Ukraine's MHP agro holding completes harvesting grain on 27% of sown area

MOSCOW. Sept 25 (Interfax) - Ukraine's MHP agricultural holding has completed harvesting winter and spring grain crops on 27% of the sown area, or around 94,200 hectares of the 348,300 hectares allocated for them, Ukrainian media reported, citing the company's statement.

According to the statement, MHP has harvested wheat on 40,300 hectares with a yield of six tonnes/ha, and has harvested rapeseed on 33,000 hectares with a yield of 3.7 tonnes/ha.

MHP expects spring crop yields to be higher than in 2022 owing to good weather conditions throughout the 2023 growing season.

The holding also expects a deterioration in the financial performance of this segment owing to a significant decline in international grain prices, as well as an increase in logistics costs. "EBITDA of the grain segment will likely be substantially lower in 2023 than in 2022," according to the statement.

MHP further expects that these factors will have limited effect on the overall performance, as nearly all grains and oilseeds will be consumed domestically, except for rapeseed and some wheat.

MHP agricultural holding produces meat, grains, sunflower oil, and processed meat products. Ukrainian entrepreneur Yury Kosyuk is the founder, majority shareholder, and chairman of the executive board.