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G. Gurumurthy

Good demand for egg yolk, albumen

Coimbatore , Aug. 16

SKM Egg Products Export India Ltd, the Erode-based export-oriented egg processing company, is confident of achieving double-digit growth in export sale and profit for the fiscal 2006-07.

High demand

The company draws confidence from higher capacity bookings for both egg yolk and egg albumen (white) powders received by it this year, while the demand for the whole egg powder is likely to remain moderate for the year.

"We have already firmed up 90 per cent of our egg yolk powder production capacity (upto March 2007), and 60 per cent of the egg white production capacity which is sufficient to run upto December 2006 has already been booked this time," said Mr S.K.M. Shree Shivkumar, Managing Director of the company. SKM exports over 80 per cent of its processed eggs to the markets in Europe and Japan.

Higher export price

The recent resurfacing of the bird flu scare in European countries is anticipated to spur the export price of processed eggs to Europe, where the shell egg prices are poised to go up. The value of egg white shipments to Europe, in particular, is expected to go up over the next few weeks, Mr Shivkumar told Business Line.

SKM Egg Products Export India, which processes around 12 lakh eggs a day for manufacture of egg white, egg yoke and whole egg powders clocked a total sale of Rs 71.64 crore and a net profit of Rs 9.31 crore during 2005-06.

Net profit rises

Continuing its brisk business streak into 2006, the company during the April-June 2006 quarter has achieved 200 per cent rise in its net profit at Rs 3.44 crore as against Rs 1.13 crore made for the same period in the previous year. Its sales too went up to Rs 19.66 crore during the quarter from Rs 18.28 crore in the previous year.

According to Mr Shivkumar, higher profitability realised during the first quarter this year is largely due tolower shell egg price that prevailed in the last six months.

The average price of table eggs so far this year has worked out to 90 paise per unit.

"We are likely to close the current year with a 12 per cent growth in sale which is expected to be between Rs 80-82 crore. The net profit this year might be in the range of Rs 10-12 crore," Mr Shivkumar said.

Unlike the poultry meat or the layer egg sectors, the company's processed egg exports remained unaffected by the aftermaths of last February bird flu upheavals as all the egg powders are made through the process of pasteurisation and heat treatment.

More Stories on : Outlook | Poultry | Exports & Imports

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