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USDA International Egg and Poultry


24 February 2014

USDA International Egg and Poultry: Ukraine Cancels Import Licensing for Poultry and LardUSDA International Egg and Poultry: Ukraine Cancels Import Licensing for Poultry and Lard

Ukraine’s Cabinet of Ministers conducted an annual review of products subject to import licensing, which resulted in the cancellation of licensing four poultry, poultry fat, and lard effective January 1, 2014.
USDA International Egg and Poultry

The cancellation follows from Decree 950, which was adopted on December 25, 2013 and officially published in the mass media. Cancellation of import licensing will simplify access of US products to Ukraine’s market.

Import licensing for these products was introduced in the middle of 2011. Officially the licensing was introduced for better agricultural policy planning and food security. In practice licensed volumes had little relevance to actual imports, as importers generally requested high volumes to simplify paperwork. The licensing was automatic and non-restrictive although it constituted an additional bureaucratic obstacle for trade in these products.

Source: USDA FAS Gain Report UP1401 and UP1114.

Ukraine’s Poultry Situation

Trade Status

In January 2014 Ukraine’s State Veterinary and Biosecurity Service banned imports of poultry and poultry products from Hebei Province, China due to outbreaks of avian influenza. Ukraine also banned imports of poultry and products made with poultry from Turkey due to outbreaks of Exotic Newcastle Disease. Conversely, Ukraine’s State Veterinary and Biosecurity Service recently lifted a ban on imports of poultry from Croatia, Finland, and Switzerland.

Ukraine Introduces New Poultry Meat Requirements

In August 2013, Ukraine’s Ministry of Health adopted and published the “Hygienic Requirements for Poultry Meat and Some Quality Indicators.” The requirements closely resemble Commission Regulation (EC) No543/2008 adopted on June 16, 2008 and laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for poultry meat. This regulation does not extend the processing facilities requirements on foreign producers and households producing poultry meat for own consumption. However it introduces unified requirements as to moisture content in poultry meat, packaging and labeling. It also contains a detailed description of the sampling rules and methods used for analysis of poultry and poultry parts. For more detailed information see USDA FAS Gain Report UP1338 and its respective links.

Production

The Ukraine reached relatively stable consumption levels of poultry meat around 2009 as a result of significant expansions in production in the early 2000’s. Poultry production in the Ukraine is expected to continue increasing in the next 5 years as many domestic producers have shared expansion plans for the next 4-7 years. Ukraine is expected to become a regional exporter of poultry in the future and even a serious competitor to the US for markets in the Former Soviet Union and the Middle East. As a result, poultry imports from the US are expected to decline to the Ukraine.

Source: Official USDA data for 1990-2012; FAS-Kiev own calculations for 2014-2018. *Forecast/USDA FAS Gain Report UP1319

According to USDA FAS, Ukrainian poultry production was generally stable from 2010-2012 and is projected to increase significantly from 2013-2016 and again stabilize from 2017-2018. However production increases are very much dependent on Ukraine’s ability to develop new markets as Ukraine has been very dependent on domestic consumption, especially during the recession. Increases in disposable income could strengthen poultry meat consumption, however data from 2010-2013 does not confirm this hypothesis. Instead it suggests insignificant growth domestically and possible increased competition from other proteins (i.e. pork, beef) as consumers revert back to old consumption patterns.

In 2008-2009 Ukraine experienced an economic crisis limiting disposable incomes of consumers resulting in the stronger consumption of poultry; however consumption of poultry meat did not increase with rebounding incomes in 2010-2011. In the following years, Ukrainian poultry producers decided to concentrate on optimizing existing facilities and investing heavily in vertical integration, which resulted in production growth of 5-10%. In 2011 a number of small producers were driven out of business due to increased competition and bankruptcies. As a result, four companies are presently responsible for nearly 75% of the poultry production in Ukraine with one company alone accounting for over 50% of production.

Source: USDA FAS Gain Report UP1338, UP1319, and UP1208/Various News Wires

US Broiler Meat Exports to Ukraine (MT)

Note: Data includes HS0207110, HS0207120, HS0207130, HS0207140*, HS1601000, HS1602320. Data under HS0207140* excludes HS0207140045. Source: Department of Commerce, US Census Bureau, Foreign Trade Statistics/USDA FAS

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