Russia's Cherkizovo Group Affected By Pricing Movements
Cherkizovo Group, the biggest vertically-integrated meat producer in Russia, has posted results for the month of July that indicate that the company is being affected by volume declines and pricing gains in some categories, while in others, the opposite is the case.
In its Chicken division volumes were down 5% year-on-year in July compared to the same period last year, however average price (RUB/kg) rose by 12%.
However in Turkey, volumes were up 31% with average price down 5%. In Meat Processing, too, volumes were up 10%, with average pricing down 2%.
Its Pork division showed the most stability for the month of July, with volume sold rising by 4% and average price increasing by 8%.
In July, the business opened a new, fully-automated smoked sausage plant near Kashira, 115 kilometers south of Moscow.
Commenting at the opening of the plant, Russia's deputy prime minister, Alexei Gordeyev said, "Today we are opening a unique facility – an advanced meat processing plant set to become a powerful driver for Russia's agriculture and a showcase for achievements of the national food industry. [...] This new facility is undoubtedly the harbinger of the upcoming digital transformation in Russia."
Cherkizovo Group encompasses eight full cycle poultry production facilities, sixteen modern pork production facilities, six meat processing plants, eight feed mills and around 287,000 hectares of agricultural land.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.