For the month of December, MHP SE reports a year-on-year contraction of 17% in output of poultry meat from its Ukrainian business. At 57,075 metric tons (mt), production was down from 69,003mt in December of 2021.
However, third-party sales volume was 3% higher at a total of almost 66,000mt. While sales on the domestic market were 11% higher year-on-year at 30,906mt, exports slipped 3% to 35,051mt.
Compared with 12 months previously, average sales price in December last was up by 10 US cents at US$1.85 per kilo (net of VAT).
The results are reported by MHP for its Ukrainian business only, excluding its Balkans subsidiary, Perutnina Ptuj.
Sharp fall in processed meat product sales volume
In December last year, MHP reports sales of processed meats and convenience foods, at 2,726mt. This represents a reduction of 37% compared to the same month of 2021.
Over the same period, the average price for the sales were UAH92.81, representing a year-on-year increase of 16%.
Varied performance by MHP’s other Ukrainian operations
Year-on-year, MHP reported substantial increases in sales of vegetable oils to third parties in December.
Volumes sold of sunflower oil amounted to 32,11mt, while sales of soybean oil were 5,361mt. Compared with December of 2021, the increases were 21% and 61%, respectively.
Provisionally, the company’s grain-growing operations amounted to a total of more than 1.9 million metric tons (mmt) from an area of around 340,750 hectares (842,000 acres).
More than half of the total production — almost 1.1mmmt — was corn. Other crops produced by the company include wheat, sunflower, rapeseed, and soybeans.
More on MHP
Annual slaughterings of 482 million put MHP third in the rankings of European broiler producers, according to WATTPoultry.com’s Top Poultry Companies survey.
During the second quarter and first half of 2022, higher selling prices for its chicken in Ukraine and its European operation were among the few bright spots reported by MHP in its last quarter's financial report. Overall, domestic production was down, while huge logistical challenges have curtailed exports.
Earlier this month, MHP announced it now has more than 200 retail stores under its own “MeatMarket” chain. Since its first shop opened in July in 2020, there are now outlets in 20 Ukrainian regions.
Despite the invasion of Ukraine a year ago, the company and its partners have continued to ensure that every resident has access to quality food products, according to the head of MHP’s Retail Development Center.
Operated either directly by MHP or through franchise-holders, all “MeatMarket” outlets offer meats and ready-made hot and cold dishes, along with other groceries.
From its registered office in Limassol, Cyprus, MHP (formerly Myronivsky Hliboproduct) trades on the London Stock Exchange.
