In its latest results for the year just ended, Russian meat giant Cherkizovo Group reported mixed results for its business sectors.
It achieved strong growth in both sales volumes and prices for turkey meat, processed meat products, and exports. Meanwhile, chicken meat output was slightly higher, but at a markedly improved average price. A near 40% drop in wheat harvest contributed to a 20% year-on-year reduction in the firm’s overall grain harvest last season.
At the close of its 2021 financial year, Cherkizovo Group reported strong growth in its Turkey business. For this sector, sales were up 28% in volume to 52,400 metric tons (mt), while the average price has gone up 11% to 193.34 rubles (RUB; US2.52) per kilo.
This latest report records physical production for each of the company’s business areas, and average selling prices.
At an average price of RUB136.30, the group achieved a 27% increase in the average per-kilo price for its Chicken division. However, the sales volume was up just 2% at 711,240mt.
Compared to 2020, Cherkizovo’s sales of live pigs were cut back 28% to 242,800mt, while external sales were just 7% of the previous year’s tonnage. Furthermore, at RUB51.08 per kilo, the average price of live pork sales was down by 43% year-on-year.
The group’s ready-to-eat sector — RTE Meat Processing — 2021 saw positive sales developments. While it generated a 20% increase in sales at 135,860mt, the average price was 17% higher at RUB223.94.
For associate company Samson Foods products, in which it holds a 75% share, Cherkizovo is reporting a year-on-year 9% increase in sales volume at 33,960mt, at a 13% higher average price of RUB224.80 per kilo.
Grain harvest contraction
For the harvest year just ended, Cherkizovo’s grain production volume was hit hard, with a 25% fall compared with the 2020 season.
Worst-hit crops were wheat — down 39% year-on-year — and sunflower, for which the harvest was 20% lower. In contrast, soybean production rose 70% from the previous season to just over 100,000mt. Moreover, the firm’s corn (maize) harvest increased 11% to 121.420mt.
At RUB16.70 per kilo, the company’s overall grain crop average price was hardly changed from the previous season.
Export revenue up 26% in 2021
For the firm’s fiscal year 2021, Cherkizovo expects its revenue from exports to exceed RUB12 billion. This figure would represent a 26% increase compared to 2020. Meanwhile, its overseas sales are expected to be 7% higher year-on-year at around 88,000mt.
According to the company, the strong growth in revenue was supported by a shift towards higher overseas sales of value-added products. Among these, there was a 25% rise in sales of ready-to-eat and ready-to-cook products to Azerbaijan and Kazakhstan.
Poultry meat accounts for an estimated 70% of the group’s total export sales. With shipments up by 170% to 6,000mt, turkey meat was one of the key product groups fueling this growth.
For Cherkizovo, China continues to be its most important export market, taking 32,000mt of chicken products over the past year. Shipments comprised mainly chicken feet, wings, and other cuts.
Last year, the firm also commenced turkey meat exports to China, and expanded sales in the Commonwealth of Independent States (CIS), Saudi Arabia, and African countries.
More on Cherkizovo Group
Cherkizovo is the largest meat producer in Russia, the company reports. It also produces the most poultry meat and animal feed in the country, and ranks second in turkey meat output. Furthermore, it is also Russia’s 4th largest pork producer.
With annual slaughterings of more than 322 million birds, Cherkizovo is among the Top 10 poultry producers in Europe, according to WATTPoultry.com’s Top Poultry Companies database. Feed Strategy Top Feed Companies database puts total feed output by the Group at 2.2 million metric tons in 2020.
Last month, Cherkizovo announced two developments that further strengthen its position in turkey production. Not only has the company reached agreement with Grupo Fuertes to purchase its 50% share of Tambov Turkey, but it has also acquired Krasnobor. The nation’s third largest turkey producer, Krasnobor is based in Tula region, which is in the Central federal district in western Russia.