OREANDA-NEWS. February 11, 2013. Cherkizovo OJSC (LSE: CHE), Russia's leading integrated and diversified meat producer, today issues a trading update for the year ended  31 December 2012, reported the press-centre of Cherkizovo.

Poultry Division
Sales volumes in the Poultry division in 2012 increased by 23% to approximately 319,210 tonnes of slaughter weight compared to 260,200 tonnes in 2011, reflecting organic volumes added in the Penza and Bryansk clusters and sales by Mosselprom, which was acquired in May 2011 and now is fully integrated.

Prices in rouble terms increased by 8% from 72.79 RUR/kg in 2011 to 78.62 RUR/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter  increased by 3% to 84.81 RUR/kg. 

Prices for poultry sales in dollar terms increased by 2% from USD 2.48/kg in 2011 to USD 2.53/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased by 6% to USD 2.73/kg.

Pork Division
Sales volumes in the Pork division in 2012 increased  by 14% to approximately 103,877 tonnes of live weight, compared to 91,400 tonnes in 2011. 

Prices in rouble terms decreased by 4% from 80.04 RUR/kg in 2011 to 76.52 RUR/kg in 2012 (excluding VAT). Compared to the price in the third quarter of 2012, the price in the fourth quarter sharply decreased by 21% to 65.44 RUR/kg, reflecting an increased supply of live hogs to the market,  and the influence of seasonal factors. 

In dollar terms, prices for pork sales decreased by 10% from USD 2.72/kg of live weight in 2011 to  USD 2.46/kg of live weight in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter decreased  by 19% to \\$2.11/kg. 

Meat Processing Division
Sales volumes in the Meat Processing division decreased by 12% to approximately 127,403 tonnes compared to 145,270 tonnes in 2011, due to the closure of an inefficient slaughtering facility in southern Russia.

Prices in rouble terms increased by 11% from 133.65 RUR/kg in 2011 to 148.39 RUR/kg in 2012 (excluding VAT), reflecting a change in the product mix towards higher margin processed products. Compared to the price in the third quarter, the price in the fourth quarter of 2012 increased by 2% to 153.76 RUR/kg. 

Prices in dollar terms increased by 5% from USD 4.55/kg in 2011 to USD 4.77/kg in 2012 (excluding VAT). Compared to the third quarter of 2012, the price in the fourth quarter increased 5% to \\$4.95/kg.

Grain division
In 2012, Cherkizovo Group’s Grain division became a strong contributor to the results for the first time. Cherkizovo Group’s Grain division has reported a 2012 crop harvest of approximately 115,000 tonnes of agricultural products. The approximate current yields per hectare are: wheat: 3.4 tonnes; barley: 3.3 tonnes; sunflower: 2.6 tonnes; and corn: 6.1 tonnes.

Sales in the Grain division in 2012 amounted to 112,414 tonnes of agricultural products, including 51,254 tonnes of wheat, 24,594 tonnes of barley, 11,990 tonnes of corn, 12,000 tonnes of sunflower.

Average prices in the Grain division in 2012 were approximately 8.28 thousand RUR/tonne (USD 266/tonne), price for wheat amounted to 7.12 thousand RUR/tonne (USD 229/tonne), price for barley amounted to 6.07 thousand  RUR/tonne (USD 195/tonne), price for corn amounted to 7.36 thousand  RUR/tonne (USD 237/tonne), price for  sunflower amounted to 18.09 thousand  RUR/tonne (USD 582/tonne).