Increased production boosts MHP poultry sales
Ukrainian poultry producer, MHP, has announced positive results for 2013 as it continues to focus on production expansion.
During 2013 MHP’s green field Vinnytsia project has been gradually launched in operations in line with operational and investment plans. By the end of 2013, nine of the 12 brigades at its new Vinnytsia complex were operational and working at 100% capacity. MHP’s production volume as well as sales volume increased significantly year-on-year.
As the Vinnytsia Poultry complex (Phase 1) will continue launch of the final rearing sites as a logical step in an increase of production volumes and reach its full capacity since H2 2014, during 2014 the company will increase its overall poultry production volume by more than 15% year-on-year.
Owing to the increasing production volumes at the Vinnytsia poultry farm, poultry production volumes in Q4 2013 increased by 15% to 125,820 tonnes (Q4 2012: 109,210 tonnes) and in 2013 increased by 17% to 472,800 tonnes (2012: 404,000 tonnes).
During the fourth quarter of 2013 the volume of chicken meat sales to third parties continued the growing dynamics of previous quarters and reached 121,600 tonnes, which is 21% higher than in Q4 2012 driven mostly by a new capacity launch in operations.
Export sales of chicken in Q4 2013 increased by 50% compared to Q4 2012 and constituted around 37,940 tonnes of chicken. For the total 2013 export of poultry increased significantly by more than 2 times compared to 2012 and constituted close to 123,000 tonnes of chicken meat, which is around 28% of total chicken sales volumes. Furthermore, following the company’s strategy of export diversification of its chicken meat export across all regions, MHP managed to significantly decrease its export share to the Custom Union countries since H2 2013.
In 2013 the company opened over 20 new export sales markets both in Asia, Middle East and Africa, simultaneously increasing its exports trades across all regions.
In July 2013, MHP received permission from the EU authorities for exports of poultry products to European countries for its three capacities: Myronivka poultry farm, Meat processing plant Legko (convenience food) and Snyatynska farm (goose meat and foie gras). Since October 2013, MHP has started to export its poultry products to the European market, which resulted in around 500 tonnes.
In 2014 MHP plans to increase its poultry export operations in the EU market.
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