In Ukraine, a price increase for chicken eggs of 15–20% is expected in December. This forecast was announced by Serhiy Karpenko, the executive director of the Association of Poultry Farmers of Ukraine. According to him, no significant changes in price are anticipated until the end of November; however, starting from early December, prices will return to October levels.
This is reported by Finway
Main Reasons for Possible Price Increase
The expert explains that the key factors driving up the cost of eggs are the rising production costs in the poultry industry. In particular, the use of alternative energy sources, such as generators, negatively impacts the production cost. Electricity expenses account for 7 to 12% of the total production cost, and for certain types of products, this can be as high as 30%.
“Incubation, followed by the raising of laying hens, requires strict adherence to technological standards for keeping the birds over four months, which cannot be achieved without ensuring a stable and uninterrupted supply of electricity,” Karpenko tells us.
Impact of Energy and Raw Material Costs
Serhiy Karpenko emphasizes that poultry production consists of several stages, and at each of these stages, the costs of components are increasing. As a result, the cost of the final product rises in a ‘geometric progression.’ Another important factor is the rising cost of feed, the production of which also depends on electricity, and its share in the total cost is the largest among other components.
Thus, in December, Ukrainians may face a new increase in prices for chicken eggs, driven by both rising energy costs and the increasing prices of poultry feed.