Ukraine’s egg exports plummet due to capacity loss

“The decrease in export volumes is related to Russia’s military aggression, as poultry production in the country dropped due to the occupation of territories and the destruction of production facilities,” the organisation said, adding that blocking of seaports also took its toll as rising logistics costs negatively affected not only export volumes but also the financial stability of egg exporters.

The largest importers of Ukrainian eggs are the EU, Singapore, the UAE, and Israel, the Ukraine poultry union said.

In 2021, Ukraine’s egg production plummeted by 25% compared to 2020 to 3 billion eggs, the official statistics show. The output was hampered by various factors, including expensive feedstuff, gas and electricity prices, and a standoff between Ukraine’s largest egg producer Ukrlandfarming, and the state anti-monopoly regulator.

Capacity destructions

Since the beginning of the conflict, the Ukrainian poultry union reported that several poultry farms had been damaged or destroyed. On 19 March, a poultry farm in the Dnipro region was destroyed by a missile strike, the poultry union reported, citing a statement issued by Valentyn Reznichenko, head of the Dnipro Regional State Administration.

The farm was not operational at the time of the attack, Reznichenko added.

On 13 May, the Ukraine poultry union further reported the destruction of the country’s largest poultry farm, Chornobayivska, in the Kherson region.

Millions of chickens die from starvation

Ukrlandfarming Group, which owns the farm, was unable to feed poultry, transport workers to their workplaces, or take out finished products since the facility is located in the territory controlled by Russian forces. More than 4 million heads of adult broilers and 700,000 young chicks have reportedly died from starvation at the farm.

In total, the Ukrainian egg industry suffered losses from the conflict of close to 1.5 billion hryvnias (US$51 million), the Ukraine poultry union reported, adding that several egg farms were also destroyed near Makarov and Brovary in Kyiv region.

Egg export resumes

Yevgeny Khailov, head of the sales department at the Ukrainian poultry company Incuba LLC, estimated that since 24 February, the number of laying hens in Ukraine has decreased by at least 40%. Many poultry farms operate at a minimal capacity utilisation ratio.

After the Ukrainian ports suspended operations, egg exports ground to a halt for several months. However, supplies have resumed gradually.

“Poultry farms in Western and Central Ukraine are already exporting chicken eggs,” said Khaylov. “Today, deliveries pass through Poland and Romania. But so far, these are far from the pre-war levels.”