Ukraine poultry and grain producer MHP S.A.'s net income was down 45% for the first quarter of 2011, reaching $20 million as opposed to 2010's $36 million. The decrease, according to the company, can be accounted for in the net effect of non-cash foreign exchange losses/gains of $18 million.
The company's poultry segment saw 18% revenue growth for the first quarter of 2011, to $209 million (compared to 2010's $177 million), due largely to a 4% average chicken meat sales price increase. Sales volumes of chicken meat increased 2%, to 84,300 metric tons, compared to 83,000 metric tons in the first quarter of 2010. Poultry production costs in the first quarter of 2011 rose slightly compared to 2010 due to the increase in grain and utility prices, which was partially compensated by the reduced cost of hatching eggs. Since the second half of 2010, MHP has been self-sufficient in hatching eggs; in the first quarter of 2010 approximately 25% of hatching eggs had to be imported at extra expense.
MHP's grain growing operations grew from $2 million in the first quarter of 2010 to $6 million in 2011, revenue generated by the sale of grain stocks, mainly wheat. In 2011, the company expects to harvest 60% more land (100,000 more hectares) compared to 2010.