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Cherkizovo Reports Increase in Pork, Poultry Sales Volumes During 2012

31 January 2013

RUSSIA - Cherkizovo Group, Russia's largest meat manufacturing company, has reported an increase in sales volumes by 14 per cent and 23 per cent in its pork and poultry divisions, respectively.

Poultry Division

Sales volumes in the Poultry division in 2012 increased by 23 per cent to approximately 319,210 tonnes of slaughter weight compared to 260,200 tonnes in 2011, reflecting organic volumes added in the Penza and Bryansk clusters and sales by Mosselprom, which was acquired in May 2011 and now is fully integrated.

Prices in rouble terms increased by 8 per cent from 72.79 RUR/kg in 2011 to 78.62 RUR/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased by 3 per cent to 84.81 RUR/kg.

Prices for poultry sales in dollar terms increased by 2 per cent from $2.48/kg in 2011 to $2.53/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased by 6 per cent to $2.73/kg.

Pork Division

Sales volumes in the Pork division in 2012 increased by 14 per cent to approximately 103,877 tonnes of live weight, compared to 91,400 tonnes in 2011.

Prices in rouble terms decreased by 4 per cent from 80.04 RUR/kg in 2011 to 76.52 RUR/kg in 2012 (excluding VAT). Compared to the price in the third quarter of 2012, the price in the fourth quarter sharply decreased by 21 per cent to 65.44 RUR/kg, reflecting an increased supply of live hogs to the market, and the influence of seasonal factors.

In dollar terms, prices for pork sales decreased by 10 per cent from $2.72/kg of live weight in 2011 to $2.46/kg of live weight in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter decreased by 19 per cent to $2.11/kg.

Meat Processing Division

Sales volumes in the Meat Processing division decreased by 12 per cent to approximately 127,403 tonnes compared to 145,270 tonnes in 2011, due to the closure of an inefficient slaughtering facility in southern Russia.

Prices in rouble terms increased by 11 per cent from 133.65 RUR/kg in 2011 to 148.39 RUR/kg in 2012 (excluding VAT), reflecting a change in the product mix towards higher margin processed products. Compared to the price in the third quarter, the price in the fourth quarter of 2012 increased by 2 per cent to 153.76 RUR/kg.

Prices in dollar terms increased by 5 per cent from $4.55/kg in 2011 to $4.77/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased 5 per cent to $4.95/kg.

Grain division

In 2012, Cherkizovo Group’s Grain division became a strong contributor to the results for the first time. Cherkizovo Group’s Grain division has reported a 2012 crop harvest of approximately 115,000 tonnes of agricultural products. The approximate current yields per hectare are: wheat: 3.4 tonnes; barley: 3.3 tonnes; sunflower: 2.6 tonnes; and corn: 6.1 tonnes.

Sales in the Grain division in 2012 amounted to 112,414 tonnes of agricultural products, including 51,254 tonnes of wheat, 24,594 tonnes of barley, 11,990 tonnes of corn, 12,000 tonnes of sunflower.

Average prices in the Grain division in 2012 were approximately 8.28 thousand RUR/tonne ($266/tonne), price for wheat amounted to 7.12 thousand RUR/tonne ($229/tonne), price for barley amounted to 6.07 thousand RUR/tonne ($195/tonne), price for corn amounted to 7.36 thousand RUR/tonne ($237/tonne), price for sunflower amounted to 18.09 thousand RUR/tonne ($582/tonne).

ThePoultrySite News Desk



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