MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, reduced meat exports from Ukraine by 12% to 87,799 thousand tons in April-June 2024.
According to the holding’s report on the London Stock Exchange on Friday, MHP increased poultry production in the European operating segment (PP) to 35.46 thousand tons, up 6.5% year-on-year.
The agricultural holding noted that the volume of meat production in Ukraine remained stable in the period under review at 187.414 thousand tons against 181.69 thousand tons in the same period last year.
At the same time, the average price of poultry meat in Ukraine remained stable and was in line with last year’s figure at $1.97 per kg (excluding VAT). The average price for poultry produced in the European segment also remained virtually unchanged at EUR3.54 per kg compared to EUR3.64 per kg in the same period last year.
MHP reduced poultry exports from Ukraine in the second quarter of 2024 by 12% to 87,799 thousand tons compared to the same period last year.
In January-June of this year, the agricultural holding practically did not change the volume of poultry production in Ukraine – 365.901 thousand tons against 359.332 thousand tons in the same period of 2023. The volume of poultry production in the European segment of MHP increased by 7% to 69,418 thsd tonnes. A year earlier in the same period, this figure was 65,087 thousand tons.
The average price of MHP poultry in Ukraine remained almost unchanged at $1.98 per kg excluding VAT, compared to $1.92 a year earlier. The average price for poultry meat produced in the European segment also remained virtually unchanged at EUR3.49 per kg in the first six months of 2024 (EUR3.58 per kg in the first six months of 2023).
In the first half of 2024, MHP reduced poultry exports from Ukraine by 12% to 185.854 thousand tons. A year earlier, this figure was 212.106 tons for the same period.
The total volume of poultry sales to third parties in January-June 2024 decreased by 8% year-on-year to 327.215 thousand tons, mainly due to a significant decrease in export sales, the agricultural holding explained.
At the same time, the total sales of processed poultry meat in the first half of this year increased by 19% to 20.386 thousand tons due to production growth and further transformation into a culinary company. The average price of value-added products increased by 4% to $2.90 per kg as a result of changes in the product mix.
MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue increased by 14% to $3.021 billion last year.
In the second quarter of 2024, MHP earned $29 million in net profit, up 71% compared to the second quarter of 2023. Its EBITDA increased by 40% to $153 million, while revenue decreased by 5% to $770 million. The agroholding attributed the increase in profitability to improved performance in the crop sector.
Overall, net profit decreased by 33% to $45 million for the half-year, due to foreign exchange losses of $81 million against $5 million in the first half of 2023.
EBITDA in crop production increased by 20% to $280 million, while revenue decreased by 4% to $1.489 billion.
The exports of soybeans from Ukraine in the season-2023/2024 reached the record level and amounted to about 3.26 mln tonnes, up 5% from the previous high of 3.1 mln tonnes in 2022/2023 MY, APK-Inform news agency reported.
“The increase in shipments was achieved due to several factors, including the significant increase of the crop harvest in 2023 and the competitive price of Ukrainian soybeans on the global market, particularly in the first half of 2023/24 MY. Thus, in September-February of the last season, the country shipped almost 70% of the total exports of soybeans,” the analysts said.
According to APK-Inform, in 2024/2025 MY Ukraine will export about 3.5 mln tonnes of soybeans, up 7% compared to the last season.
According to them, the increase in exports was mainly due to Egypt (2.1 times more), while shipments to the EU and Turkey decreased by 22% and 26%, respectively.
Experts predict that in the new season-2024/2025, Ukraine has a chance to update the record for soybean exports, given the forecast of an increase in the harvest of this crop to almost 6 million tons, which is 10% more than last year. At the same time, due to the expected increase in global soybean production, it will be harder to compete with prices in the new season, especially in such destinations as Egypt and Turkey.
According to the results of the season-2023/2024, the demand prices for Ukrainian soybeans decreased by an average of $120/ton in line with the global market dynamics and due to the increased competition. Comparing the price levels as of the end of August, this year Ukrainian soybeans of the new harvest are offered to Egypt at $427/ton CIF, while last year in the same period the supply prices on the same basis reached $545-550/ton.
Tovkachevsky Mining and Processing Plant (TMP, Pershotravneve, Zhytomyr region) intends to supply quartzite and crushed stone to WENGA SPOLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA (Poland) for a total of EUR 2 million.
According to the company’s announcement in the NSSMC’s information disclosure system, on September 2 this year, the Supervisory Board of TGOK gave its consent to the Management Board to conduct a significant transaction – the conclusion of a supply agreement between the company and WENGA SPOLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA (Poland).
At the same time, it is specified that the contract is for the supply of the following quartzite products: quartzite TK 97-100 fraction 25-120 mm, 25-100 mm, 25-100 mm, 2 mm; crushed stone fraction 5-10 mm, 5-40 mm, 20-40 mm, 25-60 mm, with a total contract value of EUR 2 million.
“To entrust the Chairman of the Management Board of the company to perform all actions and sign all documents necessary to conclude the above-mentioned agreement for the supply of quartzite products with WENGA SPOLKA Z OGRANICZONA ODPOWIEDZIALNOSCIA (Poland). The market value of the subject of the agreement is EUR 2 million, at the NBU exchange rate as of September 2, 2024, it amounts to UAH 91 million 3.6 thousand,” the company said in a statement.
TGOK is a quartzite mining, processing and beneficiation company. It is the main supplier of raw materials for the production of ferroalloys, refractories and dynamite in Ukraine.
TGOK develops the Tovkachivska area of the Ovruch quartzite deposit located in Pershotravneve village using the open-pit method.
According to the second quarter of 2024, Navaro Development Limited owns 5.1898% of the company’s shares, Lucrino Investments Limited – 9%, Mantara Holdings Limited – 72.0629%, Duxton Holdings Limited (all Cyprus) – 12.1891%.The company’s authorized capital is UAH 1.6 million, the share price is UAH 2.25.
One of the largest grain market operators in Ukraine, Nibulon JV LLC, exported 100 thousand tons of grain to 25 countries using grain carriers and trucks provided by the USAID Ukraine project, the grain trader’s press service reported on its Facebook page.
The agricultural holding recalled that in 2023, Nibulon was forced to switch from water transportation of grain to transportation by road and rail. This alternative solution was helped by the USAID Ukraine economic support project. The Nibulona Project purchased 50 Modern Hope trucks with the capacity to transport 70 tons of grain each. Thanks to this support, Nibulona delivered and exported the first 100 thousand tons of grain to 25 countries.
“We are grateful to our international partners who lend a friendly hand in a difficult time for the company by providing the necessary railcars. This allowed us to continue working, resuming purchases of agricultural products at the blocked river terminals and thus supporting our agricultural partners. The combination of road and rail transport has allowed us to optimize logistics costs and offer purchase prices to farmers that ensure the profitability of their production,” said Nibulon Logistics Director Serhiy Kalkutin and congratulated his colleagues from Danube Transportation.
As reported, in 2023, USAID provided Nibulon with 50 hopper cars built at Karpaty DMZ for grain transportation. In 2024, USAID’s Economic Support for Ukraine provided the grain trader with 13 grain carriers with trailers. “Nibulon also asked the donor organization for assistance in obtaining 250 grain carriers.
Nibulon JV LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries. In 2021, the grain trader exported the highest ever volume of 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses due to Russia’s full-scale military invasion in 2022 exceeded $416 million.
Currently, the grain trader is operating at 32% of capacity, has created a special unit to clear agricultural land of mines, and was forced to move its headquarters from Mykolaiv to Kyiv.
Ukraine’s agricultural sector made a significant breakthrough in development in 2010-2021, employing 17% of Ukrainians and generating 19% of GDP, while 70% of its products are exported, which is one of the highest rates in Europe, said Acting Minister of Agrarian Policy and Food Taras Vysotsky.
According to him, Ukraine’s production is enough to feed almost 400 million people.
“Ukraine’s role in international food security is very important. After the full-scale invasion of the aggressor country, Ukraine was unable to export its products for four months. This led to a 35% increase in the global food price index in 2022. In African countries, hundreds of millions of people were forced to significantly reduce their food consumption,” the press service of the Ministry of Agrarian Policy and Food quoted Vysotsky as saying in his speech at the national educational and professional course for young people ”State Builder: the Way to Restore the State.”
Vysotsky noted that Ukraine has traditionally exported grains and oilseeds and many other products. In particular, Ukraine ranks 4th in the world in corn exports, and first in sunflower oil. In addition, it ranks 7th in poultry exports. Ukrainian dairy farmers are among the top ten exporters of butter. In addition, Ukraine ranks 4th in walnut production and is one of the world’s leading exporters of honey.
Starting Monday, August 25, Ukraine may return to exporting electricity during daytime hours when the power system has a surplus, NPC Ukrenergo reported on Telegram.
According to the company, this is facilitated by a decrease in heat and, as a result, electricity consumption, as well as the early completion of the scheduled repair of one of the units of nuclear power plants. At the same time, solar power plants are actively operating during the daytime.
Ukrenergo reminded that in order to avoid accidents, the power system must operate in a balanced manner – the amount of energy produced every minute must correspond to the amount of consumed resource.
“Given the economic inexpediency of limiting the operation of solar power plants, starting from August 25, Ukraine plans to resume electricity exports to neighboring countries. Tomorrow, an auction will be held for access to interstate crossings in the directions of Romania, Hungary and Moldova,” the NPC said.
Electricity will be exported exclusively during the period of surplus – during the active operation of SPPs. During periods of maximum consumption, when there is not enough capacity in the power system, electricity will not be exported from Ukraine.
Source: https://interfax.com.ua/
