Ukrainian egg producer Ovostar Union is constructing two new poultry houses, despite the ongoing Russian invasion.
The company recently disclosed that information as it released the financial results for the first half of fiscal year 2024, which ended on June 30.
Ovostar Union stated that because of the ongoing Russian invasion and the present unfavorable situation in the Ukrainian economy, the company’s management had decided to put its investment program on hold.
But despite that, construction is progressing on two poultry houses, which will be used to house “young birds.” The project has an overall budget of US$3.8 million, of which US$1.8 million has already been spent.
The construction project is expected to be completed in April 2025.
Impacts of the war
Ovostar Union said it is “focusing on the continuity and sustainability of its business and maintaining value for all stakeholders,” in spite of the ongoing conflict.
“The group has focused on such key areas as the safety of its employees and the food security of the country, giving priority to the uninterrupted supply of the population of Ukraine with egg products.”
“No severe hostilities” have taken place where the company’s major production facilities are located, in the Fastivskyi and Bilotserkivskyi districts of the Kyiv oblast. The poultry houses in Vasilkiv and Stavyshche, as well as the egg processing plant in Vasilkiv remain undamaged and in operation. The supporting hatcheries and poultry houses for parent stock and young layers have also been unaffected.
The company also reports that none of its major contractors have been affected by the war and continue to fulfill their obligations.
Fiscal performance
Ovostar Union reported a net revenue of US$64.2 million, a year-over-year drop of about 28%.
The company reported a total flock of 7.6 million hens, including 6.2 million laying hens. The volume of eggs produced in the first half of 2024 was 706 million, a drop of 4%.
“In the first half of the year, the business environment in Ukraine remained considerably affected by the ongoing Russian military action. As of (the) date of this report, however, there are no signs of material deterioration of the group’s operations,” the company stated.
Ovostar Union, according to information from the WATTPoultry.com Top Companies database, is the second largest egg producer in Ukraine, and is tied with Spain’s Grupo Huevos Guillen as the eighth largest egg producer in Europe.
