Russia’s Cherkizovo Group posts decrease in grain sales

Sales volumes in the Grain division decreased by 43% y-o-y to 12,149 tonnes in the first half of 2013 from 21,193 tonnes for the first half of 2012. This volume decrease was due mostly to high sales of the 2012 grain harvest at the end of 2012 following a more favourable price environment. 

Prices in ruble terms increased by 52% y-o-y from 5.58 RUR/kg in the first half of 2012 to 8.50 RUR/kg in the first half of 2013. Compared to the price of 8.45 RUR/kg in the first quarter of 2013, the price in the second quarter of 2013 increased by 2%. 

In July Cherkizovo started harvesting in the Voronezh and Orel regions. In this agricultural season the company sowed about 40,000 hectares of arable land including 25,000 hectares under spring crops (wheat, barley, corn, and oats) and about 15,000 hectares under winter crops. For all of 2013 Cherkizovo plans to harvest approximately 150,000 tonnes of grain. 

Pigs and poultry
Sales volumes in the Poultry division for the first half of 2013 increased by 4% y-o-y to approximately 165,114 tonnes of sellable weight compared to 158,345 tonnes for the first half of 2012.

Sales volumes in the Pork division in the first half of 2013 increased by 50% y-o-y to approximately 70 078 tonnes of live weight, compared to 46 764 tonnes in the first half of 2012. 

Sales volumes in the Meat Processing division increased by 2% y-o-y to approximately 63,226 tonnes in the first half of 2013 from 62,105 tonnes for the first half of 2012.