MHP considers investment in poultry production in Moldova with an annual capacity of 50 thsd tons

Ukrainian agribusiness group MHP is considering investing approximately €20 mln in a new poultry production facility in Moldova. The project envisages annual production of around 50 thsd tons of poultry meat, supported by a network of independent contract farms. The proposal is currently being evaluated by Moldova’s Investment Agency at the government’s request. This was reported the agency’s Director General, Natalia Bejan.

MHP is considering building a new facility from scratch, including poultry slaughtering and deboning operations. The company has spent several years exploring opportunities to expand its business in Moldova, including potential acquisitions of local poultry producers, processors, and a retail chain. However, these negotiations did not result in any agreements, making the construction of a new production complex the most realistic option currently under consideration.

One of the key conditions for implementing the investment project is greater clarity regarding trade regulations. In particular, MHP is seeking clarification from the Moldovan authorities on removing trade barriers between Ukraine and Moldova, as well as opportunities to export poultry meat from Moldova to the European Union. The company is interested in rules of origin for finished products, existing quotas, restrictions, and potential changes to the trade regime as Moldova develops closer ties with the EU.

Meanwhile, MHP is working to expand shipments of Ukrainian products to the Moldovan market. The company already exports poultry meat and semi-finished products to Moldova through an authorized local distributor and is awaiting a decision on its application to expand the range of products permitted for import. These include animal feed, day-old chicks, beef, offal, minced meat, and mechanically deboned poultry meat. Expanding these shipments could create additional opportunities for the company’s production facilities in Ukraine.

However, MHP’s potential entry into Moldova’s poultry production sector has raised concerns among local producers. Industry representatives are urging the government to consider the interests of Moldovan companies that have already invested substantial funds in developing their own facilities. Particular concerns relate to a possible increase in imports of cheaper meat raw materials from Ukraine and stronger price competition. Further implementation of the investment project will depend on the outcome of the Moldovan authorities’ assessment and clarification of trade conditions.

Tags: Ukraine, chicken, MHP, Moldova