In 2020, Russian agrifood company Cherkizovo Group reported increased production and sales year-on-year from all its meat divisions as well as for processed meat products.
Chicken meat
For chicken, the group’s sales amounted to a little over 695,000 metric tons (mt), according to the 2020 year-end production figures just published. That represents an increase of 5% year-on-year. Average price per kilogram was 2% higher at 107.7 rubles (RUB; US$1.47).
At 176,200 mt, Cherkizovo reports its sales for the fourth quarter in line with comparative periods, with the average sales price 5% above the previous quarter.
Turkey meat
In 2020, the group reports a 4% increase in sales of turkey meat compared to the previous year at 41,000 mt. Average sale price was 3% higher at RUB174.0 per kilo.
At 11,300 mt, output of turkey meat during the fourth quarter of 2020 was 1% higher than 12 months previously, and the average sales price was 1% lower. Compared to the previous quarter, production was up by 11%, and there was a small rise in average price.
The Group’s turkey business — Tambov Turkey — is a joint venture with Grupo Fuertes of Spain. Last year, a second stage of the Tambov Turkey business was opened, increasing capacity to 85,000 mt liveweight per year.
Pig meat
At almost 293,000 mt in 2020, Cherkizovo achieved a 7% increase in pork sales year-on-year, and the average selling price was 2% at RUB90.6 per kilo.
Compared to the previous year, pig meat sales volume during the fourth quarter of 2020 was 5% lower. However, they were 11% above the level of previous three-month period. According to the group, domestic sales rose modestly during the quarter, while imports dropped to negligible levels. So compared to the previous quarter, average prices were down 8%, but they were 19% higher year-on-year.
Processed meats
Year-on-year, the firm’s output of processed meat products was 6% higher in 2020 at 260,300mt, while the average price per kilo was 1% higher at RUB164.7. In terms of volume, leading products such as sausages and carcasses achieved close to the average increase in production. By-products outperformed the other categories with a 30% increase in average price despite 19% higher output.
Cherkizovo attributes the 6% increase sales in sales for this business in the fourth quarter of last year to the wider distribution of its sausage products.
Other businesses
For Samson Food Products, production in 2020 was 37% higher than in the previous year at almost 31,100 mt. At just over RUB199, the average per-kilo price was 3% below that of 12 months previously.
Cherkizovo hold a majority share in the St. Petersburg-based food processor.
Full-year production by the group’s grain business are included in the latest report. Total grain harvest in the last year was 796,640mt, a 34% increase on 2019. For wheat and soybeans, the volumes were up by more than 50% year-on-year as Cherkizovo switched its focus towards these crops and away from barley and sunflower. As well as improved yields, the group attributes the higher production to optimized crop rotations.
Sales of grain were up 27% at almost 663,000 mt, and the average sales price was 52% higher than in 2019.
More on Cherkizovo Group
According to the Top Poultry Companies database from WATTPoultry.com, 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.
Earlier this month, Cherkizovo Group announced plans to create a meat processing cluster in the Tula region in Russia’s Central federal district.
Full-year financial results for the Group are expected in mid-February.
