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Cherkizovo Pig Sector Plumping Up

by 5m Editor
20 May 2008, at 11:45am

RUSSIA - Cherkizovo, one of Russia's leading integrated and diversified meat producers, today announced that volumes in the company's pork segment more than doubled (2.45 times) in the first quarter of 2008.

Pork Division

As the increased capacity from the first two modules at the Lipetsk pig breeding and raising facility came on stream, pork volumes rose to to approximately 10,000 tonnes, from approximately 4,000 tonnes in the equivalent period in 2007.

Throughout the first quarter of 2008 pork prices in Russia followed the global positive pricing trend and increased by 11% to $2.33 per kg of live weight (excluding VAT) in the first quarter of 2008 compared to $2.11 per kg (excluding VAT) in the first quarter of 2007. In rubles, prices increased by 2% to 56.60 rubles per kg of live weight (excluding VAT) compared to 55.4 rubles per kg (excluding VAT) in the first quarter of 2007.

Meat processing Division

In its meat-processing segment, the Company continued to increase the share in its product mix of premium and higher margin value-added products, such as semi-smoked, cooked smoked sausages, deli and meat retail format, and decrease volumes of lower-priced, lower margin products. Sales volumes in the first quarter of 2008 within the meat-processing segment increased by 4% to approximately 34,000 tonnes as compared to approximately 32,800 tonnes in the first quarter of 2007.

As a result of the continuing shift towards higher margin products average prices within the meat-processing segment increased by 19% in the first quarter of 2008 to $3.81 per kg (excluding VAT) as compared to $3.20 per kg (excluding VAT) in the first quarter of 2007. In rubles the prices increased by 10% to 92.54 rubles per kg (excluding VAT) as compared to 84.18 rubles per kg (excluding VAT) in 2007.

5m Editor