8 Sep 2023 15:28

Ukraine's MHP, Saudi Arabia's DHV form JV to invest in poultry farming in Middle East

MOSCOW. Sept 8 (Interfax) - MHP, Ukraine's largest chicken producer, has signed a shareholder agreement on the formation of a joint venture with Desert Hills Veterinary Services Company Limited (DHV), a fully owned subsidiary of Tanmiah Food Company, a leading provider of fresh poultry, processed poultry, and other processed meat products in the Middle East, Ukrainian media said with the reference to MHP statement on the London Stock Exchange.

The "partnership will see DHV and MHP SE join forces to invest more than SAR200 million [about $53 million at current rate] in farming operations with the capacity of more than 1 million parent stock expected to produce approximately 175 million hatching eggs annually a state-of-the-art hatchery and a poultry feed mill," MHP said.

DHV will hold a 55% stake in the joint venture, while MHP will have a 45% stake. MHP and DHV signed a memorandum of understanding earlier this year.

"The signing of the shareholder agreement is a decisive step in establishing the joint venture company after the necessary approvals, including clearance from the General Authority for Competition of Saudi Arabia and other relevant jurisdictions, are secured," MHP said.

Tanmiah Food Company, which was founded in 1962 and is listed on the Saudi stock market, includes farming, primary processing, production, further processing, and distribution with products sold in Saudi Arabia, the UAE, Bahrain, Oman, Jordan, and Kuwait. Tanmiah is also the master franchisee of Popeyes Louisiana Kitchen.

As of June 30, 2023, Tanmiah operated 114 farms, six hatcheries, two feed mills and four primary processing plants (slaughterhouses). Tanmiah distributes its products through a network of wholesalers, retailers and food service outlets, as well as through its e-commerce platform.

MHP is Ukraine's largest chicken producer and also makes processed meat products, grows grains and produces sunflower oil. MHP supplies chilled chicken half carcasses to the European market that are subsequently processed, including at group plants in the Netherlands and Slovakia. MHP's founder, majority shareholder and CEO is Ukrainian businessman Yury Kosyuk.