August 11, 2010

Cherkizovo awaits for more grain assistance from Russia

Cherkizovo said aggressive grain price increases caused by a heatwave-induced poor harvest were likely to lead to meat price inflation, but that it was counting on the state for further aid.

The company, which owns poultry and pig farms, said the government should do more to help farmers if grain prices continue to rise, although it welcomed measures to mitigate the impact of the drought to date.

"In the event of sustained extraordinary grain price increases, we reasonably anticipate that the government will intervene with additional subsidy measures," Chief Executive Sergei Mikhailov said on Wednesday (August 11).

Russia has imposed a grain export ban amid other measures to help local producers, who have seen crops destroyed by the country's worst heatwave on record.

Mikhailov added that the heatwave and subsequent fires in Central Russia had not affected any of its farms to date, while the group remained on track to hit 2010 production targets.

Cherkizovo said poultry sales rose 8% in the first half of the year, while pork soared 75% as new farms reached full target levels.