* Says nine-month net income up 26 pct to $104.4 mln
* Sees challenging year ahead for global grain supplies
* Meat sale prices likely to be lower on over supply
(Adds CEO comment, detail)
MOSCOW, Nov 30 (Reuters) - Russia's biggest meat producer Cherkizovo said it expects meat prices to fall over the turn of the year as grain shortages cause producers to slaughter more livestock, creating an oversupply.
"We are now witnessing a slight oversupply of meat in the market ... this puts a downward pressure on selling prices, especially for poultry sales," Chief Executive Sergey Mikhailov said in a statement.
He added that the company expected "a rather challenging year" for grain supplies -- used by the company as animal feed.
He said the problem would be particularly pronounced in Russia, where the country's worst heatwave on record destroyed crops during summer 2010.
Cherkizovo said net income for the nine months to end September rose 26 percent to $104.4 million, partly on increased production capacity and new farms, while revenues were up 20 percent at $877.7 million.
Cherkizovo shares opened 0.5 percent higher in Moscow, in line with the wider market. ($1=31.10 Rouble)
Cherkizovo Group employees have held a volunteer event supported by the Ray Foundation for Helping Homeless Animals. They brought food, medicines and other useful supplies to two Moscow shelters and helped with dog walking.
Cherkizovo Group’s chicken and turkey products have once again been awarded the annual Product of the Year title, with flagship brands Petelinka and Pava-Pava winning two categories of the award.
Cherkizovo Group, Russia's largest meat producer, is taking part in Our Brand, an international food festival in Ufa. The Company showcased its products during a tasting session at its stand.
Cherkizovo Group, Russia's largest meat producer, continues to expand its turkey product line under Pava-Pava, one of its flagship brands. This fall, the Company has launched sales of spiced turkey filet, a perfect choice for holiday dinners.