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New Petersime hatchery for the international Cherkizovo Group and Grupo Fuertes project

in Sales

On 11 September 2015, the Tambov Turkey hatchery was officially opened. The hatchery became part of the first phase of the construction of a new ultra-modern poultry complex for the production of turkey meat with the projected output of 50,000 tons per year. The facilities have been built within the framework of a unique international project launched by Cherkizovo Group in 2012 in partnership with Grupo Fuertes, Spain’s largest producer of turkey meat.

The grand opening of the company's new facilities in Pervomaisky District of Tambov Region included official events attended by acting Governor of the region, Alexander Nikiti; Chairman of the Board of Directors of Cherkizovo Group, Igor Babaev and the CEO of Grupo Fuertes Russia, Joaquin Jiménez de Aguilar.

Mr. Igor Babaev, Chairman of the Board of directors of Cherkizovo Group and Mr. Alexander Nikitin, Governor of the Tambov region

The Tambov Turkey Hatchery became not only one of the largest in Tambov region, but also one of the most modern in the Russian Federation. Practically every stage of the incubation process is fully automated. Egg transfer from farm trolleys to setter trolleys, loading and unloading of trays, egg candling, egg fumigation, chick counting, washing of trays, and other processes will be conducted in a fully automatic mode.

Total capacity of the hatchery is 5.8 million eggs per year. The hatchery is equipped with state-of-the-art incubation equipment manufactured by Petersime nv, Belgium. The installed equipment includes S-line incubators of the latest generation, BioStreamer™ 8S setters, and BioStreamer™ 4H hatchers. The incubators are operated using Embryo-Response Incubation™ technology patented by Petersime nv, which is based on embryo feedback. The sensors installed inside the machine make it possible to control the temperature of the air inside the setter by means of controlling the temperature of the egg shell (OvoScan™), humidity by means of controlling of egg weight loss of each batch of eggs (DWLS™) and to narrow hatch window by means of using technology Synchro-Hatch™. Incubators are controlled by the Bio-Iris™ controller, and connected in a unified computer network.

“I am very proud to be here at the launch of the first construction phase of the facilities of the Tambov Turkey project,” said Igor Babaev, “and to see that we are doing the right thing to ensure food security in the Russian Federation.”

About the Cherkizovo Group

The Cherkizovo Group (LSE:CHE; MOEX:GCHE) is Russia's largest producer of meat and animal feed. The Group is among the top three producers of poultry, pork, and sausages. The company's most well-known brands are Cherkizovsky, Petelinka, Kurinoye Tsarstvo, and Mosselprom. CEO Sergei Mikhailov and his family members are major shareholders of the Cherkizovo Group, owning 63% of its shares, while 37% of the shares are quoted on the London Stock Exchange (LSE) and the MICEX.

Due to its vertically integrated structure, which includes agricultural land, grain storage facilities, feed production, livestock breeding, growing and slaughtering, as well as meat processing and integrated distribution, the Cherkizovo Group has consistently delivered sustainable revenue and profit growth. In 2013 the Cherkizovo Group produced more than 500,000 tons of meat products, and its consolidated revenues exceeded USD 1.6 billion.

The Cherkizovo Group’s strategy calls for organic growth and setting up new plants, as well as consolidating its assets. In the past 5 years alone, they invested more than USD 1 billion in the development of the domestic agro-industrial sector.

About Grupo Fuertes

Grupo Fuertes is a major Spanish holding company, comprising more than 20 companies, most of which are involved in the agro-industrial business. Among them are such well-known manufacturers as Agrifusa (agriculture), Cefusa (livestock breeding), El Pozo Alimentación (production and processing of meat), Procavi (production and processing of turkey meat), Sediasa (chopping and preparation of food products), Fripozo (deep-frozen products), and others. Grupo Fuertes’ turnover is about EUR 1.1 billion. The holding employs about 6,000 people.

Procavi, part of Grupo Fuertes, is the market leader in turkey meat production in Spain with a market share exceeding 43%. Procavi also has a fully integrated production system with a high-level control system at all stages. The company’s annual production capacity exceeds 55,000 tons per year, which amounts to about 7 million turkeys. The company's revenue is more than EUR 130 million, and they plan to double this figure in the medium term.