Russian agrifood company Cherkizovo Group reported increased sales volume for its turkey business, but a decline in sales volume for its chicken business for the second quarter of 2020.
The company reported its financial results on July 10.
Chicken business
Cherkizovo reported a sales volume of 168.3 thousand metric tons during the quarter, a year-over-year decline of 2%. The sales volumes of Cherkizovo’s premium brand, Petelinka, was in line with the results of the previous year, while volumes of Chicken Kingdom branded produce added 3% on a year-over-year basis.
The company also significantly added export volumes, as foodservice demand remained well below the levels of the last year due to COVID-19 restrictions. The average sales price increased by 6% year-over-year.
Turkey business
Tambov Turkey’s sales volume of 9.6 thousand metric tons was up 8% on a year-over-year basis, with sales of Pava-Pava branded products adding 23% year-over-year and boosting average sales price by 10% when compared to the previous year.
Tambov Turkey is a joint venture between Cherkizovo Group and Spain’s Grupo Fuertes.
Pork business
Pork production volumes of 76.4 thousand metric tons increased by 14% when compared to the second quarter of 2019, and the sales volume reached 74.3 thousand metric tons, up 14% when compared to the second quarter of 2019. Prices declined by 11% on a year-over-year basis as the domestic market remains oversupplied with limited export possibilities.
Meat processing business
Sales volume for Cherkizovo’s meat processing business increased by 1% when compared to the second quarter of 2019, as the company emphasized more sausages and carcass sales. The average sales price of the segment declined by 4%: as carcass price eased by 11% year-over-year, in line with live pork prices, and prices for sausages and cuts remaining stable.
Cherkizovo Group, according to the Poultry International Top Companies survey, is the world’s 16th largest poultry producer, having slaughtered 397 million broilers in 2018. It also ranks as the largest poultry company in Russia and the third largest in Europe.
