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MHP expands sales to the Middle East and northern Africa

In the first half of 2021, Ukraine’s agricultural holding, MHP, grew sales to the MENA region. By doing so, it partly mitigated the negative impact of avian influenza and the Covid-19 pandemic, the company notes.
All MHP’s poultry production farms and plants continued to operate at full capacity, with poultry production volumes in the first half of 2021 remained relatively stable at 357,531 tonnes. Photo: MHP
All MHP’s poultry production farms and plants continued to operate at full capacity, with poultry production volumes in the first half of 2021 remained relatively stable at 357,531 tonnes. Photo: MHP

All MHP’s poultry production farms and plants continued to operate at full capacity. Poultry production volumes in the first half of 2021 remained relatively stable at 357,531 tonnes, less than 1% down compared to the same period in 2020. Production grew at the company’s overseas assets, too. In the first half of 2021, Perutnina Ptuj’s poultry production facilities produced 54,117 tonnes of chicken and turkey meat, 8% more than in the same period in 2020.

Export to the MENA region

In the second quarter of 2021, poultry exports increased by 23%, the company said, adding that MHP adheres to its export diversification strategy. Ukrainian poultry export to the European Union was restricted in the first quarter of 2021 following a series of avian influenza outbreaks in the country. This prompted MHP to search for new export opportunities on the global market.

A larger production of small birds

During the second quarter of 2021, third parties sales increased by 6% to 181,804 tonnes, mainly driven by an increase of exports predominantly to the MENA region, MHP stated. This required larger production of small birds, which “are more popular in this part of the world”, according to the company.

The price of exported poultry increased 25%

MHP enjoyed a price hike on its export contracts in 2021. “The price level of exported poultry increased by 25% year-on-year in Q2 to US$ 1.69 per 1 kg, mainly driven by strong sales of poultry meat to the MENA region as well as positive price trends for whole small chicken and quarters driven by international poultry production cost increase,” MHP said.

Weakening domestic market

The domestic poultry market is still depressed. In the second quarter of 2021, the volume of chicken meat sales in Ukraine totaled 72,749 tonnes and decreased by 12% compared to the same period of 2020, driven mainly by a decrease in sales of frozen chicken, lower sales of MDM and whole chicken, MHP said. Despite that, poultry prices in Ukraine in the second quarter of 2021 increased by 38% to US$ 1.63 per 1 kg.

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Both domestic and export prices have been impacted by “a substantial poultry production cost increase since the fourth quarter of 2020 and upward all proteins price trend in the industry,” MHP said.