August 12, 2020

Cherkizovo proposes exporting finished poultry products to China

At the online session "Export of Russian Poultry Products to China: a Strategy for Success", organised by Federal Center Agroexport and the National Union of Poultry Farmers, Cherkizovo Group stressed that it is necessary to strengthen sales channels and expand the range of products, including in the further processing segment.

The event, attended by representatives of the Russian Ministry of Agriculture and regional agricultural authorities, leading experts, and heads of Russian poultry companies, covered the current status and prospects of Russian products on the Chinese market. The session was attended by 230 people.

In 1H 2020, Russia broke into the top three exporters of poultry to China. However, according to Cherkizovo Group experts, to maintain that position and develop exports further, it is necessary to strengthen sales channels and expand the range of products, including in the further processing segment.

Future performance of Russian companies may be undermined by the growth of domestic production in China and the return of other large suppliers (such as the United States) to the Chinese market, says Andrei Terekhin, head of Exports at Trading Company Cherkizovo.

Terekhin stresses that Russia's export potential is not limited to the supply of frozen raw meat (chicken feet, thighs, wings), and in the future, supplies to China may include finished higher value-added products.

"If we are serious about establishing a permanent presence in the Chinese market, the discussion needs to focus on premium products that could be sold in both retail and online stores. We consider it necessary for future exports to include higher value-added products. Chicken feet, which are now supplied in bulk in 10 kg boxes, can be sold in individual packaging. The overall assortment can be expanded with finished heat-treated products, such as meat with various marinades, nuggets and cutlets that will be produced in Russia. This is a higher quality product and a whole different level of added value," explains Terekhin.

However, the decision allowing such products access to the Chinese market requires a lot of work and may take a long time, says Cherkizovo.

China is Cherkizovo's key export market. In 2019, the company shipped 14,000 tonnes of poultry to China (over 40% of Cherkizovo's total exports in this segment). This year, Cherkizovo plans to raise the figure beyond 50,000 tonnes.