MHP's Myronivka farm reaches full capacity

Mironivsky Hliboproduct (MHPC LI) announced this morning in a trading update that its Myronivka poultry farm reached full capacity in 3Q09 (phase one and two of the farm combined – 200 ths mt p.a.). In 3Q09, MHP increased its volume of chicken meat sales by 47% yoy to 76.6 ths mt (and over 9M09 by 19% yoy to 192.9 ths mt). In terms of its agricultural operations, MHP said it expected its yield will be significantly higher than the Ukrainian average this year. It is farming 180 ths ha. So far MHP has harvested 38.4 ths ha of rapeseed (from 14.4 ths ha, corresponding to a yield of 2.7 mt/ha vs. Ukrainian average of 1.9 mt/ha) and 208.3 ths mt of wheat (from 35.6 ha, yield of 5.9 mt/ha vs. Ukrainian average of 3.0 mt/ha). MHP said it plans to increase poultry production by 24% yoy (last year it manufactured 225 ths mt), and further raise its output to 330 ths mt in 2010. MHP is planning to release 9M09 financial results on November 19, 2009. Andriy Gostik: Achievement of the full load at MHP’s newly launched poultry plants in 3Q09 was largely expected by the market thanks to the management’s previous guidance. Yet, we think the confirmation of these expectations as well as the news on favorable harvest can contribute to the stock’s further growth.