Despite the war, MHP maintains operations in Ukraine

The Vinnytsia poultry complex is one of MHP's largest production sites in Ukraine. Photo: MHP
The Vinnytsia poultry complex is one of MHP's largest production sites in Ukraine. Photo: MHP

Ukraine’s largest poultry producer, MHP, continues operations in Ukraine but has suspended exports, the company said in a statement on the London Stock Exchange.

MHP, like all Ukrainian companies, has encountered significant difficulties with its supply chain associated with the Russian invasion, the company said.

“Ukrainian roads are currently dangerous, especially in the active zones. There have been highly reliable reports that military vehicles are shooting without any regard for civilian lives, even at trucks of food supplies vital for the survival of Ukrainian women and children. Many trade channels have ceased operation due to the threat from Russian forces,” MHP said.

MHP is seeking alternative ways to deliver these vital supplies to the needy, the company said, adding that it is also pledging unconditional and free deliveries to all our valiant defenders as well as hospitals, communities, and all who are facing difficult conditions.

No exports

“Needless to say, because of the damaged supply routes, MHP is currently unable to export any Ukrainian products,” MHP said, adding that this has resulted in major losses for the company.

MHP explained that export sales have ceased because of ports being closed and, meanwhile, export delivery with trucks is practically impossible.

As MHP is currently not able to export, production facilities have been running at a lower utilization to fully satisfy domestic consumption in poultry meat, with some excess stock being frozen.

No physical damage yet

So far, MHP production facilities in Ukraine have not sustained any physical damage, as most production assets are located in Vinnytsia Oblast – the region that has not been touched by the fights yet, MHP said in a separate statement.

So far, MHP is not aware of any casualties among its employees, although it has received reports of some casualties among their relatives, the company added.

However, the logistics problems take their toll, as MHP is already experiencing disruption in the supply of feed additives, including minerals and vitamins. The MHP team has undertaken all necessary steps and is in cooperation with suppliers to facilitate the delivery as soon as it is possible, the company said.

“Collection of payments from our customers generally continues, albeit with difficulties,” MHP said. “Overall, currently, MHP is experiencing a severe reduction in revenue and associated losses, which we expect to continue for the duration of the conflict and some months after hostilities cease.”

The company added: “MHP continues to undertake all steps necessary to ensure full production in all its operations which can be resumed once the situation stabilizes.”

Fabian Brockotter Editor in Chief, Poultry World
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