OREANDA-NEWS. May 27, 2013. Cherkizovo Group (LSE: CHE), Russia’s largest integrated and diversified meat and fodder producer, announces that it has completed a sowing campaign, and if favorable weather conditions continue, it anticipates a 30% increase in yield, reaching 150,000 tonnes.

In 2013 the company will increase the planted land area from 35,000 to 40,000 hectares. Cherkizovo Group’s agricultural land is located in the Voronezh and Orel regions, which lie in the fertile Central Black Earth region. Like last year, the main crops planted will be wheat, barley, corn, sunflower, oats, pea, soy and rapeseed.

Last autumn, the Group sowed more than 15,000 hectares of winter wheat. Thanks to a snowy winter, the winter crops were completely preserved, and yield is projected at 42 centners per hectare. The remaining land is allocated for spring cultivation. 

Focusing on vertical integration, in 2012 Cherkizovo Group formed a separate Grain division. According to last year’s earnings, the Grain division’s sales exceeded 112,000 tonnes of grain crops, revenue totaled USD35.8 million, and the EBITDA was USD13.8 million. The substantial increase in grain prices in 2012 enabled the company to achieve 38% EBITDA margin in the Grain division.