Ukrainian broiler production hits record highs, helped by grain glut

03.10.2016

Ukrainian broiler meat production is growing even faster than thought, thanks to record exports and steady consumer demand, US officials said.

The improving economic situation in Ukraine is allowing producer to up their output, and the bumper grain harvest this year will help margins next year, the US Department of Agriculture's Kiev bureau said.

The bureau revised ideas for 2016 Ukrainian poultry production to 1.01m tonnes, compared to the 970,000 tonnes forecast in official USDA numbers.

And production in 2017 was seen rising 1.05m tonnes, the highest level on record.

Economic stability

The Kiev bureau saw production "boosted by low feed grain prices from 2015-16 grain crop".

And the easing of the economy, after the Ukrainian revoloution and the following civil war and annexation of the Crimea, is is

"Producers were able to secure uninterrupted imports of inputs (hatching eggs, veterinary drugs, spare parts and equipment)," the bureau said.

The better economic outlook is helping to producers to secure financing, as well as providing confidence for expansion.

"Stabilization also reduced uncertainty over finance availability, domestic prices, and consumer demand for the first time in last 3 years, allowing producers to plan and manage more efficiently," the bureau said.

"In 2016 many large producers invested in production expansion and upgrades of existing facilities," the bureau said.

Rising exports

Ukraine's exports are seen at a record high of 215,000 tonnes in 2016, well above the 165,000 tonnes previously forecast.

And production was seen rising even further, to 240,000 tonnes, in 2017.

"Iraq will remain the top export destination by volume, while the EU will remain the most profitable one," the bureau said.

Stable consumption

Consumption is seen holding stable, in 860,000 tonnes, with imports edging down to 50,000 tonnes in 2017.

"Meat protein consumption in Ukraine suffered significantly due to disposable income drop in 2013-2015," the bureau said.

But chicken demand held up, as it is the cheapest available protein.


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