Ukraine's biggest poultry producer, MHP, does not expect European Union 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.
Limited Exports
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.
International Capital Markets
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.
