Ukraine's top agribusinesses specializing in poultry and eggs are bound to have a good year in 2013 as a new market of more than 500 million people has just opened for them.
On Dec.4, the
European Commission formally allowed imports of Ukrainian poultry,
eggs and other products to the European Union, opening the market for
Ukraine’s top agricultural holdings, such as London-listed MHP and
Avangard, and Agromars, which is not listed. Exports might start as
early as the first quarter of next year.
“Now, of course,
we need to wait a little for all technical measures to be taken by
the EU for the decision to take effect, but the main thing is that it
has been approved,” Ukraine’s Foreign Kostyantyn Gryshchenko
tweeted about the event.
Last year, Ukraine
only exported 50 kilotons, or 5 percent, of its total poultry
production. Most of the exports went to ex-Soviet countries. Shell
egg exports stood at 39 kilotons, or 4 percent of production, and
also mainly went to ex-Soviet countries and Iraq.
Vertically
integrated MHP specializes in poultry and
poultry products. The company said it’s is prepared to start
exporting poultry products to Europe as of early 2013.
“As of the beginning of
the next, 2013 year, Myronivskiy Khliboprodukt can start exporting
its products to the EU countries because we have long ago received
the appropriate permits from the representatives of the European
Council,” MHP said in its Dec. 5 statement.
In its analytical
note on Dec. 6, Dragon Capital Investment Company said that Agromars
and Avangard are also already in compliance with the food safety
requirements of the European Commission for Health and Consumers
(SANCO).
It’s not clear, however,
when all the formal procedures within the EU will be concluded and
Ukraine’s companies will be able to start exporting to Europe.
Several amendments still need to be made to EU health regulations,
and then the new legislation will have to be translated into official
EU languages.
In its own press
statement, Ukraine’s Agricultural Ministry estimated that the
bureaucratic procedures within the EU will take two or three months
to complete after the vote was taken. Agricultural Minister Mykola
Prysyazhnyuk said that, in the meantime, all potential suppliers will
be audited by health services.
“Ukraine is now a
fully fledged player on the world’s food market, and the hi-tech
poultry production industry has overcome a previously unreachable
frontier,” Prysiazhniuk said in his statement on Dec. 6.
The news is welcomed
by the top agricultural holdings because all of them plan to expand
their capacity next year. Dragon Capital estimated that Avangard and
Ovostar, another top Ukrainian egg producer, could more than double
their egg processing capacities in 2013, while MHP is considering
buying a meat processing plant in the EU in the short to medium term.
Moreover, after the
EU introduced stricter health standards for poultry and egg
production, many EU producers were forced out of business, which
forced prices up on theses foodstuffs, Dragon
reported. The company said
this created “favorable pricing conditions for Ukrainian
producers.”
Prysyazhnyuk
said that his ministry continues to negotiate with the EC to also
export milk and veal to the European markets.
Kyiv Post editor
Katya Gorchinskaya can be reached at [email protected].
