Vertically integrated business model

Our priority for these operations is to be self-sufficient in grain for our fodder. Since 2005, we have grown an increasing proportion of the crops we need, and have acquired or constructed fodder mills and grain storage facilities. Starting with the harvest of 2008, we are self-sufficient in corn – main ingredient in our fodder.

Special technology for producing protein from sunflower seeds. MHP is the only poultry producer in the world, which aplly such an approach. This not only ensures cost efficiency but also complete quality control of the feed for our chickens and take great care in ensuring its quality.

The first phase of chicken production begins at these farms which form the first link in the vertical integration system. Both are supplied with day-old Cobb 500 chicks from specialist breeders in Germany; these are grown for around 20 weeks before they are transferred to a rearing unit to produce eggs.

Eggs produced from MHP’s breeder flocks are transported to MHP’s hatcheries, which are located at its chicken farms. The key production processes at MHP’s hatcheries are the following: sorting hatching eggs into incubation eggs and rejected eggs; placing the incubation eggs into the fully automated incubator which maintains the necessary temperature, humidity and air circulation regime; monitoring and maintaining the incubation process for 21 days, after which the chicks are hatched; vaccinating the newly hatched chicks; and transferring chicks to the poultry houses.

Our sites are fully integrated facilities supported by own breeding farm, a new hatchery, a modern processing plant and a fodder plant.

Today MHP successfully operates 2 biogas complexes. The implementation of biogas projects allows MHP to efficiently utilize production waste, generate clean green energy, significantly reduce greenhouse gas emissions and produce environmentally friendly organic fertilizers.

It is also an integral part and a logical development within our integrated business model. The Company produces a range of different meat products from smoked chicken to premium beef. Chicken meat is one of the main ingredients in our processed meat products – accounting for over 50% of its composition, the rest is beef and/or pork.

Distributing our chilled and frozen chicken via our 11 distribution centres and more than 450 refrigerated vehicles is the final piece of our integrated model, giving us quality control right through to the point of sales.

Around 40% of our sales are currently made through our 2,600 franchised stores and we expect the number of franchises to continue to rise. As a result of our well developed relations with supermarkets, MHP has a diversified customer base, with no customer accounting for more than 8% of sales.