The latest figures from Russia’s largest meat producer, Cherkizovo Group indicate that it will achieve its declared strategy to increase its exports in 2020.
Already in 2019, the fully integrated company exported 5% of its products, according to its annual report for that year. This compared with 3% during the previous 12 months, with an expansion attributed to the commencement of poultry meat trade to China.
Now the firm reports that this trade has further strengthened in 2020, while shipments to the Commonwealth of Independent States (CIS) countries have also grown year-on-year.
Overall, Cherkizovo is now forecasting exports of 85,000 metric tons (mt) for the year. This would represent an increase approaching 70% compared to 2019. Chicken meat products account are estimated to account for around 63,000 mt or 74% of the total.
If this level of trade is confirmed, it would represent a year-on-year increase of 85%.
China drives chicken exports
In June of 2019, Cherkizovo signed a contract worth US$8 million to export poultry meat to China, according to the group’s annual report for last year. That appears to have been the key development in the forecast expansion in this trade during 2020.
According to the trading company’s head of industry unions and government relations, Andrei Terekhin, this growth is being driven by exports of chicken feet (paws), wings, and drumsticks to China. These products are in strong demand from China’s retailers and foodservice sector. As well as increasing sales volumes to CIS states, Cherkizovo has sent its first products to the United Arab Emirates (UAE) and Saudi Arabia during the past year.
Furthermore, first exports to China have helped push Cherkizovo’s forecast turkey shipments up by 50% to 2,400 mt. Entering new markets in Asia, the group has expanded its pork exports by around 30% to 14,500 mt. For the first time in years, according to Terekhin, there has been a positive development in the group’s trade in sausages and ready-to-cook products in international markets. With a forecast volume rising to more than 5,000mt, exports would be up by around 25%.
Looking ahead to 2021, Terekhin said the company’s strategy for international trade in 2021 will be to diversify its destination markets, as well as increase its presence in those it has already secured.
Harvest up by 30% year-on-year
In recent days, Cherkizovo Group has put a preliminary estimate on its grain harvest for the year. At just over 800,000 mt (in terms of standard weight), the harvest volume looks to be one-third higher than 12 months previously.
Of this total, wheat is forecast to account for 511,000mt, corn 111,000 mt, and soybeans 59,000. These represent year-on-year increases of 59, 12, and 55%, respectively. Cherkizovo also harvests significant quantities of sunflower, barley, rye, peas, rapeseed, and mustard seed.
Total harvested area is 194,000 hectares (479,000 acres).
More on Cherkizovo Group
According to the Top Poultry Companies database from WATT Poultry, Cherkizovo Group is among the Top 10 producers in Europe. The latest figures put annual production by Cherkizovo Group at 319 million birds, making it the largest poultry producer in Russia.
In February of 2020, the company began exporting poultry meat to the United Arab Emirates. Two months ago, its first products were shipped to Saudi Arabia.
As well as chicken, turkey and meat processing and grain operations, Cherkizovo Group also has a pork division. Its output of 275,000mt in finished products in 2019 was valued at RUB24.5 billion.
