Cherkizovo Group saw the sales volumes for its poultry and pork divisions both increase by 12 percent during the first half of fiscal year 2016 when compared to the first six months of 2015. Meanwhile, the company’s meat processing division’s sales volumes were up 26 percent.
Cherkizovo, which is Russia’s largest vertically integrated meat and feed producer, also has a grain farming division, but that division’s financial results are only reported annually because of the seasonality of the business.
Poultry Division sales
Sales volume in the first half of 2016 for Cherkizovo’s Poultry Division increased by 12 percent year-on-year to 252,351 tons of sellable weight from 225,223 in the first half of 2015. This growth, according to the company, was driven by higher production levels, which resulted from improvements in efficiency, sales of excess inventory and the launch of new poultry houses at the Mosselprom production facility.
Pork Division sales
In the first half of 2016, Cherkizovo’s sales volume in the pork division increased by 12 percent year-on-year to 86,902 tons of sellable weight. This was primarily due to a new genetics improvement strategy launched by the management at the beginning of the year to improve pigs’ health status and efficiency by increasing livability and weekly farrows, the company stated.
Meat Processing Division sales
During the reporting period, sales volume in the meat processing division grew by 26 percent year-on-year to 102,898 tons from 81,755 tons in the first 2015. This increase resulted from the launch of a pig slaughter plant at the Dankov meat processing plant in the second half of 2015, which boosted both volume and product assortment.