MHP, the leading poultry producer from Ukraine, has announced its pre-close trading update for the first three months that ended on 31 March.
MHP's production of chicken meat increased by 7% in the first quarter of 2018, reaching 152,167 tons from 141,874 tons in the first three months of 2017. The rise is based on a decreased percent of flock thinning and increased production of bigger broiler carcasses.
MHP's chicken meat sales to third parties rose by 9% in Q1 2018, up to 135,307 tons from 123,931 tonnes in Q1 2017. On the other hand, domestic sales volumes decreased by 4% year-on-year.
Furthermore, the company's exports of chicken meat increased by a staggering 28% in the first three months of this year compared to the corresponding period from 2017, totaling 63,144 tons. MHP exports poultry to 53 countries. Export sales represented around 47% of total poultry sales volumes in Q1 2018.
"During the reporting period, following its export strategy, the Company has been developing its exports mainly in the countries of the MENA and the EU," the company's statement read.
The average chicken meat price through the first quarter of 2018 increased by 23% to UAH 38.78 per kg (excluding VAT) compared to the same period last year but around 5% lower than in Q4 2017. Due to the relatively stable currency ratio, average MHP’s poultry prices in Q1 2018 increased by 22% year-on-year in USD term (almost in line with a growth in UAH term).
Exports prices increased by 17% year-on-year, mainly as a result of MHP’s export product mix change and increased sales to more profitable markets (market targeting strategy). MHP’s poultry prices on the domestic market remained almost at the same level as in Q4 2017, but 23% higher year-on-year due to low comparative basis in Q1 2017.