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Cherkizovo Group reaffirms its leadership in Russia’s meat market

Cherkizovo Group reaffirms its leadership in Russia’s meat market

10 may 2023

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.

According to Agroinvestor, total output of meat (hereinafter, in terms of slaughter weight) by all Russian manufacturers amounted to 11.6 million tonnes in 2022, as compared to 11.3 million tonnes in 2021. The top 25 meat producers included in Agroinvestor’s annual ranking grew ahead of the market, producing 6.8 million tonnes of meat and outpacing the 2021 ranking’s top 25 players by ca. 0.6 million tonnes. Thus, the leaders’ share in the country’s meat output for 2022 was 58%.

For the eighth time in a row, Cherkizovo Group won the first place in the ranking. In 2022, its facilities produced a total of 917.7 thousand tonnes (an increase of 57 thousand tonnes or 7% vs. 2021), or ca. 8% of Russia’s total meat output.

This includes 634.5 thousand tonnes of broiler meat, up 4.1% y-o-y. The increase was driven by the capacity expansion in the Altai Territory (commissioning of new bird houses and launch of a new high value-added production facility) and the ramp-up of chicken meat exports as a result of geography expansion (four new countries were added — Qatar, Angola, Mongolia, and Tajikistan) and sales growth in the FSU markets.

In 2022, Cherkizovo Group produced 201 thousand tonnes of pork, an increase of 7.4% y-o-y. The Company also demonstrated a 28.5% growth of turkey output (which totaled 82.2 thousand tonnes) driven by the acquisition of Krasnobor in early 2022.

Cherkizovo plans to further scale up its meat production through both organic growth and M&A. This year, the growth of production will be supported by the deals made in late 2022, including the acquisition of Vishnevsky Genetics and Breeding Center (Orenburg Region), assets of Russian Grain Ufa (Bashkortostan) and facilities of Zdorovaya Ferma (Chelyabinsk Region).

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alt
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