MHP, a poultry producer that operates in Ukraine and the Balkans, has said that Russia's invasion of the former has led to 'significant logistical and infrastructure challenges' across its operations.
In a trading update for the first three months of the year, MHP said that it has continued commercial sales in Ukraine throughout the conflict, however export sales have ceased due to ports being closed and delivery by truck 'practically impossible'.
In addition, as a result of shelling, MHP said that a fire broke out in a warehouse that was using to store frozen chicken products, resulting in the loss of 3,000 tonnes of product.
Read More: Russia's War In Ukraine To Blame For Rising Global Food Insecurity, Says Yellen
Poultry Capacity
As a result of these challenges, MHP has reduced its poultry capacity utilisation to between 80% and 85% in Ukraine, while it has also suspended operations of its 'Ukrainian Bacon' meat-processing operations in the Donetsk region, which has 34,000 tonnes annual capacity.
'Currently, MHP has a key responsibility in the food security of Ukraine and it has continued its operations despite significant difficulties and disruptions,' the company said in a statement.
'MHP fully understands how important poultry production is for Ukraine and its population at this difficult time. All MHP employees are fully committed to every effort to ensure that Ukrainians have access to food now and at any time in the future.'
The company has sought to support humanitarian efforts in the country, supplying around 11,000 tonnes of poultry products, equipment, fuel and other materials since the conflict broke out.
Production Volumes
Poultry production volumes were up 5% in the quarter, compared to the same period last year, the company said, however quarter-on-quarter production (compared to Q4 2021) was down 13%.
The group is also a significant producer of sunflower oil, and saw sales in this segment drop 41% compared to the same period last year, and 59% on a quarter-on-quarter basis. Soybean oil sales volumes were 7% down year-on-year, and 8% higher quarter-on-quarter.
© 2022 European Supermarket Magazine – your source for the latest fresh produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
