Agroholding MHP, the largest producer of chicken meat in Ukraine, in July 2022 reduced chicken production by 8% – to 52.04 thousand tons, but increased its sales by 4% – to 56.54 thousand tons, the agricultural group on the London Stock Exchange on Friday.
It is noted that the operating activity of the holding is still below last year’s figures due to the full-scale Russian invasion of Ukraine: in July 2022, chicken production amounted to 81% of July 2021, and its sales – 88%, respectively.
It is specified that in the domestic market in July 2022, chicken sales remained at the level of July 2021 and June 2022 – 25.56 thousand tons. Chicken export in July this year amounted to 30.98 thousand tons, which is still 20% less than in July last year, but 3% more than last month.
Thus, the share of chicken exports in July of this year decreased by 5 percentage points (p.p.) against July 2021, to 55% from 60%, but increased by 3 p.p. compared to June 2022.
The average selling price of poultry meat in July increased by 21% year on year – up to $2.1/kg, and by 2% compared to the previous month.
During the reporting period, MHP also reduced sales of meat products and semi-finished products by 49% compared to July 2021, to 2.5 thousand tons, but this figure was 1% higher than in June 2022.
According to the agricultural holding, in July 2022, sales of sunflower oil increased by 1.9 times compared to July last year and by 13% compared to June of this year, to 22.55 thousand tons. At the same time, sales of soybean oil decreased by 5.8 times by July 2021 and by 3.5 times by June 2022 to 1.16 thousand tons.
“Harvesting of winter crops (wheat, rapeseed, etc.) is being carried out on an area of about 69.7 thousand hectares. Rapeseed harvesting has been completed on about 27.5 thousand hectares with a yield of about 3.8 t/ha. Wheat harvesting continues on an area of about 40.7 thousand hectares, 85% completed, with a current yield of 5.5 t / ha,” the agricultural holding states in a stock exchange message.
According to him, spring crops are in good condition. In general, the weather conditions are also relatively favorable for a good harvest, apart from a number of regions with extremely hot and dry weather conditions.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.
MHP Agroholding sold 159.02 thousand tons of chicken meat in January-March 2022, which is 3% more than in January-March 2021, while its sales in Ukraine decreased by 6% to 66.8 thousand tons , and exports increased by 9% – up to 89.34 thousand tons, the agricultural holding said on the London Stock Exchange on Friday.
According to its production report, the agrarian group produced 175.64 thousand tons of chicken meat during the reporting period (+5% compared to the first quarter of 2021). Thus, the agricultural holding managed to sell 90.5% of its products.
“From the start of the war, the company faced serious logistical and infrastructural problems in Ukraine. While MHP continued commercial sales in Ukraine from the start of the war, export sales stopped due to the closure of seaports, and export deliveries by road remained almost impossible,” clarified the chicken producer of the consequences of Russian aggression.
MHP also noted that it was forced to reduce the capacity utilization of poultry farming to 80-85% of the nominal in March due to reduced demand for chicken meat in Ukraine and logistical difficulties in exporting its products, due to which the agricultural holding is forced to look for alternative export routes.
In January-March 2022, the share of chicken exports reached 56% against 53% in the same period in 2021.
MHP in the report noted an increase in the price of chicken for the reporting period by an average of 28% compared to the first quarter of 2021 – up to $1.84/kg (excluding VAT), including in Ukraine up to $1.6/kg (+8%) , in export markets – up to $2.01/kg (+45%). The increase in prices was mainly due to a significant increase in prices for energy resources (mainly natural gas) and utilities.
The non-approval of an order of the Ministry of Health amending the maximum residue levels of veterinary drugs in foodstuffs of animal origin by the State Regulatory Service could result in a ban on the sale of poultry meat, the European Business Association (EBA) said on its website.
The association said that on February 17, the Ministry of Health of Ukraine issued an Order amending the maximum residue levels of veterinary drugs in foodstuffs of animal origin.
The document proposes to bring the safety of poultry meat in line with European standards. The project concerns the authorization of the use of therapeutic feed additives for preventing coccidiosis. Without the proper prevention, this disease may lead to the death of 80-90% of all young birds.
The association said that as it became known, the State Regulatory Service, whose task is to implement the state regulatory policy, the policy on supervision (control) in the field of economic activity is preparing a draft refusal to this order. The draft order has already been approved by the Ministry of Economic Development, Trade and Agriculture, as well as the State Service for Food Safety and Consumer Protection.
The EBA said that the non-approval of this normative act will lead, in fact, to a ban on the sale of poultry meat both on the territory of Ukraine and abroad. After all, food products that are prohibited for domestic consumption are also prohibited for export.
The EBA has already sent a letter to the Ministry of Health and the State Regulatory Service asking them to support the proposed changes and to prevent a ban on the use of feed additives for poultry in Ukraine. This situation can lead to a loss in the total number of poultry, which in turn can lead to a sharp and uncontrolled rise in prices for this category of products.
The association said that these feed additives are not harmful to humans (including those used in European countries). However, they are very important for raising poultry and are used throughout its life cycle up to two or three days before slaughter.
Myronivsky Hliboproduct (MHP) in July-September 2020 sold 195,120 tonnes of chicken meat, which is 18% more than a year ago.
MHP said on Wednesday that chicken meat sales grew by 2%, to 523,760 tonnes in January-September 2020.
“Third parties sales amounted to 523,759 tonnes of poultry, which is 2% higher than in 9M 2019, driven mainly by substantial increase in exports in Q3 2020 – 37% year-on-year to 108,472 tonnes due to the increased sales to MENA region predominantly as well as to Africa and CIS,” the company said.
MHP said that overall chicken meat sales volumes in Q3 2020 increased by 18% compared to Q3 2019 and by 14% compared to Q2 2020, driven mainly by the company’s strategy to decrease its poultry stocks accumulated during the preceding periods – in late 2019 and 2020.
In Ukraine, sales of chicken in the third quarter remained at the level of last year – 86,650 tonnes, and in nine months increased by 1%, to 244,740 tonnes, while the export of chicken in the first nine months increased by 3%, to 279,030 tonnes.
Notwithstanding the turbulent times, MHP continued to follow its strategies of both geographic diversification and of a product mix optimization developing partnerships across the MENA, CIS, EU and Africa countries. Total poultry exports in 9M 2020 constituted around 53%, same as in 9M 2019, of total poultry sales volumes.
Prices on the domestic market decreased by 11% year-on-year, mainly for the same reasons as export prices as well as a higher proportion of lower priced frozen chicken sales in Ukraine. The price was $1.36 per kg (VAT not included), and in 9M 2020 it was 9% lower – $1.34 per kg (VAT not included).
The prices fell both on the Ukrainian market by 7% in Q3 2020 and by 11% in 9M 2020 and on the foreign market – by 8% and 9% respectively, mainly driven by the product mix change during H1 2020 (significant decrease in sales of fillet to the EU and increased sales to MENA) and weaker prices on breast fillet in EU as many global competitors experienced reduced demand, which resulted in excess stocks.
Poultry production volumes in Q3 2020 remained relatively stable, decreased by 3%, constituting 181,661 tonnes (Q3 2019: 186,555 tonnes) mainly due to increased share of small birds production (dedicated to MENA region predominantly). In 9M 2020 poultry production volumes were relatively stable and constituted 541,592 tonnes (9M 2019: 540,133 tonnes).
Singapore has opened its market for Ukrainian pork. “For the first time since long a foreign market has opened for Ukrainian pork. Singapore’s regulator has accredited a Ukrainian enterprise for export of thermally processed/tinned pork and chicken meat,” the State Service of Ukraine on Food Safety and Consumer Protection said.
It also said that those were the first steps towards the opening of the global market for Ukrainian pork.
Myronivsky Hliboproduct (MHP) sold 153,140 tonnes of chicken meat to third parties in April-June 2018 (Q2), which is 3% less than in April-June 2017. Sales of chicken meat in the first half of the year increased by 2%, to 288,440 tonnes, the company said in a report on the London Stock Exchange on Wednesday.
Poultry production volumes in Q2 2018 increased by 7% to 155,725 tonnes (Q2 2017: 145,820 tonnes) and in H1 2018 increased by 7% to 307,890 tonnes (H1 2017: 287,694 tonnes), due to increased production of heavier chicken and decreased share of thinning, the report said.
