MHP sees fall of poultry production in the first half of 2012
The Ukraine's largest poultry producer, Mironovsky hleboproduct (MHP) has decreased its volume of production but improved the financial performance in the first half of 2012.
MHP reported that in the first half of 2012 it reduced production of finished meat products by 4.6%, or 790 tonnes in comparison with the first half of 2011. Also in the first half of the year the volume of sales of poultry also declined by 0.3% to 181,600 tonnes.
At the same time, the company forecasted an increase in rates of profitability due to higher prices in the domestic market.
In particular, according to estimates of the companies experts the price of finished meat products in Ukraine in the first half of 2012 increased by 15.4% to 21.83 hryvnias (US$ 2.69) per kg (excluding VAT) over the same period of 2011 (18.91 hryvnias (US$ 2.33) per kg). At the same time the price of chicken increased by 27.5% to 17.14 hryvnias (US$ 2.11) per kg compared to first half of 2011. Experts expect that the company’s revenue will also grow by about 23%-25%.
Consumer demand for poultry meat has remained high throughout the first half, and the company sells about 100% of its production. Also in the first half the volume of exports of chicken meat has continued to grow reached almost 20,000 tonnes, which is 30% higher than in the first half of 2011.
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