The Ukrainian MHP company, which is the biggest rival of Polish poultry companies, announced evidence revenues of $3 billion, mainly due to the export of poultry meat to European Union countries.
MHP, 1 of the oligarchs and 1 of the largest agroholdings in Ukraine, has nearly 400 1000 hectares of land, specialising in poultry production, has production facilities in Ukraine, the Netherlands, Slovenia and plans to grow to Croatia. Recently, the company reported that due to the export of meat to the EU, its gross exceeded $3 billion.
Record income of poultry mogul
During the discussion of financial results for the year 2023, Yuri Kosiuk, the main shareholder of MHP, besides raised the issue of difficulties related to strikes by carriers and farmers in Ukraine.
Repeated strikes on the Polish border combined with akin problems at the borders of Hungary, Romania and Slovakia proceed to increase the cost of supplying poultry meat to the European Union. (...) In order to prevent strikes, we rapidly changed the mode of transport or the route, for example by redirecting our truck fleet across another countries and alternate longer routes – he said.
According to the company's financial report, before the outbreak of a full-scale war, yearly revenues ranged from $1.9 to 2.3 billion, with exports generating around $1 billion. Currently, gross has risen to $3 billion, of which as much as 1.8 billion comes from exports.
The net profit was $114 million, while in 2022 the company recorded a failure of $240 million.
How much does Ukrainian poultry cost?
The study besides included average prices of poultry meat, oscillating around little than 2 dollars, which translates into about 8 zlotys. As many as 45 percent of the chickens produced by MHP were placed on European markets, which is simply a major challenge for Polish poultry companies.
We are the largest maker in the EU, we produce more than 3 million tonnes, we export more than 60% mainly to the EU, and to Africa, Asia, since last year to the Philippines. From 3rd countries we place the most in the UK, where we besides feel powerfully the presence of MHP – says Dariusz Goszczyński, president of the National Poultry Council, in a conversation with the portal “Rz”.
According to Goszczyński, prices of Ukrainian products are out of scope for Polish breeders.
As a result, we have a chicken breast of PLN 13-14 in stores, erstwhile the Polish maker has no business reasoning about profitability if the price is below PLN 19. This product displaces Polish poultry from an crucial section of the EU market, which is the supply of restaurants and hotels – he emphasized in his conversation with the WPA.
Polish entrepreneurs note that the company is registered in a country with facilitated taxation regulations. During the presentation of the financial report, Kosiuk addressed these critics.
We paid the equivalent of $164 million in taxes to the Ukrainian state budget and we are the biggest payer in the agricultural sector. Never was this support bigger and more crucial than during the ongoing conflict – he said. – Additionally, the company spent 21 million dollars on initiatives related to assistance to the armed forces of Ukraine. 2380 MHP staff were mobilized to the Ukrainian army, and 125 of them were killed, lost or in captivity.
Since the liberalisation of trade with Ukraine, i.e. for almost 2 years, there has been talk of the problem of a large influx of poultry from Ukraine to EU markets. While the number of poultry entering the Polish marketplace was comparatively small, its influx into the Community marketplace caused immense confusion and gradual displacement of the Polish product, which lost its price competitiveness.
As with another agri-food products, there is simply a serious problem with the deficiency of consistent requirements for Ukrainian products.
The Ukrainian company does not gotta meet EU requirements, costly procedures and research, and has unlimited access to this market. erstwhile Ukraine is covered by EU requirements, these differences will begin to fade. There will be no specified imbalance in production costs and in meat quality. However, we gotta put it together to be able to last in the common market, so the Ministry's proposal to make safeguard measures for EU producers has our full support. If this is not done, the poultry sector will not last under the current conditions of this competition," emphasises Goszczyński in a conversation with the portal "Rz".
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The Kiev oligarch states how much he earns for poultry in connection with the EU decision to liberalise trade with Ukraine
