Cherkizovo Group expects 70% export growth in 2020

December 3, 2020

Moscow, Russia – December 3, 2020 – Cherkizovo Group, Russia’s largest meat producer, looks to significantly increase its product exports by as much 70% in 2020. This is largely thanks to higher poultry shipments to Asia and the CIS.

Cherkizovo Group expects to see its total product exports hit 85,000 tonnes in 2020, up almost 70% y-o-y, according to preliminary results. As in 2019, chicken products continue to be the key driver behind this year’s growth, potentially reaching 63,000 tonnes (up 85% y-o-y) and accounting for about 74% of the Company's total exports.

“China has been the main export destination for our poultry products since 2019, and this year’s solid growth in chicken exports is largely attributable to the high level of sales we achieved in this market in 2020,” said Andrei Terekhin, Head of Industry Unions and Government Relations at Trading Company Cherkizovo. The range of chicken products we supply to China includes mostly chicken feet, wings, drumsticks and other cuts. The key buyers are major Chinese distributors and meat processors serving the country’s retail chains and food service providers.

In 2020, Cherkizovo Group also increased chicken supplies to the CIS and entered the promising Gulf market, making the first chicken shipments to the UAE and Saudi Arabia.

The Group’s pork exports are set to increase by 32% to 14,500 tonnes in 2020 thanks both to increased shipments to the CIS and the launch of supplies to new markets in Southeast Asia. Export sales of turkey are forecast to grow by more than 50% in 2020 to 2,400 tonnes also largely due to the start of shipments to China. Exports of processed meat products (sausages and ready-to-cook items) may post solid growth for the first time in several years, rising to more than 5,000 tonnes, around 25% up y-o-y.

“Despite the pandemic, Cherkizovo Group was able to make strides in further strengthening its export growth in 2020. It remains one of our business development priorities, and in 2021 we will keep working to boost exports by increasing our presence in the already secured markets while also diversifying into new geographies,” said Andrei Terekhin.