MHP sees sales growth while exports slow

By Chloe Ryan

- Last updated on GMT

Related tags: Meat, Mhp, Poultry

Poultry producer MHP has increased poultry production by 6%
Poultry producer MHP has increased poultry production by 6%
Ukrainian poultry producer MHP has published its third quarter results, showing increased production and sales volumes overall, but a significantly reduced export business. 

In the three months ending 30 September 2015, poultry production increased 6% to 142,295 tonnes compared to the same period last year.

Sales volumes of chicken meat grew 4% year-on-year in the third quarter, while the average price per kilo rose 25% during the same period.

Due to significant depreciation of local currency, domestic demand for chicken meat is strengthening, as a result of consumers trading down from more expensive meats such as pork and beef, the company said. MHP’s domestic sales volumes in Q3 and in the first nine months of 2015 increased by around 15% and 4% year-on-year accordingly.

The effect on exports has been less beneficial, however. During the third quarter of 2015 exports by MHP declined 22% compared with Q3 in 2014 at 34,585 tonnes. This was mainly due to decreased exports to former Soviet bloc countries. “MHP continues to follow its strategy of diversified export markets and seeks new business opportunities in Asia, the Middle East and Africa,”​ the company said in the results.

The company is also continuing to explore new opportunities in the EU market. In the third quarter, MHP exported around 8,000 tonnes of chicken meat to the EU, 7% higher than in the same period last year.

MHP is the leading producer of poultry products in Ukraine. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales, including through MHP’s franchise outlets. It says vertical integration reduces its dependence on suppliers and its exposure to increases in raw material prices.

Related topics: Meat

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