November 4, 2024

Oversupply hits Ukraine's egg market

Ukraine's egg market is now grappling with an oversupply issue following nearly two years of shortages.

In recent years, Ukraine's egg market experienced a severe shortage, prompting many farmers to increase their production capacities. As a result, the country is now producing over 100 million eggs per month.

Despite record-breaking exports, the market is struggling to balance supply and demand. Yevhen Khailov, sales director of Incuba, a local egg manufacturer, highlighted that the surplus is evident even with the increased exports.

Several factors have contributed to this oversupply. Firstly, many farmers expanded their production capabilities to address previous shortages. However, this rapid increase in production has now led to an excess of eggs in the market.

Additionally, the country's poultry meat market is also saturated, limiting farmers' ability to reduce their laying hen populations. Long power outages further complicate the situation, making it difficult for farms to slaughter birds and store meat.

Despite the oversupply, Ukrainian egg exports have continued to rise. In the first half of 2024, exports reached 36,980 tonnes, up from 29,700 tonnes in the previous year.

The largest importers of Ukrainian eggs include European countries such as Poland and Italy, as well as Singapore, the UAE, and Israel. However, this increase in exports has not been sufficient to offset the domestic oversupply.

Egg prices in Ukraine are expected to surge over the next few months due to extended blackouts during the heating season. DTEK, the country's largest power generation company, has estimated that power outages could last up to 20 hours per day, exacerbating the difficulties faced by egg producers.

- aviNews