Cost of Ukrainian avian flu outbreak high
Loss of trade opportunities because of avian influenza is estimated at US$5.74 million monthly
As soon as highly pathogenic avian influenza (HPAI) was confirmed in domestic poultry in Ukraine, a number of countries stopped importing poultry products from the country. The value of this lost trade is around UAH150 million (US$5.74 million) each month, according to the Ukrainian Agribusiness Club (UCAB).
The loss of the export trade leads to more chicken on the domestic market and hence, falling prices.
Before the trade was halted by HPAI in early December, around 25 percent of Ukraine’s poultry meat exports were destined for the European Union. Under a trade agreement, 36,000 tons of Ukrainian poultry meat can be exported to the EU each year tax-free. This comprised 16,000 tons under the basic quota and a further 20,000 tons of additional quota. The 3,000 tons-per-month average traded volume is estimated by UCAB to be worth around US$52.5 million.
MHP reports no avian flu in flocks
Among the companies affected by the poultry product trade ban is one of the leading agro-industrial companies in Ukraine, Myronivsky Hliboproduct S.A. (MHP). In a statement released last week soon after the ban was announced, the company said that no avian influenza had been found at any of its poultry facilities. The outbreak has occurred only in private households in one village in an area where MHP has no poultry production facilities, and all the company’s poultry facilities adopt strict biosecurity measures.
According to MHP, the authorities in Ukraine and the EU are cooperating with the aim to restore the poultry meat trade by adopting a regionalized approach similar to the one used recently in Germany.
MHP said it expected regions that are free from avian influenza to be released for exports to the EU within 10-14 days.
The firm does not foresee that the temporary import ban will have any material impact on its 2016 operational and financial results. The firm exports to around 70 countries. Its chicken exports to the EU amount to 20 percent of MHP’s total exports and 6 percent of its overall chicken production.