Ukraine's biggest poultry producer says unscathed by EU import limits

MHP SE

19/09/2024 10:01

DUBLIN, Sept 18 (Reuters) - 
    Ukraine's biggest poultry producer MHP  MHPC.PFT  does not
expect European Union (EU) import limits to have a significant
effect on its business because the cuts are small and exports
can be easily diverted, its chairman said. 
    The EU has set limits for certain agricultural imports from
Ukraine after free-trade access, granted to help the country's
economy following Russia's invasion in 2022, angered farmers in
the EU and contributed to rural protests this year.
    MHP last year exported around 160,000 tonnes of poultry meat
to the EU and this year its exports are limited to around
138,000 tonnes, Executive Chairman John Rich said. 
    "It doesn't make much difference for us, it's had no effect
really," Rich said in an interview late on Wednesday, adding
that the company was at its maximum production capacity and has
alternative markets in the Middle East and Asia. 
    The company, Ukraine's biggest food producer and one of its
largest employers, plans to continue to invest in Saudi Arabia
and the Balkans as it seeks to diversify its earnings from
Ukraine. 
    "We're investing in the Balkans area... we're investing in
Saudi Arabia. There's no question that we will continue to
invest there," he said.
    Large acquisitions would be difficult, however, as long as
Ukraine is locked out of international capital markets, Rich
said.  
    The company is not investing in new bulk poultry production
facilities in Ukraine, but is investing in value-added
processing and services, he said. 
    It is building a biogas plant that will help to reduce
dependence on the Ukrainian electricity grid, which has been
damaged by the war, and to cut the company's carbon footprint
and plans additional investments in the area.  
    "Energy independence is an overall objective. No question.
will we increase biogas facilities? Yes, no question," he said. 

 (Writing by Conor Humphries; editing by Barbara Lewis)
 ((conor.humphries@thomsonreuters.com; +353 1 236 1915;))