This year, the export of Cherkizovo products will increase by 70%

This year, product exports "Cherkizovo" will increase by 70% Group "Cherkizovo (MCX: GCHE)", one of the largest producers of meat products in the Russian Federation, this year will increase exports by 70% (in kind). This result is primarily associated with an increase in the export of poultry products to Asia and the CIS, according to a press release of the company..

It is expected that shipments will amount to about 85 thousand tons, which is almost 70% more than in 2019. The main export driver, like last year, was chicken products: its shipments may increase by 85%, to almost 63 thousand tons, and make up about 74% of the company's total exports..

"Since 2019, China has become the main export market for our poultry products. In 2020, supplies to this country reached a consistently high level", - said the head of the department for interaction with industry unions and state institutions of the TD "Cherkizovo" Andrey Terekhin, quoted in a press release.

The company mainly supplies chicken legs and wings to China, as well as drumsticks and other chicken parts. The buyers are the largest Chinese distributors and meat processors, whose clients are retail chains and catering establishments.

In 2020, the group also increased shipments of chicken products to the CIS countries, entered the promising market of the Gulf countries, shipping the first shipments to the United Arab Emirates and Saudi Arabia..

According to a press release, pork exports in 2020 may increase by 32%, to 14.5 thousand tons. This is due to both the growth of supplies to the CIS countries and the opening of new markets in Southeast Asia, the company explains..

Foreign sales of turkey are projected to grow by more than 50% to 2.4 thousand tons, which is also largely due to the start of supplies to the Chinese market. Exports of meat processing products (sausages, semi-finished products) for the first time in recent years may show significant growth: the volume of shipments will amount to more than 5 thousand tons, which is about 25% more than last year.

"Despite the pandemic, the group managed to achieve further growth in overseas sales in 2020. Export remains one of the priority areas of the company's development, therefore, in 2021 we will strive to increase its volumes both by increasing supplies to those countries where we already work, and by expanding the geography of our products", - Terekhin said.

Group "Cherkizovo" unites seven complexes for the production of chicken meat (as well as a production complex "White bird", used on a leasehold basis), 16 pig farms, five meat processing plants (as well as the "Samson - food", in which the company has 75%), two slaughter lines, nine feed mills, 12 elevators, a land bank with an area of ​​300 thousand hectares and a full-cycle turkey production complex in Tambov.