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Sales up but Profits down for Czech Processor

by 5m Editor
30 June 2009, at 9:33am

CZECH REPUBLIC - Despite raising sales to 1.6 billion koruny (CZK) last year, gross profit for poultry processor, Drubezarsky zavod Klatovy, was down.

According to Prague Monitor, Drubezarsky zavod Klatovy increased sales to 1.6 billion koruny (CZK) last year from CZK 1.278 billion in 2007 but its gross profit fell by CZK 6.6 million to CZK 23.6 million.

The company's CEO, Milan Riha, reported the results to CTK after its general meeting on 29 June. The results mirror situation on the market and high imports.

The country's second largest chicken processor expects a three per cent growth in production this year. This should help raise sales by some CZK 100 million to CZK 1.7 billion.

The highest growth will be by smoked food. The company has enlarged its smoked food production hall and invested into technology. Smoked food production makes up a third of the company's total output. It is expected to grow by up to 10 per cent this year, Riha said.

The company has 429 employees, five more than last year.

Poultry producers have complained that chicken prices are too low to even cover the costs. Pressure of retail chains and high imports make it impossible to raise them.

Prices on the Czech market are very volatile and unpredictable, strongly influenced by very low pork prices and very cheap chicken imports mainly from Brazil and Poland.

Chicken meat consumption in the Czech Republic last year stayed at the level from 2006 and 2007, that is 26 kilogrammes per capita, which is a good European average, according to Prague Monitor.