EU allows egg and poultry imports from Ukraine

The European Commission’s Food and Animal Health Committee voted on Dec. 5 in favor of Ukraine’s inclusion in a list of countries eligible to supply poultry meat and other poultry products to the EU, Ukraine’s State Veterinary Service reported. The decision will allow Ukraine to export poultry products to the EU in two or three months, after the relevant amendments to EU regulations are passed, according to the Ukrainian authority. In addition, Ukraine is required to submit a program of salmonella control in accordance with EU regulations.

Alexander Paraschiy: The news is encouraging for Ukraine-based egg makers Avangard (AVGR LI) and Ovostar Union (OVO PW), as well as poultry producer MHP (MHPC LI), though the effect of a newly opened opportunity should not be overestimated. Poultry prices in EU are currently comparable to Ukrainian ones, and egg prices are only slightly higher, which does not make expansion to Western markets a top priority. On the other hand, Europe seems to be becoming an increasingly important market for Ukrainian players in the near future, as prices are likely to be stronger there. EU prices are being kept high due to a regulatory ban on battery cages since 2012. Ambitious capacity expansion plans for the listed Ukrainian poultry and egg makers add a risk of chicken and egg oversupply on the domestic market and corresponding pressure on prices – that’s where the EU alternative will come into play.