You're reading: MHP makes first shipment to EU

Ukraine’s largest poultry producer shipped nearly 20 tons of frozen chicken meat to the Netherlands marking its first export shipment to the European Union. 

Listed on the
London Stock Exchange, MHP is also in talks to launch exports to Bulgaria and
Spain, said investment house Dragon Capital in a note.

Anastasiya
Sobotiuk, head of investor relations at MHP, told the Kyiv Post that the
company plans to export 30-50 kilotons of poultry annually to the EU in the
future.

In January, MHP
received permission to export poultry products to EU countries after European
authorities included it on the list of third countries that have the right to
export products to the 28-nation bloc on Dec. 4.

“We view MHP’s launch of poultry exports to the EU positively but should note
that the company’s export target of 30-50 kilotons is higher than prospective
EU duty free quotas (16 kt of chilled fillet and 20 kt of frozen meat)
stipulated in Ukraine’s draft association and free trade agreement with the EU
which the sides may sign in November,” said Dragon Capital.

The investment bank noted that if a free trade agreement is
signed with the EU, Ukraine will be able to export up to 36 kilotons of poultry
to the EU on a duty-free basis, which will to increase to 40 kilotons within
five years.

MHP reported that sales of chicken meat to external consumers in July-September constituted 120,080 tons, which
is 29 percent higher than for the same period last year.

“Currently, the EU applies an import tariff of €29.9-128.3
per 100 kilograms of poultry, making exports from Ukraine barely profitable.
Still, we believe MHP is pursuing the right strategy by building relations with
EU customers ahead of the prospective lifting of import duties,” added Dragon.

Kyiv Post editor Mark Rachkevych can be reached at [email protected].