The Ukrainian company BEEHIVE, part of the EFI Group and specializing in honey production, is considering the possibility of establishing production facilities in European Union countries. This move is prompted by the return of import tariffs on honey, which the EU has reinstated and significantly impacted the company’s export activities and its position in the European retail market.
This is reported by Business • Media
Impact of Tariffs on Ukrainian Honey Exports
During the Forbes Ukraine Exporters Summit, BEEHIVE’s top manager Semen Haharіn emphasized that the return of the 17.3% tariff came as an unexpected challenge for the company. According to him, this led to a 20% decrease in margins and, consequently, a significant reduction in the presence of the Ukrainian producer on the shelves of European retailers. Currently, BEEHIVE maintains contracts with only 10-15% of the partners it previously collaborated with.
“When the 17.3% tariff returned, we did not expect it. At one moment, our margin decreased by 20%, and we began to be removed from networks – we are left with only 10-15% of the list of retailers we had before,”
Challenges in Difficult Markets and Future Development Strategy
Semen Haharіn also notes that entering demanding markets such as the British chain Morrisons or the German REWE requires significant effort and special preparation. For Ukrainian honey to appear on the shelves of German supermarkets, the company had to agree to extremely challenging cooperation conditions, including providing retailers with a 55% margin. Moreover, Ukrainian exporters have to compete with European producers who have years of experience and established connections in the market.
Today, BEEHIVE is considering two paths for further development: waiting for Ukraine’s full membership in the EU, which would automatically remove customs barriers, or relocating production directly to Europe. As noted by the company, honey exports to the EU are currently possible for those producers who have sufficient margin reserves and are willing to invest in promoting their products in the European market.