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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Growth of the Chicken Industry in the Ukraine

09/07/2020

According to FAS GAIN Report UP2020-0035 released at the end of August 2020, production of commercial chicken meat in 2020 will attain1.41 million metric tons 4.1 percent higher than in 2019. Ukraine will import 100,000 metric tons of chicken meat and will export 430,000 tons contributing to domestic consumption of 1.12 million metric tons.  With a population of 43.7 million, per capita consumption will be 25.6 kg (56.4 pounds). 

 

Currently chicken availability is derived from commercial boilers (89%), backyard chickens (8%) and spent layer hens (3%).  Consumption of animal protein in the Ukraine comprises chicken (49 percent), pork (35); beef (14) with the remainder comprising other meats.

The industry was impacted by an outbreak strain of H5N1 HPAI in January.  Although the infection was controlled by flock depletion and quarantine, trading partners including the EU, Saudi Arabia and the United Arab Emirates placed bans on exports from Ukraine.  China also deferred imports that were under negotiation for the spring of 2020.  Most restrictions were relaxed at the end of the first quarter consistent with the World Organization of Animal Health protocols.

 

A decline in demand for chicken in the EU associated with COVID-19 restrictions further reduced markets for producers in the Ukraine.

 

Although the GAIN Report does not indicate ending stocks as of the end of 2020, it is understood that the collapse of the food service sector has resulted in an increase in the inventory of frozen chicken with low wholesale price.

 


 
Copyright © 2020 Simon M. Shane