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INTERVIEW


- and yet at the same time it is among the five biggest meat importers. That is an absolutely paradoxical situation. We can see that we can be competitive in the world market even without the kind of export subsidies provided by the governments in most European countries.”


UBI: European Union experts have attended your factories to assess conditions there. What is the main criteria that needs to be met to be granted permission to export your products to EU countries. What are the first results? YK: “All our factories are suitable for providing export quality product meeting the requirements of these countries. The only question which arises in relation to Ukrainian produce is the quality of its veterinary service. Ukraine’s budget needs to include financing of a programme to monitor salmonellosis (Salmonella). I believe that this will be included in next year’s budget and after that we will be able to start exports to the EU. We will not need any additional controls.”


UBI: What kind of products do you want to export and where? YK: “We want to export a wide range of products. In Europe it will be mostly filleted poultry and to the USA we want to export filleted poultry and wings. Asia and south-eastern Asia is also attractive for us. It is a long procedure to get the permissions needed to export to these countries, which can take from two to four years, but we have begun the process. We have found partners in these countries and hope that we can get all the permissions required by the time the factory in Vinnytsia region is opened.”


UBI: Some years ago you pinned your hopes on the poultry processing business. Is that where you still see the future – what is your feeling about the sector? YK: “This business feels good. I am often laughing with the factory manager. Over the past few years he has always been asking when we would get the factory running at full capacity and asked us to give him more orders. Today the factory works in


10 UkraineBusiness insight October/November 2010


three shifts and stops only for washing. We are very satisfied with this project and are looking for further expansion.


“This market segment has understandable trends as we analyse tendencies in neighbouring and international countries. In the USA many poultry companies want to re-classify themselves as FMCG establishments as their percentage of ready-made products now exceeds their proportion of primary goods. In Ukraine the consumption of ready-made products is also increasing, but the market volume is far below that of the EU or the USA. The main reason is the low-income of the population, a large proportion of whom earn about US $1,800 per year.”


UBI: What problems face the investors who want to enter Ukraine’s agricultural sector? YK: “There are no special obstacles in Ukraine and they will face the same problems as are faced in other countries. Opening a business in our country requires the company to find the right


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