MHP expands Ukraine poultry farm to fuel export program

By Vladislav Vorotnikov

- Last updated on GMT

MHP expands Ukraine poultry farm to fuel export program

Related tags: Broiler, Poultry farming, Mhp

Ukrainian agricultural holding MHP will double production performance at its Vinitsia Poultry Farm, up to 520,000 tonnes (t) per year by 2021, in order to supply a higher volume of chicken meat for export.

Vinitsia Poultry Farm, located in Vinitsia Oblast, is the largest production asset of MHP, and according to the company’s information following the upcoming expansion the facility will become the largest poultry farm in Europe in terms of output.

The second stage of Vinitsia Poultry Farm is slated to begin operation in late 2018, so next year this part of the facility will manufacture 35,000t of broiler meat. It will be gradually increasing production volumes over the next several years and will reach full designed capacity of around 250,000t – 260,000t in early 2021.

Yuri Kosyuk, the company’s owner, speaking recently revealed that the second stage of Vinitsia Poultry Farm will allow MHP to boost export by 80%, as compared to 2017, or by 200,000t. In total, MHP wants to deliver 80% of production volumes from the second stage of the facility for export, generating the revenue from $300 million to $350 million per year.

MHP has posted information about the expansion of Vinitsia Poultry Farm together with a report on its financial performance in the period from January to September 2017. The company managed to earn $257 million of net profit, more than double that of the previous year, due to the rise in export revenue to $561 million in that period.

Export revenue accounted for 58% of the company’s total revenue, as compared to 53% during the same period of 2016, MHP said. From the MHP’s information it is clear that the share of export revenue was the highest-ever in the period from January to September 2017.

Anastasia Sobotuyk, the spokesperson of MHP, has not replied what revenue from export sales the company hopes to have in 2021, when the expansion of Vinitsia Poultry Farm is completed, in response to the request of Global Meat News​.

MHP achieved the strong progress in poultry export in the first half of 2017, delivering 123,040t to the foreign markets, primarily to MENA countries, European Union and Africa, up by 44%, as compared to the first half of 2016, the company reported earlier. 

MHP increased export in spite of challenges that Ukraine faced because of the several outbreaks of the highly pathogenic avian influenza in late 2016, which resulted that several countries, including Iraq and Jordan restricted import of poultry from the country for several months.

At the domestic market, MHP sold 160,903t, which was 1% lower than in the same period of 2016, the company said on its website.

New acquisition in Europe is on the pipeline

In the meantime, Yuri Kosyuk speaking to the local news media Latifundist​ has revealed that MHP plans to purchase a poultry processing plant in the European Union.

He denied rumors that MHP is focused on some assets in Poland only, saying that the company’s management is also considering some plants located in Germany, France and Great Britain.

MHP already owns two plants in Europe, one in Slovakia and one in the Netherlands.

Related topics: Others, Industry & Markets, Poultry

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