November 14, 2013

 

Ukraine sends first shipment of poultry meat to EU

During the end of October 2013, the first consignment of poultry meat was shipped from Ukraine to the EU and egg exports are expected to start in December.

 

According to deputy chairman of the State Veterinary and Phytosanitary Service of Ukraine, Vitaly Bashynsky, the country's largest domestic poultry producer - agriholding, Mironivsky Hliboproduct (MHP) - has carried out its first delivery of about 60 tonnes of poultry. He specified that the consignment was destined for France.

 

Bashinsky said Ukraine will soon be awarded Category "A" status for the export of eggs to the EU.

 

"We are working hard to get Category 'A' on export of eggs. There remain just a few unresolved issues which are already being finalised," he said.

 

Government analysts say that the European Commission will allow Ukraine to supply eggs and poultry meat to the EU next month, including it in the list of third countries eligible to import poultry products to the EU. The resolution came into force on July 24, 2013 after the list of suppliers had been approved.

 

The following chicken farms have been authorised to supply chicken abroad: Mironovka meat processing plant Legko and the poultry farm, Snyatynska Nova, which is part of Mironovka Bread Products, as well as Agromars.

 

The EU import authorisation confirms the high quality of Ukrainian poultry and will automatically help increase the supply of Ukrainian poultry to other foreign markets. According to government analysts, the European legislation is one of the toughest in the field of food export permits. It took Ukraine's government almost four years of hard work to obtain import authorisation.

 

Experts say that the first shipment was a small batch of 18.5 tonnes of frozen chicken for processing. The vehicle with the chicken went to the Netherlands. By the end of 2013, it is expected that a similar licence for exports to the EU will be given to the Ukrainian egg producers, Avangardco and Ovostar Union.

 

Experts say that exports of chicken meat to the EU are a low-profit business, compared with other foreign supply. The duty rates are €32.50 (US$44) per 100 kilogrammes of chilled poultry and €29.90 (US$40) per 100 kilogrammes for frozen poultry meat.

 

After the contract is signed about the EU Free Trade Zone, the situation could change, and quotas for duty-free trade will be issued, which will increase the mark-up of Ukrainian companies.

 

It is also reported that the Free Trade Zone agreement suggests that Ukraine will be able to export to the EU up to 20,000 tonnes of chilled chicken meat and 20,000 tonnes of frozen poultry meat annually. At current prices, and with a duty-free licence, the imports of poultry meat will bring in around US$55 to 60 million.