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Ukrainian chicken and grain processor MHP, the country's top
food producer, warned on Friday (June 17, 2022) that the war with Russia and
the challenge of export could not give it a year-on-year outlook.
The agency, which typically produces thousands of tons of
meat, wheat and vegetable oils per month, said poultry production capacity has
fallen by 80-85% of normal levels so far.
“I can’t predict anything,” MHP’s Chief Financial Officer
Viktoria Kapelyushnaya said during a conference call.
With Ukraine’s Black Sea ports controlled by Russia, the
company had to divert produce by road and air or to ports as far away as
Romania, she said.
“Taking into account current working environment and
uncertainties it brings, as of today it is quite challenging to predict how the
financial and operational results for the year of 2022 will look like,” MHP
earlier said in a statement.
MHP, which focuses on poultry production and grain
cultivation, said poultry and vegetable oil prices are likely to remain high at
least into 2023 due to global supply constraints and cost pressures amid the
ongoing conflict.
“In addition, due to port closures, exports of poultry and
vegetable oils were severely impacted,” said the company, which supplies
poultry products to 85 countries, including those in Europe and the Middle
East.
Ukraine’s economy has been firefighting multiple challenges
ever since Russian troops poured across its border in February, and with the
conflict showing no signs of weakening, businesses there are staring at an
uncertain future.
Ukraine’s state energy behemoth Naftogaz on Thursday
postponed its results in the wake of the ongoing crisis.
Strong sales during the pre-conflict period meant MHP’s
first quarter revenue grew 24% to $553 million, while export revenue jumped 42%
to $308 million. Find more.
|Source: Online/SZK
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