Reduction in production and closure of enterprises: How do EU export restrictions threaten the Ukrainian agricultural sector?

According to the top manager of the Poultry Union of Ukraine, Serhiy Karpenko, the EU is the primary market for selling several agro-food products from Ukraine.

The EU market remains essential for the Ukrainian agricultural industry, but the European agro-industrial complex worries about competition. The import growth of Ukrainian goods to the EU in the last two years is explained by the abolition of quotas and customs duties. The regime expires on June 6, 2024, but market participants expect it to be extended until mid-2025, albeit with sugar, chicken, chicken eggs, and egg products restrictions.

This will negatively affect profitability in the sugar and poultry industries, so the producers of these goods plan to reorient their supply to the markets of Asia and Africa.

Also, introducing quotas by the EU may lead to reductions in the production of these products in Ukraine or even the closure of enterprises in these industries.