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Ovostar cuts egg production by 9% in 2022

KYIV. Jan 25 (Interfax-Ukraine) – Agricultural and industrial group of companies Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in 2022 reduced the production of chicken shell eggs by 9% compared to 2021, to 1.55 billion eggs, and sales by 6%, to 1.08 billion units.

According to a report of the group published on the website of the Warsaw Stock Exchange on Tuesday, Ovostar increased the export of eggs by 27% over the past year, to 290 million eggs, as a result of which the share of foreign deliveries in the company’s sales increased by 4 percentage points, to 27% from 23%.

"Problems with supply chains, additional export and import regulations, internal and external migration, temporary occupation of some territories in the first half of the year, as well as worsening purchasing power and electricity cut-offs in the second half made the Company decrease its investments in the new flock and optimize other processes. Although by the end of 2022 the total flock fell by 14% Y-o-Y, the Group managed to soften the negative effects, which resulted in just 9% decrease of the production volume," the holding quoted its CEO Borys Bielikov in the report.

According to him, the sales volume fell by only 6% on the account of, among other things, lower volumes of processing. All this, added to the favorable price dynamics observed on the world shell eggs and egg products market in the second half of 2022, makes the management content with the Groups operational results.

Also, Ovostar processed 427 million eggs in 2022, which is 15% less than in 2021. At the same time, according to January-September 2022, the gap in this indicator was 10% year-over-year.

As of 31 December 2022 the company’s total flock was 7.2 million heads(14.3% less than on the same date a year earlier), including 6.0 million laying hens (14.3% less).

Sales of Ovostar dry egg products over the past year fell by a third compared to 2021, to 2,130 tonnes, and the share of their exports in the total sales structure amounted to 68% with 64% in 2021.

In turn, sales of liquid egg products over the specified period dropped by 26%, to 10,620 tonnes, the share of their exports amounted to 40% versus 28% in 2021.

According to the report, in total in 2022, 2,540 tonnes of dry egg products were produced (6% less compared with 2021), and liquid egg products – 10,790 tonnes (24% less).

The average selling price of chicken eggs in shell over the past year increased in hryvnias by 34% by 2021 and reached UAH 2.9o per piece, while in U.S. dollars the increase was 13%, to $0.09 per piece. The average selling price of dry egg products doubled in hryvnia equivalent to UAH 277.94per kg and by 71% in U.S. dollars to $8.59/kg, liquid egg products – by 42% in hryvnias to UAH 66.79 per kg, and by 20% in U.S. dollars, to $2.06 per kg.