Business news from Ukraine

Ukraine has imposed ban on imports of chicken and eggs from Poland

The Eastern Interregional Main Department of the State Service of Ukraine for Food Safety and Consumer Protection has announced the introduction of restrictions on imports of hatching eggs, poultry and poultry products from the Republic of Poland to Ukraine due to the registration of Newcastle disease in the country, the press service of the agency said.

According to the order of the Chief State Veterinary Inspector of Ukraine dated July 13, 2023, the ban does not apply to products that have been treated by a method that guarantees the destruction of the causative agent of this disease according to the requirements for the import (transfer) to the customs territory of Ukraine of food products of animal origin, feed, hay, straw, as well as by-products of animal origin and products of their processing, processing, approved by the order of the Ministry of Agrarian Policy and Food № 553 of November 16, 2018 year

Newcastle disease is known as pseudoplague of birds, or Asian plague – a contagious and fatal viral disease affecting all types of birds (chickens, pigeons, turkey, etc.). One of the most contagious poultry diseases in the world, caused by a virus of the Paramyxoviridae family, in which many birds die without showing any symptoms. Pseudorabies plague can cause death even in vaccinated poultry.

According to Polish media reports, the disease was detected for the first time in 50 years at a poultry farm in Bialystok district, where 43.41 thousand chickens are kept for slaughter.

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MHP, largest chicken producer in Ukraine, reduced production and sales in first half of year

Agroholding MHP, the largest producer of chicken meat in Ukraine, in January-June 2022 reduced chicken production by 3% compared to the first half of 2021 – to 346.04 thousand tons, while its sales – by 12%, to 338.6 thousand tons, the holding company reported on the London Stock Exchange on Wednesday.
It is noted that in the second quarter of 2022, the agricultural holding, in the context of the Russian military invasion, reduced chicken production by 11% compared to March-June last year – to 170.4 thousand tons, and by 3% compared to the first quarter of 2022. At the same time, the volume of chicken meat sales in the second quarter of 2022 amounted to 140.6 thousand tons, which is 23% lower than the same period last year, but 1.6% higher than sales in the first quarter of this year.
According to the exchange message, in January-June 2022, chicken sales on the domestic market decreased by 6% compared to the first half of 2021 – to 134.7 thousand tons, while supplies to foreign markets – by 17%, to 157.9 thousand tons. At the same time, in the second quarter of 2022, chicken sales in Ukraine amounted to 67.9 thousand tons, decreasing by 6% compared to the second quarter of 2021, but increasing by 1.6% compared to the first quarter of 2022. In turn, chicken meat exports in the second quarter of 2022 fell by 37% by the second quarter of 2021, and by 23% by the first quarter of 2022, to 68.55 thousand tons.
Thus, the share of chicken exports in January-June of this year decreased by 4 percentage points (p.p.) against January-June 2021 to 52% from 56%, while in March-June 2022 this figure decreased to the same period last year by 11 percentage points – up to 48% from 59%.
In addition, MHP poultry farms in the EU in January-June 2022 produced 37.4 thousand tons of poultry meat, which is 5% more than in the first half of 2021, and in the second half of 2022 – 19.6 thousand tons (+ 1% compared to the same period in 2021).
The average price of chicken meat in January-June 2022 increased by 24% year-on-year, to $1.93/kg, while in March-June it increased by 22% compared to the same period last year, to $2.03/kg.
According to MHP, in the first half of this year, the agricultural holding increased sales of culinary products by 76% compared to the first half of last year – up to 6.97 thousand tons, including in the second quarter of 2022 it sold 4.1 thousand tons of these products ( +54% compared to the second quarter of 2021).
According to the report, the sale of processed meat products (including sausages) by the agricultural holding in January-June 2022 decreased by 48% compared to January-June 2021 – to 8.3 thousand tons, and in March-June 2022 – by 73 % compared to March-June last year, up to 2.3 thousand tons.
According to the results of the first half of the period, the sale of semi-finished meat products decreased by 14% – to 7.4 thousand tons, while according to the results of the second quarter – by 24%, to 3.42 thousand tons.
MHP specified that in January-June 2022, sales of sunflower oil decreased by 11% compared to January-June last year, while in March-June 2022 they increased by 38% compared to March-June 2021, to 48.5 thousand tons. tons. At the same time, sales of soybean oil in the first half of 2022 decreased by 15%, and in the second quarter increased by 23% compared to the same periods in 2021, to 19.5 thousand tons and 9.2 thousand tons, respectively.
“In 2022, the company should sow about 335 thousand hectares of land in the grain crops segment. The harvesting campaign for winter rapeseed and wheat is on schedule, of which 70% and 25% are harvested, respectively. The yield of all winter crops is expected to be good and in line with the company’s expectations with taking into account the weather conditions. Spring crops (corn, soybean and sunflower) are in good condition,” the agricultural holding stated in an exchange message. 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.

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MHP reduced chicken production in Ukraine

Agroholding MHP, the largest producer of chicken meat in Ukraine, in June 2022 slightly changed its economic activity compared to May of this year, reducing chicken production by 2% to 56.8 thousand tons, but increasing its sales by 4 % – up to 55.7 thousand tons, the holding reported on the London Stock Exchange on Friday.
It is noted that the agrarian group’s operating activity is still below last year’s figures due to the full-scale Russian invasion of Ukraine: in June 2022, chicken production was 89% of June 2021, and its sales were 82%, respectively.
It is specified that in the domestic market in June 2022, chicken sales remained at the level of June 2021 – 25.59 thousand tons, which is 12% less than the volumes sold in Ukraine in May 2022. In June of this year, chicken exports decreased by 29% compared to June 2021 – to 30.1 thousand tons, but exceeded the figures of the previous month by 24%.
Thus, the share of chicken exports in June of this year decreased by 9 percentage points (pp) compared to June 2021, to 54% from 63%, but increased by 9 percentage points. compared to last month.
The average selling price of poultry meat in June increased by 19% year-on-year to $2.0/kg.
During the specified period, MHP also reduced the production of meat products and semi-finished products by 46% compared to June 2021 – to 2.42 thousand tons, but increased by a third compared to May 2022.
According to him, in June 2022, sales of sunflower oil increased by 2.2 times compared to June last year and 2.6 times compared to May of the current year – up to 22.5 thousand tons. At the same time, sales of soybean oil increased by 15% by June 2021 and 3.6 times by May 2022 – up to 4.04 thousand tons.
“Harvesting of winter crops (wheat, barley and rapeseed) has already begun and is on schedule. Spring crops are in good condition. The weather conditions are also good,” the agricultural holding states in an exchange message.
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.

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