Polish egg producers believe that the arrival of the Avangard agroholding, a large egg producer in Ukraine, to the European market would result in growth of competition and “serious consequences” for Polish egg exporters. “The decision of the European Commission will have very serious consequences for Polish egg producers. Expansion of export competition and a significant deterioration in the profitability of egg exports from Poland should be expected,” the National Chamber of Poultry and Fodder Producers (KIPDiP) said.
They said that Avangard has long ago focused on the recovery of exports to the European Union, seeking a “cure” to reduce the dependence on sales in the MENA markets as its main export market.
KIPDiP said that in recent years, the company’s sales to the countries of the region have deteriorated due to the unfavorable geopolitical situation there. The Polish Chamber said that that the first plant that was placed on the list of European Commission enterprises admitted to import Class A food eggs into the EU market was the Yasensvit plant from the Ovostar Union. The permit for Yasensvit is effective from September 12, 2017, and in October the Ukrainian company started selling eggs to the EU.
The Chamber said that imports of eggs and processed products from Ukraine are steadily growing : in 2014, Ukraine’s share of EU imports was 4%, and in 2016 – already 50%.
As reported, Ukraine’s largest producer of eggs Avangard agricultural holding, controlled by Ukrlandfarming, whose shares are traded on the London Stock Exchange, in October 2015 completed the restructuring of eurobonds for $200 million. Previously American Cargill has withdrawn from among the shareholders of Ukrainian-based UkrLandFarming (ULF) agrarian holding, according to a ULF financial report for 2016. Cargill’s subsidiary, Cargill Financial Services International Inc. by the end of 2015, had held 1,668,749 ULF shares, or 5% of the total number. By the end of 2016, the number of shares owned by Avonex Limited had not changed, whereas the package held by Cargill was transferred to Cyprus-based Quickcom Limited’s ownership. The report says that the sole owner of Avonex Limited and Quickcom Limited is Oleh Bakhmatiuk. Cargill acquired a 5% stake in ULF early in 2014 for $200 million. Based on the sum of the deal, the total value of the holding was assessed at $4 billion.
