26 October 2022
Due to decrease of laying hens flock Ovostar reduced volume of eggs production by 7% y-o-y.
Total hens flock was reduced in H1 – from 8M heads as of 30/06/21 to 6.26M heads. In reporting quarter the company started to rebuild total flock, so it increased up to 6.84M heads, but laying hens number still decreased – to 5.75M heads vs. 6.18M heads a quarter ago.
As a result in Q3 Ovostar produced 396M of eggs, by 6.4% lower both y-o-y and q-o-q.
General eggs output dynamics during last period of time looks as follows:
Shell eggs sales volume made 283M pieces, by 7% lower y-o-y, along with it export increased by noticeable 46% - from 65M eggs to 95M. On the other hand domestic sales declined by 22% - from 239M eggs to 188M.
On our opinion despite decrease of eggs production by some industrial producers (their assets were either occupied or are situated close to the front line), due to the fall in demand and usual seasonal increase of eggs production by households, eggs supply on the market in summer exceeded demand, so Ovostar directed more volumes to export:
Average shell eggs sale price in reporting quarter made $0.076 per piece, flat y-o-y and by 15% below Q1 2022 level.
In October situation significantly changed – due to seasonal decrease of eggs output by households and gradual increase of demand, Ukrainian domestic prices skyrocketed. We expect that it is going to negatively impact Ukrainian export in coming months – producers will sell more on the local market.