MHP, the leading producer of poultry products in Ukraine, has sold more poultry in 2014 compared with the year before. Also, prices rose considerably.
The results of the fourth quarter of 2014 compared with the fourth quarter of 2013 reflect a trend that can be seen throughout the entire year. Compared with the final quarter of 2013 poultry sales volume increased 6 percent in Q4 to 128,680 tonnes, the price per 1 kg rose by 54 percent, from $0,57 to $0,88. Over the entire year 2014 the price of poultry per 1 kg climbed from $0,59 average in 2013 to $0,74 average in 2014. The higher prices are the result of increased exports and depreciation of local currency.
Increase of poultry production
The final three production sites at the Vinnytsia complex became operational, bringing poultry production volume to 142,120 tonnes in Q4 2014 (Q4 2013: 125,820 tonnes). Over the entire year of 2014, production increased by 16 percent to 546,500 tonnes. The sales volume of chicken meat constituted 128,680 tonnes in the final quarter, 6 percent more than in Q4 2013. In 2014 sales amounted to 525,460 tonnes of poultry, 18 percent more than in 2013.
Domestic demand for chicken meat strengthening
Due to significant depreciation of local currency, domestic demand for chicken meat is strengthening, as a result of consumers' trade down from more expensive meats (pork and beef) to more affordable ones. MHP's domestic sales volumes in Q4 and 2014 increased by around 8% and 19% year-on-year accordingly.
In 2014 chicken meat export reached 140,920 tonnes, with growth of 15% year-on-year. MHP continues to follow its strategy of diversified export markets and seeks for new business opportunities in the countries of Asia, the Middle East, European Union and Africa building-up the export volumes of chicken meat in those regions.
Export to EU
Since June 2014 until the year end, MHP exported poultry meat to the EU with zero import duty, which resulted in over 16,500 tonnes, 12% of total MHP poultry export in 2014.