For the second quarter of 2022, Ukraine-based MHP SE reports its domestic poultry production was just under 170,400 metric tons (mt). Representing an 11% year-on-year reduction, the company attributes the cuts to the reduced population remaining in the country, and to their economic difficulties, as well as many logistical challenges.
Compared to the corresponding period of 2021, poultry production was around 11,500mt lower for the first six months this year at slightly more than 346,000mt.
For the last quarter, MHP’s total poultry sales in Ukraine were down 23% year-on-year at 140,500mt. Of this figure, domestic sales were 6% lower at almost 68,000mt. However, exports volumes for the period plummeted by 37% to 68,552mt. Relatively more of the firm’s exports were shipped to Africa during the first half of 2022 compared to last year, while the proportions to Middle East and North Africa (MENA) and the Commonwealth of Independent States (CIS) were lower than in 2021.
While average sales price received by MHP was 55% higher in the second quarter than the corresponding period of 2021 for exported poultry products when expressed in U.S. dollars, it was 7% lower in local currency (UAH).
Mixed performance for MHP’s Ukrainian vegetable oils, grains
As well as poultry production, growing oilseeds for vegetable oils and grains are also key parts of MHP’s business in Ukraine.
For the second quarter just ended, sales of sunflower oil were 38% higher year-on-year. Accounting for the increase was an increase in the production of sunflower meal for animal feeds following formulation changes. In 2021, MHP had used more soybean meal in its feeds.
As a consequence, the firm’s soybean oil sales were 23% lower in the second quarter than in the same period of last year.
MHP expects to harvest grain from 335,000 hectares (828,000 acres) this year. It reports that harvesting of winter rapeseed and wheat are on track, and the spring crops are in good condition.
MHP reports lower output of meat products
For the three-month period just ended, MHP reports sales of its processed meat products down 73% year-on-year. This category includes sausages and smoked meats. The company attributes this to the consequences of the war, and to Ukrainian Bacon ceasing its operations in April of this year. Average prices of this product group were 9% higher than in the corresponding quarter last year.
Also registering a fall in sales were convenience foods. These were down 24% compared with the same period in 2021, but the average price improved by 16%. This was driven largely by increases in raw material prices, the company reports.
Poultry, product sales growth at Perutnina Ptuj
MHP’s poultry operation in the Balkans, Perutnina Ptuj (European Operating Segment) has been unaffected by the invasion of Ukraine and its wide-ranging economic consequences.
Expansion in poultry production continued across the region over the second quarter of 2022. As a result, 6% more chicken and turkey meat was processed at the firm’s facilities than in the corresponding period of last year. Latest output was around 31,260mt.
At over 19,600mt for the quarter just ended, its poultry sales were 1% higher year-on-year, while the average sales price was up 33% at EUR3.36 (US$3.42) per kilo net of tax.
For the first six months of 2022, the European operation achieved an 11% increase in production at just over 59,800mt. At 37,360mt, sales of chicken and turkey were 5% higher year-on-year, at an average sales price increased by 24% to EUR3.11 per kilo.
Increases in production, sales and average prices compared to the corresponding period of 2021 were also reported for Perutnina Ptuj’s processed meat products. This category includes sausages and convenience foods.
In the second quarter, these facilities produced 11,000mt of sausages and convenience foods — an increase of 11% year-on-year. Sales were 4% higher at more than 10,200mt, while the average price EUR3.12 per kilo, an increase of 11%
Compared with the same period of 2021, first-half production of these products expanded 13% to almost 21,800mt. Meanwhile, sales were up by 6% in volume, and 9% in value.
More on MHP
In the last financial year (2021), MHP reported double-digit increases in revenue, which led to significant growth in profitability.
MHP (formerly Myronivsky Hliboproduct) is the second largest poultry meat producer in Europe, according to WATTPoultry.com’s Top Poultry Companies survey.
As the war in Ukraine continues, MHP is working hard to keep its exports flowing, but the company recently acknowledged that doing so “requires 24/7 attention and management.”
Despite the invasion, MHP reported earlier this month that it continues to prioritize sustainability.
