and abroad.
The poultry production is the largest business area of Gruppa Cherkizovo. The company has over 60 chicken and turkey farms in Russia and produces over 550,000 tons of poultry meat annually. The company's range includes a wide range of fresh and processed poultry products such as chicken breast fillets, chicken wings, turkey meat, and chicken nuggets.
The pork production is the second largest business area of Gruppa Cherkizovo. The company has seven modern pig farms and produces over 230,000 tons of pork annually. The company's pork products include fresh and processed products such as bacon, ham, and sausages.
In addition to meat production, Gruppa Cherkizovo also operates a processed food production under the brand "Petelinka". The company produces a wide range of processed foods such as sausages, meat pies, bacon products, salami, and delicatessen. The company also produces processed products such as ham and sausages under the brand "Cherkizovo".
The company also operates an animal feed division that produces high-quality feed for its own farms and external farmers. The company also operates agricultural farms and is involved in the production of seeds, fertilizers, and pesticides.
Gruppa Cherkizovo has a strong vertical integration, allowing it to control the quality and safety of its products and reduce costs. The company also produces its own packaging materials to ensure the quality and durability of the products.
The company exports about 9% of its products to countries such as China, Japan, Kazakhstan, Belarus, and other countries. Gruppa Cherkizovo aims to expand its export business to tap into new markets in Asia and Europe.
Overall, Gruppa Cherkizovo benefits from positive macro factors such as the growing Russian economy, the increasing demand for high-quality food, the current dominance of domestic producers, and limited foreign competition due to sanctions and/or trade barriers. At the same time, the company faces challenges related to rising feed prices, low prices for pork, and a competitive poultry market.
Gruppa Cherkizovo intends to expand its business through targeted investments in capacity expansion, production and process innovations, as well as expanding distribution channels and geographic reach.
