MHP, Ukraine’s largest poultry producer, posted a net loss of $89 million in the first half of 2022, compared with a net profit of $232 million in the first half of 2021, the company said in a statement.
The negative momentum in financial performance is primarily due to his $92 million non-cash foreign exchange loss in the first half of 2022. The ongoing military conflict in the country continues to affect operations.
The MHP reported that the conflict in Ukraine has stabilized to some extent, but the situation remains highly volatile and the outlook is fraught with extreme uncertainty.
The poultry sector is on a recovery trend
Although MHP continues to face complex challenges and disruptions in operations, distribution and logistics, the company has been able to restore poultry production at its Ukrainian facility by almost 100%. In the first half of 2022, MHP poultry production in Ukraine decreased by 3% compared to the same period last year to 346,039 tons. The company said that in its European division, chicken production increased by 11% year-on-year to 59,809 tonnes.
“On February 24th, we became aware of the war. Shortly after, a Russian tank drove through the main gate of the poultry farm. Obstacles between the feed mill and the farm made egg production almost impossible. ,” said Oleksandr Strilets, owner of the Ptahoprodukt group of companies (Poultry World Interview).
“Over the past few months, new logistics routes have been established, albeit more complex and costly, and export volumes have increased. We expect virtually all of our acreage to be harvested in the second half of the year,” said MHP.
Agricultural companies will now be able to export from Ukraine thanks to an agreement signed on July 22 by Ukraine, Russia, Turkey and the United Nations to resume grain exports, with more than 100 ships carrying animal feed, grains and vegetable oils. Delivering to MENA and the EU. MHP plans to use this route for grain exports this year.
MHP said in March that he caused significant damage to Ukrainian facilities, infrastructure, and production, except for the destruction of a rented warehouse that caused $6 million in product losses and the closure of Ukrainian bacon operations in the Donetsk region. not covered. It is now relocating to another location in Ukraine.
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Source: Poultry World
