Strong growth projected for Ukraine’s poultry and egg industry
The Ukrainian poultry and egg industry is poised for significant growth over the next decade, despite the challenges posed by ongoing conflicts and economic instability. According to a forecast by the Kyiv School of Economy (KSE), poultry production in Ukraine is expected to increase by 28%, reaching 1.7 million tonnes by 2033 compared to 2023.
The Ukrainian poultry and egg industry is poised for significant growth over the next decade, despite the challenges posed by ongoing conflicts and economic instability. According to a forecast by the Kyiv School of Economy (KSE), poultry production in Ukraine is expected to increase by 28%, reaching 1.7 million tonnes by 2033 compared to 2023. This growth is driven by several key factors, including positive gross margins, changes in consumption patterns, and the efficiency of large-scale poultry producers.
Key drivers of growth
One of the primary drivers of this growth is the ability of large-scale poultry producers to benefit from economies of scale and lower production costs. These producers often have integrated operations that include poultry feed production, which further enhances their efficiency and profitability. Additionally, the per capita consumption of poultry meat in Ukraine is projected to grow, reaching 32.3 kg per year by 2033, a 15.9% increase from 2023. This shift in consumption patterns is expected to make poultry the primary protein source in the Ukrainian diet, replacing beef.
Challenges and resilience
Despite the positive outlook, the Ukrainian poultry and egg industry faces significant challenges. The ongoing conflict has caused substantial damage to agricultural infrastructure, with the combined value of destroyed assets estimated at $10.3 billion. This destruction has particularly impacted large egg-producing facilities in the south of Ukraine, hindering the recovery of egg production and consumption to pre-war levels. Nevertheless, the industry has shown resilience, with egg production projected to grow by 31%, reaching 855,000 tonnes by 2033.
Export opportunities
The growth of the Ukrainian poultry industry is not limited to domestic consumption.In 2024, Ukrainian poultry exports reached a record high, with a 20.4% increase in value, totaling $962.7 million. The Netherlands, Saudi Arabia, and Slovakia were the largest importers of Ukrainian poultry, highlighting the competitiveness of Ukrainian products on the international market. Egg exports also saw significant growth, with a 59.4% increase in volume and a 22.5% increase in value.
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Future outlook
Looking ahead, the Ukrainian poultry and egg industry is expected to continue its robust growth trajectory. The industry’s ability to adapt to changing market conditions, coupled with ongoing investments in production efficiency, will be crucial for sustaining this growth. While the domestic market faces challenges due to economic instability and declining consumer purchasing power, the expansion of export markets offers a promising avenue for growth.
In conclusion, the Ukrainian poultry and egg industry is set for a period of robust growth, driven by efficiency gains, changing consumption patterns, and strong export performance. Despite the challenges posed by ongoing conflicts, the industry’s resilience and adaptability provide a solid foundation for future success.
