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Cherkizovo: the situation in the meat industry is improving
The first quarter of the year was very difficult for meat producers in Russia. Grain prices reached a historic high, while pork prices fell throughout the quarter, Cherkizovo reports. However, the situation has started to improve.
In the 1st quarter, large pork producers were forced to sell meat and processed meat products below cost. “Although the pork division has been hit hard by falling prices, part of the margin has shifted to the meat processing division,” Cherkizovo reports.
“We expect the situation to improve considerably in future. As we anticipated, pork prices started to increase with the start of the summer season.
Due to a market shortage caused by a decrease in imports and the exit of inefficient producers, live-weight pork prices increased by more than 10% at the beginning of May. At the same time, grain prices started falling in expectation of a good harvest,” the company emphasizes.
Cherkizovo welcomes the government’s decision to increase support for the agricultural sector. Direct government subsidies this year will be 9 rubles per kg of pork and 3.5 rubles per kg of poultry meat. “These subsidies will be allocated based on production levels in the 4th quarter of 2012. Thus, Cherkizovo Group could receive subsidies of nearly 600 million rubles,” said Sergei Mikhailov, Chief Executive Officer of Cherkizovo Group.
Cherkizovo Group is Russia’s largest meat manufacturer. The Group is one of three largest companies serving the poultry, pork and processed meat market and is the country’s largest feed manufacturer.
The company has 7 full cycle poultry production facilities with total capacity of 400 thousand tonnes live weight per year, 14 modern pork production facilities with total capacity of 180 thousand tonnes live weight, 6 meat processing plants with total capacity of 190 thousand tonnes per year, 6 feed mills with total capacity of nearly 1.4 million tonnes per year, grain storage facilities with total storage capacity of more than 500 thousand tonnes, and a land bank of more than 100 thousand hectares. In 2012, Cherkizovo produced more than half a million tonnes of neat and processed meat products.
Crystal Cherkizovo played volleyball game with kids from UNITY foundation
25 may 2023
Crystal Cherkizovo played volleyball game with kids from UNITY foundation
Crystal Cherkizovo, a volleyball club whose main sponsor is Cherkizovo Group, met children with cancer supported by the UNITY charity foundation to talk about the history of volleyball and play an exhibition game.
Cherkizovo Group unveils prospects for halal product exports
23 may 2023
Cherkizovo Group unveils prospects for halal product exports
Cherkizovo Group, Russia's largest meat producer, took part in the business program of the Russia – Islamic World: KazanForum, the key platform for economic cooperation between Russia and Muslim countries. The Company shared its vision of opportunities to expand halal product exports to the CIS and beyond.
Cherkizovo Group reaffirms its leadership in Russia’s meat market
10 may 2023
Cherkizovo Group reaffirms its leadership in Russia’s meat market
Cherkizovo Group (Petelinka and Pava-Pava brands) for the eighth time topped the list of country’s largest meat producers in an annual ranking put together by Agroinvestor, a leading industry publication. In 2022, the Company accounted for around 8% of meat output in Russia.
Cherkizovo Group speeds up product delivery to China
28 april 2023
Cherkizovo Group speeds up product delivery to China
Cherkizovo Group, Russia’s largest meat producer, this week has made its first shipment of chicken products to China in refrigerated rail containers. This route will be an alternative to sea shipping, enabling the Company to deliver its products to Chinese customers three times faster, in 15 days instead of 45.
