Ukraine: potential domestic food eggs market capacity estimated at 1-1.2 bln eggs per month – ProAgro research

18:12 | ProAgro

Eggs, like bread, pasta products, sugar, some dairy and other products belong to the group of socially essential products and respective prices are subject to governmental regulation. As a result, eggs producers often are unable to sell their products at prices ensuring normal operation of enterprises and thus overall profitability of industrial eggs production is not often objective.

Despite that the domestic eggs business is developing on the basis of long-term trends; for the purposes of production costs calculation costs of business development are taken into consideration, risks and expenses related to bank loans as well as many other facts. Such approach, in its turn, influences the positive dynamics of eggs production observed in Ukraine in recent years. For instance, from 2004 to 2008 production of chicken eggs in Ukraine increased by nearly 25% and amounted to 15 billion pieces. Nearly all eggs are sold by goods producers in a natural form whereas demand and supply for eggs in the domestic market are sill prone to season-related fluctuations.

In the domestic market, the main eggs consumers are population, food industry (fat-and-oil, bakery and confectionary), processing industry and the rapidly developing HoReCa. According to experts’ assessments, eggs consumption in the natural form by population totals 67%.

The potential capacity of the domestic market of eggs to be used for food purposes is evaluated by market participants to be about 1-1.2 billion pieces every month.

At the same time, an average consumption level in Ukraine per capita still is below the rational nutrition norm recommended by dieticians (290 eggs) and in 2008 it amounted to only 260 eggs. At the same time, in the developed European states, consumption of chicken eggs is about 320-350 pieces per a person in a year. The maximum level of eggs consumption in Ukraine was officially registered in 1986 - 280 pieces per capita in a year.

Concerning sales market, the main channels of eggs sale by agricultural enterprises are market channels. From the territorial perspective, the markets of eggs sale are usually limited by the boundaries of the nearest regions. According to various assessments of market operators, at present about 40-50% eggs are sold in the markets, 25-40% - in large trade networks and the remaining part - in small retail network. The share of pre-packed products amounts to about 20-25%. One can also observe the increase of the share of brand products.

You can obtain more information about the basic issues related to the Ukrainian eggs market development in the research "Ukraine: Egg Poultry Farming and Chicken Eggs Market" prepared by ProAgro. The key trends of the eggs market development, eggs production, consumption, main producing and consuming regions, demand development prospects, preferences on the world and Ukrainian markets as well as many other issues are also discussed in the research.

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