August 8, 2013

Ukrainian poultry firm MHP reported a favourable production indicators and sales growth during the second quarter of 2013 as exports of chicken have been tripled and reached 31,550 tonnes, with six-month exports also tripled to 54,750 tonnes.

"Overall, sales of these products to external customers in the second quarter increased by 18%, to 113,800 tonnes, and for the half year by 13%, to 205,300 tonnes," according to the company's statement.

The company unveiled plans to increase production of poultry products and boost exports by commissioning the largest poultry farm in Ukraine and one of the largest in Europe, which should reach full production capacity in early 2014.

"The launch of the Vinnytsia poultry complex will allow us to increase annual poultry production by 10% before the end of 2015," said MHP chairman, Yuri Kosyuk.

According to Kosyuk, the project is almost completed. "We now produce about 40% of the planned capacity and are happy that it turns in high-quality product with good costs. This is a good project. But it turned out so expensive that MHP will develop new projects through purchases in Europe and Russia," he added.

According to Kosyuk, MHP invested US$700 million in the commissioning of this poultry farm so far, and the total investment is likely to grow to US$800 million.

MHP also expects to increase exports of poultry products to 100,000 tonnes over the next few years. The company stated this goal will be achieved by exports to the European market, which began in September after the EU granted Ukrainian poultry access, as well as growing demand for Ukrainian chicken from countries in the Middle East.