After nearly two years of egg shortages, Ukraine’s market is now facing an oversupply, according to Yevhen Khailov, Sales Director of Incuba, a major Ukrainian egg producer. Despite record-breaking export levels, Ukrainian farmers are grappling with an excess of eggs, with production now exceeding demand at over 100 million eggs per month.
The shift to surplus resulted from many Ukrainian farmers increasing their laying hen populations to combat past shortages. However, with poultry meat demand also saturated, farmers now face limited options for reducing flock sizes, Khailov explained. Additionally, frequent power outages are complicating production. Extended blackouts hinder slaughtering and meat storage, adding new layers of complexity for producers.
Meanwhile, Ukraine’s egg exports surged during the first half of 2024, reaching 36,980 tonnes, up from 29,700 tonnes in the same period last year. This growth is attributed to the recovery of industrial egg farming, according to the Union of Poultry Farmers of Ukraine.
The increase in Ukrainian egg exports has created tension among European farmers, particularly in Latvia, where imports have quadrupled in recent years. Janis Gaigals, head of the Latvian Poultry Association, proposed adjusting import duties on Ukrainian eggs to balance production costs and prevent market distortion. Gaigals suggested that any duties collected could be redirected to support Ukraine’s economy.
Primary importers of Ukrainian eggs include Poland, Italy, Singapore, the UAE, and Israel, indicating high demand in both Europe and other global markets. However, domestic prices in Ukraine may rise as the country faces extended power cuts during the heating season. DTEK, Ukraine’s largest power generation company, predicts outages could last up to 20 hours per day due to damage to the energy infrastructure.
As Ukraine’s egg industry faces these challenges, the country may rely increasingly on exports to manage the oversupply, balancing local market pressures with international demand.
