Ukraine's Ovostar reduces egg production 9%, exports 23% in Q1

MOSCOW. May 2 (Interfax) - The Ovostar Union agricultural holding, one of the leading producers of eggs and egg products in Ukraine, boosted its overall flock of hens 2.7% to 7.31 million in Q1 2024, however the number of laying hens decreased 4.1% to 6.12 million, Ukrainian media reported, quoted a company filing with the Warsaw Stock Exchange.

Egg production fell 9% to 331 million and sales fell 12.4% to 211 million.

Exports of shell eggs fell 22.9% to 81 million, or 38% of total sales compared with 44% in Q1 2023.

Egg processing grew 42% to 132 million eggs. The holding produced 571 tonnes of dry egg products and 3,410 tonnes of liquid egg products versus 406 tonnes and 3,070 tonnes a year earlier.

Sales of dry egg products increased 18.5% to 629 tonnes, of which 478 tonnes or 76% were exported, compared with 354 tonnes and 67% in Q1 2023.

Sales of liquid egg products increased 11% to 3,400 tonnes, of which 1,140 tonnes or 34% were exported, compared with 1,290 tonnes or 42% a year earlier.

"In Q1 2023 the egg production volume decreased following a slight reduction of the laying flock. Taking into account the downward egg price trend, the company increased egg processing which resulted in a solid growth of the egg products output. Under the circumstances the management is content with the operational results delivered in the first three months of the year," CEO Boris Belikov was quoted as saying.

Ovostar Union is a vertically integrated company and a leading producer of eggs and egg products in Ukraine. Its majority shareholders are Belikov and Vitaly Veresenko, a member of the board of directors.