MHP poultry production increased in 1H 2020

MHP agro-industrial holding's poultry production volumes in 1H 2020 increased by 2% to 359,931 t (1H 2019: 353,578 t).

Poultry production volumes in Q2 2020 remained relatively stable and constituted 181,291 t (Q2 2019: 182,306 t) and by around 2% higher compared to Q1 2020 (178,640 t).

"During 1H 2020 third parties sales amounted to 328,385 t of poultry, which is 5% lower than in 1H 2019, driven mainly by challenging situation with both domestic (mainly in Q2) and export markets as a result of avian influenza outbreak in Ukraine in Q1 2020 and COVID-19 pandemic since March 2020," the company's report reads.

In Q2 2020 the volume of chicken meat exports totalled 88,505 t and decreased by 9% compared to the second quarter of 2019 volume — 97,439 t, and by around 8% higher compared to Q1 2020.

In 1H 2020, poultry exports decreased by 10% and reached 170,553 t compared to 1H 2019 — 190,484 t.

"Notwithstanding the turbulent times, MHP continued to follow its strategy of both geographic diversification and of a product mix optimization building-up the export volumes of chicken meat across the MENA, CIS and Africa, predominantly. Total poultry exports in 1H 2020 constituted around 52% vs 55% in 1H 2019 of total poultry sales volumes," MHP says in a statement.

Through the second quarter of 2020, the average chicken meat price (both domestic and export) constituted UAH 34.16 (US$ 1.27) per 1 kg of natural weight (excluding VAT) and decreased by 15% in UAH terms year-on-year. H1 2020 average chicken meat price was UAH 34.30 (US$ 1.32), which is 13% lower in UAH terms compared with chicken price in H1 2019.

It is noted that both in Q2 and H1 2020 poultry prices decreased year-on-year mainly driven by the product mix change (significant decrease in sales of fillet to the EU and increased sales to MENA) and weaker prices on fillet in the EU.

Previously reported that MHP capitalization for the period of July 16-23 decreased by 5.1% to USD 673 mln.