Rising geopolitical tensions hurt Ukraine – MHP CEO

10-02-2022 | Home | News

Panic moods over a possible conflict between Russia and Ukraine could negatively impact Ukraine’s economy. Foreign investors are beginning to question if they should put their money into a country “in such a hysteria state”, Yuri Kosyuk, chairman of Ukraine’s largest broiler meat producer, MHP, said.

The negative investment climate could slow down the development of Ukraine’s economy, Kosyuk said, adding that things are not expected to be tough enough to cause any sort of supply disruptions, so Ukrainians “should forget about empty shelves”.

Kosyuk expressed confidence that fears over a possible war between Russia and Ukraine are clearly overstated, and no war is going to actually happen.

During a press conference on 28 January, Ukraine’s President Volodymir Zelensky estimated that the country lost around US$12.5 billion due to the reports warning about the high risks of a fully-fledged war between Russia and Ukraine. Zelensky admitted that he considers the threat of war on the eastern border as high but not higher than during the spring of 2021.

MHP increases poultry production

In 2021, MHP produced 754,400 tonnes of broiler meat, 3% up compared to the previous year, the company said in a statement published on the London Stock Exchange.

Overall sales remained relatively stable, totaling 704,000 tonnes, compared to 699,930 in 2020. Sales in Ukraine decreased by 11% year-on-year to 288,800 tonnes, while export sales increased by 8% to 402,400 tonnes, which partially led to a decrease in the sale of frozen poultry meat, MHP said.

MHP also said that the average price of chicken increased by 22% compared to the previous year to US$1.63 per 1 kg.

The European segment, comprised of Slovenian poultry processor, Perutnina Ptuj, manufactured 111,970 tonnes of chicken and turkey, 10% more than in 2020, the company added. Sales were estimated at 72,840 tonnes, which was 16% more than during the previous year. The rise in sales was driven mainly by higher sales volumes in Bosnia and Herzegovina, Serbia, and Austria.

In addition, Slovenian meat processing plants produced 41,400 tonnes of finished meat products last year, 5% up compared to 2020. In this segment, sales stood at 40,370 tonnes, 4% more than in the previous year. The higher sales volumes were secured by good sales dynamics in Kosovo, Germany, Serbia, and Croatia.