September 9, 2022

 

French poultry group says lifting of EU custom duties only benefited one company

 

 

French poultry group Anvol said the lifting of European Union (EU) custom duties on Ukrainian imports only benefited major Ukrainian poultry meat producer MHP rather than Ukrainian farmers, and called for the temporary move not to be renewed, Today Online reported.

 

Anvol said Ukrainian chicken imports increased to 52,000 tonnes or 54% up year-on-year, following a temporary removal of tariffs to assist war-torn Ukraine, but they said most of the imports are sourced from MHP.

 

Anvol projected the total volume for 2022 at between 130,000 and 180,000 tonnes. The increase in the second quarter was 181% just in France.

 

Gilles Huttepain, Anvol deputy chairman, said they want to help farmers in Ukraine, not just one company.

 

MHP is the top food producer in Ukraine and by far the largest producer and exporter of poultry meat.

 

According to MHP's website, all of its operations are vertically integrated, from the production of feed grains and fodder to the hatching, processing, and sale of eggs.

 

The chicken and grain processor stated in June that the conflict had caused its poultry production capacity to be reduced to 80–85% of normal levels and that it was unable to provide a financial outlook for the year.

 

The French group said the increase in chicken exports from Ukraine to the EU was also associated with a decrease in shipments to the Middle East as a result of the Black Sea shipping lanes becoming clogged.

 

France's worse-ever bird flu crisis forced producers to cull more than 19 million birds, which resulted in a drop in local production. This, combined with fierce competition from cheaper sources, has increased demand for imported chicken. Anvol said Brazilian imports increased by 122% in the second quarter.

 

Anvol said a chicken breast from Ukraine costs almost half as much as one from France.

 

EU exemptions from customs duties on Ukrainian goods are only valid for a year, and the European Commission stated that it reserves the right to impose additional duties in the event that European producers' products are harmed.

 

-      Reuters