MHP to resume poultry exports to Russia

MHP (MHPC LI) plans to restart poultry exports to Russia in mid-February after Rosselhoznadzor, Russia’s veterinary and agricultural product oversight agency, withdrew a temporary ban issued in October 2011, MHP announced on Friday. MHP plans to export 2.5-3.2 kt of poultry per month, equivalent to 6-8% of total expected production.

Yegor Samusenko: The renewal of exports to Russia is beneficial in two ways. First, poultry prices in Russia are about 30% above those in Ukraine (Cherkizovo vs. MHP). Second, MHP is building a large poultry production complex in Vinnitsya, which when launched is likely to significantly shift the supply-demand balance in the domestic poultry market, which makes it important for MHP to establish export channels in order to keep earning the high margins on the domestic market.