May 1, 2013

As part of its operational results for the first quarter of 2013, Ukraine's leading producer of eggs and egg products, Ovostar Union, has reported a significant increase in its total flock.

As of March 31, 2013 the total flock of the company increased by 28% to 4.32 million birds from 3.37 million birds as of March 31, 2012. Laying hens flock increased by 33% to 3.34 million birds from 2.50 million birds as of March 2012.

In the first quarter 2013 egg production increased by 23% on-year to 214 million eggs (March 2012: 174 million eggs). The volume of eggs sold increased to 127 million from 124 million in the first quarter 2012 while volumes of eggs exported increased to 12 million eggs.

In the first quarter 2013 the company processed 49% more eggs than in the first quarter of 2012 reaching 70 million eggs (March 2012: 47 million eggs). As a result, selling volumes of dry and liquid egg products increased considerably. In the first three months of 2013 the sales volume of dry egg products increased by 92% to 346 tonnes and sales volume of liquid egg products increased by 61% to 1,639 tonnes (March 2012: 180 and 1,020 tonnes, respectively).

The Ovostar's 2012-13 investment programme is being implemented on schedule. Equipment installation is being finalised in the second laying hens' house of 309,000 hen places. This laying hens' house will be launched in May 2013. All necessary equipment required for a 10,000-tonne expansion of the grain storage facility has been delivered and in March 2013 the company started installation of the grain elevator. Expanded capacities of grain storage are expected to be launched in August 2013.

Among other key developments, in the first quarter of 2013 the company started production of private label eggs for METRO under the Fine Food trademark and also signed a contract with Zhytomirsky meat processing plant to supply egg products.