Israel blocks supply of Ukrainian eggs on infection suspicion

The Israeli Agricultural Ministry decided to halt supplies of shell eggs from Ukraine after authorities discovered salmonella in a bunch, the Interfax-Ukraine news agency reported on Jan. 12, citing the ministry’s press release. The Ukrainian State Veterinary Service confirmed that it received notice from Israel on Jan. 6, Interfax reported. The service is studying the samples and is going to report on the results to both the Israeli side and the Ukrainian public. According to Interfax’s sources in the Veterinary Service, there is only one Ukrainian company that supplies shell eggs to Israel.

Alexander Paraschiy: The single Ukrainian supplier of eggs seems to be Avangardco (AVGR LI, AVINPU), which started deliveries to Israel in 3Q15. In that quarter, Israel accounted for 5% of Avangardco’s total exports and 1% of its total sales of shell eggs. Clearly, such news is negative for Avangardco’s image and might undermine its export potential. At the same time, we do not believe it will have significant consequences for its deliveries to its traditional markets, Iraq and UAE, which accounted for more than 90% of Avangardco’s exports in 2015.