Conditions remain challenging for Cherkizovo

Conditions remain challenging for Cherkizovo

Cherkizovo booked higher volumes across its divisions during the first nine months of the year, although the Russian meat processor revealed pricing has also come under pressure.

In a trading update, the group revealed poultry volumes were up 7% on the year, pork volumes gained 59% and processed meat volumes rose 6% in the period.

However, pricing came under pressure in the period, the company revealed. Pork prices fell 23% - although the company emphasised prices rebounded somewhat in the third quarter, rising 15% from second-quarter levels. Poultry and processed meat prices were largely flat, with poultry up 1% and processed meat slightly down.

In the face of a challenging year - with high grain prices hitting profitability and pressure on pricing - Cherkizovo is mulling diversification and has indicated it is considering expanding in dairy and lamb production.

Click here for the full statement from Cherkizovo.