Boparan - comment
Ukrainian butcher MHP wants to sell more chicken into the UK market, and as existing exporter should be capable of meeting the logistics challenges of getting chicken into the EU and UK. We think the effect will be negative for Boparan, but should ultimately be contained. The additional supply of carcasses to the UK should hit Boparan margins, which is the last thing Boparan will want to see when it refinances its Oct-25 notes. However, producers and retailers alike will not want to risk being over-reliant on imports, which carry a higher risk of supply chain disruption in the future. Losing chicken from the shelves has ramifications beyond protein, as some customers will take their entire basket elsewhere. Boparan has referenced competition from Ukraine before, specifically the relaxation of import restrictions.