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Volatile hryvnia drives Ukraine egg producer to export markets

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Ukrainian egg producer Ovostar is succeeding in its drive to increase exports, as a hedge against the volatile domestic currency.

The company's domestic shell-egg sales were stable over the first three months of 2016, but exports, particularly of liquid eggs, boomed.

The company has been pursuing a policy of boosting exports, in order to gain access to foreign currency, as the domestic instability caused by the ongoing war in Eastern Ukraine.

Rising production

In the three months to March 31, Ovostar grew its egg production by 15% year-year-year, to 317m eggs.

While sales volumes of shell eggs remained steady, at 201m eggs, the proportion of those eggs that are exported out of Ukraine has soared by 57%, 69m eggs.

And significantly, the boom in egg production has been driven by soaring sales of liquid egg products, primarily into the European Union.

Liquid egg sales boom

"As a result of development of the EU as the export destination and increased demand of liquid egg products, sales volume of liquid egg products increased by 65% to 2,257 tonnes," Ovostar said.

"Sales volume of dry egg products amounted to 406 tonnes, out of which 183 tonnes were exported," the company said.

The Middle East is Ovostar's biggest export destination, particularly for dried eggs.

Focus on exports

In its annual report, released this month, Ovostar announced it plans to focus on boosting its dry egg and shell egg exports, as a means of gaining overseas currency.

"As Ukrainian hryvnia stayed volatile during the first three months of 2016, we strongly focus on exporting shell eggs and dry egg products more," Ovostar said.

"The export revenue that is mostly generated in dollars will hedge the currency risk and increase the predictability of our periodic financial results in the presentation currency."

Ovostar expects 2016 exports to make up 30% of its revenues, compared to 28% in 2015.


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