Exports of poultry meat to the MENA region increased by nearly three-quarters (74%) in the three months to 31 March 2016, said the company in its Q1 financial results published on Tuesday 19 April.
The huge growth in poultry exports to MENA came as the company reported a fall in shipments to the Commonwealth of Independent States (CIS) – which includes Russia and Kazakhstan as members.
Exports to the CIS region recorded a near 30% year-on-year decline, but this was offset by exports to the MENA region, which soared as the company benefited from a strategy to diversify export sales.
MHP reported that total exports of chicken meat hit 31,970 tonnes (t), a rise of 23% when compared to Q1 2015, when exports were reported at 31,970t. Sales of exports only represented 27% of total poultry sales in Q1 from the company.
But the rise, nonetheless, underlines MHP’s new strategy, which has seen the Ukrainian poultry producer assume more control over export volumes by establishing sales offices in key export markets.
Increased prices in Ukraine drove the average poultry price up by 17% when compared to Q1 2015, as prices remained relatively stable in comparison to Q4 2015.
The company also reported that its poultry production facilities continued to operate at full capacity during the first three months of the year. Overall poultry production volumes in Q1 rose by 11% to 155,610t, due to the launch of several new rearing sites in Myronivska and Oril Leader.
Poultry, grain and cooking oils are the main elements of MHP’s offering. But the company also operates in other meat processing spheres too, albeit on a much smaller level. Volume sales of sausages and cooked meats were reported to have increased to 8,340t, rising from 5,280t in Q1 2015. This increase was thanks to an advertising campaign, not only for sausages but for the MHP brand.