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Innovation and drive for success - Myronivsky Hliboproduct

Myronivsky Hliboproduct (MHP) is one of the leading agro-industrial companies in Ukraine. The group focuses on rearing, production, and distribution of poultry. The products are marketed under “Nasha Riaba” brand. 

Important dates
The company was established in 1998, and by 2002 it launched a new brand of chilled chicken “Nasha Riaba”, which started to compete successfully with the chicken products imported from the USA. Two years later, in 2004, MHP has put into operation a sunflower crushing plant, which allowed to substitute imported soya beans with sunflower seeds in the production of fodder. This guaranteed a significant reduction of the costs of production. In 2005, in order to supply the crops, necessary for the production of fodder, the MHP group incorporated a farm growing such crops as wheat, corn, and barley. In 2006, the MHP group has built the first plant in Ukraine to produce semi-finished meat products. The company launched the “Lehko!” brand of frozen convenience meat products made of poultry, beef, and pork. In 2007, the first production line of Myronivka Poultry Farm – state of the art facility built from “naught” has been put into operation. In 2009, after the launch of the second production line, Myronivka Farm has become one of the biggest poultry farm in Europe with the annual production capacity of 220 thousand tons of poultry. In 2008 the MHP group listed on the London Stock Exchange. In 2010, in the Vinnytsia region, the company began the construction of the largest chicken complex in Europe. The complex is to incorporate all stages of vertical integration business model: 1) a breeding facility, 2) a hatchery, 3) a broiler farm and a slaughter house, 4) a fodder plant, 5) a sunflower crushing plant; 6) and different infrastructure. The new complex will be two times larger than Myronivka Poultry Farm with the annual production capacity of 440 thousand tons.

Unique development strategy
Established just over 10 years ago, MHP is a vertically integrated company. Vertical integration minimalizes the company’s dependence on external suppliers of raw materials, consequently increasing cost efficiency. The group combines three related segments. The major segment is production of poultry and related goods: production of chilled and frozen chicken, and pre-cooked convenience food. The second segment includes grain growing operations of corn, sunflower, wheat, rape and other crops. The last but not least is the segment of other agricultural operations which covers the production of sausages, cooked meat, premium fresh beef, foie gras, and fruit. In the recent years, the company expanded its production capacity in all three sectors. Firstly, between 2006 and 2010, the production of chicken meat increased by 170% - from 133 to 360 tons per annum. The output is expected to increase by 58% between 2010 and 2015, after the first two production lines of the new poultry farm Vinnytsia Broiler will be put into operation. Secondly, the company is largely investing in land. Only during 2010, the company acquired over 100 thousand hectares of land making the MHP group an owner of appx. 300 thousand hectares of land. Thirdly, the production capacity of the company increased by 33% in 2010 and is expected to grow by at least another 30 % in 2011. At the moment the company exports about 10% of the chicken meat it produces, while 90% of meat is distributed on the domestic market. In the near future the company plans to increase the export to 15-20%. MHP enterprises which can export products have already been inspected by EU Committee and receive a certificate of compliance with EU standards. The main objective of the MHP group is to provide high quality products. The company contributes to the economical development of the Ukraine by building new production facilities. MHP focuses on the development and growth. The company values its employees and their contribution to the company. The group employs around 22 thousand people. Thanks to the high quality of its products the company was able to quickly gain the trust of the customers, which guarantees successful development and growth. The following quality and food safety standards have been introduced at the company: HACCP, ISO 22000:2005, 9001:2008. In 2010 the Marketing Media Review awarded the “Nasha Riaba” has won a nomination of “Industry’s Benchmark”. The company’s dynamic development strategy guarantees high financial results. The expected revenue for 2010 is 920 million dollars, EBITDA - 310 - 320 million dollars, EBITDA margin - 35 %. Among four chief poultry producers in Ukraine, MHP is the largest. The company’s market share in 2010 reached 50%. The main goal of the MHP group is to maintain its leading position in the sector of poultry and grain production in Ukraine and in 5 to 8 years to become Europe’s leading producer of poultry. Another important objective is further vertical integration. The company has many strategic advantages such as the use of latest technologies, stable and unique business model, skilled personnel, and the desire, ability and strengths to develop. During its 12 year long history, the main belief of MHP is that “If you want something to be done well, do it yourself.” In compliance with this belief, the MHP equips, operates and manages all its facilities. The key values on which the company is build include efficiency, quality, affordability, responsibility, market leadership, profitability, proficiency, market share.

Product range
The “Nasha Riaba” brand was launched in 2002. Thanks to the intensive marketing campaign, by 2003 there were about 1,000 retail outlets all over the country. In 2010 the brand awareness of “Nasha Riaba” reached 97%. MHP plans to introduce new types of packaging and to include natural chicken products (without GMO, flavorings and preservatives) in order to extend the brand’s line of products. The “Druzhba Narodiv” brand includes sausages and ham products. The brand offers 90 different kinds of ham and sausages made from in-house (produced by MHP’s enterprises) raw materials. The “Baschinsky” brand includes various kinds of meat products. The brand offers cooked, smoked and semi-smoked sausages and hams: overall around 48 different products. The “Europroduct” brand offers optimal correlation of price and quality. The brand includes various types of sausages and hams. The MHP group is an innovative company. The “Lehko!” brand was introduced to the market in 2006. It includes various kinds of pre-cooked poultry, beef and pork products. The product line includes 23 products. Pre-cooked products are very popular because they allow to save time spend on preparation of meals. The “Foie-Gras” brand was launched in 2005. At the moment, MHP is the only commercial producer of goose and foie-gras in Ukraine. The product are available both chilled and frozen. MHP plans to begin exporting its goose meat products to other European countries. The “Certified Angus” brand was launched in 2004. It is a brand of fresh beef produced from specially breed Aberdeen-Angus cattle. This kind of meat is best for steaks. It is valued for its rich taste and tenderness. It is proud to be the first company in Ukraine which started industrial production of chilled chicken, offering the Ukrainian customer a domestic alternative to the imported from the USA deeply frozen chicken legs. MHP has established the first plant for production of pre-cooked food. The largest poultry farm in Europe has also been built by MHP. The company is proud of the fact that Ukrainian customers trust the quality of its products and remain loyal both to the company and its brands. 

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