Cherkizovo's poultry division sees first quarter growth
Russian meat producer Cherkizovo has recently released a trading update for the first quarter of 2011 with promising growth in it's poultry division.
Sales volumes in the Poultry division in the first quarter of 2011 increased by a robust 15% to approximately 53,570 tonnes of sellable weight compared to approximately 46,570 tonnes for the first quarter of 2010, reflecting the contribution from the newly launched sites at Bryansk.
Prices for poultry sales in dollar terms increased by 5% from $2.32 per kg in the first quarter of 2010 to $2.43 per kg in the first quarter of 2011 (excluding VAT)*. Compared to the price in the fourth quarter of 2010 of $2.45, prices in the first quarter of 2011 were almost flat.
Prices in rouble terms increased by 3% from 69.20 roubles per kg in the first quarter of 2010 to 71.07 roubles per kg in the first quarter of 2011 (excluding VAT). However, compared to the price in the fourth quarter of 2010 of 75.15 roubles per kg, the price in the first quarter of 2011 decreased by 5%, reflecting pressure from higher inventories caused by a larger share of imports entering Russia in the fourth quarter.
However prices in April 2011 have been on an upward trend, and the company anticipates this to continue through the second quarter of the year, given the considerable reduction in poultry import quotas, as well as meat price inflation resulting from rising input costs.
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