Today, the cost of grain and oilseeds continues to grow, as the main components for the production of animal feed. So, only in recent weeks, along with the rise in prices of the export market, domestic prices for wheat fodder increased to 9 thousand UAH / t (+450 UAH / t), corn rose in price to 8.55 thousand UAH / t (+350 UAH / t), while sunflower cake and meal, respectively, increased in price to UAH 10.7 thousand / t (+200 UAH / t) and UAH 11.5 thousand / t (+300 UAH / t).

Yuri Kravchenko, author of the article, advisor to the head of the supervisory board of the agricultural holding "Agroholding Avangard"

In total, since the beginning of the use of cereals of the new harvest, the price of compound feed for laying hens has increased by 60% and as of February declared by producers at the level of 12.2 thousand UAH / t. Of course, this will affect the increase in prices for eggs, since compound feed in the production cost is up to 75%.

According to the forecasts of market experts, the upward trend in the cost of grain and oilseeds will be in the next 2-3 months. Therefore, do not expect a decline in egg prices, at least during this period. A shortage of grain raw materials for feed producers is also not expected. In general, the demand of the domestic market, including for feed production, is 6-7 million tons of corn and it will be fully satisfied, taking into account the volume of the new harvest and the carry-over of the last season.

At the same time, the poultry farms that are part of the Avangard agricultural holding cannot actively attract investments and significantly expand the export of eggs, which could contribute to additional income for our company and, at least, stabilize egg prices in the domestic market.

But in this case, economic conditions do not work, because the insane and senseless pressure on our business from the NABU law enforcement officers completely scared away potential investors from us, and limited access to any credit resources. In these conditions, we were forced to stop the opening of new trade missions abroad, and of the eight operating (in Singapore, Hong Kong, Malaysia, Iraq, the United Arab Emirates, Liberia, Qatar, Bahrain), six suspended their activities.

Overall, our export rate in 2020 fell by 30% compared to the previous year. Add to this the closure of eight poultry farms, which, unfortunately, will not be the last, and the corresponding reduction in production, and hence the supply of eggs on the domestic market. As a result, we have a direct dependence on the long-term arbitrariness of NABU and the lack of proper government support to direct losses for our company, which produces such an important consumer product as chicken eggs.

Yuri Kravchenko, Advisor to the Head of the Supervisory Board of the Avangard agricultural holding

Source