Ukraine’s poultry sector expands despite war pressures
MHP leads market as new investments lift outlook
28 October 2025
2 minute read
By: Ukraine’s poultry industry remains dominated by large, vertically integrated producers that control nearly the entire chicken meat supply chain, according to a recent USDA-FAS report. These companies oversee crop production, feed processing, breeding, slaughter, and distribution, leaving no room for contract farming with small, independent producers.
Chicken meat accounts for almost all poultry output in Ukraine, with other bird species representing less than 3% of industrial production in 2024. Household farms contribute about 8%, mostly for family consumption, with minimal sales in open-air markets.
Industrial production is highly concentrated. Market leader MHP SE controls 54% of total output, while mid-sized companies Dniprovska Ptahofabryka, Agro-Oven, and Avesterra Group together hold another 15%. The next five producers share 9%, and smaller players supply local markets with little export activity.
Most major poultry facilities are located in central and western Ukraine, areas less affected by the war. However, MHP reported the loss of a frozen poultry batch in a Russian missile strike in May 2024. Smaller producers have faced logistical disruptions but no direct losses.
Avesterra Group, based in western Ukraine, announced a $69 million investment in a new 120,000-metric-ton processing facility aimed at accessing the EU market, where MHP currently dominates exports. The project is expected to more than double Avesterra’s output and has contributed to an improved 2026 production forecast.
MHP’s domestic production has remained stable since 2024, with operations running at full capacity. The company is not expanding its Ukrainian production base but is investing in value-added poultry products, such as ready-to-eat and pre-cooked foods, for the domestic market. These investments—part of a $263 million program—reflect a strategic pivot toward higher-margin segments while hedging against war-related risks.
Instead of boosting domestic output, MHP has focused on international expansion. The company owns Perutnina Ptuj in southeastern Europe and recently acquired UVESA Group, Spain’s second-largest poultry producer, for €270 million ($318 million). With this purchase, MHP now controls more than 10% of Spain’s poultry market, adding about 160,000 metric tons of production capacity. MHP has also expanded logistics operations in the UK and feed trading in Croatia, and holds a 45% stake in Saudi Arabia’s Desert Hills Poultry Company.
Retail chicken prices in Ukraine, which remained low through 2024, rose sharply in 2025. Despite higher prices, the country remains a net exporter with strong supply levels. Still, war-related risks—including labor shortages due to conscription, energy disruptions, and trade barriers—continue to constrain expansion.
Disease control remains a priority, with limited cases of highly pathogenic avian influenza (H5N1) detected in non-commercial birds. Major poultry regions have so far avoided outbreaks.
Ukraine’s poultry producers benefit from low feed costs, supported by ample domestic grain supplies. Declining soybean meal prices have offset increases in corn costs. A proposed soybean export tariff and new crushing facilities are expected to keep feed prices low through 2025, sustaining Ukraine’s competitiveness in global poultry markets.
