May 21, 2020

Ukraine's MHP gets hit by bird flu and COVID-19 as poultry exports slide by 12% in Q1

MHP, Ukraine's biggest poultry producer, exported 12% less in the first quarter compared with the same period last year due to avian influenza, or bird flu, outbreak in Vinnitsa Oblast, according to a report by Poultry World.

The company's exports during the said period totalled 82,048 tonnes, as the EU and MENA (Middle East and North Africa) imposed sales restrictions due to the bird flu outbreak. Exports accounted for around 52% of total poultry sales volume in the first quarter of 2020, down from 57% in 2019.

While the disease has become under control and its negative impact on the export is lessening, MHP's exports in the second quarter will likely be affected by the COVID-19 pandemic.   

The quarantine measures have disrupted or significantly changed the logistics flows in the agricultural and food industry, as per report.

Yaroslav Navrotsky, senior researcher at Ukraine's Institute of Agrarian Economy, said that due to COVID-19 backlash, owners of agricultural companies in Ukraine have difficulties in maintaining full production and that this could impact the quality of the products and productivity.

He added that small-scale companies are also be at a disadvantage during the quarantine, when food markets and trade fairs have been closed throughout the country.