MHP poultry sales trended upward in 2020
In 12M 2020, poultry production volumes at MHP agro-industrial holding's enterprises were relatively stable and constituted 731,279 tonnes (12M 2019: 728,917), the company's report data show.
During 12M 2020, third parties sales amounted to 698,020 tonnes of poultry, which is 4% higher than in 12M 2019, driven mainly by the substantial increase in exports in H2 2020 — 37% and 8% year-on-year in Q3 and Q4 2020, respectively (following the strategy to decrease poultry stocks), mainly due to the improved sales predominantly to MENA region as well as to Africa and Asia.
Related: Geography of MHP Processed Product Exports
It is noted that after a temporary decrease in utilization of poultry production capacity in Q1 (by c.10% from February to the end of March 2020 as a result of the avian influenza outbreak in Ukraine), since the beginning of Q2 all MHP’s poultry production facilities have been operating at full capacity.
"There were several outbreaks of avian influenza in Ukraine in December 2020, however, the Company continued to export poultry meat to its major markets (except to the EU banned market). None of the MHP poultry complexes was affected with avian influenza by the time of pre-close trading update release," the company says in a statement.
Notwithstanding the turbulent times, the report reads, MHP continued to follow its strategies of both geographic diversification and of a product mix optimization developing partnerships across the MENA, CIS, EU and Africa countries. Total poultry exports in 12M 2020 constituted around 54% and 53% in 12M 2019 of total poultry sales volumes. Export sales in 12M 2020 grew by 5% year-on-year to 373,734 tonnes (12M 2019: 357,324).
"In general, for 2020, the situation in export markets deteriorated significantly due to several outbreaks of avian influenza at the beginning and at the end of the year 2020 and COVID-19 pandemic adverse effect throughout the year," MHP marks.
Previously reported that Singapore allowed import of poultry products from Ukraine.