The Russian meat producer OAO Cherkizovo Group has reported a 36% rise in poultry volumes in 2006, on the back of increased investment. The company said volumes had risen by some 50% in the second half alone.
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However, the company said that poultry prices had fallen by 1% to US$2.15 per kilogram from $2.16/kg, excluding value-added tax, in 2006, though it added that the drop was due to the high comparison base created by unusually strong price levels in 2005. There was also a 7% recovery in poultry prices in the second half of the year from the first six months, the company said.
Cherkizovo also reported that throughout 2006 the environment for pork sales was favourable and the impact on pork prices exceeded the management’s expectations. Prices increased 19% in 2006 to $2.14/kg from $1.79/kg of live weight, excluding VAT. Pork volumes rose by 7% on an organic basis, which was in line the company’s forecasts.
During 2006, Cherkizovo said it had made progress in moving its product mix towards higher-margin, value-added products. As a result, it said it increased volumes of products such as semi-smoked and cooked smoked sausages, and deli and meat retail format products, and had decreased its reliance on low-value, low-margin volume drivers.
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