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Ukraine's biggest food producer warns a collapse due to the conflict would be 'catastrophic' for Ukraine and its army, a report says

Mar 11, 2022, 19:14 IST
Business Insider
Harvesting of grains in Zaporizhzhia Region, Ukraine.Dmytro Smolienko/ Ukrinform/Future Publishing via Getty Images
  • MHP is one of Ukraine's biggest food producers and a major exporter.
  • The company's failure would be "catastrophic" to the army and the wider war effort, its head told the BBC.
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One of Ukraine's biggest food producers has warned a collapse of its operations due to the conflict would be "catastrophic" for the country's population and its military, the BBC reported.

MHP, a London-listed company that produces poultry and cultivates grain, is the Ukrainian military's biggest supplier, the outlet reported. The firm's chairman told the BBC that the next two to three weeks would be critical for planting wheat and corn crops, a process that could be threatened by Russian troop advances.

The company has a large part of its operations in the west of the country, John Rich told the broadcaster, a region that Russian forces have not yet reached. Any disruption to the production of crops there could have implications not just in Ukraine, but globally as well, he said.

As Ukraine's war-battered economy has collapsed, so have its export capabilities. With Ukraine a significant exporter of both wheat and corn – accounting for 12% and 17% of global supply, respectively – the fighting there has contributed to a surge in global food prices.

The conflict also has implications for shipments of wheat from Russia, the world's largest exporter of the grain. The packages of sanctions imposed on Russia have prevented many firms from conducting business with the country, and limiting supplies of commodities such as wheat and corn.

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The company's failure to continue operating would therefore be "catastrophic" to both the army and the wider war effort, Rich, who has been running operations from Slovenia, told the BBC.

MHP, headquartered in Kyiv, did not immediately respond to Insider's request for comment.

Meanwhile MHP workers making food deliveries in Ukraine are embarking on "suicide missions", as they enter cities under heavy attack, Rich said. MHP has been making essential food deliveries to the most isolated communities in the country, he said.

"It's an enormous challenge for our staff and we have to try and incentivize people, pay them more, and guarantee to look after their family if something happens", Rich told the BBC.

He added that many of the company's competitors, particularly those in the east of the country, were no longer operating.

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The major food supplier has also taken the measure to suspend its online operations in order to counteract Russian cyber attacks, according to its homepage.

Fighting in Ukraine has closed ports and left many factories and warehouses shut, although Swiss food giant Nestle announced on March 2 it was restarting some operations in order to support the delivery of essential food and beverage supplies.

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