The Avangard agricultural holding, owned by Oleg Bakhmatyuk, has decided to close the Chervony Prapor and Interbusiness poultry farms.
Oleg Bakhmatyuk
The Avangard agricultural holding, the largest egg producer in Ukraine, has decided to close the Chervony Prapor (Chervony Prapor village, Luhansk region) and Interbusiness (Berestovoye village, Donetsk region) poultry farms due to the tense situation in the region.
This was stated in a company statement, Interfax-Ukraine reports.
"The Avangardco IPL agricultural holding has decided to close half of its production facilities in eastern Ukraine due to the risk of terrorist attacks, as well as unpredictable conflict between militant groups, which has made it impossible for the company's enterprises to operate in the Luhansk and Donetsk regions," the statement reads.
According to the holding company, these facilities are among the company's largest. Each facility houses 1,5 million birds, which together account for up to 10% of the total poultry population.
"The production facilities are exposed daily to the risks of raw material and livestock theft, external interference with process equipment, and vehicle theft. Gangs of militants take turns shooting down the initial 'guards' on the premises, right in front of the employees," the company reports.
As reported, fighters led by "ataman" Nikolai Kozitsyn stole more than 17 chickens from the "Chervonyi Prapor" factory (they were being transported to slaughter after the technological cycle was completed) and distributed them to residents of occupied Pervomaysk under the guise of "humanitarian aid."
Under these conditions, the company cannot guarantee the safety of factory employees, ensure the continuity of the technological process, feed supplies, the implementation of epidemiological measures, or stable product shipments to customers.
Factory workers have already been offered employment at other enterprises of the agricultural holding.
The company notes that poultry from the aforementioned enterprises will be removed, and if this is not possible, destroyed.
Avangard, a vertically integrated holding specializing in the production of eggs and egg products, is the largest player in the Ukrainian market. In January–September 2014, the agricultural holding maintained egg production at 5,11 billion eggs compared to the same period in 2013.
The agricultural holding ended 2013 with a net profit of $238,1 million, 4% more than in 2012. Its revenue, meanwhile, grew by 5% to $661,2 million.
Economic Truth
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