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Cherkizovo Sees Poultry, Pork Sales Rise

by 5m Editor
13 August 2009, at 11:47a.m.

RUSSIA - Cherkizovo OJSC, one of the country's leading integrated and diversified meat producers, has issued its trading results for the first six months of 2009. Sales volumes were up for poultry meat and pork compared to the same period of 2008, and average prices increased for all divisions.

Poultry division

Total sales volumes in the poultry segment in the first six months of 2009 gained five per cent to approximately 92,840 tonnes compared to approximately 88,350 tonnes in the first six months of 2008.

Prices for Cherkizovo poultry sales increased by 16 per cent from 62.46 rubles (RUR) per kilo in the first six months of 2008 to RUR 72.32 in the same period of 2009 (excluding VAT). As a result of the 38 per cent depreciation of the ruble over this period, prices in dollar terms decreased by 15 per cent from $2.61 per kilo in the first six months of 2008 to $2.19 in the same period of 2009 (excluding VAT).

Pork division

Sales volumes in the pork division in the first six months of 2009 increased eight per cent to approximately 21,250 tonnes compared to approximately 19,680 tonnes for the same period of 2008.

In the first six months of 2009, prices for pork in Russia increased in ruble terms by 23 per cent from RUR 61.22 per kilo in the first half 2008 to RUR 75.41 in the same period of 2009 (excluding VAT). In dollar terms, prices decreased by 11 per cent from $2.56 per kilo live weight in the first six months of 2008 to $2.28 in the same period of 2009 (excluding VAT).

Meat Processing division

In the meat processing division, the company continued to see decreased sales volumes of lower-priced, lower-margin products and this – together with lower consumption in the regions of Russia due to the challenging economic environment – affected the performance of the division. Sales volumes were lower by 14 per cent to approximately 61,550 tonnes in the first six months of 2009 from approximately 71,820 in the first six months of 2008.

Average prices increased by 17 per cent from RUR 95.07 in the first half of 2008 to RUR 111.43 in the first six months of 2009 (excluding VAT). Segment prices in dollar terms decreased by 15 per cent from $3.97 in the first half of 2008 to $3.37 in the same period of 2009 (excluding VAT).

Commenting on the performance Sergei Mikhailov, CEO of Cherkizovo Group said: "Despite the challenging economic conditions and lower consumer spending in the first half year, we saw favourable ruble pricing and sales trends for our products. We remain cautiously optimistic about consumption patterns and pricing trends for our products for the rest of the year."