MHP reports strong results despite loss of poultry farm
Ukraine’s largest poultry producer, MHP, has reported strong results on the production and export of poultry in the third quarter of 2014 despite the fact the company actually lost control of one of its main poultry farms due to conflict in the east of Ukraine.
MHP ended the third quarter of 2014 with an increase of poultry sales volume by 21% to 144.8 thousand tonnes, according to official information released by the company. The company also has been able to increase its revenue due to the rise of prices for poultry products on the domestic market.
This price increase is attributed to a heavy depreciation of the Ukrainian national currency, while sales volume growth is explained by rising demand of the Ukrainian population for more affordable meat, which poultry is, compared to pork and beef.
At the same time the company lost control over its operations at Shakhtarska farm, which is located in Donetzk region, currently in an anti-terrorist operation zone. Shakhtarska breeding farm provided MHP with approximately 30% of its hatching eggs needs. The company substituted this volume with imports from Hungary, Germany and Netherland as well as purchases in Ukraine.
Poultry exports were 48% higher in the third quarter of 2014, compared to the same period in 2013. MHP continues to seek opportunities in Asia, Middle East and Africa. Exports to the EU region continue to grow in the third quarter as company continues to export at zero import duty.
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