August 8, 2011

Avangard boosts egg output by 51%

Avangard, a major agricultural holding in Ukraine, has raised egg output by 51% in H1 of 2011 to 2.88 billion eggs, compared with 1.91 billion eggs in H1 of 2010.

Production increased mainly due to the increase in the number of poultry by 31% to 24.4 million heads.  The share of sales in retail chains rose from 7% in H1of 2010 up to 30% in H1 of 2011 out of total sales volume. In H1of 2011, Avangard also increased processing of eggs by 86% to 534 million pieces.

At the moment, Avangard expects EU decision considering the possibility of starting egg products export supplies in Europe. Egg processing plant Imperovo Foods Ltd. has passed the required audit, and will start exporting immediately after receiving permission from the EU authorised bodies. The company is also trying to obtaining permission to export eggs and egg products in Russia. Avangard plans to receive this permission in the 3rd quarter of 2011.

"Avangard has continued to follow its strategy and plans to increase egg production by 36% to six billion in 2011 and by 17% to seven billion in 2012, which is quite an achievable goal, especially taking into account the continuing construction of new facilities: Avis (Khmelnitsky region) and Chernobaevskoe (Kherson region)," said analysts of the investment group Socrates.