The Cherkizovo Group, Russia's top meat supplier, has announced that it intends to buy local poultry producer Altaisky Broiler for an undetermined amount.
Although the deal is still subject to approval by the Russian Federal Antimonopoly Service, it would create a giant in meat and poultry producing in Russia, increasing Cherkizovo's share of the poultry market to 12% in the country.
The deal is certain to appease Cherkizovo's shareholders, as it recently had to announce that chicken volumes went down during its second quarter.
The average sales price was up in the chicken division, the company noted, ‘[due to the] chicken market being undersupplied with lower deliveries from some domestic producers, and the positive effect from our Petelinka- and Chicken Kingdom-branded products quickly gaining market share on key markets.'
As Altaisky Broiler produced 67,000 tonnes (live weight) of poultry products in 2017, this should allow Cherkizovo to ensure considerable growth in the sector.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Matthieu Chassain. Click subscribe to sign up to ESM: European Supermarket Magazine.