The new plant, due to be operational in 2014, will be in the Tambov region of Russia, with more than €100 million invested in the development.

The Board of Directors of Cherkizovo approved the joint venture between Cherkizovo Group and Grupo Fuertes on 10 May.

Cherkizovo and Grupo Fuertes will develop the large scale turkey meat complex on a 5000 hectare site in the Tambov region of Russia. The new complex will be launched in 2014, with full capacity being reached in 2015.

The annual capacity is expected to be 25-30,000 tonnes of turkey meat, and this may increase to 50,000 tonnes in the medium term. Once achieved, this would make Cherkizovo the market leader in the fast growing and profitable Russian turkey meat market.

The total planned investment is RUR 4.5 billion (rubles), which is equivalent to over €100 million at current exchange rates. The project will be financed from Cherkizovo and Grupo Fuertes’s existing funds, and through bank loans. The Tambov regional administration has agreed to provide the necessary infrastructure for the construction of the complex.

Turkey consumption in Russia exceeds 100,000 tonnes a year and has grown dynamically over recent years. In 2010, consumption grew by 20 per cent compared to 2009. Industrial production over the same period grew by 46 per cent.

The share of imported turkey meat into Russia has been decreasing constantly and today imports account for approximately 30% of the market.

Per capita consumption of turkey in Russia is only 0.68 kg p.a., much lower than in developed countries - annual per capita consumption is approximately 7 kgs and 4 kgs in the USA and EU, respectively. Sergey Mikhailov, Cherkizovo’s CEO, said: “Cherkizovo is already the largest agro industrial group in Russia, and by launching this new project with Grupo Fuertes, we will further strengthen our leading positions and provide customers with a new high quality and healthy meat product.

"Consumption of turkey has shown significant growth in Russia and we expect to soon be among the largest turkey suppliers in the country. Grupo Fuertes has many years of experience that will ensure the highest product standards and quality control - we look forward to working with them on this joint venture.

"In addition, the proximity of the turkey production complex to our existing meat processing facilities will provide substantial synergy benefits, and our large-scale distribution network will enable rapid and efficient delivery of new products to the markets of Central Russia."