MHP increases poultry output 29% y-o-y in 9M10

MHP S.A. (LSE: MHPC) issued a pre-close trading update for the nine months ending September 30, 2010. The company posted a 29% y-o-y increase in poultry output to 249,500 mt. The increase was driven by the launch of Myronivka phase two in 2H09. The combination of stable domestic demand for chicken meat and growing grain prices led to average 3Q10 poultry price growth of 12% y-o-y (to 14.05 UAH/kg, ex-VAT) and 4% y-o-y in 9M10 (to 13.43 UAH/kg, ex-VAT). Moreover, the new Katerynopilsky sunflower crushing plant launched in September 2009 enabled MHP to maintain full sufficiency in protein for fodder production as poultry output grew. Sunflower oil output increased 64% y-o-y in 9M10 to 149,600 mt. MHP continued to increase its land bank, with more than 230,000 hectares of land under control by the end of the period.