European poultry organizations are exposing the Ukrainian chicken fillet scheme
The Ukrainian poultry industry is putting pressure on the European businesses in the sector by using an import scheme to avoid taxation for some products. Pieces of fillets left with bones are delivered to EU without paying any import duty and then are processed in plants owned by the Ukrainian MHP potentate, Yuriy Kosiuk, in Slovakia and Netherlands to remove the bone and to be sold as an EU high-value product, reports Portal Spozywczy.
According to Lukasz Dominiak, general director of the Polish National Poultry Council-Chamber of Commerce, 30,000 tons of meat worth €40 million were brought in the EU using this method.
"Poultry production in Ukraine is growing dynamically and is benefiting from cheap resources and a small number of regulatory provisions regulating the activity of the industry. The largest chicken farm in Europe is in Vinnica and it holds 18 million birds at the same time", says Dominiak.
Last year, Ukraine's poultry production reached 1.2 tons of which 20% was exported. Half of the production was obtained by MHP, the only Ukrainian producer allowed to export in the EU.
The free trade agreement signed between EU and Ukraine allows a quota of 40.000 tons of chicken, split equally in carcasses and poultry meat. 1 kg of Ukrainian chicken is 40% cheaper than one produced in EU, mentioned Dominiak. He asked for a strong reaction of European Commission in this matter. Poland is the largest poultry producer inside EU with a forecast production of 2 million tons for this year.
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