September 15, 2022

Ukraine's biggest poultry firm aims to restore full production by end-2022

MHP, Ukraine's biggest poultry firm, aims to restore full poultry production by the end of this year after disruptions caused by Russia's invasion into Ukraine, Bloomberg reported.

Viktoria Kapelyushnaya, chief financial officer of MHP SE, said the company's factories, capable of producing more than 750,000 tonnes of meat annually, are now using 90% of their capacities, up from 85% in June as they very gradually increase production.

Even though moving goods across the country and to the EU border remained the company's biggest challenge, MHP relied on the rail and road for shipments. Poultry exports, which had been halted for a month following the invasion on February 24, fell 37% year-on-year in the second quarter to 68,552 metric tonnes.

Kapelyushnaya said they would very much like to export poultry via Black Sea ports, but at this time she cannot even imagine this.

The CFO said the company would have "limitless" opportunities as a result of joining the EU. While a larger market for poultry would result from joining the union, MHP would also like to work with European businesses to produce bioethanol and green energy.

Even companies like the London-traded MHP find it difficult to obtain financing as the war goes on; this is a new reality, Kapelyushnaya said.

She said money won't cost what it costs us now if they are in the EU, adding that for them to be able to carry out their obligations and to develop, access to loans is crucial.

-      Bloomberg