Russian meat, poultry and grain producer Cherkizovo Group has reported that its sales volumes for chicken, turkey and grains increased in 2018 when compared to 2017.
But it wasn’t just the company’s sales volumes that increased in 2018. The prices for each commodity, with the exception of a few grains, also increased.
The company reported its annual, quarterly and December financial results on January 15.
Chicken results
Cherkizovo saw its chicken sales volume increase to 544.15 thousand metric tons for 2018, an improvement of about 4 percent. Helping that increase was the consolidation of Altaisky Broiler, which added 5,000 metric tons in December. The finalization of Cherkizovo’s acquisition of Altaisky Broiler was announced on December 5.
Also improving in 2018 on a year-over-year basis was the average price for chicken. The average price for the year was RUB116.54 (US$1.75) per kilogram, a 4 percent improvement.
Turkey results
Cherkizovo’s sales volume for turkey was up 2 percent in 2018 when compared to the previous year as the company sold 3,380 metric tons in 2018.
However, more impactful for the company’s bottom line was an increase in average price in 2018. The average price for the year for turkey was RUB204.30 (US$3.07) per kilogram, a 52 percent increase.
Grain results
Cherkizovo’s grain sales volume of 696,000 metric tons thousand was up 54 percent, mainly due to the sales of grains inventory accumulated from 2017 harvest. Its sales volumes for wheat, corn and sunflowers increased, while its soybean sales volume remained stable and its barley sales volume dropped by 5 percent.
The total harvest of 2018 amounted to 480,000 metric tons was down 24 percent when compared to 2017, as the company scaled down corn and wheat acreage.
The average sales price for Cherkizovo’s grains was driven by higher amounts of wheat and sunflowers, as well as average market prices for wheat and corn rising by 56 percent and 17 percent, respectively. The only average price to drop in 2018 was the price for sunflowers, which dropped 3 percent.
