The first quarter operating results show higher volumes for pork and chicken and increased value for turkey products.In the first three months of this year, Cherkizovo increased the volume of sales for pork and chicken meat and added value to most of its turkey products, according to a press release from the company.
In the pork sector, production and sales increased by 18% and 20% respectively, compared to the first quarter of 2018. Prices gained 9% compared to 1Q18 supported by overall protein demand. A similar situation is for the chicken, with 151,600 tonnes of meat delivered in the market in the first three months of the year, up by 10% compared to last year.
"Average sales price increase of 26% y-o-y was driven by a low base effect of the 1Q18, coupled with ongoing efforts to increase the share of Petelinka and Chicken Kingdom, as well as HoReCa products in the sales mix", informs Cherkizovo. Turkey production declined by 16% but average sales price improved by 53% thanks to an expansion of Pava-Pava branded products and overall strong demand for turkey products.
Cherkizovo encompasses seven chicken manufacturing complexes (as well as the Belaya Ptitsa production complex which we currently operate pursuant to a lease agreement), sixteen pork farms, five meat processing plants (and an additional meat processing plant operated by an equity associate Samson – Food Products) and two slaughter facilities, nine animal feed plants, twelve grain elevators, a land bank of c. 290,000 ha. and a full-cycle turkey production plant in Tambov, owned and operated as a joint venture with Grupo Fuertes, a leading Spanish agriculture and food company.