Bloomberg News

Ukraine’s MHP to Increase Exports as Domestic Market Depressed

June 11, 2013

Mironovskiy Hleboproduct SA (MHPC), Ukraine’s biggest poultry producer, wants to boost the amount of meat it exports because domestic consumption has not grown in six years, Chief Executive Officer Yuriy Kosyuk said.

MHP wants to ship half of the poultry it produces abroad to as many as 30 countries, Kosyuk told reporters today in Kiev. The company exports more than 30 percent of its poultry now to 25 countries, Kosyuk said.

MHP expects to produce about 470,000 tons of chicken meat this year and will be adding 10 percent to its poultry output annually through the end of 2015, he said. Consumer demand for poultry inside Ukraine has not changed in the past five or six years and prices have been the same in one and a half years.

“External markets are becoming more and more interesting,” Kosyuk said.

Ukraine slipped into recession in the second half of last year after Europe’s debt crisis cut demand for the country’s main exports, such as steel. The economy shrank 1.1 percent in the first quarter from a year earlier, and recorded a deflation for a seventh month in May.

MHP is using a biogas facility at its poultry plant in the Dnipropetrovsk region that will operate at full capacity in two or three months, Kosyuk said. The plant cost MHP $20 million, he said.

Depending on efficiency tests of existing biogas production, the company will decide on investing another $350 million in five years for 13 biogas facilities at its seven poultry plants to help cut energy costs, he said.

To contact the reporter on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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