Currently, there is a worldwide debate about the export of Ukrainian agricultural products. Recently, European farmers have been increasingly complaining about the influx of chicken meat and eggs from Ukraine. Polish farmers, for example, have raised this issue, while French farmers are voicing concerns about unfair competition with significant Ukrainian suppliers.
Before the full-scale war, around 10 thousand tons of Ukrainian poultry meat were entering the French market each month. Now, it has doubled to 20 thousand tons. This information was provided by Michel Scheffer, President of the Interprofessional Association of Chicken Meat Suppliers Anvol, in a comment to Le Figaro last September. He mentioned that Europeans primarily focus on family businesses, typically raising an average of 40-50 thousand chickens, whereas Ukrainian enterprises raise 1.8 million birds.
The frustration among local farmers appears quite reasonable, especially considering that in 2021, France held the second spot in the ranking of the largest chicken meat producers in the European Union. However, by the following year, 2022, due to an outbreak of avian flu, it lost its leading position. The supply volumes decreased by 9.7%, as reported by Latifundist.
After the epidemic concluded, the French market couldn’t bounce back to its former state. Instead, Ukraine stepped in and claimed a portion of the market share. Speaking with The Ukrainian Week, Maksym Hopka, an analyst from the Ukrainian Agrarian Business Club, cited data showing that from January to November 2023, chicken production in Europe increased by 3.3% compared to the same period a year earlier. The growth was mainly driven by producers in Italy, Hungary, Denmark, Spain, and Romania. However, France, Germany, and Poland reported growth rates below the EU average. Conversely, Finland, the Netherlands, and the Czech Republic saw a decline in poultry production altogether.
By the way, it’s worth mentioning that the export of Ukrainian poultry amounts to just 1.6% of the total European consumption, while eggs make up 0.8%, as reported by the Ukrainian Union of Poultry Farmers. Furthermore, the EU serves as the primary market for agricultural products in countries like Brazil, Thailand, the United States, the United Kingdom, and Mexico.
For instance, imports from Brazil, Thailand, and Ukraine constitute nearly 82% of the total poultry imports into the EU.
“Even though Ukraine exports chicken to the European Union, these products don’t reach every country. Our major exports go to the Netherlands. We also have sales in other markets, with significant deliveries to Saudi Arabia and Turkey,” explains Maksym Hopka.
A similar trend is seen in the egg supply to the European market. For instance, from January to November last year, egg imports to the EU surged by 88% compared to the same period in 2022. The increase primarily came from suppliers in the United Kingdom, India, Albania, North Macedonia, and Ukraine, according to data from UKAB.
Meanwhile, Ukrainian customs calculated that Ukraine exported 15.8 thousand tons of eggs from January to April 2023, earning us $23.2 million. The main buyers of Ukrainian products were Poland, the Netherlands, and Latvia.
Moreover, in 2022, a significant part of Ukrainian production suffered due to hostilities and occupation. The Russian occupation army destroyed the Chornobaivska poultry farm in the Kherson region, and the “Phoenix” poultry farm— one of the largest in the Donetsk region, which used to produce up to half a million eggs daily— was also severely damaged.
The industry began its recovery in the latter part of 2022, aided by the EU’s decision to allow duty-free Ukrainian goods into its markets for a year starting in the summer of that same year. In June 2023, these trade measures were extended for another year, causing significant unease among European farmers.
Recently, the International Trade Committee (INTA) approved the European Commission’s proposal to extend duty-free trade for Ukraine until June 2025. However, this extension comes with specific conditions. Notably, there is a provision for the rapid halting of supplies and the implementation of tariff quotas for Ukrainian poultry, eggs, and sugar if they exceed the average volumes of 2022–2023. The final approval of the corresponding agreement now rests with the European Parliament and the Verkhovna Rada, as the current arrangements are set to expire on June 5, 2024.
In a statement to Politico, Ukraine’s top trade negotiator, Taras Kachka, stressed that the extension of duty-free trade has enabled a resurgence in building trade ties and preparing the ground for Ukraine’s complete integration into the European Union.
However, this development marks only another step in the ongoing dialogue regarding the integration of Ukraine’s agricultural sector into the EU. “Free trade access to the EU has become a lifeline for Ukraine’s war-ravaged economy,” Kachka said, “And it has also benefited Europe’s farmers, who are sending us record amounts of processed goods.”
“The message to our own farmers is that they need to adapt as well. We are not suggesting that the EU should accept Ukrainian agriculture as it is. That would cause problems,” explains Taras Kachka.
He emphasised that Ukraine’s accession to the EU requires systemic changes in the agricultural sectors on both sides of the border.
