August 13, 2009

Russian meat firm Cherkizovo boosted poultry sales by five percent and pork sales by eight percent in the first half of 2009, although processed meat sales declined 14 percent due to lower consumption in the economic crisis.

Cherkizovo sold its products at higher prices in rouble terms, although depreciation of the Russian currency led to a decline in US dollar prices, the company said on Wednesday (Aug 12).

Despite the challenging economic conditions and lower consumption in the first half year, products were still having favourable rouble pricing and sales trends, chief executive Sergei Mikhailov said in a statement.

Poultry sales volumes rose to 92,840 tonnes in the first half of 2009. Prices rose 16 percent in rouble terms to 72.32 roubles (US$2.25) per kg, but fell 15 percent in dollar terms to US$2.19 per kg.

Pork sales rose to 21,250 tonnes, with prices up 23 percent in rouble terms to RUB75.41 (US$2.35) per kg, but down 11 percent to US$2.28 per kg in dollar terms.

Cherkizovo would remain cautiously optimistic about consumption patterns and pricing trends for its products for the rest of the year, Sergei Mikhailov said.

Reduced sales of low-margin processed meat products and lower consumption outside Russia's major cities contributed to a 14-percent drop in first-half meat sales to 61,550 tonnes.

The meat processing division's average price rose 17 percent to RUB111.43 (US$3.47) per kg, but fell 15 percent to US$3.37 per kg in dollar terms.