August 7, 2023

Ukrainian poultry industry aims for limited recovery amidst ongoing challenges

Following a significant decline in chicken meat production throughout 2022, the Ukrainian poultry sector is cautiously optimistic about a modest resurgence in 2023-24, as the industry grapples with challenges tied to the ongoing war, the USDA Foreign Agricultural Service reported.

The sector is poised to confront mounting production costs, exacerbated by an energy shortage, while also navigating the repercussions of the refugee crisis, which has caused a decline in domestic consumption. Additionally, logistical hurdles in exports persist.

The Ukrainian poultry sector does benefit from low feed costs. Although production rates are anticipated to increase, the industry will not fully recover to its pre-war levels.

The majority of Ukraine's poultry output is directed towards the domestic market, where poultry remains a cost-effective protein source for the population. Even with reduced disposable income, the demand for poultry in Ukraine continues to be strong.

The Ukrainian poultry sector boasts an export ratio of approximately one-third of its total production. Exports will remain significant and increase as production rebounds.

The European Union (EU) has emerged as a replacement for the Middle East as Ukraine's major export destination this year, due to continued trade regime liberalization.

-      USDA Foreign Agricultural Service