Ukrainian poultry producers prepare to conquer European markets

In Vinnitsa region the construction of the country's largest poultry farm Vinnitsa Broiler with an annual capacity of 400,000 tons is under way. The facility is constructed by Zernoprodukt MHP in Ladyzhin, Trostyanetsky region, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Ivan Movchan, Chairman of Vinnitsa Regional State Administration, said during a meeting at the Cabinet of Ministers that in 2013 the company had already put into operation the first stage of broiler meat production totaling 100,000 tons. A full construction completion is planned for 2015. The processing complex will use cutting-edge technology for growing and production of eco-friendly chicken.

The implementation of such projects contributes to the competitiveness of the Ukrainian agricultural sector which will enable Ukraine to expand market outlets for its agricultural products to the European Union markets. This is especially relevant considering the signing of the Association Agreement and the establishment of a Free Trade Zone with the EU planned for late November 2013.

Experts say the fodder, which is a major expenditure item in chicken meat production, is much cheaper in Ukraine. Therefore, domestic producers will not face real price competition in the European market.

According to the international experts’ forecasts, the world production of broilers in 2013 will increase by 2.3% to reach 83.5 million tons. Since Ukraine is ramping up production at a faster pace, it is expected that in 2014 our country will be among the top ten world producers.

Since 2000 domestic poultry industry has shown an active development. For the first six months of 2013 Ukraine produced 571,000 tons of poultry meat, which is up 14.1% year-on-year.

Each year poultry farms are commissioned or reconstructed at the highest technological level, which provides a permanent increase in output. In late 2012 this figure was 1.066 million tons (up 51% from 1991).

As of July 1, 2013 the poultry stock in Ukraine is up 6% year-on-year, reaching a record mark - 264 million heads.

In recent years consumption of chicken meat in Ukraine exceeded the consumption level in the EU. Therefore, domestic poultry producers are actively developing on account of exports.

In 2013, according to the industry experts’ forecasts, the volume of Ukrainian poultry meat exports will reach 120,000 tons, or 1.2% of the world export.