February 1, 2012


Ukraine expects marginal rise in 2012 poultry output



Ukraine's poultry production may grow 3-5% this year compared to 2011 levels, said Alexander Bakumenko, chairman of the Union of Poultry Farmers of Ukraine.


"We expect that production growth rate will be small - about 3-5%," he added. He also noted that in 2011, domestic poultry production was one million tonnes of poultry against 953.5 tonnes in 2010 - up by 5%.


According to experts, it is the low purchasing power of the citizens which forms the main stumbling block against the growth of the industry. Because of this, poultry farmers were forced to sell products at prices below cost, in the first half of 2011.


"In the first half of 2011 the companies sold products at a loss, and then they would raise prices (slightly) and went to a small margin," said Bakumenko.


This year, the prices for poultry meat will be stable. If there will be no force majeure, they will remain at current levels. Fluctuations may not exceed 2-3%." Bakumenko also believes that it is imperative for the poultry industry to develop the export of their products.


According to him, Ukraine exported nearly 50,000 tonnes of poultry meat last year, as compared to 33,000 tonnes in 2010. "Further development of the export market will depend on what will be the relations of Ukraine with the Customs Union as the main markets for Ukrainian poultry producers are Russia and Kazakhstan," said Bakumenko.


He also noted that Ukraine is developing its poultry product exports to new markets, particularly the markets of Southeast Asia.