October 31, 2013

Ukraine to expand agricultural production to be ready for EU market

In Ukraine's Vinnitsa region, the establishment of Vinnitsa Broiler with an annual capacity of 400,000 tonnes is under way, where the facility is constructed by Zernoprodukt MHP in Ladyzhin, Trostyanetsky region.

This was informed by the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine.

In a meeting at the Cabinet of Ministers, Ivan Movchan, Chairman of Vinnitsa Regional State Administration, said that in 2013 the company had already put into operation the first stage of broiler meat production totalling 100,000 tonnes. A full construction completion is planned for 2015. The processing complex will use cutting-edge technology for growing and production of eco-friendly chicken.

The implementation of such projects contributes to the competitiveness of the Ukrainian agricultural sector which will enable Ukraine to expand markets for its agricultural products to the EU markets. This is especially relevant considering the signing of the Association Agreement and the establishment of a Free Trade Zone with the EU planned for late November 2013.

The fodder, which is a major expenditure item in chicken meat production, is much cheaper in Ukraine. Therefore, domestic producers will not face real price competition in the European market.

According to the international experts' forecasts, the world production of broilers in 2013 will increase by 2.3% to reach 83.5 million tonnes. Since Ukraine is ramping up production at a faster pace, it is expected that in 2014 the country will be among the top 10 world producers.

Since 2000 domestic poultry industry has shown an active development. In January-June of 2013 Ukraine produced 571,000 tonnes of poultry meat, which is up 14.1% on-year. Each year poultry farms are commissioned or reconstructed at the highest technological level, which provides a permanent increase in output. In late 2012 this figure was 1.066 million tonnes (up 51% from 1991).

As of July 1, 2013 the poultry stock in Ukraine is up 6% on-year, reaching a record mark of 264 million heads.

In recent years consumption of chicken meat in Ukraine exceeded the consumption level in the EU. Therefore, domestic poultry producers are actively developing on account of exports. In 2013, according to the industry experts' forecasts, the volume of Ukrainian poultry meat exports will reach 120,000 tonnes, or 1.2% of the world export.