Connections with Croatian officials and dissatisfaction from local farmers: how controversial owner of Ukraine’s largest poultry producer, Kosyuk, seeks to establish presence in the Croatian market

Controversial Ukrainian billionaire Yuriy Kosiuk, owner of the MHP Corporation, which produces poultry, grains, meat, sausage products, and fast food chains, is attempting to establish a presence in the Croatian market.

Three years ago, at the end of 2021, it was revealed that MHP, the largest poultry producer in Ukraine, planned to make significant investments in the construction of agribusiness facilities in Croatia, as well as in tourism.

At that time, consultations began with local authorities, document processing, and obtaining permits. Yuriy Kosiuk announced that his initiative received substantial support from the Croatian government and relevant ministries.

According to Kosiuk, the Ukrainian agribusiness plans to build over 200 poultry farms, a feed plant, a chick hatchery, a processing plant, and a slaughterhouse in five regions of Croatia. The production capacity of the complex will be about 30 million chicks per year. The project’s cost is estimated by Kosiuk to be between 340-350 million euros.

Construction is planned to begin in spring 2024, with production possibly starting by the end of 2025. However, there are concerns about what the involvement of a Ukrainian business with a corrupt background might bring to Croatia’s economy.

According to media reports, all administrative procedures have been completed, and the largest foreign investment in Croatia since its establishment is ready for implementation. The Croatian government actively supports Kosiuk’s initiatives, despite dissatisfaction from local farmers who are worried about the creation of unfavorable competitive conditions in their market.

The project holder is the company Perutnina Ptuj-Pipo from Čakovec, within which more than 200 poultry farms, feed plants, chick production plants, processing areas, and a slaughterhouse will be built in the regions of Petrinja, Sunja, Martinska Ves, Popovača, and Velika Ludina.

These investments, amounting to around 350 million euros, are backed by the Ukrainian company MHP, which owns Perutnina Ptuj-Pipo. The head of the entire operation is Yuriy Kosiuk, the owner of MHP. Currently, the MHP group owns several companies in Slovenia, Croatia, Bosnia and Herzegovina, Serbia, and several other EU countries.

In one of his interviews, Kosiuk explains why Croatia was chosen for this mega project, what it will bring to the residents of Banovina, and why local poultry producers should not fear this project.

From left to right: Ivica Piric – leading advisor to Croatian Prime Minister Andrej Plenković on Ukraine, honorary consul of Ukraine in Croatia; Andrej Plenković – Prime Minister of Croatia; Yuriy Kosiuk – controversial Ukrainian businessman

Why did you decide to invest in Croatia and what is the investment amount?

“We are considering investing in Croatia. Croatia is a reliable partner for Ukraine, but it positions itself very well in the EU as a country desirable for investment. This can be part of the diversification of PP in the Balkans. We analyze the market and its opportunities and increasingly see Croatia’s potential in corn production and other crops. Essentially, we support a vertical integration approach by converting grain into value-added products like poultry. We could sell high-quality products from Croatia instead of selling raw harvests and goods. MHP and Perutnina Ptuj have significant experience that we are ready to develop both in crop production and poultry farming. According to our estimates, investments of about 340 million euros are needed. We expect local financial institutions to support this deal,” said Kosiuk.

At what stage is the project, and when can we expect the start of farm construction? What is included in the project, and when might production begin?

“If things proceed smoothly, construction could start now, delaying the start of production until the end of 2025 or the beginning of 2026.”

How significant are the investments, and how many people will be employed?

“If the project continues, up to 2500 people could be hired, contributing to the region’s economic development. We know that this requires investment and new jobs. Local municipalities will have many opportunities thanks to our project, which will create new jobs. We are consulting with local authorities, finalizing document processing, and obtaining permits. We work closely with the Ministry of Agriculture and the Ukrainian Embassy’s consulate in Croatia, as well as the consulate in Split, to inform the public and communicate with local citizens and farmers to present the common interests of our project. For example, local construction companies are our potential partners in future construction.”

According to available information, the annual capacity of the poultry farm will be 25 million chicks. For which markets are these chicks intended?

“The annual production capacity is expected to be 30 million chicks, with the goal of selling these volumes on international markets.”

What is your response to these fears?

“We are a responsible company. We understand the need for sustainable business practices. We enter new markets not to destroy them but to develop and increase efficiency, as we have done together in PP. In all the regions where we operate, we support local farmers.”

How do you comment on the project of the chicken company Petrinja, owned by Andrija Matiuha, who also announces a major project for the construction of a poultry farm in Banovina? What do you think is its goal?

“We do not speculate on the business intentions of third parties.”

How satisfied are you with the work and results of the company Perutnina Ptuj – Pipo from Čakovec, which belongs to you and is the owner of the project in Banovina?

“We are thrilled with PP’s progress. Over the past four years, MHP has invested about 20 million euros in its development. All PP profits remain in the region, which is important for the Balkans’ economy. Finally, as a foreign investor, this is the largest investment in Croatia.”

“Yes, after three years of painstaking work, all documentation has been submitted, and the upcoming construction permit and the start of the largest foreign investments in Croatia since its establishment are ready for implementation. I especially emphasize that domestic companies will handle the construction of all facilities and infrastructure, which will be an additional benefit for the economy.”

Piric thanks for the help and participation of the Sisak-Moslavina County, especially the prefect Ivan Celjak and his deputy Michael Juric, as well as all the administration employees of the municipalities where the project will be implemented.

In Croatia, there are concerns that after the start of the Ukrainian poultry farmers’ operations, the domestic market will be flooded with chicken, leading to the collapse of domestic poultry farming. At the same time, Kosiuk stated that he received significant support from the current Croatian government and relevant ministries, confirming that Croatia is sincerely open to modern business ideas and investments. However, openness is only manifested on the part of the loyal government, not local farmers.

Ivica Piric, the honorary consul of Ukraine in Croatia, is actively involved in this Banovina project, and it was he who suggested to Yuriy Kosiuk to invest in Croatia and bring MHP to Banovina. Over the years of project preparation, he even traveled to Ukraine seven times to work directly on the project with Kosiuk.

“Additionally, I thank the Government of the Republic of Croatia, the Ministry of Agriculture, particularly State Secretary Tugomir Majdak, as well as the Minister of Economy and the Ministry of Economy for implementing this project. I was lucky to bring Mr. Kosiuk to Croatia. He recognized Croatia as a country where he can invest his money and create new jobs, although he has companies in more EU countries.”

When asked about the competition from Petrinja Chicken Company, which also announces the construction of a poultry farm in Banovina, the honorary consul emphasizes that comparing Mr. Kosiuk’s Banovina project and the MHP company, a leader in poultry production in Europe, with someone involved in betting shops and who has never dealt with poultry farming is ridiculous.

They should know that by spreading false information, they are damaging Croatia’s reputation, driving investors out of our country, and causing much greater harm than they realize. According to him, all fears of domestic producers that their production will be destroyed with the arrival of MHP are unfounded because, as he claims, all products will be exported, and domestic production will not suffer.

Currently, Piric has a special message for Croatian politicians:

“I have brought many investors to Croatia and Croatian companies abroad, and I sincerely urge our politicians to inform and research all details before commenting on any project being implemented in Croatia and to provide the people in Croatia who elected them with accurate information.”

In our upcoming articles, read about the corruption scandals associated with Kosiuk in Ukraine and which other European markets the Ukrainian businessman is trying to conquer.