MHP S.A., one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, has announced its pre-close trading update for the third quarter and nine months ended 30 September 2011.

During the third quarter of 2011, the volume of chicken meat sales to external consumers increased by 23 per cent to 99,900 tonnes compared to the third quarter of 2010, and by 13 per cent to 282,000 tonnes during the first nine months of 2011, mainly as a result of the production increase due to more effective use of existing capacity as well as due to decrease in stocks.

Domestic demand for chicken meat during the first nine months of 2011 remained high and the Company was able to sell close to 100 per cent of the chicken produced. Export sales for the first nine months of 2011 almost doubled from the same period last year.

The average chicken meat price through the third quarter of 2011 increased by 15 per cent to UAH16.11 per kg of adjusted weight (excluding VAT) when compared to the third quarter of 2010 that is in line with world poultry price trends and which is a procrastinated growth as a consequence of the grain price increase (majority of the production costs) in Ukraine and worldwide at end 2010.

For the nine months of 2011, average chicken prices increased by seven per cent to UAH14.39 per kg (for the same period of 2010: UAH13.43 per kg) as prices were almost flat in the first half of 2011.

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You can view the full quarterly report by clicking here.