Cherkizovo Group’s Oil Extraction Plant, Lipetsk Region

Cherkizovo Group entered an investment protection and promotion agreement for the new oil extraction plant in the Yeletsky District in January 2021. Credit: Cherkizovo Group.

The new oilseeds processing facility will create 100 new jobs in the Lipetsk region. Credit: Cherkizovo Group.

Cherkizovo Group’s smoked sausage plant is one of the most automated plants across the globe. Credit: Sabris.

Russian Agricultural Bank and Cherkizovo Group entered a cooperation agreement for the oil extraction plant project in October 2019. Credit: Cherkizovo Group.

Cherkizovo Group presented its redesigned product offering at the Golden Autumn exhibition in October 2019. Credit: Cherkizovo Group.

Cherkizovo Group, Russia’s biggest meat producer, is constructing an oil extraction plant in the Lipetsk region.

Cherkizovo-Masla, a part of Cherkizovo Group, signed an agreement with the Russian Ministry of Economic Development and local authorities for the construction of the high-protein oilseeds processing plant in January 2021.

Cherkizovo Group inked a cooperation agreement with Russian Agricultural Bank to jointly deliver the project in October 2019. The facility is eligible for state support in the form of subsidised interest rates on bank loans and several tax benefits.

The project will be executed in two stages with an estimated investment of RUR13.8bn ($183m), creating approximately 100 local jobs.

The facility will be brought on stream after the completion of the investment phase in mid-2022 and is expected to reach full processing capacity by 2033, upon completion of the second stage.

Cherkizovo Group’s oil extraction plant location

The proposed oil extraction plant will be located in the Yeletsky District in the Lipetsk region of Russia. It will be built within the boundaries of the Yeletsprom special economic zone in Yelets.

The project site lies in close proximity to a railway hub and the federal highway M4 (Don).

Oil extraction plant details

The first stage of the project will involve the construction of the oil extraction facility for processing high-protein oilseeds.

The second stage will involve the construction of related infrastructure, including a railway line to/from the plant.

With a processing capacity of up to 480,000t per year, the oil extraction facility will process soybeans for producing soybean oil, lecithin, meal, and hulls. It will also produce high-protein soybean meal for internal consumption.

Cherkizovo Group’s oilseed processing plant will provide support to the company in reducing dependency on imported oilseed meals, enhance production efficiency and ensure high product quality. 

Sustainability features implemented by the company

In 2019, Cherkizovo Group invested RUR160m ($2.14m) in various sustainable projects to reduce the environmental impact of its facilities in the Moscow region and the regions of the Central Federal District.

As part of its sustainability initiative, the company has equipped some of its facilities with energy-efficient lighting, renovated and modernised wastewater treatment plants, and upgraded aspiration and ventilation systems. 

Cherkizovo Group’s product portfolio

The product offerings of Cherkizovo include approximately 300 types of sausages, chilled and frozen meats, ready-to-cook products, ham, and deli meats. Cherkizovo Group offers globally recognised brands such as Mosselprom, Imperiya Vkusa, Myasnaya Gubernia, Fileya, Grilmania and Dajajti.

The latest product lines introduced by the company include ready-to-cook pork and poultry products. The export portfolio of the company includes frozen chicken, pork, turkey, and processed meat. The company offers different products such as frozen and chilled raw materials to frozen ready-to-eat foods for the food service and hotel industries. 

Marketing commentary on Cherkizovo Group

Cherkizovo Group is a vertically integrated agro-industrial firm. The company handles operations across the entire life-cycle from feed production and breeding to meat processing and distribution. 

The company was certified by the UAE’s Emirates Authority for Standardization and Metrology (ESMA) for the supply of halal products in Gulf countries in 2018.

Cherkizovo Group’s products have received one silver and five gold medals at Quality Guarantee 2019. The Petelinka and Pava-Pava brands have received three awards at the 21^st Product of the Year in November 2019.

Cherkizovo received the Retailers’ Choice award for smoked sausages at Prodexpo 2020. Pava-Pava received the Product of the Year award as the best Healthy Food product in the Turkey Meat category in June 2020.

In July 2020, PJSC Cherkizovo Group signed an agreement to acquire Cargill’s chicken processing facility in the Tula region.