OREANDA-NEWS. On 22 April 2009 MHP S.A. (LSE: MHPC) (“MHP” or “The Company”), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, announced its trading update for the first quarter ended 31 march 2009.

Poultry and Poultry Related Operations

During the first three months of 2009 consumer demand for chicken meat remained high and all company’s production facilities continued to work at full capacity. Production of chicken during the first quarter 2009 remained stable compared to the first quarter 2008 however chicken sales to third parties decreased by 8% to 50,459 tonnes (Q1 2008: 54,830 tonnes). This decrease in sales to third parties resulted from converting greater volumes of chicken meat into production of value added products and increase in intercompany sales accordingly.

Average chicken meat prices through the first quarter of 2009 increased by 18.3% to 12.43 UAH per kg. of adjusted weight (excluding VAT) when compared to the first quarter of 2008 (Q1 2008: 10.51 UAH).

MHP’s production costs per 1 kg. of poultry meat during the first quarter of 2009 will be lower than in 2008 due to the use of self produced sunflower protein and corn in chicken fodder.

Grain Growing Operations

The Company currently has approximately 180,000 hectares of land under control.

At this time of the year the company is not able forecast the yields but based on the winter weather conditions and through continued use of modern farming techniques we expect it to be higher than Ukraine’s average.

The Company has already purchased all required seeds and fertilizers for the 2009 spring campaign, which is already on the way, and is planning to cultivate 178,000 hectares or almost 100% of its leased agricultural land.