Ukraine’s MHP looks beyond Russia for export

By Vladislav Vorotnikov

- Last updated on GMT

Related tags: Customs union, International trade, European union, Livestock, Poultry

Ukraine supplier announces swith of strategy
Ukraine supplier announces swith of strategy
A leading Ukraine meat supplier has announced a switch in strategy to reduce its exposure to the volatile Russian poultry market.

MHP has announced it is diversifying its operations to reduce the share of its poultry meat being sent to the Customs Union of Russia, Belarus and Kazakhstan.

Company spokesman Anastasia Sobotyuk, said: “Last year, the Customs Union accounted for about 45% of our exports. In 2014, we plan to reduce this proportion to 28-30%.”

In volume terms, MHP is expecting to export 50,000t of chicken meat to the Customs Union, with around half of that going to the Russian Federation.

Market analysts are putting the move down to concern raised by export bans imposed by Russian veterinary watchdog Rosselkhoznadzor.

“The Customs Union regularly restricts meat imports from Ukraine due to various reasons. So today it makes no sense to put a focus only on that market, especially given the fact that Ukrainian chicken is exported to 50 different countries worldwide,”​ commented agricultural analyst Eugene Gerden.

One alternative market is the European Union, which approved MHP to supply last year. The company now expects to supply around 20,000t of poultry meat into the EU during 2014.

As previously reported, Ukraine state veterinary service Gosvetfitosluzhba, in connection with an appeal of Rosselkhoznadzor from February 6, 2014, suspended MHP’s certification of poultry to supply the Customs Union.

“While we have no progress in this direction we are waiting, not exporting,”​ added Sobotyuk.

Related topics: Meat

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