According to the government Antimonopoly Committee of Ukraine retail prices of eggs are higher than affordable level for the average Ukrainian.
During February alone egg prices rose by 18% per package. Increase followed previous growth of 4% in December of 2011. In case such trend
continues, egg prices will grow up by as much as 40% during the first quarter of 2012. At this point Antimonopoly Committee of Ukraine stepped in
with the statement that prices are not caused by economic factors. Production costs and production levels remained the same during the last 3
months and actual production of eggs even decreased which would naturally mean decrease in prices.

Based on these facts Antimonopoly Committee stated that 39 poultry farms that are parts of such agro holdings as Ovostar Union, Avangard and
Inter have to lower the prices within the 10 day period. In case the recommendation is not fulfilled, territorial control will start checks, as realistically
these producers occupy monopoly (or oligopoly) position in the market. Statements from the Antimonopoly Committee were made by Deputy Head
of Committee Raphael Kuzmin.

AgroInvest comment: It is not a surprise that after investing own funds into increasing production capacity largest agro holdings faced the issue
when lower demand in the domestic market left those capacities unused, which is never a good sign for the company as it needs to see the ROI as
soon as possible. Therefore we do believe in the possibility of cooperation of some sort between the largest agro holdings. We are also certain of
the fact that these companies will obey the recommendation of the Committee to avoid any further conflict with the government.
 

AgroInvest