July 19, 2011
MHP's chicken sales increase in Q2
From April-June 2011, the amount of chicken meat sales to external consumers rose by 14% to 97,800 tonnes in contrast to the same period last year, and by 8% to 182,100 tonnes during 2011 H1, mainly because of an increment in output due to more efficient utilisation of current capacity.
Demand for chicken meat during the first half of 2011 remained high and the company was able to sell close to 100% of the chicken produced.
The average chicken meat price through the second quarter of 2011 increased slightly by 1% to UAH13.97/kg (US$1.75) of adjusted weight (excluding VAT) when compared to second quarter of 2010. H1 2011 prices for chicken meat increased slightly by 2% compared to H1 2010, from UAH13.13/kg (US$1.64) to UAH13.44/kg (US$1.68). These trends are in line with global poultry market trends.
In line with management expectations, MHP's poultry production costs in the second quarter and the first half of 2011 were relatively higher on year due to the increase in the market price for grain harvested in 2010.
In regard to grain growing operations, currently the company cultivates approximately 280,000 hectares of land under control and expects to harvest an additional 100,000 hectares in 2011 compared to 2010 in its grain growing segment.
The company recently began harvesting wheat and barley. Despite concerns over weather conditions it expects yields to be good enough and significantly higher than Ukraine's average, due to operational efficiency and employment of best practice.
The company forecasts strong harvest and yields for corn and sunflower, taking into account current crop conditions.
