January 18, 2022

Cherkizovo reports 26 % increase in export revenue in 2021


Cherkizovo Group, Russia's largest meat producer, increased its export sales in 2021 by 7% in volume terms, with the rouble-denominated value of exports rising by 26 % due to the growing share of higher value-added products.


The company announced the preliminary results of its export operations for 2021. Total exports are expected to come in at around 88,000 tonnes, up circa 7% from 2020. Like in previous years, poultry accounted for the largest part of its exports (some 63,000 tonnes, or more than 70 % of total foreign sales).


China remains the key export market for Cherkizovo's chicken products (over 32,000 tonnes), with supplies including primarily chicken feet, wings and other cuts.


Over the past year, Cherkizovo ramped up its poultry shipments to the Commonwealth of Independent States, while also ensuring regular supplies to Saudi Arabia and expanding exports to African nations.


Turkey meat was the key driver behind Cherkizovo's growth in foreign markets, as its shipments in 2021 increased by 170 % to 6,000 tonnes. This was mainly due to the launch of turkey exports to China, which amounted to over 2,000 tonnes in 2021. The second largest foreign market for the company's turkey supplies was Benin (more than 1,500 tonnes).


Cherkizovo Group also exported 13,000 tonnes of pork in 2021, with the majority of supplies (over 10,000 tonnes) delivered to the CIS.


Over the past year, the company increased its foreign shipments of ready-to-eat products (sausages and ready-to-cook items) by 25 % to 6,500 tonnes. The key importers in this segment were Kazakhstan (more than 3,000 tonnes) and Azerbaijan (around 2,000 tonnes).


It is worth noting that in 2021, an increase in Cherkizovo's exports in money terms was substantially higher compared to that in volume terms. Total export revenue for the year exceeded ₽12 billion (US$158 million; up 26 % from 2020), with the sales of turkey, ready-to-eat products, chicken and pork rising by 280 %, 49 %, 20 % and 5 % in money terms, respectively.


"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," said Elena Volgusheva, exports director at Cherkizovo Trade House. "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."


In 2021, Cherkizovo Group further expanded its export geography by adding six new countries – Liberia, Mongolia, Congo, Serbia, Tajikistan and Equatorial Guinea. This takes the total number of the company's foreign markets to 21.


- Cherkizovo

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