September 30, 2013

Ukraine's Ovostar Union will invest US$90 million in the modernisation of its production facilities over the next three years, which will substantially increase the volume of its egg production.

By the end of 2013, the reconstruction of one factory will be completed which will make 5.4 million bird placing stalls available. A similar facility is currently being constructed in the Kiev region which will increase the number of bird placing stalls from one million to 4.6 million. The company is aiming to have doubled its poultry numbers by the end of the investment programme in 2018.

Egg production is expected to reach 2.1 billion eggs, liquid egg products' production is expected to reach 14,000 tonnes and dried egg products are expected to be produced at the rate of 2,200 tonnes.

During the first half of 2013, the company reported strong operational results with the volume of egg sales rising by 14% on-year. At the same time the rise in prices for feed increased the cost of production of one egg by 35% compared to the beginning of the year.

Investments in production expansion and modernisation ensure sustainable profit margins in the future. One of the focus points of current investment programme is securing solid infrastructure to support extended egg production facilities on one of the laying hen's sites.

In December 2013, Poultry farm Ukraine will be completely reconstructed reaching capacity of 4.4 million laying hen places. Total capacity of Ovostar Union egg production facilities will reach 5.4 million laying hen places as at the end of the year.

Grain storage facility on Vasylkiv egg production site has been launched in July 2013 ahead of schedule, increasing the Group's total own grain storage capacity by 10,500 tonnes to 28,500 tonnes.