Russian meat giant reports strong growth

Russian meat giant reports strong growth

Cherkizovo OJS), Russia’s leading integrated and diversified meat producer, has shown strong growth in its pork and poultry divisions, up 27% and 7% respectively.

Sales volumes in the poultry division for the first nine months of 2012 increased by a robust 27% to approximately 236,080 tonnes of sellable weight compared to 185,620 tonnes for the first nine months of 2011. The business said this was a reflection of the organic volumes added in the Penza and Bryansk clusters and sales by Mosselprom, which was acquired in May 2011 and is now fully integrated.

Prices for poultry sales in dollar terms decreased by 2% from $2.52/kg for the first nine months of 2011 to $2.46/kg for the first nine months of 2012 (excluding VAT), due to rouble weakening. Compared to the second quarter of 2012, the price in the third quarter increased by 7% to $2.57/kg.

Pork

Sales volumes in the pork division for the first nine months of 2012 increased by 7% to approximately 70,131 tonnes of live weight, compared to 65,800 tonnes for the first nine months of 2011.

In dollar terms, prices for pork sales decreased by 4% from $2.74/kg of live weight for the first nine months of 2011 to $2.63/kg of live weight for the same period of 2012 (excluding VAT), due to rouble weakening. Compared to the second quarter of 2012, the price in the third quarter decreased by 2% to $2.59/kg.

Meat processing

Sales volumes in the meat processing division decreased by 13% to approximately 94,049 tonnes for the first nine months of 2012 from 108,420 tonnes for the first nine months of 2011, due to the closure of an inefficient slaughtering facility in southern Russia and a change in the product mix towards higher margin processed products.

Prices in dollar terms increased by 4% from $4.54/kg for the first nine months of 2011 to $4.71/kg for the first nine months of 2012 (excluding VAT). Compared to the second quarter of 2012, the price in the third quarter increased by 1% to $4.72/kg.

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