Ukrainian poultry industry faces uncertain future amid EU tariffs

UKRAINE – The European Commission’s impending tariffs on Ukrainian egg imports are set to impact local producers significantly, Reuters reported, quoting Ukrainian poultry industry representatives.

The Commission’s spokesperson indicated that the tariffs would be implemented within the next two weeks, following the breach of a previously agreed annual import threshold.

The European Union had initially granted Ukraine free-trade access to bolster its economy after the Russian invasion in 2022.

However, this led to dissatisfaction among EU farmers and sparked widespread rural protests, prompting the EU to impose limits on certain agricultural imports from Ukraine.

Serhiy Karpenko, executive director of Ukraine’s union of poultry breeders, expressed concerns over the imminent tariffs.

“If the tariffs are imposed, Ukrainian eggs will become non-competitive in the EU market, leading to a drop in exports,” Karpenko said in an interview with Reuters.

He highlighted that the additional costs would render trade with the EU unprofitable, compelling producers to either scale down production or seek alternative markets.

Karpenko noted the significant challenges in finding new markets under the current circumstances.

“Due to logistical issues, increased costs, and limited accreditation opportunities for exporters, identifying new markets is extremely difficult at present,” he explained.

The union of poultry breeders warned that a reduction in export volumes would have adverse effects on Ukraine’s trade balance and foreign currency earnings, further straining the financial health of producers.

This comes as a blow to an already struggling agricultural sector in Ukraine, severely impacted by the ongoing conflict with Russia.

The Kyiv School of Economics estimates that the conflict has led to the destruction of agricultural assets worth US$10.3 billion since its inception.

The proposed EU tariffs present a daunting challenge for Ukrainian egg producers, who must now navigate the dual pressures of reduced market access and the ongoing economic turmoil caused by the war.