Poultry a promising Ukraine agribusiness sector
National consumption, export possibilities key to country's rising numbers
Ukraine's meat industry, and more specifically the poultry industry, is one of the most promising sectors of the country's economy as Ukraine rebounds from being one of the hardest-hit European countries during the economic downturn of the last few years, according to recent data.
In 2009, Ukraine's GDP fell 15%, but is now recovering and estimating a GDP growth of 4.4% in 2011 on the heels of 4.2% growth in 2010. A significant portion of this upswing belongs to the country's poultry production, rising due to both national consumption and a solid export foundation. In 2009, Ukraine consumed 2.2 million tons of meat (105 pounds per person), nearly half of which was poultry. In addition, Ukraine's proximity to both Russia and Europe allow the country to take advantage of poultry exporting.
"[Renaissance Capital] estimates that Ukraine’s share of poultry consumption will grow over the next five years to reach the same level as South Africa, Venezuela and Mexico," said Frank Holmes, CEO and chief investment officer for U.S. Global Investors. "This is an important development for companies...with industrialized production of poultry. These companies and the Ukrainian economy could substantially benefit if the RenCap forecast materializes. Overall, look for the developing agricultural sector to play a bigger role in Europe’s food chain."