Business news from Ukraine


13 March , 2018  

The structure of the egg market in Ukraine is close to oligopoly, however it is competitive, according to a report of the Antimonopoly Committee of Ukraine (AMC) for 2017 posted on its website. According to the report, the main participants in the egg production market are the agricultural holdings Avangard and Ovostar Union, Inter-Agrosystems Corporation with a total share of 46.61%.
The AMC notes the market is export-oriented with a trend towards increase in export volumes.
Taking into account the dynamics of production, sale of eggs in Ukraine and for exports, the AMC extended for 2018 a study of this market for compliance with the legislation on protection of economic competition in connection with price fluctuations.
As reported, Ukrlandfarming agricultural holding in 2017 reduced the land bank by 5.8%. Ukraine’s largest producer of eggs Avangard agricultural holding, controlled by Ukrlandfarming, whose shares are traded on the London Stock Exchange, in October 2015 completed the restructuring of eurobonds for $200 million. Previously American Cargill has withdrawn from among the shareholders of Ukrainian-based UkrLandFarming (ULF) agrarian holding, according to a ULF financial report for 2016. Cargill’s subsidiary, Cargill Financial Services International Inc. by the end of 2015, had held 1,668,749 ULF shares, or 5% of the total number. By the end of 2016, the number of shares owned by Avonex Limited had not changed, whereas the package held by Cargill was transferred to Cyprus-based Quickcom Limited’s ownership. The report says that the sole owner of Avonex Limited and Quickcom Limited is Oleh Bakhmatiuk. Cargill acquired a 5% stake in ULF early in 2014 for $200 million. Based on the sum of the deal, the total value of the holding was assessed at $4 billion.