Cherkizovo Group sees meat output growth this year

Russian meat firm Cherkizovo Group is expecting a rise in total production in 2010 and a significantly higher output of its poultry in 2011 as a result of upgrades and a favourable market.

Cherkizovo CEO Sergei Mikhailov said the group expects the pricing environment for the products to remain positive driven by a decrease in imports and growing domestic demand.

The group continued investing in production growth last year, concentrating on large-scale projects in the poultry division targeted at increasing capacity. It also invested in its pork division, set to reach full capacity this year.

Poultry meat sales in 2009 declined by 2% to 184,300 tonnes, while the pork segment sales increased by a hefty 38% to 53,000 tonnes. Processed meat sales, however, fell 10% to 130,000 tonnes due to lower consumption due to the crisis.

Cherkizovo sold its products at stable or higher prices in Russian ruble terms in 2009, although depreciation of the Russian currency led to a decline in dollar prices.

Russia has cut import tariff quotas for 2010-12 as the country aims to become self-sufficient in pork and poultry in the next few years.

Russia has also effectively halted poultry imports from US when it banned meat treated with chlorine from January 19 and curtailed US pork imports citing the presence of an antibiotic.