UKRAINE - Poultry production in Ukraine is expected to increase by eight per cent this year thanks to new production facilities that came on line in 2013 and in the first half of 2014.
The bulk of this additional growth in production will be exported, although domestic demand is expected to grow marginally as well.
The 2014 production level will fall below the forecast figure due to the ongoing political turmoil in Ukraine as well as production and distribution problems in the eastern regions. The production estimate for 2015 also decreased as major producers are expected to moderately expand production by raising production efficiencies.
Substantial currency devaluations in early 2014 will have a limited impact on poultry consumption. Poultry meat remains the most affordable animal protein and consequently is also the most favored by local consumers. Overall meat consumption is expected to decline due to comparatively higher beef and pork prices. Major poultry producers anticipate strong consumer demand in the domestic market and are preparing accordingly.
Poultry meat exports are expected to grow significantly in 2014 and 2015. Ukrainian’s producers will remain bullish on foreign markets which will continue to be their main source of growth. The Russian market remains closed to Ukrainian poultry meat exports since February 2014. Iraq became a major export destination for Ukraine’s poultry meat, with Former Soviet Union (FSU) countries responsible for the remaining 1/3 of the market.
In 2014, the European Union granted market access to two major Ukrainian exporters. Shipments from both eligible exporters are expected to continue until the fulfilment of the Tariff Rate Quota (TRQ) in November 2014. In order to continue exports beyond 2014, the Deep and Comprehensive Free Trade Agreement (DCFTA) needs to be fully implemented by Ukraine and EU Member States. This year, the domestic industry will concentrate on developing new export markets and have set their sights on ambitiously expanding these from 40 to 50 by 2017.
You can view the USDA GAIN: Ukraine Poultry and Products Annual 2014 report by clicking here.
TheMeatSite News Desk