Myronivsky Hliboproduct (MHP) intends by the end of 2018 to launch the first stage of a 10 MW biogas complex at Vinnytsia poultry farm.
“Investments in the first stage of the biogas complex will amount to about $20-22 million. The second phase is still under development,” financial director of the company Viktoria Kapeliushna told Interfax-Ukraine.
In addition, this year the agroholding continues to invest in the purchase of grain wagons.
“In 2018 we purchased 150 grain wagons and 50 cars last year for a total of about $8 million,” she said.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, and meat.
MHP supplies cooled chicken half-carcasses to the European market, which are processed, in particular, at its enterprises in the Netherlands and Slovakia.
The land bank of the company at the end of 2017 was about 370,000 hectares.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.
Myronivsky Hliboproduct (MHP) plans to increase the share of export revenues in total sales to 70% in future from 55% in the first half of 2018.
“We intend to increase exports … After the launch of all capacities, exports could reach 70%. This is the prospect for the next three years,” Viktoria Kapeliushna, the company’s finance director, told Interfax-Ukraine, noting that MHP exports not only chicken, but also grain and vegetable oil.
In addition, she confirmed the interest of MHP in purchasing new assets in other countries and reported the agricultural holding is considering several proposals.
Commenting on the impact of the external situation on the company’s plans, she noted the risk of expanding trade wars between the countries.
“The situation with the Turkish lira has not affected Ukraine so far. But we cannot say there won’t be influence at all, it depends on what will happen to other emerging markets. At present, it’s worth being more afraid of trade wars between the countries. This factor can indeed significantly affect the markets,” Kapeliushna believes.
Speaking about expectations for the near future, the financial director of MHP reported that the agroholding maintains its forecast for the growth of EBITDA in 2018 compared to 2017 by 5%, to $490 million.
Myronivsky Hliboproduct (MHP) sold 153,140 tonnes of chicken meat to third parties in April-June 2018 (Q2), which is 3% less than in April-June 2017. Sales of chicken meat in the first half of the year increased by 2%, to 288,440 tonnes, the company said in a report on the London Stock Exchange on Wednesday.
Poultry production volumes in Q2 2018 increased by 7% to 155,725 tonnes (Q2 2017: 145,820 tonnes) and in H1 2018 increased by 7% to 307,890 tonnes (H1 2017: 287,694 tonnes), due to increased production of heavier chicken and decreased share of thinning, the report said.
Myronivsky Hliboproduct (MHP) early July launched the second line at Vinnytsia poultry farm, the company’s press service has reported.
According to the report, total investment in the second line was $300 million.
The company said that at present, production at the farm is around 280,000 tonnes of poultry a year. By 2020 it is planned to boost it to 560,000 tonnes.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
MHP supplies cooled semi-carcasses, which are processed, including at its enterprises in the Netherlands and Slovakia.
The company’s land bank as of late 2017 was around 370,000 ha.
The founder and majority shareholder in MHP is Ukrainian businessman Yuriy Kosiuk.
The PeopleMeter startup has become the winner of the MHP Accelerator agro-startup development program, organized by Radar Tech, Agrohub and Myronivsky Hliboproduct (MHP).
According to the Facebook page of Agrohub, the winner startup, co-founded by Serhiy Hlyvoi, will receive a prize of UAH 300,000 and commercial launch with MHP.
In addition, the MobiMill startup received a prize from Agrohub and Radar Tech – two jobs for six months at Agrohub Space, while AgroLactBio (the co-founder is Lidiya Babenko) was awarded a trip to the innovative park of Israel. AeroDrone and BIODrum will launch a pilot project with MHP.
AeroDrone will also take part in the international program Startup Haifa from the Israeli Embassy in Ukraine.
Profeed, Sovtes, Meteo Trek, MobiMill will carry out commercial launch with MHP.
The program lasted eight months, training lasted three months, a total of 184 applications were submitted, of which 34 semifinalists were identified, and then 13 startup finalists were selected.
As reported, in 2017 the team of the Radar Tech technological cluster announced the launch of the MHP Accelerator startup development program in the agro-industrial complex with one of the largest agricultural holdings of Ukraine, Myronivsky Hliboproduct.
Agrohub, which promotes innovation in the agricultural sector of Ukraine, in 2018 will conduct a study to identify the innovative priorities of individual agro-companies and the industry as a whole.
Myronivsky Hliboproduct (MHP) plans to invest over $250 million in 2018 in the launch of the second line at Vinnytsia poultry farm, a biogas complex in Vinnytsia and modernization of existing production facilitiles.
“Total investment this year would be over $250 million. Some $160-170 million will be sent to launch the second line of Vinnytsia poultry farm in a month and a half, near $20 million – to build the second biogas complex in Vinnytsia. The rest of the investment will be sent to modernize existing production facilities,” MHP CFO Viktoria Kapeliushna told Interfax-Ukraine.
According to her, now MHP is considering proposals for the purchase of new assets in several countries.
“The other day the Commercial Court of Rennes (France) decided to satisfy the proposal to buy French Doux – not ours, but of a consortium represented by the French manufacturer LDC and the company from Saudi Arabia Al-Munajem .It is not a matter of selling the company, but selling assets. We were in the process and we saw how things were going. We are still monitoring the European market, the Middle East market, but we are not yet ready to make statements. We are considering proposals in several countries,” the CFO said.
The board’s plans for appointment Roberto Banfi, who previously was in charge of the Middle East region in a large Brazilian company BRF, to the position of director in the middle of June are related to the interest of MHP in the markets of this region.
“The Middle East is interesting. We see growth potential in the markets of this region both for small carcasses, quarters and for processed products. The trade and distribution company has been operating in the UAE for over a year,” Kapeliushna said.
She said that in 2018, as for EBITDA the agroholding intends to reach the level of 2017, possibly 5% higher. As MHP expects, the driver will be the increase in production volume associated with the launch of the second line of the Vinnytsia poultry farm.
MHP is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
The company supplies cooled halved carcasses of hens to the European market. They are processed there, including at its enterprises in the Netherlands and Slovakia.