For the month of April, Cherkizovo Group recorded sales of 56,150 metric tons (mt) of chicken, 3,190 mt of turkey meat, 23,470 mt of pork and 19,810 mt of processed meats. For each category, the volumes were lower than in the previous month.
While the company does not comment on these monthly results, the changes are likely to be related to the novel coronavirus (COVID-19) pandemic.
Trends in terms of output and average prices vary between the group’s main business activities.
Compared with the same month of 2019, the group’s chicken sales were down by 4% in volume, but the average price per kilo was 14% higher at RUB109.37 (US$1.48). Turkey meat sales were 5% higher year-on-year, and at RUB183.29, the average price per kilo was up 10%. The average pork price was just RUB84.65 per kilo — a fall of 13% from April 2019 — but output was up by 3%.
Overall, Cherkizovo’s output of processed meats was 6% lower year-on-year, as was the average price. The same reduction was recorded for the average price. However, the various categories of product fared differently. For example, while there was a 10% increase in sales of byproducts, cuts were down by more than half compared with April 2019. Average carcass price was down 13% on the year, but there modest increases for the other product groups.
In April, Samson Food Products achieved 2,310 mt of sales, which represents an increase of 44% year-on-year. At RUB97.10, the per-kilo price averaged a 6% drop over the same period. Based in St. Petersburg, the Samson Foods Products group specializes in processed meats. In December 2018, Cherkizovo Group acquired a 75% share in the company.
First-quarter results: Increased sales in all categories
In its results for the first quarter of this year published one month ago, Cherkizovo reported double-digit increases in the volume of sales in all categories year-on-year.
Chicken sales for the three months were 174,700 mt, which represented a 15% increase on the same period of 2019. The start of production at a new facility in Kursk largely accounted for this increase, the company reported. Average chicken prices were comparable with the previous year.
Because of the low comparative figure for the first quarter of 2019, the group’s joint venture Tambov Turkey registered a 20% increase in sales volume at 9,900 mt. Average sale price was down 2% year-on-year.
As Cherkizovo was also ramping up pork production during the first quarter of last year, sales volume was boosted by 13% in the same period of this year. Average price tumbled by 10% over the same period. Cherkizovo attributed this to market conditions, which had seen only limited export opportunities while there was significant expansion in Russian pig meat output.
With sales of sausages and carcasses up by 13% and 25%, respectively from the previous year, first-quarter sales of Cherkizovo’s processed meats were 15% higher year-on-year. The group had added new products to its sausage category, while carcasses sales grew in line with increased pork production. While prices for sausages and cuts were stable, carcass prices were down by 8%. Combined, these changes led to a 5% lowering in the average price for the company’s products in this sector.
