Ukrainian chicken to reorient from the EU to the Middle East

Poultry production in Ukraine has recovered this year after a drop in production in 2022 and demonstrated stable performance. Next year, the situation will be similar, with a slight increase.

This forecast was made by analysts of the US Department of Agriculture (USDA).

Given the full-scale invasion, microeconomic instability, lack of foreign and domestic investment, population outflow, logistics problems, mobilization and power outages, Ukraine’s chicken production is estimated at 1.32 million tons this year and 1.33 million tons in 2025.

Exports are projected to reach 445 thousand tons this year and 450 thousand tons next year.

Restrictions imposed by the EU will force Ukrainian producers to consider other export destinations, USDA analysts believe.

“The second best alternative to the lucrative EU market is the Middle East. Prices for chicken meat there recovered in the first quarter, making exports to the traditional markets of Saudi Arabia and the United Arab Emirates much more attractive,” they said.

Ukraine has also increased its presence in the markets of Turkey and Iraq. Turkey is one of the world’s leading countries in the production and export of chicken meat.

“Most of Ukraine’s exports to Central Asia and Iraq go through Turkey. Due to lower margins, these markets remain less attractive for Ukrainian producers,” experts explain.

At the same time, Ukraine is expected to reduce imports of meat offal for domestic consumption.

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Tags: Saudi Arabia, chicken, Ukraine, UAE, EU