MHP acquires poultry farms in Albania

MHP estimated the investment cost of its acquisition was €16,8 million (US$18,1 million).  Photo: Canva
MHP estimated the investment cost of its acquisition was €16,8 million (US$18,1 million). Photo: Canva

The Ukrainian Antimonopoly Committee has approved MHP’s acquisition of 7 poultry farms on the Balkan Peninsula, marking the beginning of a new round of international business expansion for the company.

Pavel Kirilenko, head of the Antimonopoly Committee, said that permission for the deal, which is mandatory under Ukrainian law, was granted as it will not impact the Ukrainian poultry market.

“Thanks to these deals, MHP intends to organise the production and sale of chicken meat in Albania and Kosovo, using its experience and technology. Considering that these actions do not affect the Ukrainian markets, the [Antimonopoly] Committee has granted permission to all 7 applications received from Perutnina Ptuj DOO,” Kirilenko noted.

MHP has not explained the rationale behind the acquisitions. From the information shared by the Antimonopoly Committee, Ukrainian poultry behemoths seek to acquire poultry farms Driza, Fresh Chicken Albania 2019, Industria Foragjere JSC and EURO ALB 2009 in Albania and Kosovo.

MHP estimated the investment cost of its acquisition was €16,8 million (US$18.1 million).

Strong exports bolster performance

MHP finalises its new acquisition plans when the foreign market clearly starts playing an increasingly important role in the company’s business. The total volume of poultry meat sold to third parties in 2023 increased by 5% compared with the previous year, to 691,981 tonnes due to a significant increase in export sales, the company said in its annual report.

Export sales in 2023 increased by 8% to 396,923 tonnes, mainly as a result of increased sales volume of chicken to the EU and whole chicken in the MENA region, the company added. MHP added that it managed to increase exports despite serious challenges.

“We are navigating significant disruption in several regions. Black Sea export routes continue despite the unilateral withdrawal by Russia in July 2023 of the Black Sea Grain Initiative, regular targeting of Ukrainian ports and other transport-related infrastructure by Russian drones and rockets makes the situation extremely volatile,” MHP stated.

MHP added also pointed out to the Red Sea crisis and recurring strikes at the Polish border together with similar problems at the borders in Hungary, Romania and Slovakia, which continue to increase the costs of delivering poultry meat to the EU.

“We have swiftly changed the mode of transport or route when required, for example, diverting our fleet of trucks through other countries to counter the strikes,” MHP stated.

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