November 1, 2012

Cherkizovo OJSC, Russia's leading integrated and diversified meat producer, on Wednesday (Oct.31) issued a trading update for the first nine months of 2012.

For the first nine months of 2012, sales volumes in the poultry division increased by 27% to approximately 236,080 tonnes of sellable weight compared to 185,620 tonnes for the first nine months of 2011. Prices in rouble terms increased by 6% from RUB72.40 (US$2.31) per kilogramme for the first nine months of 2011 to RUB76.43 (US$2.44) per kilogramme in January-September of 2012 (excluding VAT).

Sales volumes in the pork division for January-September of 2012 increased by 7% to approximately 70,131 tonnes of live weight, compared to 65,800 tonnes of the same period of 2011.  Prices in rouble terms increased by 4% from RUB78.90 (US$2.52) per kilogramme for the first nine months of 2011 to RUB81.85 (US$2.61) per kilogramme in January-September of 2012 (excluding VAT).

In the meat processing division, sales volumes decreased by 13% to approximately 94,049 tonnes for the first nine months of 2012 from 108,420 tonnes for the first nine months of 2011, due to the closure of an inefficient slaughtering facility in southern Russia and a change in the product mix towards higher margin processed products. Prices in rouble terms increased by 12% from RUB130.56 (US$4.16) per kilogramme in January-September of 2011 to RUB146.49 (US$4.7) per kilogramme for the first nine months of 2012 (excluding VAT).

Cherkizovo Group's farming division reported a 2012 crop harvest of approximately 103,000 tonnes of agricultural products, to date. The Company cultivated approximately 35,000 hectares in Voronezh and Orel regions. The 2012 harvest includes wheat (approximately 54,000 tonnes), barley (approximately 18,000 tonnes), sunflower (approximately 12,500 tonnes) and others (peas, corn, soy).

Cherkizovo Group (CHE) is the largest meat manufacturer in Russia and one of the top three companies serving Russia's poultry, pork and meat processing markets.  The company is also Russia's largest producer of fodder.