Agroholding MHP, the largest producer of chicken meat in Ukraine, in January-June 2022 reduced chicken production by 3% compared to the first half of 2021 – to 346.04 thousand tons, while its sales – by 12%, to 338.6 thousand tons, the holding company reported on the London Stock Exchange on Wednesday.
It is noted that in the second quarter of 2022, the agricultural holding, in the context of the Russian military invasion, reduced chicken production by 11% compared to March-June last year – to 170.4 thousand tons, and by 3% compared to the first quarter of 2022. At the same time, the volume of chicken meat sales in the second quarter of 2022 amounted to 140.6 thousand tons, which is 23% lower than the same period last year, but 1.6% higher than sales in the first quarter of this year.
According to the exchange message, in January-June 2022, chicken sales on the domestic market decreased by 6% compared to the first half of 2021 – to 134.7 thousand tons, while supplies to foreign markets – by 17%, to 157.9 thousand tons. At the same time, in the second quarter of 2022, chicken sales in Ukraine amounted to 67.9 thousand tons, decreasing by 6% compared to the second quarter of 2021, but increasing by 1.6% compared to the first quarter of 2022. In turn, chicken meat exports in the second quarter of 2022 fell by 37% by the second quarter of 2021, and by 23% by the first quarter of 2022, to 68.55 thousand tons.
Thus, the share of chicken exports in January-June of this year decreased by 4 percentage points (p.p.) against January-June 2021 to 52% from 56%, while in March-June 2022 this figure decreased to the same period last year by 11 percentage points – up to 48% from 59%.
In addition, MHP poultry farms in the EU in January-June 2022 produced 37.4 thousand tons of poultry meat, which is 5% more than in the first half of 2021, and in the second half of 2022 – 19.6 thousand tons (+ 1% compared to the same period in 2021).
The average price of chicken meat in January-June 2022 increased by 24% year-on-year, to $1.93/kg, while in March-June it increased by 22% compared to the same period last year, to $2.03/kg.
According to MHP, in the first half of this year, the agricultural holding increased sales of culinary products by 76% compared to the first half of last year – up to 6.97 thousand tons, including in the second quarter of 2022 it sold 4.1 thousand tons of these products ( +54% compared to the second quarter of 2021).
According to the report, the sale of processed meat products (including sausages) by the agricultural holding in January-June 2022 decreased by 48% compared to January-June 2021 – to 8.3 thousand tons, and in March-June 2022 – by 73 % compared to March-June last year, up to 2.3 thousand tons.
According to the results of the first half of the period, the sale of semi-finished meat products decreased by 14% – to 7.4 thousand tons, while according to the results of the second quarter – by 24%, to 3.42 thousand tons.
MHP specified that in January-June 2022, sales of sunflower oil decreased by 11% compared to January-June last year, while in March-June 2022 they increased by 38% compared to March-June 2021, to 48.5 thousand tons. tons. At the same time, sales of soybean oil in the first half of 2022 decreased by 15%, and in the second quarter increased by 23% compared to the same periods in 2021, to 19.5 thousand tons and 9.2 thousand tons, respectively.
“In 2022, the company should sow about 335 thousand hectares of land in the grain crops segment. The harvesting campaign for winter rapeseed and wheat is on schedule, of which 70% and 25% are harvested, respectively. The yield of all winter crops is expected to be good and in line with the company’s expectations with taking into account the weather conditions. Spring crops (corn, soybean and sunflower) are in good condition,” the agricultural holding stated in an exchange message. MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.
