Russian meat producer Cherkizovo Group has reported a 26% growth in export revenue in its 2021 financial year, driven by the growing share of higher value-added products.
Total export revenue for the year exceeded RUB 12 billion (€140 million), with sales of turkey, ready-to-eat products, chicken, and pork rising by 280%, 49%, 20%, and 5%, respectively.
Elena Volgusheva, exports director at Cherkizovo Trade House, said, “The difference between the increase in value and volume of foreign supplies mainly comes as a result of the company’s efforts to shift the focus in 2021 to the exports of higher value-added products with significantly stronger margins.
“One of the drivers was that we started supplying nuggets and chicken cuts to Central Asia as a way to cater for the needs of local restaurants and retail chains.”
Annual Performance
The company reported a 2% year-on-year growth in chicken sales volumes in 2021, to 711,240 tonnes, with a 27% growth in average price to RUB 136.30 per kilogram.
Turkey sales volumes increased by 28% to 52,400 tonnes, while the price per kilogram increased 11% to RUB 193.34.
Pork production volume declined 28% in 2021, to 242,800 tonnes, from 337,110 tonnes in 2020.
The RTE meat processing unit saw a 20% growth in volume to 135,860 tonnes, with the average price per kilogram increasing 17% to RUB 223.94.
Fourth-Quarter Results
In the fourth quarter of 2021, the sales volume of chicken amounted to 178,300 tonnes, while the average price per kilogram increased by 31% year-on-year.
JV Tambov Turkey saw sales volume up 20% year-on-year, to 13,600 tonnes, with average sales price increasing by 23%.
In the pork segment, the sales volume of carcass declined by 36 % year-on-year to 16,100 tonnes, while sales price increased 19%.
For pork cuts, sales volume remained in line with the previous year's performance of 8,400 tonnes, with the average sales price increasing 19%.
The company's meat processing unit reported a 21% year-on-year growth in sales volume during the quarter, with the average sales price up by 29%.
Read More: Fire In Cherkizovo’s Chicken Processing Plant Impacts Q3 Sales
Export Performance
For the full year, total exports amounted to around 88,000 tonnes, with poetry accounting for the biggest share of the company’s exports and generating more than 70% of total foreign sales.
Its key export market was China for chicken products, at 32,000 tonnes, with supplies comprising primarily chicken feet, wings, and other cuts.
Over the past year, the Cherkizovo ramped up its poultry shipments to the CIS, while also ensuring regular supplies to Saudi Arabia and expanding exports to African nations.
Turkey shipments increased by 170% to 6,000 tonnes in 2021, driven by the launch of turkey exports to China, which amounted to over 2,000 tonnes.
The second-largest foreign market for the company’s turkey supplies was Benin, in West Africa, which imported more than 1,500 tonnes.
The meat processor added six new countries to its export geography – Liberia, Mongolia, Congo, Serbia, Tajikistan, and Equatorial Guinea – taking its total number of export destinations to 21.
© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
