RUSSIA: Cherkizovo buys agricultural assets to secure grain supplies
Russian meat group Cherkizovo has invested US$137m in agricultural assets as the company looks to strengthen its vertically integrated production model.
The company has purchased 30,000 hectares of farmland in the Voronezh region and storage for 200,000 tonnes of grain as well as grain elevators and pig breeding facilities, Cherkizovo announced today (13 June).
We have acquired a fertile land bank in the black earth region enabling Cherkizovo to secure its own grain supply," CEO Sergey Mikhailov said.
The purchase of the elevators would give the group "greater flexibility in its purchasing strategy and enable Cherkizovo to hedge against unfavourable conditions in the grain market," he added.
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