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Cherkizovo Group Ranks as Russia's Top Meat Producer

11 September 2017

RUSSIA - PJSC Cherkizovo Group, the largest vertically integrated meat and feed producer in Russia, last week announced that it has come first in the 2016 Agroinvestors ranking of Russia’s top meat producers.

According to Rosstat data, production of livestock and poultry for slaughter in all farms was about 9.9 million tonnes in market weight last year, a 3.1 per cent increase compared to 2015. These results indicate a high level of consolidation in the meat sector.

In the future, major changes in the rating may be driven by mergers and acquisitions (M&A) deals, although large players are also expected to continue organic growth.

The new ranking includes 25 companies, which produced 4.3 million tonnes of meat in 2016. It amounts to 43 per cent of all meat produced in the country, before meat processing. The top five has remained unchanged since last year.

The stability of the top five rated companies reflects the continued consolidation of the meat market, including an increase in the market power of large vertically integrated agricultural holdings. The companies also put new production capacity online and strengthened their market positions through M&A.

According to Agroinvestors analysts, the composition of the top three ranking is unlikely to change in in the near term. Cherkizovo Group, they forecast, will tighten its grip on the first place as it completes its previously announced investment projects in pork and poultry.

Experts note that the raw meat industry is shifting its investment priorities into investments by the largest players in processing, logistics and product management.

ThePoultrySite News Desk



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