One of Russia’s largest meat producer, Cherkizovo group buys from Cargill’s plant in Tula region. Platform worth $40 million supplies meat products to McDonald’s restaurants.That Cherkizovo group buys from the food Corporation Cargill plant for processing of poultry meat in Efremov of the Tula region, “Kommersant” said a source knowledgeable about the deal. Representative Cargill confirmed the information, adding that the transaction is subject to the approval of the Federal Antimonopoly service.”Cherkizovo” family Mikhailov — one of the country’s largest producers of meat products (brands “Cherkizovo”, “Pelinka”, “PAVA-PAVA”) with a share of 6.8% of the market. In 2019 the company has received 120 billion RUB of revenue and 9 billion rubles of net profit.In the segment of public catering “Cherkizovo” already works with networks of KFC, Burger King, McDonald’s and network pizzerias. In 2019, sales in this channel increased by 95%, and the market of public catering in reporting “Cherkizovo” has been named as one of the priorities.Cargill has launched a plant for processing of poultry in the Tula region 2013. The site was originally created primarily to supply McDonald’s. The capacity is 18 thousand tons of products per year, volume of investments — $40 million,”We see significant synergies of the acquired plant with our existing supply chain, and in the future plan to increase the capacity of the enterprise”,— said General Director of “Cherkizovo” Sergei Mikhailov. According to him, the deal fits well with the strategic plans of the group to increase the share of value-added products and expand our presence in the channel of the public power, which should become a substantial source of revenue for Cherkizovo.Anatoly Kostyriv, Nikita Sharenkov
