16 September 2010
Avangard (LSE: AVGR LI) plans to enter the Russian shell egg market by yearend, after Russia waived the ban for Ukraine’s egg imports earlier this year, Interfax reported yesterday. Ruslan Patlavskyy: We see the news neutral for the company in the short-term given the company’s lucrative Middle East contracts for 1.2 bln shell eggs (up 3.7x yoy) signed for this year. We expect the company to put its major focus on less competitive markets like Iraq in 2010-11 (compared to Russia) and the EU, the latter of which has a higher cost base than Ukraine.