Ukraine poultry producers adapt to new political conditions

By Vladislav Vorotnikov

- Last updated on GMT

Related tags Poultry producers Poultry meat International trade Russia European union Poultry

Ukraine looks to adapt to new market conditions
Ukraine looks to adapt to new market conditions
The current political crisis has brought major changes in the work of Ukraine’s poultry industry, as the country has lost its main sales market and needs to look urgently for new export outlets.

Ukrainian poultry producers have lost the ability to supply products to Russia and the countries of the Customs Union, and it seems these supplies will not be restored in the foreseeable future.

"We cannot supply our products to the Russian Federation, nor send the shipments [of poultry] to Kazakhstan, Tajikistan and other countries of the Customs Union, as these were also supplied via Russia,"​ reported Oleksandr Bakumenko, director of Ukraine’s Association of Poultry Breeders. "At present it is not clear when and how much these markets will be reopened for our producers."

Despite the fact that Ukraine has quite diversified poultry exports, the supplies to the Customs Union traditionally played an important role in the business. In recent years Ukraine supplied its Eastern neighbours with about 50,000t of poultry – a third of its total supplies abroad.

Hope for EU

"Given this situation the country’s poultry producers are hoping to begin active supplies to the European Union (EU),"​ said Bakumenko.

"We look forward to May, when the Free Trade Zone with the EU will be launched and the quotas for poultry meat exports will be put in place. After that we will be able to deliver a range of products at zero Customs duty to Europe,"​ he added. "That will amount to about 36,000t of poultry meat per year, which not very big but is better than nothing. And, in the long term, we expect the quotas to increase."

According to Bakumenko, Ukraine already exports around 500t-1,000t of poultry per month to Europe, mainly to the Netherlands and Hungary. Such low amounts are due to the very high level of mixed duty rates on poultry products, which go up to 30-35% for poultry meat and up to 50% on ready-to-cook poultry products.

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