Ukrainian egg giant starts exports to Europe

Ukrainian firm Ovostar Union started selling egg to Europe for the first time in July, it has revealed in a trading update.

The public company, which is a vertically integrated operation, has some 4.6 million laying hens and is focused on producing egg product for both domestic and export markets.

It said in results covering the first half of 2015 both production and egg prices were up. And exports had more than doubled to 98m eggs, compared with 42m in the same period in 2014.

See also: Cost of egg production analysed

Ovostar is dwarfed by another Ukraine egg business, Avangardco, which won access to Europe last September, and which has a flock of more than 20 million hens.

Ukrainian businesses have significant advantages over European egg producers. Farms in the country benefit from cheaper feed, lower regulation and fewer costs associated with hen welfare.

An analysis by Wageningen University has suggested Ukrainian egg can be competitive even with trade tariffs in place.

‘Organic growth’

Boris Bielikov, chief executive of Ovostar Union, said: “I am pleased to note that in June 2015 the company has started first shipments of our products to the European Union.

“Successful expansion of our sales geography is an important tool for the implementation of our organic growth programme.

“Together with a gradual recovery in prices on the domestic market and strengthening of our export positions, we see a high demand for our products.

“This serves as a solid basis for our confidence in obtaining sustainable results in the future.”