Sales up at Cherkizovo

Leading Russian meat producer Cherkizovo reported a 7% increase in poultry prices in the second half of 2006, compared to the first half of the year.

This, it said, brought price levels back to levels experienced in 2005 pre the avian flu outbreak in its pre-close trade update in advance of it annual results.

Compared against the unusually strong price levels achieved in 2005, it saw a 1% decrease in average price in 2006 compared to the previous year.

As a result of earlier investments, poultry volumes increased by 50% in the second half of the year compared to the same period in 2005. Total 2006 volume growth was also up 36% compared to 2005.

Cherkizovo's pork prices increased by 19% compared to 2005 while volumes in its pork division rose by 7%, in line with its forecasts.

The Group said its product portfolio mix had moved with the demands of the marketplace towards more high margin, value-added products such as semi-cooked, cooked smoked sausages, deli and meat retail from decreased low value, low segment products which are low margin volume drivers.

Cherkizovo opened seven trade houses (storage facilities) in Ufa, St Petersburg, Saratov, Ekaterinburg, Perm and Kazan in 2006 as part of its expansion strategy.

"These facilities will enable the company to further develop its retail partnerships, increasing the share of premium, high margin products in our portfolio," said the Group in a press statement.

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