Cherkizovo reports strong growth in poultry division

Sales volumes in the Poultry division of Russian meat company, Cherkizovo, increased by a robust 18% in the first half of 2011 to approximately 117,990 tonnes of sellable weight compared to approximately 99,860 tonnes for the first half of 2010.

Prices for poultry sales in dollar terms increased by 9% from $2.30 per kg in the first half of 2010 to $2.51 per kg in the first half of 2011 (excluding VAT). Compared to the first quarter of 2011, the price in the second quarter increased by 7% to $2.59 per kg.

Prices in rouble terms increased almost by 4% from 69.11 roubles per kg in the first half of 2010 to 71.79 roubles per kg in the first half of 2011 (excluding VAT). Compared to the first quarter of 2011, the price in the second quarter increased by 2% from 71.07 to 72.39 roubles per kg.

Largest poultry production complex
“In addition to delivering strong results across all segments in the first half of 2011, we have confirmed our status as the most active player on the Russian meat market through the acquisition of Mosselprom, one of Russia’s best known meat producers,” said Sergei Mikhailov, CEO of Cherkizovo Group. “Furthermore, we have started construction of the country’s largest poultry production complex in the Lipetsk region.”

“We are now in the process of integrating Mosselprom within the Group’s production structure. Achieving synergies will help us to increase operational efficiency in our poultry segment, where we continue to deliver against our large scale capacity increase projects. This spring we opened two large poultry production facilities in our Bryansk and Penza clusters and we soon plan to launch two incubation facilities which will be amongst the largest not just in Russia, but across Europe.”

Source: Cherkizovo