March 17, 2016

                                                                

Cherkizovo seeks to begin meat exports to Europe

 
 

 

Russia's Cherkizovo Group hopes to start exporting meat to Europe as it seeks to mitigate the effects of falling profits - which dropped 64% in 2015 - due to a weakening rouble.

 

Affected by higher interests, net income had declined drastically to RUB6.0 billion (US$84.7 million). The company's profitability is still under pressure as most of its costs is denominated in US dollars and euros.

 

As a result of the faltering Russian currency, production costs swelled last year, including those involving the purchase of feed components, incubatory eggs and veterinary supplies.

 

"Cherkizovo hopes to increase the share of export sales, profiting from the weak rouble," the company said. "We are studying export opportunities in Europe and Southeast Asia where we actively talk to regulators and potential partners."

 

Nevertheless, Cherkizovo foresees a challenging Russian market this year due to diminishing spending power in the country.

 

In the meanwhile, the company is preparing to open a new pork breeding facility and aims to overtake Rusagro as Russia's second-largest pork producer behind Miratorg.

 

- Reuters

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