You're reading: Avangard agroholding seeks to boost production in 2018

Avangard agroholding, the largest eggs producer in Ukraine, hopes that egg production in 2018 would increase.

According to an annual report of the company posted on the London Stock Exchange (LSE), in 2017, production dropped by 4% over the year before to 2.399 million shell eggs due to flock renewal.

“Between 2014 and 2016, production was dropping persistently due to a reduction in laying flock induced by a severe demand contraction, which started to ease during 2017. If the current trend in demand continues we should expect production to return to growth in 2018, as did company sales in 2017,” the company said.

Shell egg sales returned to growth after four long years of decline increasing by 23% over the year before, to 1.869 million eggs. As at 31 December 2017, the company’s total flock dropped by 30% year-over-year to 9.5 million hens. As at 31 December 2017, the number of laying hens decreased to 9.3 million.

There was another factor that contributed to the temporary reduction in the company’s total flock along with flock renewal. Towards the end of the year, the company decided to introduce a new breed, which it will be trying out during 2018.

“If the new breed meets the company’s expectations in terms of productivity, flock survival and other key performance characteristics, it will be added to its portfolio,” the company said.

Avangard is a vertically integrated holding specializing in production of eggs and egg products. It is the largest player in the Ukrainian market.